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The Parliamentary Under-Secretary of State for Transport (Mike Kane)
I beg to move,
That the draft Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024, which was laid before this House on 24 July, be approved.
I want to take a moment to pay tribute to my former constituent Ken Eastham, who died recently at the age of 96. He served the people of Blackley and Broughton in this House from 1979 to 1997. He knew me as a child, and was delighted that I became a Member of Parliament. He worked diligently on behalf of his constituents. I will remember him, his late wife Doris, with whom I kept in contact, and his family in my prayers tonight.
As a fuel that can be used in existing aircraft, sustainable aviation fuel, or SAF, is one of the most effective ways of starting to decarbonise flights. The greenhouse gas emissions associated with the use of SAF are 70% less than those from fossil jet fuel on a life-cycle basis. This Government recognise the urgency of the global climate challenge, and the opportunities that are available from leading on the development of these technologies. It is a core part of our mission to make the UK a clean energy superpower, and it is one of the many steps that we are taking to decarbonise aviation, which include our plans for airspace modernisation. The SAF mandate will support the decarbonisation of the aviation industry by creating demand for SAF in the UK. The scheme has been developed over several years, during which there have been two formal consultations and significant stakeholder consultation. In July this year, we confirmed the detail of the proposed SAF mandate set out in the statutory instrument, and that was received positively by stakeholders.
The SAF mandate is one of several Government initiatives to support the development, production and use of SAF in the UK. The advanced fuel fund, for example, is currently supporting 13 UK plants with £135 million of grant funding. Additionally, the Government are introducing a revenue support certainty mechanism Bill, which was included in the King’s Speech and will support SAF producers who are seeking to invest in new plants in the UK. It will incentivise investment in UK SAF production, helping to drive growth across the UK, secure the supply of British-made SAF, and maintain the UK’s position as a global leader.
Alongside the potential for SAF to reduce carbon emissions on a life-cycle basis—compared to that of traditional jet fuel—there are significant economic benefits associated with the development of a domestic SAF industry. Industry research estimates that such development could generate up to 60,000 new jobs by 2050, adding up to £10 billion gross value added per annum. That supports our growth mission to kick-start economic growth across the UK.
The introduction of a SAF mandate marks an important step forward for the decarbonisation of the aviation sector. It will provide a long-term incentive for SAF use in the UK by setting a guaranteed level of demand, demonstrating the UK’s world-leading commitment to SAF uptake. It will also provide clarity for investors: a clear signal to develop SAF production facilities and more advanced SAF technologies in the UK and globally. Crucially, the mandate could reduce aviation emissions by up to 2.7 megatonnes of carbon dioxide equivalents in 2030, and by up to 6.3 megatonnes of CO2 equivalents in 2040.
Decarbonising transport is a key focus for this Government. It is central to the delivery of the UK’s cross-economy climate targets, and directly supports the Prime Minister’s mission to accelerate our journey to net zero. Delivering greener transport is also one of the five priorities that my right hon. Friend the Secretary of State for Transport has set out for the Department. This statutory instrument will deliver on our manifesto pledge to secure the UK aviation industry’s long-term future by promoting sustainable aviation fuels. It will impose an annual sustainable aviation fuel obligation on every company that supplies jet fuel over a certain threshold in a specified period. The SI will operate a tradeable certificate scheme, whereby the supplier of SAF is rewarded in proportion to its greenhouse gas emissions reduction.
To be eligible for certificates, the supplied SAF must meet strict sustainability criteria, including that it must be a residual waste or residue-derived biofuel, a recycled carbon fuel, a low-carbon hydrogen fuel or a power-to-liquid fuel. The certificates can be used to discharge a supplier’s obligation or sold to other suppliers. If this statutory instrument is approved, the SAF mandate will take effect on 1 January 2025. The SAF mandate will require 2% of jet fuel to be made from sustainable sources in 2025, 10% in 2030 and 22% in 2040. It is one of the world’s most ambitious frameworks to drive demand for SAF.
A successful and resilient SAF industry will need a range of technologies and feedstocks to meet increasing demand. The SAF mandate drives the diversity of technologies and feedstocks in two main ways. First, we will create space for more advanced fuels by setting a future cap on fuels that will be limited by feedstock supply. Fuels derived from segregated oils and fats are known as hydroprocessed esters and fatty acids. We recognise that HEFA will make an important contribution to meeting the SAF mandate, particularly in the early stages of the mandate. HEFA can contribute 100% of the SAF demand required under the mandate in 2025 and 2026. The cap will then gradually tighten, decreasing to 71% in 2030 and 35% in 2040. The mandate will still allow around 1 million tonnes of HEFA-derived SAF to be supplied each year in the UK from 2035.
Secondly, to accelerate the development of advanced fuels, a specific obligation on suppliers to supply power-to-liquid fuels will be introduced. Power-to-liquid fuels have a lower risk of feedstock competition and other negative environmental impacts. From 2028, the power-to-liquid obligation will be set at 0.2% of total jet fuel demand, increasing to 3.5% in 2040. Fuel suppliers will be able to meet their SAF mandate obligation in three ways: they can supply SAF and earn certificates, buy certificates from others who have supplied fuel, or pay a buy-out price. The buy-out mechanism will apply to both the main obligation and the power-to-liquid obligation, which will operate as a method of compliance if there is insufficient SAF supply in the market. This SI sets out the buy-out prices, which represent a significant incentive to supply SAF to the UK market. They are set at a level that encourages the supply of SAF over the use of the buy-out and set a maximum cost for the scheme, thereby delivering a greenhouse gas emissions reduction at an acceptable cost.
As I have mentioned, for fuel to be eligible for certificates, it must align with strict sustainability criteria and be made from sustainable wastes or residues. SAF produced from food, feed or energy crops will not be allowed. Suppliers must therefore report information to the mandate administrator to demonstrate compliance with the sustainability criteria for each application. The mandate administrator will have the power to not issue certificates if sufficient evidence is not provided. It will also have the power to revoke certificates if inaccurate or fraudulent information is provided, and to issue civil penalties to suppliers for lack of compliance.
The information that fuel suppliers provide must be independently verified before suppliers can apply for SAF certificates. To ensure that the design of the SAF mandate reflects the latest technological and commercial developments on SAF, there will be continuous monitoring of trends, and formal reviews will be conducted and published every five years, with the first review carried out by 2030. To support fuel suppliers, the administration of the SAF mandate is closely aligned with the administration of the renewable transport fuels obligation, which currently obligates suppliers of road fuels in a very similar way.
The Government recognise that sectors such as aviation are vital for achieving economic growth, shaping the future of clean energy and delivering for our communities. The development of the SAF mandate, alongside other priorities such as modernising our airspace, is a key part of this Government’s ambitious and pragmatic approach to decarbonising transport and promoting economic growth, ensuring that the UK continues to lead the way on SAF globally. I commend this order to the House.
Greg Smith (Mid Buckinghamshire) (Con)
In responding to this debate on the Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024, may I say at the outset that the transition to sustainable fuel is a topic that has had my interest for many years? Some may even say that I am very capable of becoming a complete bore on the subject, but I will not push the limits too far this evening. [Interruption.] The hon. Member for Easington (Grahame Morris) knows that all too well; we both served on the Transport Committee in the last Parliament. Our “Fuelling the Future” report championed sustainable and synthetic fuel, and I have put it into practice—in my case, on the road, rather than in the air, in a classic Land Rover powered by synthetic fuel—during my past two summer surgery tours. I draw the House’s attention to my entry in the Register of Members’ Financial Interests.
There is a clear and undeniable role for such fuels across all transport modes in our path to 2050. Aviation is possibly the most difficult to de-fossilise and decarbonise, but it is also ahead of the curve, because sustainable and wholly synthetic fuels are an innovation that enables everyone to continue doing what they want to do—flying off on holiday or to see family, going on a business trip or general motoring—in a cleaner and eventually de-fossilised, carbon-neutral way. We are not reinventing the wheel, but reinventing the fuel.
I assure the House that the Opposition are not looking to oppose this statutory instrument or divide the House on it—quite the opposite, as it is a continuation of plans set out by the previous Government. The development of sustainable aviation fuel was one of six key measures in the last Government’s jet zero strategy, which supported the growth of sustainable aviation fuel in our United Kingdom. The cost-benefit analysis produced by the Department for Transport before the general election suggested that the SAF industry could add more than £1.8 billion to the economy and create over 10,000 jobs in the country. A gradual transition to SAF is the correct way to go; we should require 2% of UK jet fuel to be made from sustainable sources in 2025, 10% in 2030 and 22% in 2040, and that should be incentivised through the award of tradeable certificates with a cash value. That said—it is rare that I make this comparison—the UK target for 2040 falls short of that set by the European Union, which is 34%.
The Conservative Government recognised that SAF may be more expensive than traditional jet fuel in the intermediate term. Our plan included a review mechanism to help manage prices and minimise the impact on ticket fares for passengers. My first question to the Minister is: can the Government reassure the House that the impact on passengers will be kept to a minimum, and can we ensure that they are not footing the bill? Provided that sufficient SAF is available, any increases in air fares as a result of SAF will fall well within the range of the usual fluctuations in prices that we see every year, and the previous Government had plans in place to prevent any major hikes. Can the Government confirm that they too will guarantee that there will be no major hikes in prices, so that we can transition to net zero in an affordable way, taking people along with us?
The Conservatives kick-started the UK SAF industry by allocating £135 million through our advanced fuels fund, which was funding 13 projects to reach completion and supporting our ambition to ensure that five plants were under construction by 2025. Will the Government provide an update on those projects, as they will be vital in helping us to move towards using sustainable fuel?
I urge the Minister to focus thoughts on how to ensure that the UK is a power hub for eSAF—to clarify, that is 100% synthetic aviation fuel—and to gently kick the tyres on whether we are progressing the technology as quickly as is humanly, financially and scientifically possible. We have significant players in this space in the UK, such as Zero Petroleum, which sits on the jet zero council and, indeed, holds a 2021 Guinness world record for “first aircraft powered by synthetic fuel”. Over the summer, I visited Zero Petroleum’s plant, where it produces engineering-level synthetic fuel, including aviation fuel, to hear about its progress and to better understand the obstacles in its way. It is essential that such innovators be empowered to grow, develop their fuels and provide green solutions and value to our economy.
Power-to-liquid SAF has a sub-mandate starting in 2028. We will reach 0.5% SAF by 2030 and 3.5% by 2040; that is slower and less ambitious than the European Union’s figure of 10% by 2040. Some experts have said that this suggests that the UK has a more cautious approach to power-to-liquid, and that the United Kingdom’s strategy focuses on monitoring progress under the mandate, and on us having the potential to revise targets depending on technological advances.
Where the SAF mandate, and the statutory instrument, could go further in future iterations is clear. According to the explanatory memorandum, if subsidised hydrogen is used to make eSAF, under the hydrogen production business model support scheme, SAF certificates cannot be claimed against the mandate. Without HPBM support, there is the risk that the cost of green hydrogen will be far too high for eSAF to be produced at a competitive price in the UK. Indeed, there is even the risk that the eSAF production cost will be above the eSAF mandate buy-out price. If the cost is above the buy-out price, that will mean that no UK eSAF plants will get built, so all the UK’s eSAF demand will be fulfilled by foreign producers.
The HPBM is needed to bring down the cost below the buy-out price under the SAF mandate. Both support under the HPBM and the revenue certainty mechanism are needed for UK eSAF projects to be bankable—for example, credit or potentially subsidy stacking needs to be explicitly allowed. This SI is clearly supportive of the power-to-liquid pathway. However, it would be prudent for the Government to express an intent to financially support domestic eSAF technology developers, such as Zero Petroleum or OXCCU—as opposed to project integrators—in order to give a boost to this much needed industry in the UK, as well as helping the country to benefit from the vast export potential of the technology. That could be through dedicated power-to-liquid technology grants, such as fuel synthesis, direct air capture specifically for fuel, and/or equity funding—for example, through the UK Infrastructure Bank. A further anomaly is that the Aerospace Technology Institute, which is UK Government-funded, is not permitted to deploy funds to power-to-liquid technologies. I put it to the Minister that that should be corrected.
We can be a powerhouse in the United Kingdom for SAF. The new Government are right to continue with the path set by the previous Conservative Government, so we support the motion, but the potential for the future is huge, and in the spirit of getting this right, I urge the Minister to consider the points that I have outlined, and to supercharge our great country’s role in this technology.
Several hon. Members rose—
Madam Deputy Speaker (Caroline Nokes)
Before I call the next speaker, I remind Members that it is helpful for the Chair—not least me personally, but there will be other Deputy Speakers later—if you bob up and down. Even if I have your name on a list, it is helpful if you indicate that you wish to speak.
Grahame Morris (Easington) (Lab)
I will not detain the House too long—[Interruption.] Hooray! I just want to make a couple of points. As the shadow Minister, the hon. Member for Mid Buckinghamshire (Greg Smith), indicated, we both served on the Transport Committee in the last Parliament, and the Committee did quite a detailed inquiry on the sustainability of fuels in all sectors. We made several recommendations, and I do not believe that there is a cigarette paper—perhaps that is a non-PC term—between the two sides of the House on the issue, but I want to ask a couple of questions.
This subject is really complicated and is plagued with acronyms—HEFA, SAF, ATF, eSAF, HPBM, Jet Zero. I will not be tempted into aviation puns, but there are some important stats. As the Minister stated, estimates suggest that the sustainable aviation fuel industry could create up to 60,000 jobs by 2050—the shadow Minister said that there would perhaps be 10,000 new jobs, but that is in a longer timeframe. The shadow Minister also said that the SAF industry could contribute as much as £1 billion to the UK economy, but by 2050, it could contribute as much as £10 billion, so it is clearly a very important sector.
I am concerned about ensuring that sustainable aviation fuels under this mandate be required to meet the strictest sustainability standards. We must ensure that they are green fuels, and that there is a staged progression towards jet zero—we have heard what that is: 2% from 2025, 10% by 2030 and 22% by 2040—and we really must ensure that the greener fuels are responsibly sourced from the most sustainable locations, preferably in the United Kingdom. We had a debate last week about the launch of GB Energy and the importance of not exporting the jobs created through our efforts on decarbonisation. Will GB Energy play a role in some of these new technologies? We may well develop a hydrogen fuel cell that can produce green hydrogen much more cheaply, but in the meantime, to plug the gap, we must ensure that efforts are made to onshore as many of the jobs and benefits of this exciting opportunity as possible.
Madam Deputy Speaker (Caroline Nokes)
I call the Liberal Democrat spokesperson.
Wera Hobhouse (Bath) (LD)
I sense that there is a great deal of consensus across the House on this statutory instrument. There is consensus that the aviation sector is one of the hardest to decarbonise, and probably also that the new technology that is being proposed—SAF, in its different iterations—needs a great deal of technological knowledge. However, the principle of taking the first steps towards creating the SAF mandate—of the requirement for SAF to meet 2% of total jet fuel demand from 1 January, and of increasing that on a linear basis, to 10% by 2030 and to 22% by 2040—has no opposition, and we will absolutely support the Government in that effort.
Virgin Atlantic has already demonstrated that a plane can fly across the Atlantic on 100% SAF, but that was just one flight, and there are hundreds of flights every day. That is the challenge. I congratulate Virgin Atlantic on this groundbreaking achievement but we really need to see how industry, the Government and indeed everybody who is developing new technologies can produce sustainable aircraft fuels at the scale that is needed. This needs a great deal of investment.
We know that biofuels are not a long-term solution, as they compete with food production. SAF from waste, the next generation of SAF, is not a long-term solution either. It is obviously part of the solution, but as the shadow Minister has pointed out, the real challenge is to get to the third generation SAFs—that is, synthetic fuels. We need to develop them as soon as possible, and they need a great deal of electricity. Whatever we say about this, direct air capture needs a great deal of electricity. Producing hydrogen in a sustainable way—that is, getting to green hydrogen—will also need a great deal of electricity. The crunch in all this is: where is all that renewable energy coming from, unless we are ultimately overproducing renewable energy? I believe that GB Energy will have a big say in this and will be crucial in developing all the renewable energy that will ultimately help us to decarbonise the aviation sector. This is really the challenge.
While I welcome the kick-start of a journey to net zero in aviation, the 10% to 22% mandate between 2030 and 2040 is a concern for the Liberal Democrats. We want to get to net zero by 2045, but having planes still running on 78% fossil fuels is just not good enough. The UK has the third largest aviation network in the world and the second largest aerospace manufacturing sector. Almost 1 million UK jobs are directly or indirectly supported by the aviation sector. The future of the aviation industry with SAF is obviously a wonderful opportunity and challenge. Making the right choices on SAF will ensure that the UK can continue to be a global leader, and I think that we are as one across the House in wanting this to happen in order to make the UK the global leader in this area.
It is only right that we take these steps, which support decarbonisation and also create the jobs that we need in the future. What is important is that the Government collaborate with the aviation fuel suppliers to ensure that this initiative really succeeds. I would like to hear a little more detail from the Minister about how the Government will work alongside suppliers to make this a long-term success.
As I have said, we welcome this, but there are other examples of what we can do in the meantime to decarbonise the sector. For example, we could ban short-haul domestic flights on journeys that can be done by rail in less than 2.5 hours. Such a ban already exists in France, so it would be good if the Government at least looked at this. The cost of flying must be linked to the environmental cost. It is ridiculous that I can, at least on some journeys, fly 100 miles to a European city for less than it costs me to go by train from Bath to London. The Liberal Democrats would focus on those who fly the most to reduce the unfair burden on households who fly only once or twice a year. Plus, we would impose a new super-tax on private jet flights and remove VAT exemptions for private, first-class and business-class flights.
To conclude, while we welcome today’s introduction of the SAF mandate on 1 January, I urge the Government to review the targets set from 2030 to 2040 and to be more ambitious than what they are proposing today, so that by 2040 a much higher percentage of aviation fuel comes from sustainable aircraft fuel than the 22% that is currently proposed.
Madam Deputy Speaker (Caroline Nokes)
I call Steve Race to make his maiden speech.
Steve Race (Exeter) (Lab)
Thank you, Madam Deputy Speaker. May I take this opportunity to put on record my congratulations to you on your election and to pay tribute to the staff of the entire House, who have worked so hard to make us all comfortable and able to get on with our jobs in this very complicated and complex place?
I pay tribute to those who made their maiden speeches in previous debates today, including my hon. Friends the Members for Makerfield (Josh Simons) and for Macclesfield (Tim Roca) on this side of the House, and the hon. Member for Witney (Charlie Maynard) on the Liberal Democrats Benches. Given the hon. Member for Witney’s reference to the wool trade, and given that Exeter’s wealth in the middle ages was built on the wool trade, with the wool being brought down from Dartmoor, it is entirely possible that our two places had significant trading links in the past.
I am delighted to give this maiden speech as the new Member for Exeter—only the third in over half a century. In his own maiden speech, my hon. Friend the Member for Lincoln (Hamish Falconer), who was here earlier today, stated that Lincoln was the oldest parliamentary seat in the country, established in 1265. Exeter, another great cathedral and university city, is by comparison a mere whippersnapper, with our seat being established in 1295.
Of the many Members who have represented Exeter in the subsequent seven centuries, my immediate predecessor, Sir Ben Bradshaw, needs little introduction. He served the country diligently throughout his 27 years as a Member, including a decade as a Minister. Elected in the 1997 Labour landslide, he gained early notice as one of the first out gay men ever to be elected to the Commons. After a notorious campaign, Exonians in their wisdom rightly and roundly rejected the outrageous homophobia of his opponent, and I and many others here today are among the many proud successors of his trailblazing role.
Ben loved our city, and the city took him to its heart. He was re-elected six further times, and even this July, despite no longer being the candidate, he was as active knocking on doors as he has ever been and as popular as ever. I might have been having a particularly difficult conversation on a doorstep, but the face of even the most hardened and sceptical voter would light up as Ben marched past in his canvassing uniform of cargo shorts and a check shirt, usually whistling the theme tune from “The Great Escape”. Hugs were exchanged, selfies taken and heartfelt thanks expressed. He is almost universally accepted as having done Exeter proud. He has certainly been a friend and mentor to me over nearly two decades, and I thank him for that.
Ben took particular pride in the turnaround in Exeter’s education under his watch, something to which, as MP, he made a huge contribution. By 2010, not only had every single state secondary school in Exeter been rebuilt, but a new leadership culture had been established where low attainment became unacceptable for our young people in every single part of the city. From having some of the worst state secondary schools in the country, Exeter secondary schools became some of the most improved, to which the most recent exceptional GCSE results bear testimony.
Exeter can now also boast one of the best further education colleges in the country—again, as our recent A-level and T-level results show—a vital but, in much of Britain, badly neglected element in providing wider opportunity for young people, including those who choose alternative routes into work. As a school governor at Willowbrook primary school in Exeter, which serves one of our most economically deprived neighbourhoods, I also pay tribute from first-hand experience to the primary school teachers everywhere, who go above and beyond to give their young children the very best start in life.
This turnaround in Exeter’s education system did not happen by accident. It took hard work, strong leadership and a collaborative culture. I would like to thank some of our leaders for everything they have done to give our young people better life chances in Exeter. They include Moira Marder at the Ted Wragg Trust, John Laramy at Exeter College and Molly Marlow at Willowbrook primary school. And of course, I want to pay tribute to the politicians, including former Devon county councillor Saxon Spence and the then Schools Minister Lord Adonis, who had the vision and the ability to deliver for Exeter.
Exeter’s standing in learning goes beyond our schools system. Next year, the University of Exeter celebrates the 70th anniversary of its royal charter. In that time it has grown to be an outstanding institution, now with well over 30,000 students, but it builds on a tradition of an unbroken history of learning and academia stretching back at least to the 10th century. In Exeter cathedral rests the Exeter Book, an exquisite anthology of Anglo-Saxon poetry and riddles that is still the largest known collection of Old English literature. It is recognised by UNESCO as one of the world’s principal cultural artefacts, making Exeter a UNESCO city of literature.
Today, five of the world’s top 21 climate scientists are UK based and all of them work for our globally renowned University of Exeter and the Met Office. Along with these two institutions and a growing ecosystem of businesses, Exeter is home to a large and ever-growing research and innovation base that is at the forefront of combating and mitigating the effects of climate change. It has become fashionable in some circles to denigrate our universities. I reject this entirely: they stand as beacons of intellectual excellence, the future success of our knowledge economy and the hope of wider educational opportunity for many people.
A good education is what helped me to become a Member of Parliament. I grew up in a council house with my mum, who spent her entire childhood in care, and I was the first in my family to go to university, so I pledge to work with all our education leaders to make sure that every young person in Exeter has the best education to help them to reach their potential. I want this Labour Government to deliver an equivalent leap forward in educational opportunity that their predecessors achieved for their time in 1945, 1964 and 1997.
In relation to this debate, Exeter University is home to the centre for future clean mobility, a partnership with business to develop low emission power systems for the aerospace and automotive sectors.
Our university is also world leading in genomics research. One of the main reasons I am in politics, as a Labour MP, is my sister. She was born when I was 10, and when she was a year old, she was diagnosed with Hurler syndrome, a rare genetic condition with no cure. Given a life expectancy of around five years, she finally died two days short of her 10th birthday. Much of her life was spent being cared for by the NHS and our local children’s hospice, and I will be eternally grateful for everything they did to give us so much more time with her than we expected.
At the time of my sister’s birth, we understood genetic conditions but did not yet have the tools to help. The human genome was finally mapped just a year before she died, and that same year the first enzyme replacement therapy trials for her condition commenced in the UK. People born today with my sister’s condition have a range of treatment options to help to make their life more comfortable and more fulfilling. I am particularly proud that Exeter University, in partnership with our local NHS trust, is at the forefront of this new wave of innovation.
We know that scientific research and innovation, whether on tackling climate change or in medical advances, will make the lives of people in this country and around the world better, but the Government have to recognise the vital role of our universities in economic growth and take advantage of the many opportunities for partnership with the NHS and across the public sector.
I know that this Government will understand the need to ensure that the UK continues to be at the forefront of scientific endeavour; and, as a pro-European, I believe that this is where Britain can make a huge contribution, working with our European friends and partners despite the tragedy of Brexit. I also ask that Ministers recognise that Exeter and the wider south-west have the talent and the institutions in which to invest to ensure that the UK remains at the cutting edge of UK and European innovation.
To succeed in these endeavours we also have to recognise that diversity is a strength, so building communities together on the principle of equality for everyone is vital to our success. In Exeter, the university and the local council play an important role in bringing people together. We have a thriving mosque and Muslim community. We have welcomed hundreds of Ukrainian and Hongkonger families over recent years, and we have large and growing Kurdish, Afghan and Nigerian communities, among others. Everyone brings something new and positive to our city, and I love nothing more than our annual Respect festival—a celebration of all our many communities—and our Pride parade. Inclusive Exeter, a community interest company, also plays an important role in bringing communities together. Exeter has become a true beacon of living well together.
It is a privilege and an honour to represent all the people of Exeter in this place, and I thank them for their vote of confidence in sending me here. I also thank my local activists and, of course, my family and friends, some of whom are in the Gallery, for all their support over the years. Without them I would not be here.
Exeter is a happy and optimistic place, and I hope to do it proud by serving it as conscientiously and as successfully as my distinguished predecessor.
Madam Deputy Speaker (Caroline Nokes)
I call Lee Dillon to make his maiden speech.
Mr Lee Dillon (Newbury) (LD)
I congratulate the hon. Member for Exeter (Steve Race) on his maiden speech. My hometown of Thatcham was recorded in “The Guinness Book of Records” in 1990 as the country’s oldest continuously inhabited settlement, dating back some 3,000 years, although it is not quite a parliamentary seat. I pay my respects and tribute to his sister. I will also reference my sister and her reliance on the NHS.
I have been in the Chamber for many maiden speeches, and I have been impressed by them all. I congratulate them on sharing their passions and their local knowledge.
Newbury has returned a Member of Parliament since 1835 but, following the recent boundary changes, the constituency has lost the south bank of the Thames at Streatley and villages including Compton, West Ilsley and, pertinent to me, Hampstead Norris, the village of my grandparents, but I know they are safe in the stewardship of the hon. Member for Reading West and Mid Berkshire (Olivia Bailey). However, we have retained our market towns of Newbury, Thatcham and Hungerford, alongside our beautiful villages of Lambourn, Peasemore, Inkpen, Hermitage, Chieveley and Cold Ash, where I went to primary school, to name but a few.
My constituency has a proud racing heritage, with Lambourn training some of the world’s best racehorses and Newbury hosting one of the most prestigious horse races in the calendar. In Hungerford you can spend the afternoon antique shopping, and in Thatcham you can visit one the largest inland reed beds in southern England, home to internationally important species.
We are also home to Vodafone, one of the global leaders in telecommunications. Xtrac in Thatcham supplies Formula 1 components, and Stryker is one of the world’s leading medical technology companies. Away from cutting-edge technology, we also have: traditional craftsmanship at companies like Benchmark in Kintbury, which has been building and designing furniture for over 40 years; delightful country homes like Welford Park, which is home to “The Great British Bake Off”; and one of the most unique and beautiful theatres in the country, the Watermill at Bagnor.
And, of course, we are supported by many great charities: Greenham Common Trust, the Community Furniture Project, Eight Bells for Mental Health, local alms houses and, sadly, West Berkshire food bank and Newbury soup kitchen, which are needed to help a growing number of local residents. We also enjoy being surrounded by the area of outstanding natural beauty and 200 of the most precious chalk streams in the country.
In giving our maiden speeches, we all like to claim the beauty of our own area, but the author Bill Bryson has it spot on and may be able to stop future disagreements in the Chamber. In “The Road to Little Dribbling” he writes:
“There isn’t a landscape in the world that is more artfully worked, more lovely to behold, more comfortable to be in than the countryside of Great Britain. It is the world’s largest park, its most perfect accidental garden… All we have to do is look after it.”
As a member of a political party with a proud heritage of standing up for the environment, I can assure hon. Members and my constituents that I will do my bit in this place to make sure that we do look after it. The decision that I believe will conclude this debate, given the cross-party support, will contribute to that ideal. I welcome the proposed changes.
As the Member for Newbury, I will uphold our traditions and protect our environment, because without them the Newbury constituency would not be what it is—a balance between our environment, our traditions and our ability to innovate. These were also supported by my predecessors.
My immediate predecessor Laura Farris—strangely, I saw her in Central Lobby just before coming to the Chamber—delivered meaningful change in this House on sexual abuse and violence against women. She secured new laws on sexual violence in the Domestic Abuse Act 2021 and campaigned for tougher sentences for fatal domestic abuse. It is a further credit to her that the handover to me was as smooth as one could have hoped for. I wish Laura and her family all the best for the future, and I am sure she will continue to make a difference.
Richard Benyon, now Lord Benyon, served Newbury from 2005 to 2019 and has always been open and approachable, offering me some early advice when I was first elected. The Liberal Democrat David Rendel held the seat following a then record-breaking by-election—my party is rather good at those—from 1993 to 2005, and I ran with him in my home ward back in 2007, starting my electoral journey in West Berkshire.
All three predecessor cared deeply about Newbury and West Berkshire, as I do, too, but in new times there are new challenges. The Royal Berkshire hospital in Reading is in great need of replacement, and I look forward to a swift review of the new hospitals programme. The West Berkshire community hospital in Newbury is willing to do more so that diagnostic services can be provided locally. Without the NHS, my sister, Michelle, would not be here today. We need to cherish it, fund it and modernise it.
Despite our apparent wealth, we have pockets of poverty in Newbury. As I alluded to earlier, we are seeing an increase in the use of food banks and soup kitchens, the cost of living is still hurting and the proposed removal of the winter fuel allowance will compound that problem even more, despite our best efforts to get those who are entitled on to pension credits. House prices have soared and are now over 10 times the average salary, increasing demand for rented homes and adding pressure to housing waiting lists. The ability to have a warm and secure home is the foundation of a settled life. Children learn better, crime is lower and community cohesion is stronger when people have a settled community. I have worked in the social housing sector for the last 14 years. We must do more to deliver much needed homes for social rent.
I wish to conclude my speech by giving a small round of thanks. First, I thank my constituents for entrusting me with the honour of representing us here, and my local team for engaging in so many positive conversations on the door steps. I will endeavour to pay back their support with my deeds in the House. To my wife, Gemma, and my children, Oliver, James and Eleanor, I say thank you for your constant support and love that has allowed me to fulfil my dream of being the Member of Parliament for my home.
As a 16-year-old, I arranged a visit to Parliament. As we were being shown around the Chamber, we came past the Opposition Front Bench and a school friend cheekily sat down. I will not use parliamentary privilege to name him but he encouraged me to do the same. You will be pleased to hear that I declined, Madam Deputy Speaker. However, I said that I would sit there if I ever got elected. Well, 25 years later, I can now rightly take my place on the famous green Benches, so some dreams do come true.
As the son of a trade union official, I suspect I was always going to end up in a role where I could speak truth to power. I thank my father, Raymond, for instilling in me a sense of fairness and a belief that we can make change happen. My mother, Geraldine, and step-father, Colin, have supported me in every election I have stood in—I thank them for being there for me, keeping me honest and reminding me that it is nice to be important, but it is more important to be nice.
Madam Deputy Speaker (Judith Cummins)
I call James McMurdock to make his maiden speech.
James McMurdock (South Basildon and East Thurrock) (Reform)
Thank you for the opportunity to address the House, Madam Deputy Speaker. I thank the hon. Members who have already spoken today, whether about falling foul of a wasp, what levers to pull—I can certainly empathise with that—or genuine courage, which we can all agree is absolutely necessary in this House. I thank them all for their words.
I start by thanking my predecessor, Stephen Metcalfe. I extend to him my gratitude, not least for his gentlemanly conduct throughout the campaign. He was gracious and dignified throughout, so it is easy to understand why he was, as far as a politician might expect, well liked by both MPs and constituents.
As we navigate life’s milestones, it is natural to become philosophical. First and foremost, I am a husband and a father. While no professional achievement rivals the significance of personal events such as childbirth, being given the tremendous opportunity to serve our country and constituents, those in need and, if we do our jobs right, those whom we can help to avoid need altogether, comes close.
Speaking of fatherhood and childbirth, I draw hon. Members’ attention to the tremendous work done by the Basildon university hospital, a place where miracles are commonplace. It is the place where my children were born and where, at one time or another, virtually everyone I love has been nursed back to health. I extend my heartfelt appreciation, admiration and respect to everyone who works there.
Since its inception as a constituency, people in South Basildon and East Thurrock had always voted blue, until they chose turquoise for the first time this July. To stand here today, I had to overcome a previous winning margin of 19,922. My own winning margin was less dominant: it was one of the tightest in the country, at just 98 votes. A swing that large is strong testament to the importance of listening to the people who put us here—all of them. That is a lesson I will not forget.
It goes without saying that I did not achieve that swing alone. Although I would like to think that my efforts, and those of my mother, who marched tirelessly next to me, handing out fliers in the baking June sun, earned me the 100 or so votes that got me over the line, the vast majority of that shift was carried by my colleagues and fellow Reform UK MPs. Their tireless championing of the British people is something we should stive to emulate. I am extremely grateful to them. Although, as my hon. Friend the Member for Clacton (Nigel Farage) has said, this has ruined my life, I would not have it any other way.
I am eternally grateful to the good people of South Basildon and East Thurrock for sending me here. I intend to repay their trust by being open and honest, accessible and available. Never has it been more important to reconfirm that they have the right to a voice. It is my duty to hear it and protect their right to it. Having volunteered to stand as a parliamentary candidate on 4 May and having been invited to stand on 4 June, it is poetic that my seat was one of the last to be called in England, having to endure three counts. I might add that I won all three.
South Basildon and East Thurrock is a beautiful cross-section of this country. Situated just 30 miles east along the Thames from this beautiful Palace, it is an area of great natural diversity, joyfully combining the new with a rich and varied history, rural and industrial. South Basildon and East Thurrock boasts Europe’s largest Amazon centre as well as glorious countryside and a prime location on the Thames. Many of our quaint villages have historical significance. Horndon-on-the-Hill is mentioned in the Domesday Book of 1086 and one of the earliest uprisings that led to the peasants’ revolt took place in Fobbing in 1381. Those uprisings marked the beginning of the end of serfdom. I am hopeful that the lessons taught to the ruling class then never need to be relearned.
How appropriate it is then that I have the privilege to stand and champion the core values that so many from my home hold dear: independence, equality of opportunity, upward social mobility, courage, long suffering, honesty and forgiveness. I am grateful to champion these qualities not just because I believe in them but because I have benefited from them. I was the first in my family to go to university. I have been shown forgiveness, given opportunity and climbed upwards. As the door was opened for me, I will help hold it open for others.
Most importantly, I must thank the wonderful women in my life: my late grandmother, a survivor of the blitz, who dedicated her life to her family, and my mother and sisters, whose strength, courage and determination inspires me. I have not written this down, but I had better mention my mother-in-law.
James McMurdock
To my wife, the mother of my children, who in a crowd of powerful women stands as the most glorious of all, you are my strength, my light and I love you with all my heart. To my father, brother and late grandfather, who fought for this land and spent his last years in peace in the constituency I now represent, and to the rest of my big, wonderful, eclectic family, thank you for mocking me so ruthlessly that my feet will never leave the ground.
If hon. Members will forgive me, I will now fulfil a dream nearly a quarter of a century in the making and end by misquoting the immortal words of Ali G —“R-E-S-P-E-C-T.”
The Parliamentary Under-Secretary of State for Transport (Mike Kane)
My goodness, it is a pleasure to see you in the Chair, Madam Deputy Speaker. Congratulations on your election.
It has been a collegiate debate and I am grateful to all the hon. Members who have attended. I am grateful to the Opposition for their support. I say to the hon. Member for Mid Buckinghamshire (Greg Smith) that I am looking forward to a picture on his social media of his SAF-powered Land Rover as he goes canvassing in his constituency—that is a must-see for us all.
Mike Kane
That is good news. The issue has had good cross-party support: when I was in opposition, I supported the Government on it.
In his maiden speech, the hon. Member for Witney (Charlie Maynard), who is no longer in his place, thanked his predecessor, and I put on record my own tribute to the former Member for Witney; he undertook my current role with diligence, care and good humour and I wish him the best for the future.
Really, this legislation was set out by the Labour Government in 2003 in the aviation White Paper, “The Future of Air Transport”, in which we talked about the future of decarbonising aviation for the first time and about bringing in new sustainable fuels.
The shadow Minister had some specific questions. He asked about ticket prices. The Government recognise that SAF will be more expensive than traditional jet fuel, and it is right that the costs, as we have agreed in the past, are borne by the polluters—they will not be borne by the Government. I think the figures are that, by 2030, we expect tickets to be £4 more, which will be a 2% increase, and by 2040, we expect them to be £10 more, which will be a 5.5% increase. Before Mayor Burnham re-regulated the buses in Greater Manchester, a person could fly from Manchester airport to Dublin for £12.99 but they could not cross my conurbation on a bus and change transport providers for that amount of money. The shadow Minister was right to raise that point, but the increase is negligible.
The shadow Minister asked about the future fuel funds. We have seen some great things going on in private industry. In the north-west of England, we see Fulcrum BioEnergy producing sustainable aviation fuel at Ellesmere Port; we see Velocys in the north-east doing it at Immingham—I will come to my hon. Friend the Member for Easington (Grahame Morris) in a minute—and Alpha Air doing it in Teesside. That is really good for the regeneration of post-industrial areas in parts of the north of England.
The shadow Minister talked about power to liquid. Yes, that is the future. In my speech, I set out some ambitious targets that we will have to meet to reduce the HEFA and improve power to liquid. He asked about our ambition. The UK does not want to be at a competitive disadvantage, which is why we have carefully balanced the HEFA cap in a way that recognises that HEFA is, currently, the only commercially available type of SAF, but that does not mean that we cannot go further and faster. I mentioned in my speech that there will be reviews every five years, starting in 2030, so I hope that that satisfies the Opposition. I am grateful for their support in this area.
Let me turn now to my hon. Friend the Member for Easington. I always like to thank him for his contribution to transport debates; he is always in these debates. He is a stalwart when it comes to transport issues and he is really considered. He is right that there are too many anagrams in the field of sustainable aviation fuel. When the Conservatives were in power, they always talked about the bonfire of regulations. Perhaps we should start the bonfire of anagrams. My hon. Friend is not wrong, but we will have to see. He did say that these are good, sustainable industrial jobs in parts of the country where we need them. That is what SAF brings us and that is what the Government are trying to achieve.
I also thank the Liberal Democrats for their support on this issue. We are working with suppliers. I have had roundtable discussions with suppliers, particularly in opposition, and there is more to come in government. I have mentioned some of the companies that we were working with. This is an ambition, but I think that we can go further and faster. The figures that I gave are not set in stone. We should be promoting new technologies, because there are new technologies beyond this area. There is hydrogen battery power. When it comes to UK emissions, would it not be a great day when a Minister can say that there will be no carbon burned in any planes flying internally within the UK? That would be a great place to be.
As a north of England Member, however, I have to disagree with the idea that we should stop people flying because there is a train. That might be fine in an area where there are great, reliable train services, but I invite the hon. Member for Bath (Wera Hobhouse) to come on my Avanti train occasionally to see how unreliable and how poor that service is. We have to keep it in mind that, one day in the future, we will improve the rail services through our great British rail Bill, but at the moment we have absolutely no plans as a Government to stop people flying.
Mike Kane
I thank the hon. Member for his intervention, but I am grateful for small mercies; the Liberal Democrats are supporting this move. I thank the former Minister, the right hon. Member for Basildon and Billericay (Mr Holden) for his time in the Department and in this role.
To my hon. Friend the Member for Exeter (Steve Race), I say very well done. What an excellent and considered maiden speech he made. The personal testimony about his mother and his sister was really poignant. That speech will stand him in good stead. I was, however, a bit perturbed to hear about the former Member for Exeter, who was a passionate advocate of sustainable aviation in this place, whistling the tune to “The Great Escape” while out canvassing. A day probably does not go by in this place without one of us whistling “The Great Escape”. I was once taught by a sage old Whip that most MPs spend their whole life trying to get here and then the rest of the week trying to get away. I say to my hon. Friend the Member for Exeter again that that was a really great, well-considered maiden speech, and I wish him all the very best for his years ahead on these Benches.
That speech was followed by another very well-considered maiden speech from the hon. Member for Newbury (Mr Dillon). I do not think that anyone can beat the fact that he has the home of “The Great British Bake Off” in his constituency. That is amazing and no Member can beat that. When it comes to our beautiful chalk streams such as the ones in Newbury, or to our skies, it is our sacred mission to protect our environment for future generations. That is why we must keep talking about decarbonisation, which is what we are doing here tonight. I say very well done to the hon. Member and I wish him well for the future.
Finally, let me come to the hon. Member for South Basildon and East Thurrock (James McMurdock). I, too, pay tribute to his predecessor, Stephen Metcalfe. My first speech in a Bill Committee up in a dusty corridor was terrible and he wrote me a note saying, “Really well done, Mike”, and I still have that note on my wall today. What a lovely, lovely man he is. I congratulate the hon. Member, who raised the subject of childbirth and early maternal care, which we should come back to a lot more in this House in the future; there is still a lot more to do in that area. He may be a latter-day Wat Tyler, with the peasants’ revolt quote, but on a personal level I hope that there is not a great rising of Reform. However, I wish the hon. Member the best for his career in this place.
I thank Members again for their consideration. For those questions where it has not been possible for me to provide a response today, I ask Members please to let me know and I will write to them. SAF presents a key opportunity to decarbonise UK aviation and secure a long-term future for the sector. These draft regulations demonstrate how we can capitalise on this opportunity. Mandating the use of SAF has the potential to generate significant greenhouse gas savings, and ultimately play a pivotal role in achieving net zero. I commend this order to the house.
Question put and agreed to.
Resolved,
That the draft Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024, which was laid before this House on 24 July, be approved.
Madam Deputy Speaker (Judith Cummins)
We now come to the next item of business. I call the Minister to move the motion.