Tuesday 29th October 2024
(1 month, 3 weeks ago)
Commons ChamberGreat British Energy Bill 2024-26 View all Great British Energy Bill 2024-26 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 29 October 2024 - (29 Oct 2024)
17:58 - The House divided: - Ayes: 96 / Noes: 353 - Question accordingly negatived.
18:14 - The House divided: - Ayes: 124 / Noes: 361 - Question accordingly negatived.
18:29 - The House divided: - Ayes: 115 / Noes: 361 - Question accordingly negatived.
18:53 - The House divided: - Ayes: 361 / Noes: 111 - Question accordingly agreed to.
Claire Coutinho (East Surrey) (Con)
I beg to move, That the clause be read a Second time.
Madam Deputy Speaker (Judith Cummins)
With this it will be convenient to discuss the following:
New clause 2—Nature Recovery Duty—
“(1) In exercising its functions, Great British Energy must take all reasonable steps to contribute to the achievement of targets set under sections 1–3 of the Environment Act 2021.
(2) Under the duty set under subsection (1), Great British Energy must consider opportunities to incorporate nature-based solutions in—
(a) the design and maintenance of any assets in its ownership, and
(b) its investment decisions.”
This new clause would give Great British Energy a new duty, requiring it to contribute to the achievement of Environment Act targets. The duty specifies the incorporation of nature-based solutions (including nature friendly design and building measures) in all assets owned by and invested in by Great British Energy.
New clause 3—Prohibition of investments which would increase greenhouse gas emissions—
“(1) Prior to making any investment, Great British Energy must publish an assessment of the impact of the investment decision on—
(a) greenhouse gas emissions and
(b) the production or combustion of fossil fuels.
(2) Where the assessment carried out under subsection (1) showed that the investment was expected to contribute to an increase in greenhouse gas emissions, Great British Energy must not make that investment.”
This new clause would require Great British Energy to publish an assessment of potential investments on greenhouse gas emissions and the production or combustion of fossil fuels. Any investment which the assessment showed was expected to increase greenhouse gas emissions would be prohibited.
Amendment 3, in clause 1, page 1, line 3, at end insert—
“within 6 months of the day on which this Act is passed.”
Amendment 4, in clause 3, page 2, line 18, at end insert—
“(e) an emergency home insulation programme with targeted support for people on low incomes, and
(f) the expansion and development of renewable energy and technology.”
This amendment would set objects for Great British Energy of facilitating, encouraging and participating in an emergency home insulation programme with targeted support for people on low incomes, and the expansion and development of renewable energy and technology.
Amendment 1, in clause 5, page 3, line 8, at end insert—
“(1A) The statement of strategic priorities under subsection (1) must include a priority to reduce household energy bills by at least £300 in real terms.”
Amendment 5, page 3, line 8, at end insert—
“(1A) The statement of strategic priorities under subsection (1) must include a priority to advance the production of clean energy from schemes owned, or part owned, by community organisations.”
This new section would require the statement of strategic priorities to make specific regard to facilitate community-based clean energy schemes.
Amendment 6, page 3, line 8, at end insert—
“(1A) The statement of strategic priorities under subsection (1) must include the reduction of household energy bills by £300 in real terms by 1 January 2030.”
Amendment 8, page 3, line 8, at end insert—
“(1A) The statement of strategic priorities under subsection (1) must include the creation of 650,000 new jobs in the United Kingdom by 2030 resulting directly or indirectly from Great British Energy’s pursuit of its objectives under section 3.”
Amendment 11, page 3, line 8, at end insert—
“(1A) The statement of strategic priorities under subsection (1) must include a priority to allocate 3% of Great British Energy’s budget to marine energy projects.”
This amendment would require 3% of Great British Energy’s budget to be allocated for marine energy projects.
Amendment 12, page 3, line 8, at end insert—
“(1A) The statement of strategic priorities under subsection (1) must include a priority to work with Great British Nuclear on the development of nuclear energy projects.”
This amendment would require Great British Energy to work with Great British Nuclear on developing nuclear energy projects.
Amendment 13, page 3, line 8, at end insert—
“(1A) The statement of strategic priorities under subsection (1) must include a priority to require any renewable energy development located in Wales that Great British Energy owns or invests into offer a minimum of 10% community and 10% local ownership for each project.”
This amendment seeks to ensure that all renewable energy projects in Wales which are owned or invested in by Great British Energy would be required to offer a 10% stake in community ownership i.e. for individuals and households, and a 10% stake of local ownership, i.e. any Wales-based organisation.
Amendment 15, page 3 line 16, leave out “consult” and insert “receive the consent of”.
This amendment would require that the Secretary of State receives consent from Welsh ministers before including in the strategic priorities and plans any matter concerns a subject matter provision about which would be within the legislative competence of Senedd Cymru, if contained in an Act of the Senedd.
Amendment 7, in clause 6, page 3, line 38, at end insert—
“(1A) The Secretary of State must give a specific direction to Great British Energy that it must report to the Secretary of State on the progress made by Great British Energy towards the strategic priority of reducing household energy bills by £300 in real terms by 1 January 2030.
(1B) A report under subsection (1A) must include a projection of how Great British Energy’s activities are likely to affect consumer energy bills over the following five years.
(1C) A report under subsection (1A) must be made within two years of the date of Royal Assent to this Act and annually thereafter.
(1D) The Secretary of State must lay a report made under subsection (1A) before Parliament.”
Amendment 9, page 3, line 38, at end insert—
“(1A) The Secretary of State must give a specific direction to Great British Energy that it must report to the Secretary of State on the progress made by Great British Energy towards the strategic priority of creating 650,000 new jobs in the United Kingdom by 2030.
(1B) A report under subsection (1A) must be made within two years of the date of Royal Assent to this Act and annually thereafter.
(1C) The Secretary of State must lay a report made under subsection (1A) before Parliament.”
Amendment 10, page 3, line 38, at end insert—
“(1A) The Secretary of State must give a specific direction to Great British Energy that it must report to the Secretary of State on—
(a) Great British Energy’s in-year return on investment, and
(b) A forecast of the following year’s expected return on investment.
(1B) A report under subsection (1A) must be made within two years of the date of Royal Assent to this Act and annually thereafter.
(1C) The Secretary of State must lay a report under subsection (1A) before Parliament.”
Amendment 14, page 3, line 38, at end insert—
“(1A) The Secretary of State must, in particular, direct Great British Energy that any revenues generated from activities of Great British Energy in relation to resources located in Wales must be invested back into projects located in Wales.”
This amendment would require the Secretary of State to ensure that all revenue generated by Great British Energy from resources in Wales are invested back into energy projects in Wales.
Claire Coutinho
It is nice to be back discussing Great British Energy, and on the day before the Budget, too. I am sure that Labour Members are worrying about what kind of horrors they will be forced to defend next. They will have had a miserable summer trying to explain to their constituents why they are scrapping the winter fuel payment for pensioners in poverty, just weeks after a general election in which no mention was made of that. They will have spent the last few weeks explaining that the term “working people”—the people they promised to protect in their manifesto—does not include small business owners, or employees with savings, and that their use of the term “national insurance” does not prevent a national insurance rise for employers. They will be getting a bashing from companies, who were told that Labour would be pro-business, yet have been clobbered by post-election announcements of tax rises and trade union charters, and who have a Prime Minister with an optimism about Britain that puts him on the charts somewhere between Eeyore and Victor Meldrew. And tomorrow Labour Members will have to explain why the Chancellor who said before the election that any change to the fiscal rules would amount to fiddling the figures is now changing them to open the door to billions of pounds of borrowing.
This is a timely return to the Great British Energy Bill. Our amendments today will give Labour Members an opportunity, which I am sure they will welcome, to hold their leadership to account for at least some of the promises that they were told to go out and sell. Let us take a look at a few of the promises that Labour Members made during the election. The hon. Member for Brent East (Dawn Butler) wrote on her website:
“We will set up Great British Energy…cutting energy bills by an average of £300 a year.”
The hon. Member for Bracknell (Peter Swallow) posted on Facebook:
“Why am I backing Labour’s plan to set up Great British Energy? It will save £300 off average household energy bills in the South East by 2030.”
The hon. Member for South Norfolk (Ben Goldsborough) said on Facebook:
“everyone in the east of England will get £300 off their energy bills…no ifs, no buts, no maybes, these will be measurable and you will be able to check our progress at the end of the next Parliament.”
At least 50 MPs made similar claims.
Why were Labour candidates up and down the country saying these things? Perhaps they were simply listening to the Cabinet. The Science Secretary said on “Good Morning Britain”:
“I can tell you directly…by the end of this Parliament that…energy bills will fall by up to £300.”
The Work and Pensions Secretary said:
“Great British Energy will get people’s bills £300 a year lower.”
This is my personal favourite: the Chancellor—the woman of the hour—said,
“Great British Energy, a publicly owned energy company, will cut energy bills by up to £300.”
These were not one-off promises; it was the party line, as dictated by the Secretary of State for Energy Security and Net Zero. These promises are still up in writing. In fact, the Labour party website still says that its energy plans will cut bills by £300 on average. Oddly, Ministers now do not seem so keen on that pledge. We have asked them about it in this House, as have the media, but the number seems to have vanished. They have even taken down the Great British Energy website, and the newly appointed chair even said in Committee that cutting bills is
“not the scope of Great British Energy.”––[Official Report, Great British Energy Public Bill Committee, 8 October 2024; c. 6, Q5.]
This is not trivial; these are promises that people care about. Every single Labour Member will have had constituents vote for them because they believed that Labour’s promise of £300 off their energy bills would make a meaningful difference to their lives. Amendments 6 and 7 in my name will hold the Government to account on their election promise to cut bills.
Our amendments would give Great British Energy a strategic priority to cut people’s energy bills by £300 by 2030, and would require Great British Energy to produce an annual report on progress towards meeting that target. Surely all Labour Members who made these promises and kept them up on their social media accounts will want to track the Government’s progress on this important issue for their constituents. Well, tonight is their chance.
But £300 off bills was not the Secretary of State’s only promise at the election. He also claimed that Great British Energy would create 650,000 new jobs, but he did not mention that figure on Second Reading, and the Energy Minister, the hon. Member for Rutherglen (Michael Shanks), did not mention it in Committee. It does not appear in Great British Energy’s founding statement, nor does it appear in the Government’s explanatory notes on the Bill.
The only detail we have heard about the number of jobs to be created by Great British Energy came from the Secretary of State’s hand-picked chair of that body, who said that “hundreds” of people will be employed at its Aberdeen headquarters. We have since found out that the chair himself will be based in Manchester. It is a funny kind of headquarters if the head will not be based there, but that is the kind of sophistry that the public are starting to expect from this Labour Government.
More importantly, those few hundred people will hardly make up for the 200,000 jobs this Government are putting at risk through their plans to shut down the North sea, or the missed opportunities for jobs thanks to their go-slow on nuclear. On the Secretary of State’s watch, we have already seen thousands of jobs in industry lost.
The Secretary of State can talk about skills passports and Government transition projects all he likes, but the truth is that they do not pay the bills. He likes to say that we need to cut carbon at an extreme pace, faster than any other major economy, in order to show climate leadership and save the planet, but if our gas production, steelmaking or energy-intensive manufacturing moves to Asia, which is still powered by coal, he will be adding to emissions. That would mean more carbon in the atmosphere, and would be devastating for the hundreds of thousands of people who would lose their livelihoods here in Britain. I say that as someone who, before entering Parliament, worked on regenerating some of our most deprived communities once the jobs were gone.
As with our amendments on the Government’s £300 pledge, amendments 8 and 9 in my name would give Great British Energy a strategic priority of creating 650,000 new jobs by 2030, and would require an annual report to Parliament on progress towards this aim. That is important, because even the trade unions that normally support Labour have warned the Secretary of State and his team that his plans will lead to the mass deindustrialisation of Britain. The general secretary of the GMB has said that the Secretary of State’s plans are
“hollowing out working class communities”,
and will amount to “decarbonisation through deindustrialisation.” He said that importing more from China is
“bad for communities, not great for national security and it makes no sense in terms of the environment.”
He also said, and I hope the ministerial team are listening closely to this one:
“Our message to Ed Miliband is very clear: We are worried about a lot of promises that are not being delivered on jobs.”
Those Labour MPs who are members of the GMB, including the Energy Minister, have the opportunity tonight to hold the Government to account by voting for annual reporting on the jobs being created. The question is, will they listen to the general secretary’s concerns?
The next promise was that Great British Energy would turn a profit for the taxpayer. The Secretary of State admittedly got himself into a mess on this one. He has never had to make commercial investment decisions, and neither has any of his ministerial team, which is why they have been caught out promising the British public that they can turn a tidy profit, while at the same time telling multimillion-pound energy companies that they will take the least attractive parts of their investments off their hands. That is important, because the Secretary of State has written this Bill to give himself powers of direction. That was not the case for the UK Infrastructure Bank, and there was a recurring question in Committee about how much independence the supposedly independent Great British Energy will have.
This is my proposal: if the Secretary of State wants the power to meddle, he should be duty-bound to report the results of that meddling—its profits and losses—to this House. Amendment 10 in my name would require Great British Energy to produce an annual report on the performance of its investments, including its in-year return on investment and a forecast of the following year’s expected return. That is the bare minimum we can expect, so that British taxpayers can see what he is doing with £8 billion of their money.
I tabled clause 1 because it is crucial that we have proper oversight of the wider activities of Great British Energy. New clause 1 would require the appointment of an independent reviewer to assess Great British Energy’s effectiveness in achieving its objectives and strategic priorities. In Committee, the Energy Minister said that the Government want Great British Energy to be
“accountable, transparent and clear about how it is delivering on its objectives.”––[Official Report, Great British Energy Public Bill Committee, 15 October 2024; c. 168.]
I agree, and that seems a perfectly good reason to support new clause 1.
As I have said previously, Great British Energy is pretty much a carbon copy of the UK Infrastructure Bank, which was set up to provide loans, equity and guarantees for infrastructure to tackle climate change, backed by £22 billion. No Minister has been able to tell us the real difference between Great British Energy and the UK Infrastructure Bank, or why the taxpayer has to pay for two headquarters, two chief executives and so on. The one difference appears to be that Great British Energy will mean additional powers for the Secretary of State.
If Labour Members are so intent on handing this Secretary of State billions of pounds to gamble with, I expect they will also want to replicate the independent review enacted by the United Kingdom Infrastructure Bank Act 2023. New clause 1 would provide that scrutiny and, although I intend to withdraw it this evening, if the Minister would like to table a similar amendment in the other place to follow the precedent set by the Act, I assure him of our backing.
The Secretary of State and his ministerial team have made big promises. It is crucial that this House can hold them accountable, as the consequences could not be more important for people’s energy bills, people’s jobs and businesses’ ability to succeed. As the respected energy and climate economist Dieter Helm has said, the risk is that this Government will head towards a 2029 election with industries lost and bills higher—exactly the opposite of what the electorate has been promised.
The Government’s refusal to publish evidence for their claims, to set out the details of their plans or to engage in any meaningful policy discussion outside their normal slogans and mantras means that their policies are more likely to fail. For example, the Secretary of State has said that this Bill and Great British Energy are part of his plan to ramp up renewables at breakneck speed because every wind turbine and every solar panel constructed will lead to cheaper energy and greater security, but that is simply not true. First, it depends on the price we pay for them. Expert analysis by Cornwall Insight found that the contracts for difference round that the Secretary of State bumped up, and that he now boasts about, will actually increase people’s bills by £5. Moreover, he has advertised to the multimillion-pound energy companies that he will buy whatever they sell, no matter the cost, up to 2030. People do not need a business background to work out what that will do to prices.
Secondly, if we are building renewables faster than we can connect them to the grid, the constraint payments needed by 2030 could add hundreds of pounds to people’s bills. Then there are the network costs, the green levies and the cost of dispatchable power. If the Secretary of State wants to replace gas, which is our main form of dispatchable power, he should set out the cost of what will replace it.
The options in this country are coal, which I assume Labour Members do not want, biomass, carbon-capture gas or unproven technologies, none of which will make our system cheaper. All the signs are that, far from making energy cheaper and more secure, this Secretary of State and his ministerial team will send people’s bills through the roof, and more and more people are sounding the alarm about whether he can even keep the lights on. Perhaps that is why he never commissioned an accurate assessment of his plans. Labour Members had 14 years in opposition, 14 years hankering for the jobs and the responsibilities they now have, but when we asked for the full-system cost of the Secretary of State’s approach, he could only say that it will be published “in due course.”
Luke Murphy (Basingstoke) (Lab)
I am enjoying the right hon. Member’s lecture on energy security, but where was that argument during the last Government, when they left our country reliant on Putin and volatile fossil fuels, and when we saw energy bills soar? This Government are cleaning up 14 years of mess that the right hon. Member’s Government left behind.
Claire Coutinho
I suggest the hon. Gentleman does some homework. We do not get our oil and gas from Putin. Instead, some 50% of our domestic gas supply comes from the North sea, which the party in government is trying to shut down. If he wants to talk about energy markets, he should do some reading about how they work. On that note, I commend our amendments to the House.
Madam Deputy Speaker (Judith Cummins)
I call Natalie Fleet to make her maiden speech.
Natalie Fleet (Bolsover) (Lab)
It is the honour of my life to be in this Chamber as the Member for Bolsover, a seat made famous by the legend that is Dennis Skinner. From Calow to Pilsley, they tell me stories of him singing to them on the phone, and they remind me of his witty one-liners. He showed the very best of politics: what can be achieved when we send one of our own here to fight for us. I accepted a long time ago that I will not fill his shoes, but when I feel like I do not belong here, I remember that I am following in the footsteps of a “beast”, whose legacy is that kids like me can be here against the odds.
Dennis famously praised half the Members on the Conservative Benches for not being crooks, and I like to think that he would have included his successor, Mark Fletcher, in that group. Mark saw that kids in Bolsover were 10% less likely than those in the rest of England and Wales to get higher education qualifications, and he fought to change that. He worked so hard to get us our own sixth form within Bolsover. I am also passionate about smashing down barriers to opportunity, so that is a fight that I am delighted to take up. Mark made the most of his time here. He appreciated the privilege of serving and continues to show that there is more that unites us than divides us. I wish him so very well.
In his maiden speech, Dennis spoke about the more than 10,000 working miners he represented. I do not have that pleasure. Born at the start of the strike, I grew up seeing our pits go. I had to stop visiting the canteen that my Dar took me to on the way to race the pigeons, because it closed. My community grieved, and I grew up seeing more kids like me go to prison than to university.
In place of industry, mine is a story of the state—stepping in, once again, to pick up the pieces and make sure that every child can reach their potential. I was really lucky to have a Government that prioritised my education, and that gave teachers like Mrs Gregory the opportunity to nurture me, as she did. When my home was dangerous, there were police to keep us safe. When I did not have a home at all, the state stepped in. When I was pregnant at 15, I had a Government that wrapped their arms around me in the form of Sure Start. Better still, they implemented a long-term strategy that meant that when I visit schools in Bolsover now, fewer children are facing parenthood. That is really cool.
I always felt like the exception, but I am seeing more families struggle than ever before. That is why it has been so heartbreaking to see the state ripped back again. A care home in Shirebrook and a day centre in Bolsover face closure. Kids in South Normanton are waiting years for special educational needs support. Some 52% of children in Carr Vale live in poverty although their parents work hard to earn. It is not just our most vulnerable who are struggling. Professionals in Cresswell are accessing food banks that used not to exist. There is more antisocial behaviour in Whitwell because there are fewer police. Mortgages are up in Barlborough. The amount that people can buy with their money in Tibshelf has gone down.
The reason I am here—the reason I leave my family every week to do this—is because I feel so deeply about the difference that politics can make. Things have been better before, and they will be again. That change has begun. I am here to make sure that this powerful state has the most positive impact on lives in Bolsover.
This Great British Energy Bill will mean that fewer children in Pleasely have their lights switch off as they are doing their homework. Kids in Holmewood can start the day with full tummies because they will have free breakfast clubs. Children in Glapwell will not have to feel the shame of asking their parents to pay for their school trips, because those parents will have good jobs, and great terms and conditions. Families in Clowne will get access to dentists, and entrepreneurs can succeed in Wessington, with global companies investing in Markham Vale. My daughter can start her own family in Pinxton, making me the world’s proudest Nana, knowing that this Government will make getting childcare that much easier.
For my daughters and my soon-to-be granddaughter, and for your daughters and granddaughters, I stand here proudly as the first woman MP for Bolsover. It is a privilege to be a part of the most diverse Government in our country’s history, because representation matters. I stand on the shoulders of the women who came before me, and who raised, supported, educated and mentored me. They threw that ladder down and would not take it up until I had grabbed it.
They were women like Gloria De Piero, who showed me that we are not all the same, and who proved to me that we can carry the scars of poverty and still belong in this House; Bess of Hardwick, who never took no for an answer, built the best of Tudor England and put her initials on the top of her house for us all to see; Margaret Cavendish, who was not mad but a difficult woman ahead of her time; and Arkwright’s Norma Dolby, who kept her community together during the strike, faced police intimidation and made sure the miners’ families were fed.
Being the first woman to stand in this post is a huge privilege, but it comes with a greater responsibility. It is my duty to speak up for the women in my constituency whose stories are not being told, even when it is difficult to do so, and even when I wish they were stories that they did not have—like those women who have been raped and are having to wait years for trial; attempting suicide as they fear that nobody will believe them. I have a moral obligation to speak on behalf of the women who have been hurt in the worst possible way and then told that it is their own fault.
So, to the women in my constituency, who I represent, who will be raped today, raped tomorrow and raped every day of this Parliament, I say: “I do not know where you are, I cannot find you, but you can find me. I will believe you, I will support you, and I will fight to make sure that we can all tell our truth, backed by a Government who will make it easier for us to get justice, determined to make sure that our daughters grow up safer.” Being able to speak your truth until you can—that is privilege.
So, to the people of Bolsover, I say that I am thrilled to be here, for my family and for yours. I will not let you down.
Dr Kieran Mullan (Bexhill and Battle) (Con)
It is a pleasure to follow the maiden speech of the hon. Member for Bolsover (Natalie Fleet), who showed real courage in talking with emotion, pride and passion, which is not always easy in this place.
Today we are debating a number of amendments related to the strategic priorities of Great British Energy, and that will be the focus of my remarks today. I rise to ask the Government to assure the House that, given that this is not specifically mentioned in the Bill, they understand that one of the biggest challenges we face when it comes to decarbonisation is in relation to heating, and to make that a strategic priority. The UK has more than 28.5 million homes, and another 1.9 million buildings, offices, hospitals, shops, warehouses and more, the majority of which are heated by gas boilers, which also provide hot water. Nearly one fifth of all the UK’s emissions come from these buildings. The Climate Change Committee considers decarbonising heat to be one of the greatest challenges we face in getting to net zero, but that is not specified in the Bill.
Getting to net zero by 2050 will require us to pull every possible lever available. GB Energy needs to encompass the full thermodynamic meaning of the term energy, rather than focusing just on electricity. Although there is much to be said for the current plan to use air source and ground source heat pumps alongside other methods of using electric to heat buildings, attempting to convert our entire housing stock to this approach will place enormous strain on our electricity grid and supply chains.
When we consider this issue, there is one stand-out technology that will help us: geothermal energy, both shallow and deep. I am pleased to tell the House that there is cross-party consensus on this topic, and I have been able to work with a number of Members across the House, including the hon. Members for Bishop Auckland (Sam Rushworth), for Truro and Falmouth (Jayne Kirkham), for Camborne and Redruth (Perran Moon), for Rushcliffe (James Naish) and others to form the deep geothermal all-party parliamentary group. Although I have mentioned shallow geothermal, which includes technology such as coal mine water, promoted by the hon. Member for Ashfield (Lee Anderson), my remarks will focus on deep geothermal.
When I was first introduced to deep geothermal technology, my reaction was that it must be too good to be true: an environmentally friendly, dependable and cost-effective source of heat and power that can be found right under out feet—surely not. But over the past few years I have been pleasantly surprised to learn that deep geothermal is, in fact, just as good as it sounds. This technology uses the heat from naturally occurring sources of hot water deep underground to generate a large amount of usable heat and energy. In the UK, heat, rather than electricity, is the key benefit of deep geothermal, as that best matches the resources in counties such as East Sussex. This naturally occurring heat is a real resource—just as wind and sunlight are for other technologies, but unlike them it is there all year round whatever the weather.
Suella Braverman (Fareham and Waterlooville) (Con)
May I applaud my hon. Friend for really championing this innovative source of energy? May I officially log my support for Hampshire as well, because in our previous conversation we have spoken about the potential for parts of my county to exploit this energy source? Does he agree that, whether Labour says that it will not raise taxes on working people, or that GB Energy will reduce energy bills by £300, its promises are falling apart and the real way to lower energy costs is not by setting up quangos that cost the taxpayer billions of pounds, but by investing in innovative energy forms such as geothermal and other forms such as North sea oil and gas, which the previous Government did.
Dr Mullan
My right hon. Friend is right that the Government have made some big claims in this House, but the detail of the work and how to get us over the line in an affordable, cost-effective way is 10 times more challenging than that, and that reality is fast catching up with them.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
It is a pleasure to follow the maiden speech of my hon. Friend the Member for Bolsover (Natalie Fleet), who has proved by her passion and ability that she will soon emerge from the shadow of the beast and make the constituency her own.
I welcome the Report stage of the Bill, which will be the first to pass into law in this Parliament. Labour is delivering change within weeks of coming into office. The Bill has the potential to transform not just the way in which we produce power in this country and the impact that we have on our burning planet, but the way we live our lives. It could also have a transformative effect on the communities we serve. I commend the work of the Secretary of State and, in particular, of the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), who has seized the agenda and grasped the potential of that transformation, which could be huge. It will match the scale and ambition of Tom Johnson, the legendary Labour Secretary of State for Scotland who brought power to the glens through the creation of the hydroelectric dam schemes that are now part of the highland landscape.
Moving to renewables and transitioning away from carbon must involve balancing and maintaining jobs in the North sea, which are such a vital element not just of our economic and energy mix, but of the incomes of many families in Na h-Eileanan an lar. That is why I welcome the move to introduce a skills passport to help workers transition from one industry to the other, and why I welcome the co-operation this week between the UK Government and the Scottish Government in reviewing the outdated bureaucratic processes building new infrastructure and creating large energy projects. Untangling that regulatory framework and rewiring the national grid is a hugely complicated exercise. The Bill will achieve that by setting up a company, GB Energy, which will itself be the vehicle for reducing bills, involving communities and transforming the way we produce energy.
If the shadow Minister, the right hon. Member for East Surrey (Claire Coutinho), is looking for £300 off energy bills, she can accompany me to the village of Tolsta in my constituency, where one community-owned turbine has just distributed, as it happens, £300 per household to help people with their household bills and energy needs. Community energy will be a large part of what GB Energy does. We heard in evidence from Juergen Maier, who will chair GB Energy, that he and the Labour Government are committed to community energy as part of that mix.
Some of the amendments will seek to make community energy a part of the founding structure of the Bill. It will be part of the company, as set out in the explanatory notes to the Bill, but there is no necessity—[Interruption.] It is not necessary—
Torcuil Crichton
I could have said it in Gaelic. [Laughter.] It is not necessary for that to be part of the Bill or the company.
Communities must be at the heart of what GB Energy does, and community energy is at the heart of much of the wind production in my constituency—although there are commercial plans, too. Scotland’s community-owned wind farms provide, on average, 34 times more benefit payments to local communities. I have given the example of just one village with one turbine, so imagine what three estates with nine turbines could do in terms of community benefit. Let us be in no doubt, the transformative move towards wind-farming—onshore and offshore—will be mean an extremely profitable, multibillion-pound industry. Communities that host such infrastructure, or which have serious infrastructure passing through their areas, must benefit as well. People will not mind the pylons going past as long as some of the profit comes to them. That will be a critical part of the contract between GB Energy, developers and communities. Communities settling and making deals should not be left to chance.
Richard Tice (Boston and Skegness) (Reform)
Does the hon. Member seriously think that people in my constituency and across Lincolnshire and the east of England will be happy with thousands and thousands of huge pylons going through their area, damaging the value of their properties and businesses?
Torcuil Crichton
I remind the hon. Member that to switch on one lightbulb in Lincoln from a turbine on the Isle of Lewis will require a link and a chain of dominos to fall in order, on a scale that we have only ever seen in the Guinness record books. For each of those dominos to stay in place, the communities along that line must be involved and rewarded locally, or nationally with a sovereign wealth fund, to ensure that they play a part and have a sense of ownership in the transformation. The only way for this to succeed is if we all benefit. The wealth of wind is owned by no one man, and we should all share in the transformation. That is what I think GB Energy will deliver, and it is why I support the Bill.
Madam Deputy Speaker (Judith Cummins)
I call the Liberal Democrat spokesperson.
Pippa Heylings (South Cambridgeshire) (LD)
I start by thanking the Minister for how constructively he has worked with me, and by thanking the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton) for his words just now. I also thank all the colleagues who have sat on the Great British Energy Bill Committee. It is encouraging that this legislation has been given a prime spot at the beginning of this Parliament, and I thank the Clerks and the Speaker’s Office for their diligent work in administering the Bill thus far, as well as all the Members who have taken the opportunity to represent their constituents’ aspirations and concerns regarding the Bill. As many Members know, this is my first Bill as spokesperson for energy security and net zero, and I have appreciated all the support I have been given.
I also acknowledge colleagues from across the House who have lent their support to the amendments to which I am going to speak, and have also tabled their own. In particular, I recognise the contribution made by the hon. Member for Waveney Valley (Adrian Ramsay), whose amendment promotes a nature recovery duty. He will know that nature recovery is close to my heart, and that I raised that topic in Committee. Last week, I had the privilege of attending the UN conference on biodiversity in Cali, Colombia—a poignant reminder of how it is impossible to address climate change and energy security without tackling the nature emergency. National energy infrastructure must therefore be nature-positive and aligned with the obligations in the Environment Act 2021.
As the Minister knows, the Liberal Democrats support the Bill in principle, because we want a nationwide energy system that will bring down energy bills and provide clean, green energy. Amendment 3, which stands in my name, would guarantee that Great British Energy is established within six months of the Bill becoming law. We all know that as a result of the Conservative Government’s delay and dither, we are not on track to meet our ambitious targets.
Steve Darling (Torbay) (LD)
I echo that. Torbay has an oven-ready solar scheme that would power our hospital and our council, yet because the national grid is not fit for purpose, that scheme has remained a blueprint. Does my hon. Friend agree that building capacity in the national grid is absolutely essential if this Bill is to be successful?
Pippa Heylings
I agree very much with my hon. Friend. National grid capacity is critical if we are to unblock all of these projects, which are so critical to powering our community services, our public services and the national economy. That is why we need to ensure there is no delay, and that is what amendment 3 speaks to.
Amendment 4, which also stands in my name, would ensure that Great British Energy has an explicit duty to help deliver energy efficiency through
“an emergency home insulation programme with targeted support for people on low incomes”,
as well as the expansion of renewables. This Bill has the power to transform lives, but also to protect lives. Warm hubs are becoming too familiar in my constituency of South Cambridgeshire: Comberton, Duxford, Melbourn, Meldreth and Toft are just a few of the village hubs run by amazing volunteers in the local community that provide warmth to those who have to make the heartbreaking choice between heating and eating. It is frankly astonishing that this is now a reality for so many in the UK in 2024, and is a damning indictment of the last Government’s record on prioritising home insulation. Insulated homes mean warmer homes, which in turn means safer homes. The NHS spends an estimated £1.4 billion annually on treating illnesses associated with people living in cold and damp housing, and amendment 4 would seek to address this.
Amendment 4 also seeks to capitalise on our unique opportunity to be world-leading in renewable energy, which the Lib Dems know from our own track record. We must ensure that Great British Energy is duty-bound to support those activities. If renewable energy and home insulation can be rolled out at speed so that we can meet those vital climate targets, that will reduce energy demand, bring down energy bills and provide green, future-proofed, well-paid jobs for the UK.
I turn to amendment 5 on community energy. At every stage of the Bill, the Liberal Democrats have raised our concerns, and those of many MPs from other parties and of the many community energy groups and communities that we represent, that as it stands, the Bill is missing a vital limb. It lists four objects for Great British Energy, but nowhere does it mention supporting the growth of community energy.
Lisa Smart (Hazel Grove) (LD)
I am grateful to my hon. Friend for giving way. She mentions community energy and I wonder if she recognises, as I do, the value of projects such as Stockport Hydro in Romiley in my constituency, which since 2012 has been using its two Archimedes screws, Thunder and Lightning, to power around 60 homes, thereby saving more than 100 tonnes of CO2 a year. Is that the sort of project that she thinks the Bill should do more to support and encourage, so that we can tackle climate change and ensure that communities benefit from community energy projects?
Pippa Heylings
I thank my hon. Friend for that fantastic example from her constituency, which is exactly the kind of project we are talking about. We know that
“Local power generation is an essential part of the energy mix, ensuring communities own and benefit from clean power projects, and reducing pressures on the transmission grid.”
In fact, those words are taken from the Government’s founding statement for Great British Energy, and the Minister said in this Chamber that
“Great British Energy will deliver a step change in investment in local and community energy projects, putting local authorities and communities at the heart of the energy transition.”—[Official Report, 5 September 2024; Vol. 753, c. 530.]
Yet the community energy sector was brought almost to a standstill by the former Conservative Government, and barriers still exist in selling directly to customers and in the cost of connecting to the grid, so welcome words are not enough.
Ms Polly Billington (East Thanet) (Lab)
I thank the hon. Lady for giving way. I would like to clarify what she said about there not being anything in the Bill about community energy. It is in the founding statement of GB Energy, because we know the importance of locally delivered community energy in facilitating this transformation. I want to correct that for the record, because the suggestion that community energy is not one of the aims of this legislation is a misunderstanding.
Pippa Heylings
I appreciate that, which is why I quoted from the founding statement. The problem is that those words are not enshrined in the Bill itself, which is why we are surprised that the Government continue to vote down amendments that would put communities at the heart of the Bill. We will continue to push on that.
I thank the 58 Members from different parties who have supported amendment 5, which requires that the statement of strategic priorities for Great British Energy has specific regard to community-based clean energy schemes. I would also like to give recognition to my colleagues who are leading the way in promoting the benefits of community energy, including my hon. Friend the Member for Hazel Grove (Lisa Smart), as we have just heard.
Torcuil Crichton
Does the hon. Lady recall the evidence of Juergen Maier, EDF, SSE and the Minister to the Committee? They all gave commitments to community energy and to the local power plan being almost an eighth—almost £1 billion-worth—of GB Energy’s plans.
Pippa Heylings
In fact, I said at the beginning of my contribution that I welcomed the constructive debate in Committee.
Wera Hobhouse (Bath) (LD)
If the Government have bought into the idea of community energy, does my hon. Friend not think it odd that they are so afraid to put it in the Bill?
Pippa Heylings
I could not have put it better myself. I thank my hon. Friend for leading the fight for the Liberal Democrats as the former spokesperson on energy security and net zero. That question goes to the crux of the matter.
We have fantastic examples from many communities of how important community energy is. My hon. Friend the Member for Inverness, Skye and West Ross-shire (Mr MacDonald) led the recent Westminster Hall debate, in which there were fantastic examples from rural communities of how they feel about community benefits. There are also the efforts of my hon. Friend the Member for Edinburgh West (Christine Jardine) in supporting the Aikengall community wind farm, which provides a direct benefit of an amazing £120,000 for the community.
Community energy is not just for Scotland. In my own county of Cambridgeshire, there is the Swaffham Prior community heat network, and the village is the first of its kind to switch to reliable zero-carbon heating. It was started by the Swaffham Prior Community Land Trust, and it addresses fuel poverty and the village’s reliance on oil heating. The Liberal Democrats will continue to promote those who have pioneered community energy schemes, proving their worth and championing their critical importance to our energy future.
While the Government have not previously backed our amendments, which is incomprehensible to us, I am grateful to the Minister for the conversations we have had recently and the assurances he has given us that the Government really do want to make provisions in the Bill for community energy in the Lords. I look forward to supporting our colleagues in the other place in this endeavour, but the interventions from Labour Members—saying that this will be in the founding statement and the strategic priorities, but not in the Bill—are causing us to doubt that commitment. I therefore urge the Government to make good on their promises. We know their commitment to community energy, so let that be understood clearly and let us put it in the Bill.
Madam Deputy Speaker (Judith Cummins)
I call Adam Thompson to make his maiden speech.
Adam Thompson (Erewash) (Lab)
Thank you, Madam Deputy Speaker, for your kind invitation to present my first speech. May I first congratulate my hon. Friend the Member for Bolsover (Natalie Fleet) on her deeply moving and powerful speech this afternoon, alongside the many Members who have spoken for the first time in this House in recent days and weeks? If the high bar set by the newest Members of this House is indicative of the quality of debate to follow in the coming Parliament, I am very confident about the future of our nation.
In my own first speech, I will lay out why I stood to represent my home of Erewash, my plans for my time in Parliament and why I love the area it is now my honour to represent. By the way, before I start in earnest, for the information of all Members present, the constituency is pronounced “Eh-ruh-wash” or occasionally “Eh-ree-wash”, but never under any circumstances “Ear-wash”. I look forward to seeing how that is recorded in Hansard.
I begin my speech by thanking my predecessor, Maggie Throup, for her efforts in serving the people of Erewash over the past nine years. Maggie worked diligently for our community, consistently lobbying for funding to support our towns and villages. Given her background in the health sector, Maggie regularly contributed to health policy throughout her tenure, and she served the nation admirably through the latter stages of covid-19 as Vaccines Minister. While Maggie and I rarely saw eye to eye on policy, our relationship across the political divide has always been courteous and collegiate, and I wish her the very best for the future.
I would also like to pay tribute to my colleague Liz Blackman, who served Erewash as our Member of Parliament throughout the last Labour Government. Liz’s guidance during my campaign to become the MP for Erewash was invaluable, and I am sure I will continue to seek her advice throughout my tenure.
In my first months in Parliament, as I have met colleagues from across the country, the question I have most frequently been asked is: “What even is an Erewash, anyway?” Named for the river and the canal, we comprise two towns—Ilkeston and Long Eaton—the five villages of Breaston, Draycott, Risley, Sandiacre and Stanton-by-Dale, and other communities in Sawley, Kirk Hallam and Cotmanhay. More often, though, I find it easiest to answer, with a reference to our geography, simply, “We’re junction 25 of the M1.”
Like many towns that operate as a binary star, Ilkeston and Long Eaton exist in a delicate balance, with residents of Ilkeston—or “Ilson”, as we call it—regularly declaring, “Long Eaton gets everything.” It is probably no surprise then, Madam Deputy Speaker, that if you spent 10 minutes talking to someone in Long Eaton, you would similarly and resoundingly hear the mantra, “Ilkeston gets everything.” I should note that I have sanitised these statements somewhat; references to the other town in my constituency are often a little more colourful.
In truth, both of our towns have been hard done by in the past 14 years. Despite the hard work of incredible and passionate teaching and support staff, for example, many of our schools struggle with underfunding—something I witnessed at first hand when I trained as a secondary physics teacher. Both high streets have declined, and while towns funding is helping to support Long Eaton’s regeneration, the underlying problems remain: antisocial behaviour, crime, shopkeepers forced out by online giants, and a general malaise and the feeling that nothing will fix the foundations.
Despite the difficulties we face, I would like to explain why Erewash is a fantastic place by paying tribute to the people and the groups in our towns who are doing everything they can to lift the area up by its bootstraps—people like Joe Cahill, who, by liaising with shopkeepers and landlords through a local Facebook group focused on incredible independent shops, has empowered our community and begun restoring Ilkeston as a thriving market town. Similarly, I commend the work of Paul Opiah and others in building the new Friends of Ilkeston Town Centre, providing grassroots regeneration to our town. The efforts of Joe and Paul have been fantastic and I want to provide them with more support. Joe recently noted that he had done as much as he could without changing the law to bring the remaining, rotting shop units back into service—units that are currently held hostage by absentee landlords. I am therefore excited about the Government’s proposals to revive our town centres, and I will do everything in my power to support local people in their efforts.
In Long Eaton, I pay tribute to Scott Clayton and his team, who have created a beautiful new community focused on supporting mental health through the joy of song, where men of all abilities can come together to sing and discuss their issues. It was a pleasure during my campaign to become a Member of Parliament to join Scott and the Bluetonic community and to dive head first out of my comfort zone to sing with new friends.
I also pay tribute to Chris and Jackie Brookes, along with the team at Long Eaton rugby football club. The club serves Long Eaton so well, providing access to sport in our local park for children and adults, and supporting local charities and the armed forces community. After growing substantially over the past decade in the men’s game, in the women’s game and now with its new minis side, Long Eaton RFC has become a pillar of our community.
Then there is Lindsay Rice and her team, who have built a food bank and a lunch club, and are on their way to creating a brand-new Ilkeston carnival through their Every One Eats institute, alongside the collective churches in Long Eaton that have similarly supported those in our community struggling through poverty. Lindsay recently asked me, “Adam, as a food bank, when are you going to shut us down?” I responded, “As soon as possible, Lindsay, as soon as possible.”
Erewash has a thriving veteran community, and as a member of the Royal British Legion, I am very proud that our current mayor, Councillor Kate Fennelly, is a Royal Air Force veteran. I recently met the local charitable trust, Forces Veterans Afloat, which does incredible work housing veterans for whom bricks and mortar are not the answer on narrowboats. As a cadet warrant officer in 1344 (Cardiff) Squadron ATC for much of my childhood, I have long supported our forces and veterans; without 1344 and the citizenship, leadership and community spirit instilled in me by the wider cadet movement, I would not be standing here as a Member of Parliament.
Erewash is the birthplace of many national stars, from Douglas Houghton, Baron Houghton of Sowerby, who served our country in the first world war and in Harold Wilson’s Government as the last British Cabinet Minister born in the 19th century, through to Robert Lindsay, who has played countless parts, including the infamous Wolfie in “Citizen Smith” and the former Prime Minister, Tony Blair. We also have Bru-C, who today is putting Long Eaton on the map in the grime scene. Our towns, villages, and people are fantastic, but they have been let down by the previous Government, by politicians and by their country.
So what do I bring to this place, and what do I hope to do for Erewash? My background is in academia and education. In my previous day job, I taught engineering apprentices at the University of Nottingham. I worked there for a decade, specialising in metrology research and training the next generation of world-leading manufacturers. I believe I am the first metrologist elected to this place, metrology being the science of measurement and definitely not meteorology—as I said in the opening quote to my PhD thesis, it has nothing to do with clouds.
Erewash, and the wider east midlands, has long been the engine of our nation’s manufacturing base, producing everything from drain covers—look down on nearly every street in the country to see the logo of the famous Stanton Iron Works—to the fine lace worn by the Princess of Wales on her wedding day, produced by Cluny Lace in Ilkeston, to tunnels for HS2 made by Sateba UK, and composite motorsport and aerospace components from Atlas Composite. I want to see an expansion of our manufacturing base through an industrial strategy and reform of the apprenticeship levy, so that we can cement Erewash’s position as a centre for advanced manufacturing.
We also need new infrastructure to build the new homes to support our local economic growth, which I am glad to see the Government commit to. As the Stanton industrial regeneration site grows, I will fight every day for infrastructure works. We need a new junction on the M1 to support the growing industry in the area and to reduce the impact on residents in Sandiacre and Ilkeston, who currently endure a huge volume of heavy goods vehicles passing through the towns.
Siân Berry (Brighton Pavilion) (Green)
I am pleased to speak in this debate, and the Green group of MPs is pleased to back this Bill. I will be speaking in support of new clauses 2 and 3, tabled by my hon. Friend the Member for Waveney Valley (Adrian Ramsay), which are designed to make the Bill even stronger. The new clauses would create a new nature recovery duty for Great British Energy and prevent investments that increase climate emissions.
I thank the hon. Member for South Cambridgeshire (Pippa Heylings) for her statement of support for my hon. Friend’s work and for making the Bill better for nature recovery. I also thank her for her proposals on insulation and community energy, which we support. All those things are vital for the Bill’s success.
Sammy Wilson (East Antrim) (DUP)
If nature recovery is to be important in the Government’s present drive, does the hon. Member accept that renewable energy has been destructive of nature? Some 17 million trees have been cut down in Scotland to facilitate windmills. Now, there are studies indicating that offshore wind is leading to dead porpoises, dead dolphins and dead whales being washed up on beaches because of the effects of drilling.
Siân Berry
I do not agree with all the assertions that the right hon. Member makes, but the duty is intended precisely to ensure that every single project would have a positive impact on nature. Under new clause 3, they would all be renewable projects.
The nature recovery duty under new clause 2 would help GB Energy invest only in projects that deliver significant biodiversity benefits and meet targets under the Environment Act 2021, by building nature-friendly design features into renewable energy projects and creating and restoring habitats on development sites in and around clean energy infrastructure.
The Bill Committee heard from Shaun Spiers of Green Alliance, who made a strong case for a nature recovery duty being created for GB Energy. The ensuing discussion saw the Crown Estate used as an example for how a public body could deliver for nature without having a statutory duty to do so. However, the Crown Estate is a highly relevant case study that demonstrates why non-statutory duties are not enough. The Crown Estate’s lack of a statutory duty to consider nature in its own decision making has led to its involvement in a number of environmentally damaging schemes.
For example, let us consider mining proposals in the Sperrin mountains area of outstanding natural beauty in Northern Ireland. The Crown Estate entered into an initial mineral extraction agreement with a mining company there in 2016, leading to proposals for goldmining. That has provoked significant environmental concern about harmful chemicals and waste from mining operations polluting nearby rivers and degrading the surrounding AONB. An application was submitted in 2017 and is now subject to a public inquiry, following nearly 40,000 objections from local people. So an abundance of warm words about protecting and conserving the environment, and about the Crown Estate’s status as a public body, did not inhibit it from playing a role in a project that threatens nature.
Sammy Wilson
The hon. Lady mentioned Northern Ireland and particularly the Sperrin mountains, which is an area of great natural beauty. It has many features, including wildlife and wild uplands, but it has been industrialised. I took a motorbike journey around the area three weeks ago, and there are hundreds of huge wind turbines. The peat has been dug up, the landscape has been destroyed and thousands of birds are killed every year. What has happened in the Sperrin mountains is hardly a good example of renewable energy being nature-friendly.
Siân Berry
I am sure we can have those debates in the context of a statutory duty. These are important questions to consider.
I want to give some other examples of public bodies damaging nature, because they abound—from the granting of new oil and gas licences in marine protected areas by the North Sea Transition Authority, to Highways England pursuing damaging road construction projects on the edges of national parks. Without legal backing, nature considerations can be and are brushed aside.
There is no reason to think that Great British Energy, without a duty to consider nature recovery, will be any different. A statutory duty to deliver for nature’s recovery would be complementary to GB Energy’s other objectives around clean energy, energy efficiency and energy security. It would also reflect the Government’s manifesto commitment to tackle the interconnected nature and climate crises together. I hope the Government will carefully consider those arguments.
New clause 3, which was also tabled by my hon. Friend the Member for Waveney Valley, is vital to guarantee that our energy investments are not only financially responsible but aligned with the legal requirement to reach net zero by 2050. As legislators, we have a duty to hold GB Energy accountable, preventing investments that will lock us into high-carbon energy pathways and undermine our net zero commitments. The new clause mandates environmental impact assessments before any investments are made, ensuring that each decision is grounded in evidence. It forces us to ask, “Will this investment push us at speed towards, or risk pulling us away from, our climate goals?” Publishing those assessments opens the process to public scrutiny—an essential principle in democracy. The public deserve to know exactly how their tax money is being used, particularly when it comes to funding projects that may exacerbate the climate crisis.
The new clause would also bar public money from being spent on fossil fuel and unsustainable high-carbon projects such as biomass. We cannot ignore the facts: Drax, the largest biomass-burning plant in the UK, emitted over 11 million tonnes of CO2 in 2023. Worse still, it receives nearly £900 million in Government subsidies a year. If we allow investments in projects such as Drax or new fossil fuel infrastructure, we risk undermining the very goals we are trying to achieve. The new clause would close the door on such contradictions.
When we talk about greenhouse gas emissions, it is crucial to acknowledge that carbon dioxide is not the only danger. Methane is a greenhouse gas with over 80 times the warming potential of CO2 over a 20-year period. Methane emissions, often associated with fossil fuel extraction and agriculture, must be tightly controlled to ensure that the UK meets its climate commitments. The new clause would ensure that all climate emissions, including methane, are thoroughly assessed before any public investment is made. If we do not account for methane and other greenhouse gases, we risk underestimating the climate impact of certain energy projects, and particularly those related to natural gas production and transport.
Fossil fuel infrastructure does not just burn carbon; it locks us into long-term dependence on dirty energy. Every pound spent on high-carbon infrastructure makes it harder and more expensive to transition away from fossil fuels in the time that we have. This amendment ensures that we avoid that trap, by making it impossible for Great British Energy to invest in projects that would limit our ability to end our reliance on carbon-emitting technologies.
Great British Energy should also be a true trailblazer in the global transition to clean energy. The amendment strengthens that mission by making clear that only projects contributing to emissions reductions should receive investment. With countries around the world watching, we have a unique opportunity to lead by example. A failure to act boldly now will leave us behind in the global race for climate leadership.
We are in a climate and nature emergency, and we cannot afford to repeat the mistakes of the past by further locking ourselves into harmful high-carbon infrastructure. These amendments reflect that. The stakes could not be higher. These decisions are about securing a liveable planet for future generations. I hope the Government will listen.
Graeme Downie (Dunfermline and Dollar) (Lab)
Let me begin by congratulating my hon. Friend the Member for Erewash (Adam Thompson) on his maiden speech. I am delighted that he gave us a lesson on how to say his constituency name. How can I say “Erewash” to further confuse Hansard? I also congratulate my hon. Friend the Member for Bolsover (Natalie Fleet), who is no longer in her place, but I think everyone in this House felt the passion in her speech. I look forward to hearing more from her on a number of issues.
I will focus my remarks on how to ensure that GB Energy delivers effectively for Scotland and the rest of the United Kingdom. To do that, it must generate investment that delivers tangible results and brings jobs and economic growth, along with the energy security that we all want. In Committee, witnesses said that one of the challenges for GB Energy will be finding a balance between accelerating renewable energy delivery and ensuring a return on investment, while supporting less mature technologies. I agree that it will be a difficult balance to strike, but we are more likely to succeed in our investments if they are encouraged in areas where there is likely to be a warm welcome and strong understanding of electricity generation, and where the foundational skills and engineering heritage already exist. They include former coalfields across Scotland and the rest of the United Kingdom, including in west Fife in my constituency.
Although the mines closed decades ago, the heritage of electricity generation lived on in the Longannet power station near Kincardine, on the banks of the River Forth. Constructed in the 1960s, Longannet was once Europe’s biggest coal-fired power station and one of the largest carbon emitters on the continent, before shutting down in 2016. Having represented that community as a councillor, I know that people across west Fife accept that coal had to go and things had to move on, but they want something to replace it. Like so much of our past energy infrastructure, and like in so many industries, Longannet was closed down with little or no consideration for what might replace it or how the thousands of jobs lost could be replaced and the skills maintained, particularly in the rural villages of west Fife, where losing even a few families or employees can put their whole sustainability at risk.
I believe that GB Energy and the investment opportunities that it presents is a chance to change that. The site is currently being safely demolished by ScottishPower, but there are still no clear plans for the future of the site. Longannet is perfectly situated to play its part once again in helping to provide electricity for our country and leverage some of the £60 billion possible investment that could be available via GB Energy. The site is designated for major employment, and due to its location right on the coast it is likely to be suitable for major industrial use only. It has the potential to bring jobs and investment to the coalfield villages of west Fife and the whole of central Scotland, securing opportunities for those communities to fulfil the aspirations of the people living there.
Despite being listed as a strategic priority site by the Scottish Government, they have had no plans for it, and from what is available in the public domain, it seems they have not prioritised any action at all in recent years. Promises made of train manufacturing being brought to the site came to nothing, and the decision by that company to withdraw from an agreement came to light only because of a freedom of information request I made back in 2022. Nothing was discussed publicly at all. Indeed, some people in that community still talk about when the train manufacturer is coming. Similarly, both Fife council and Scottish Enterprise have struggled to engage with ScottishPower about the future of the site, although I have a meeting with ScottishPower this week, and I hope to gain more clarity after that. Will the Minister, in winding up, agree to meet me and other stakeholders to ensure that sites such as Longannet, once a symbol of Scottish and UK electricity generation and the skills that come with it, are priorities for GB Energy? How will it work with the industry to create the right plans to bring investment to the area?
We know the wreckage that the Conservative party made of UK and Scottish industry over the past decades: change without a plan. GB Energy offers an opportunity not only to have a plan for our low-carbon secure energy future, but to fix yet another part of the mess left for us by the deliberate actions of the Conservatives and the incompetence of the SNP in Scotland. The Bill is a huge opportunity for Scotland. We must ensure that it is passed today, so it can get on with its work as quickly as possible.
David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)
I pay tribute to the two excellent maiden speeches that we have heard so far in this debate, from the hon. Members for Erewash (Adam Thompson) and for Bolsover (Natalie Fleet). I hope that people from former mining communities are listening to this debate, because I am sure they will have some choice words to say about a Conservative talking about de-industrialisation. In Wales, we will never forget what the Conservatives did to our industries, and the jobs and futures they took away from people.
Harriet Cross (Gordon and Buchan) (Con)
Does the hon. Gentleman therefore appreciate why Conservatives are so concerned that the plans coming forward from the Labour Government will do exactly the same to north-east Scotland if this is not handled properly?
David Chadwick
I thank the hon. Member for that contribution. De-industrialisation has been happening for a very long time across the United Kingdom, and we are yet to see a real industrial strategy that would restore the wealth, prosperity and jobs that used to exist across our industrial areas in the entire United Kingdom.
Wales stands ready to play its part in powering the United Kingdom once again, but this time Wales would like to experience the tangible benefits from these projects. In my constituency, Llangattock Green Valleys has the ambition to develop plans for a large, community-owned renewable energy scheme to supply premises in the Crickhowell region. The scheme will have a mix of technologies, such as solar, hydro, wind and storage, to give a year-round supply of energy. It will be developed from the start in consultation with the community. It will be managed by the community and the profits will benefit the community itself.
We Liberal Democrats are firm believers that this is exactly the model of community ownership that will provide communities with security and prosperity well into the future. It is for this reason that I urge all Members to support amendment 5 and ensure that the Bill puts the principle of community ownership at the very front and centre of what the Government are trying to achieve.
Sarah Champion (Rotherham) (Lab)
I welcome the Bill, which brings us one step closer to establishing this much-needed, publicly owned energy company. To quote the Secretary of State for Energy Security and Net Zero, my right hon. Friend the Member for Doncaster North (Ed Miliband), at the UN General Assembly, this is a Government who are
“willing to tell the truth”
and “show international leadership” when it comes to climate change. In that spirit, I would like to bring to the attention of the House the importance of upholding human rights and the principles of a just transition in our renewable energy supply chains.
I am heartened by the determination of our Front Bench to see human rights protected across our energy transition. When questioned on forced labour in the solar industry, the Secretary of State for Business and Trade, my right hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds), stated that he
“would expect and demand there to be no modern slavery in any part of the supply chain”—[Official Report, 5 September 2024; Vol. 753, c. 418.]
In a similar vein, the Minister for Development, my right hon. Friend the Member for Oxford East (Anneliese Dodds), recently spoke about
“galvanising just energy transition partnerships, to making sure that everyone feels the benefits of green innovation”.
While GB Energy must ensure that everyone benefits from green innovation, it must also guarantee that no one suffers from it. However, I have grave concerns that if we charge ahead with our net zero transition without safeguards in place, we will knowingly be doing that on the backs of those in slavery. Let me outline why.
Wind turbines, solar panels, electric vehicles and battery storage all require large quantities of critical minerals. There is conclusive evidence of human rights abuses associated with critical minerals. The abuse is most severe and systemic in the Xinjiang Uyghur autonomous region of China, where the Chinese Government are systematically persecuting millions of Uyghur, Turkic and Muslim majority peoples on the basis of their religion and ethnicity. It is well documented that the lower tiers of our solar supply chains are concentrated there, and have a sinister dependency on state-imposed Uyghur forced-labour programmes. Those programmes have bolstered China’s global market share, which exceeds 80% across the whole solar PV supply chain. I raise these concerns not to undermine our business relationship with China, but because through the purchasing power of GB Energy, we can protect human rights around the world.
Graham Stringer (Blackley and Middleton South) (Lab)
My hon. Friend says that she does not want to undermine our commercial relationship with China. I do. China is carrying out genocide of the Uyghurs. It is an appalling country—or, rather, it has an appalling leadership, to be precise. It is trying to monopolise crucial supply chains around the world in order to oppress people. Surely we should be reducing our relationship and making ourselves independent.
Sarah Champion
I appreciate that my hon. Friend has put that on the record. I think that what we need to be doing is reducing our dependency—some might say “stranglehold”—on China for some of our most critical resources.
Perran Moon (Camborne and Redruth) (Lab)
I agree with my hon. Friend about China. Does she agree with me that we should be looking at domestic production of critical minerals such as tin, lithium, tungsten and manganese? In Cornwall we have plenty, and we are very hopeful that the Bill will support the opportunities that they offer.
Sarah Champion
I completely agree with my hon. Friend, and that, to my mind, is what GB Energy should be doing. It is using its purchasing power around the world to increase human rights and improve working conditions, for example, but it also needs to be supporting British-based businesses, because our businesses need that support more than ever before. What we need to be doing is applying pressure on all our trading partners around the world, not just China, to improve standards. There are allegations of child labour in cobalt mining for EV batteries in the Democratic Republic of Congo, and there is evidence of labour exploitation in nickel processing in Indonesia.
With those examples in mind, I ask the House a simple question: do we turn a blind eye to modern slavery in our energy supply chains, or do we lead the way with a just transition? As the Chancellor outlined in her conference speech, this Government are
“Calling time on the days when government stood back…and turned a blind eye to where things are made and who makes them.”
It is vital that we follow up her words with real, meaningful action, because, as things currently stand, we are a global outlier. In 2021 the United States enacted the Uyghur Forced Labor Prevention Act, banning the importation of products from the Uyghur region, including shipments of solar panels with connections to Xinjiang. That has been highly effective, with the market responding with new, ethical supply chains. Canada and Mexico have followed suit with similar regulations, and this year the European Union passed the corporate sustainability due diligence directive, which will ensure that companies prevent and address the adverse human rights impacts of their actions.
Ms Billington
We should bear in mind that the regulations established by those other countries apply to all companies. It seems to me that we should be going in that direction, rather than simply saying that we will focus on one company, GB Energy. Given our high ethical standards, this is the kind of sectoral approach that we should be able to create ourselves, as an international leader.
Sarah Champion
My hon. Friend pre-empts me. This will work only if we do it across the whole of Government and in all sectors, and I want my Government to be leading the way on that. We have a hugely important role to play internationally, as well as in our own industries.
The UK’s failure to keep pace with our partners has resulted in the global supply chain splitting. Slave-made renewable products are being redirected to countries with weaker regulations, such as the UK. As the other place’s Modern Slavery Act 2015 Committee recently recognised, without forced labour import bans, the UK risks becoming a dumping ground for tainted products. Current legislation, such as the Modern Slavery Act 2015 and the Procurement Act 2023, cannot meet the scale of the problem, especially while human rights due diligence remains optional for companies.
I appreciate that the Department is looking into these issues through the solar taskforce’s upcoming solar road map, which I really welcome. However, the solar taskforce, made up mostly of industry voices, needs to have civil society and trade unions on the team for its work to be truly credible. That is especially the case given my concerns about Solar Energy UK’s solar stewardship initiative, or SSI, as I am doubtful that an industry-led solution can meet the scale of the challenges I have outlined today.
A just transition is not only about international workers’ rights; it is also about securing UK jobs and industry. Our energy strategy must prioritise green jobs and wealth creation here, and avoid fuelling growth in economies known for cutting corners. Following my discussions with the industry and unions, it is clear that the UK’s inadequate response to these issues is creating a competitive disadvantage for businesses here and an uneven playing field internationally. If GB Energy allows exposure to state-imposed forced labour, it creates a distinct risk for investors and businesses here in the UK.
The arguments I have laid out today have the support of unions, businesses and human rights advocates alike. They echo the sentiments of our Prime Minister, Foreign Secretary, Business Secretary and Energy Secretary. For too many years, tackling modern slavery has received a siloed, disjointed response from Government. We now have an opportunity to change that and to embrace cross-departmental, collaborative working. Renewable energy has a key role to play in our transformation to a low-carbon economy, but without placing human rights at its centre, our green transition will come at a grave cost.
This Bill is aptly named the Great British Energy Bill. It simply cannot live up to its name if it depends on modern slavery to achieve its aims.
Mr Angus MacDonald (Inverness, Skye and West Ross-shire) (LD)
I invite hon. Members to refer to my entry in the Register of Members’ Financial Interests. I thank my hon. Friend the Member for South Cambridgeshire (Pippa Heylings) for her commitment to our essential amendments, both in Committee and here today. I also thank the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton), who has been incredibly supportive of our ambition for communities to benefit from renewable energy. I have one little correction: Tom Johnston, who invented the hydro boards, and the Labour Government did not actually put in place a proper system whereby local communities could benefit. They supplied a lot of power to the south and the cities, but it was of very little benefit to those of us living in the highlands, even then.
The Government have argued that nothing in this Bill limits community ownership. That is almost certainly true, but as my colleagues and I have emphasised, amendment 5 would not restrict GB Energy; it would simply clarify that community-led energy is a priority.
The Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), recently experienced a powerful story of community-driven energy on his visit to the island of Eigg. Just 25 years ago, Eigg’s residents, frustrated by years of poor management and a lack of investment, took matters into their hands and purchased their island. The Eigg buy-out succeeded in 1997, sparking what is now a beacon of self-sustained energy. Since then, Eigg has moved away from fossil fuels, becoming the world’s first island to generate 24-hour electricity from a variety of different renewables. This small community of just 110 people demonstrates the innovation and resilience that flourish when communities are empowered.
Eigg’s journey is a true example of prioritising community ownership and how that drives forward sustainability and local resilience. To paraphrase the Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), community involvement is critical, not a mere “nice to have”. If we are to build the infrastructure of the future, we must ensure that communities benefit directly. Community-driven projects are key to making that a reality, so let us follow Eigg’s lead and put the Government’s own words into action.
The current Government have an opportunity here to show their commitment to cross-party collaboration by embracing community energy. We are all aligned on the goals, so let us not get bogged down by technicalities or party politics. The Minister knows of the huge cross-party support for community energy ownership. If this goes to a vote, do this Government really want to vote against community energy ownership? Let us show the people of Britain that this Bill truly supports the right to own and benefit from our natural resources through Great British Energy.
Tom Hayes (Bournemouth East) (Lab)
It is an honour to welcome this Bill as it is moving forward, and I want to commend the leadership of the Secretary of State and the Energy Minister. To show such leadership so early on in the Parliament on such an important topic is really commended in my community.
My community of Bournemouth, and Britain, have suffered the worst cost of living crisis in a generation, driven by the energy shock that followed Putin’s invasion of Ukraine. This cost of living crisis has been a disaster for businesses. Typical energy bills have nearly doubled in the space of a year. It has been a disaster for family finances, with millions struggling with fuel poverty and many still facing enormous debts. It has been a disaster for public finances because the Government that we replaced left our country so unprepared. They were forced to spend an eye-watering £94 billion to support households with the cost of living—almost as much as our entire defence budget over the entire period. Because energy costs underpin economic performance, inflation soared, growth sputtered and Russia’s invasion of Ukraine sent inflation in the UK to over 10%, with a full third of that directly due to rising gas prices as a direct result of our vulnerability over the last 14 years.
We risk paying an even heavier price if we stay exposed to fossil fuels. We still depend on gas to generate more than a third of our electricity and to heat more than four out of five of our homes. No more. We must make sure that we are energy secure, and we must be able to bring down our bills. The Office for Budget Responsibility has warned about our exposure to surges in energy prices, and the potential costs to bill payers, taxpayers, consumers and businesses alike. The OBR now estimates that another fossil fuel price shock would cost the economy 2% to 3% of our GDP in the 2030s.
The crisis is not over. It still casts a long shadow and we cannot go on like this. We must learn the lessons, and the fastest way to reduce our vulnerability is to end our dependence on volatile global fossil fuels. The cheapest way to meet our energy needs is to enhance our home-grown renewables and British-based nuclear. I was intrigued to hear the Conservative spokesperson, the right hon. Member for East Surrey (Claire Coutinho), saying that this Government want to go slow on nuclear, so I have to ask: what nuclear projects were built over the last 14 years of the Conservative Government and five Prime Ministers? What small modular reactors actually moved ahead? What did those Prime Ministers do with the investment and the work that developers wanted to bring forward? Nothing. Our nuclear industry has been starved of funding and attention, but no more. When the energy is produced here and consumed here, Britain is protected against the volatile international markets that send our bills soaring.
The Climate Change Committee’s report, published two weeks after the Labour Government came into office, laid bare the true reality of energy policy under the last Conservative Government. It states:
“Last year…the previous Government signalled a slowing of pace and reversed or delayed key policies”.
We did not hear about that from the right hon. Member for East Surrey. It also stated that
“announcements were given with the justification that they will make the transition more affordable for people, but with no evidence backing this claim”.
We did not hear anything about that. The assessment of the committee was that
“only a third of the emissions reductions required…are currently covered by credible plans”
by the previous Government. We did not hear anything about that. That is this Labour Government’s inheritance, for a target that has to be achieved in just five years’ time. Britain is way off track to hit our 2030 international target of a 68% reduction in emissions. That is why the Government are in a hurry, and it is why they introduced the Bill so early in this Parliament.
In the five years ahead, our big challenges will be building an energy system at speed and supporting people through the energy transition. We need to demonstrate the benefits of the infrastructure we are building and make sure that host communities benefit in return. When we ask our communities to host this infrastructure, I am confident that they will say yes. They will do so on behalf of our nation. They will do so for cheaper bills in the long run, for good jobs that pay well and to benefit our communities.
National Grid estimates that five times as many pylons and underground lines will need to be constructed by 2030 than in the past 30 years. Underground cables cost six to 10 times more than overground cables. If part of our challenge is to cut bills and to reduce overall costs in a time of scarcity, we must be willing to invest in our infrastructure.
The faster we go, the more secure we become. Every wind turbine we erect, every solar panel we install and every piece of grid we construct will help our families and protect them from future energy shocks. Conversely, every wind turbine blocked, every solar farm rejected and every piece of grid left unbuilt will make us less secure and more exposed.
The faster we go, the better our economy will work for working people by creating a new generation of good jobs that finally pay decent wages in our industrial heartlands. Labour Members do not seek deindustrialisation; we seek decarbonisation. And decarbonisation will be achieved through reindustrialisation and the creation of good green jobs. The faster we go, the more we will be early movers and lead the world in new technologies. Why should these jobs be created in Pennsylvania or Shanghai? Let us create them in Bournemouth and across our country. And the faster we go, the more we can tackle our climate challenge. This is no longer a future threat. It is right here, right now, and we need to be able to tackle it.
Over the past few years, the race for jobs and the industries of the future has accelerated across the world. For too long, our country has been opted out of that race against our will. We have lost out, and our communities have fallen behind. Pay has not kept pace, and jobs have not been created on the scale needed. Why did the previous Government allow other countries to lead in these industries and clean jobs? Why did they not bet on our country and our potential?
I am delighted to see this Bill make progress. I commend Ministers for introducing it, and I look forward to seeing true investment in our green industries and the jobs of the future.
Sarah Dyke (Glastonbury and Somerton) (LD)
I rise to support amendment 5, tabled by my hon. Friend the Member for South Cambridgeshire (Pippa Heylings), to require a statement of strategic priorities on the facilitation of community-based clean energy schemes.
Energy supply is the second largest contributor to UK domestic greenhouse gas emissions, making up 20% of carbon emissions in 2022. Community energy should play a key role in reducing this and in helping the UK to meet its net zero targets. Community energy projects have positive impacts on equality, social cohesion and economic opportunity. We must therefore encourage local communities to take ownership of energy production. This way, we can ensure that decisions are taken in the best interests of local communities, and in collaboration with them, to better meet their needs.
The local economic benefits are clear, with community energy businesses in 2021 raising £21.5 million of investment for new projects and spending £15 million of community energy income to boost local economies. Community energy schemes currently produce just 0.5% of UK electricity but, according to studies by the Environmental Audit Committee, this could grow twentyfold over the next 10 years.
My constituency has seen the benefit of community energy schemes, with Avalon Community Energy in Street and South Somerset Community Energy in Wincanton providing services to the local area. Avalon is currently focused on delivering the clean energy project as one of the projects that make up the Glastonbury town deal. The £2 million project will develop renewable energy and carbon saving for the community. It is currently estimated that the project will save around 1,000 tonnes of carbon per year, and there will be an annual revenue surplus of over £100,000, some of which will be used for ongoing local community benefits. South Somerset Community Energy has installed three solar panels on the roof of Stanchester academy in Stoke-sub-Hamdon. Those solar panels produce around 100,000 kWh of energy per year, at least 70% of which is used by the academy.
The Liberal Democrats want to support the expansion of community energy schemes by requiring large energy suppliers to work with community schemes to sell the power they generate to local customers. If the Government want to drive a clean energy revolution, community energy has to be part of that. Community energy schemes have the potential to power 2.2 million homes, to save 2.5 million tonnes of CO2 a year and to create over 30,000 jobs. The Government have sadly neglected community energy provisions in the original Bill, as many of my Liberal Democrat colleagues have and will outline. That is a major missed opportunity.
Engagement and consultation with local communities is crucial if GB Energy is to be a success. GB Energy should also provide communities who host renewable energy infrastructure with the ability to realise community benefits from that. I have spoken on this point at length over recent weeks, because it is crucial if we are to boost the much-needed roll-out of renewable energy, particularly in areas like Glastonbury and Somerton. Communities must be part of the process. They have a critical role to play and a voice that must be heard. Through engagement, we can deliver clean energy, increase social cohesion and allow communities to invest in their place.
For the reasons I have laid out, I will be supporting the amendments tabled by my hon. Friend the Member for South Cambridgeshire, and I urge the House to do the same.
Brian Leishman (Alloa and Grangemouth) (Lab)
Before I make my contribution, I apologise to you, Madam Deputy Speaker, and to the House for failing to mention during the Employment Rights Bill debate last week the financial donations made to me by Unite the Union of £7,500, and by the Communication Workers Union of £3,500. I appreciate that being a first time MP is no excuse, and I extend my sincere apologies to you and to the House. On that note, I refer to my entry in the Register of Members’ Financial Interests, where it also says that I am a member of Unite the Union, which I will refer to later in my remarks.
There is so much to like in the GB Energy Bill: a publicly owned clean energy company, the creation of skilled jobs, reindustrialising communities and cutting household bills. It is a transformative and bold idea, which is to be applauded and to be proud of. Since coming to this place, I have heard it said—indeed, I have said—that a nation’s energy security is linked to its national security. GB Energy should eventually help with both those things and create thousands of skilled jobs. That is excellent.
However, what about the jobs of the Grangemouth refinery workers, the same workers who are right now crucial to Scotland’s energy security, and therefore to Scotland’s national security? Those workers are nearing the end of their 45-day consultation process, during which the focus should be on how jobs can be saved and maintained for those workers. Recent comments include, “These workers will be okay and it will all be fine because they’ll get employment elsewhere.” If the workers have to leave, that will not help my community. Stopping refining does not help Scotland’s fuel or national security.
There can be no doubt that my constituency will be much weaker for losing the refinery—job losses will run into the thousands. There can also be no doubt that Scotland will be weaker for losing the refinery. After all, Scottish Enterprise has reported that the economic contribution of the Grangemouth refinery is north of £400 million.
Mark my words, stopping refining at Grangemouth and closing Finnart will have monumental consequences for all of Scotland. It will not take long for the pumps on forecourts all over the country to be impacted, and so too the public. Although this is not a problem of this Government’s making—the previous UK Tory Government and the current SNP Scottish Government have long since turned their backs on the refinery, and it was previous UK Ministers and Scottish Cabinet Secretaries who got us into this mess—make no mistake, it is our mess to clean up now.
Harriet Cross
There are few areas of the country that are as reliant on, and therefore as vulnerable to, the energy industry as my constituency of Gordon and Buchan and wider north-east Scotland. It is because of this that I want the Government’s energy strategy to be a success. Indeed, my constituents need it to be a success. However, that is why I have severe reservations about the Bill and why I believe that we must view the Great British Energy Bill not in isolation, but alongside the Government’s wider energy strategy.
I begin by considering the public money involved—the £8.3 billion of taxpayers’ money going into Great British Energy. Labour has cited international examples, such as France’s EDF, as inspiration for Great British Energy, but let us examine EDF’s recent history, which reads like a cautionary tale of state intervention gone wrong. In 2022, the French Government were forced to fully nationalise EDF, costing €9.7 billion, and in 2023, they had to inject another €13 billion. That huge expenditure of taxpayer money did not even solve EDF’s problems; the company now faces debts exceeding €64 billion. Therefore, is £8.3 billion of investment into Great British Energy realistic?
Let us move on to Labour’s wider energy strategy—perhaps there are assurances there that can help mitigate the apparent inadequate funding. Let us not forget that the UK will be using oil and gas for years to come, which is not disputed. The expectation that we should get this from our domestic oil and gas supplies should not be controversial, yet our energy security is being put at risk through the Government’s actions and words. Jobs and investment in Gordon and Buchan and across north-east Scotland are being lost, and a home-grown energy transition is being made ever more difficult. It is incoherent to pump public money into the energy sector, while at the same time scaring away private investment from the very companies that will be vital to the energy transition, whether by announcing that there will be no new North sea licences, extending and increasing the windfall tax or removing investment allowances.
Offshore Energies UK has warned that expected tax changes could see investments in UK projects by oil and gas producers fall by about £12 billion by 2029. Last week, Reuters reported that a North sea producer is looking to sell stakes in its North sea assets and relist on the US stock exchange. The same article quoted the chief executive officer of TotalEnergies, who said that his team had halted exploration in the basin, and that:
“With this political landscape, even if you find something you’re not sure you can develop it… The situation in the UK is very problematic.”
The CEO of Deltic Energy also announced plans to cut spending, telling Reuters:
“The clear message from key investors was ‘do not invest in the UK’.”
That is just a snapshot, but it puts the Government’s £8.3 billion into context, alongside the other decisions that they are making.
Torcuil Crichton
Does the hon. Member accept that my constituents and hers have earned energy security for this country for the last two generations, and will do so in the North sea for another two generations?
Harriet Cross
I certainly hope that we will have the opportunity to do so, but as I am setting out, the Government’s proposals for the North sea in respect of taxation and cutting down on licences do not guarantee that. As much as I and the hon. Member want and need for that to be the case for our constituents, we cannot guarantee it. That is why it is so important that we get the transition right.
The Bill must include consideration of the impact on the public. Communities such as Leylodge and Kintore in my constituency face unprecedented infrastructure pressures. Those communities have seen a 3 GW hydrogen plant, an expanded substation, multiple battery facilities and new pylons. What are their statutory protections? What assurances are there in the Bill that certain communities will not be over-saturated with an unsustainable amount of infrastructure?
Before the election, the Labour party claimed that GB Energy would reduce household bills by £300. Since then, Ministers have not repeated the promise and have not explained when or how it will be achieved. I am sure that the Labour Government would not want us to think that that promise was simply a headline-grabbing figure before an election, so I look forward to their clarifying that commitment and voting for our amendments on that figure.
Let me move on to the jobs of today and the jobs of tomorrow. We hear that GB Energy will create 650,000 jobs—apparently, 69,000 of them will be in Scotland, which, if delivered, would be welcome—but as is the running theme in this Bill, we do not have sufficient detail to offer even a grain of certainty to comfort those whose jobs are on the line now. Existing oil and gas and supply chain businesses in Aberdeen, Aberdeenshire and the north-east need a timeline so that they can plan their business and workforce. How, when and where will jobs be created? What kind of jobs and skills will be required?
Of course, we now have certainty that one job will not be coming to Scotland, as we hear that the CEO will be based in Manchester. Is Aberdeen a headquarters in name but not in nature? We already know that there will be satellite sites in Edinburgh and Glasgow. Which other executive management jobs will not be based in Aberdeen? We in north-east Scotland are not buttoned up the back, so will the Minister confirm today that Aberdeen is still the headquarters for GB Energy—and I mean that in no other way than the meaning that the general public would understand?
The funding may not be sufficient, the overall energy strategy is incoherent and there is no clarity on the delivery of jobs or any mention of £300 energy bill savings, but surely the Bill offers certainty to the very industry that will deliver the energy transition. That brings me to the strategic statement. One thing that we know for sure is that we do not know all we need to know about what GB Energy will do. As a result, the uncertainty will continue. For communities such as mine in Gordon and Buchan, and for businesses, supply chains and those working in the existing energy industry, that is profound. We need to know how those communities will be brought with us in the transition—if it is, indeed, to be a just transition.
GB Energy will not generate energy, but it cannot instead generate mass redundancies across north-east Scotland. As has been mentioned, the Bill gives the Secretary of State extensive power to dictate what is in the strategic statement, and he has given himself the huge responsibility of ensuring that GB Energy delivers its aims. The work of the existing energy industry, and of communities such as Gordon and Buchan, must be taken into account. If it is not, the transition to cleaner, greener energies will be less efficient, less affordable and less possible. As such, I sincerely ask that the Secretary of State prepares the strategic priorities in a timely manner, taking account of stakeholders in the industry, the impacted communities, the current jobs and skills, and the existing businesses that are the bedrock of our future energy generation.
Because the Bill gives us all but no clarity on what is going to happen, the strategic statement—which we are all waiting for—is going to be the key document in dictating whether it will or will not be a success. As I said at the start of my speech, I want it to be a success; I want the UK to be a clean energy superpower, just as we are, and always were, an oil and gas superpower. If we get this right, that superpower status will drive the economy and jobs of the future. We cannot allow investment to be lost, because that means that investment in new technologies will be lost.
If we lose the expertise, the supply chains and the private investment because of the way this Bill is handled and how GB Energy is handled—there is no guarantee that private investment will stay in the UK just because GB Energy has been created—we will look back at this time and wish we had done things differently. I really do not want to be in that situation, because it is my communities in Gordon and Buchan and in north-east Scotland who will suffer the most.
Madam Deputy Speaker (Ms Nusrat Ghani)
In a debate like this, it is important for Members to ensure that they link their contributions to the amendments we are addressing. I call Polly Billington.
Ms Billington
Thank you, Madam Deputy Speaker. I will speak specifically to the amendments on community energy, and I refer the House to my entry in the Register of Members’ Financial Interests.
Back in 2016, I founded UK100, a network of local government leaders who are ambitious about shifting their communities and their economies to net zero. It is because of that experience, working with local leaders of all political persuasions across the country, that I would like to highlight the importance of a local-led approach to reaching our net zero targets. GB Energy will be able to play a crucial role in doing so by facilitating and encouraging local authorities to meet the ambitious net zero targets that have been set across the country. People will be familiar with the ambitions of big cities such as Leeds, Liverpool, Birmingham, Bristol and Brighton—to name but a few—but towns and villages in rural and coastal communities have also made those commitments. That is why community energy is so vital, and why it is so much a part of this Government’s overall project and of this Bill.
Through the local power plan, GB Energy will be able to work with local and combined authorities to deliver hundreds of millions of pounds of funding to small and medium-scale clean energy projects, helping to turn those ambitious targets into reality. GB Energy will also be able to work with communities across the country to help deliver that local-led approach. I have seen some great real-world examples of community-led climate projects. For example, Green Meadows is a community climate action project in Nottingham, funded by the National Lottery’s climate action fund, that aims to deliver home insulation, clean energy generation for local homes, planting projects and workshops to give residents the tools and skills they need to install their own energy upgrades.
With no disrespect to the National Lottery’s fund, we need a more strategic approach to the local delivery of clean, home-grown, secure energy. That is the role of the GB Energy company. By working with communities and local people, GB Energy will be able to play a crucial role in building consent and support for clean energy projects, in order to reach our ambitious targets and avoid a backlash to net zero—we have already seen that backlash, particularly driven by some of the attitudes of the Conservative party. We have to bring people along with us and show them how they can tangibly benefit from the transition.
Net zero must not be something we do to people; it must be something we do with people. If we do not work with communities, we will face resistance across the country, but not because people are against tackling climate change. By involving people and showing them how they can tangibly benefit, we will face less resistance and deliver much quicker deployment of the energy projects we need to build. Swaffham Prior, which was mentioned by the hon. Member for South Cambridgeshire (Pippa Heylings), is indeed a valuable project, but we cannot leave the transition to projects of that scale. To support community projects at scale, we need a transformative approach that is about transforming the rules of the market as much as it is about establishing GB Energy. Lastly, de-risking those projects—both at scale and community assets—will be a vital role of GB Energy.
Reaching net zero will be a partnership between the state, the private sector and the community. Government investment to help “crowd in” that private sector and community investment will be crucial. In that context, we often talk about new and developing technologies, but it is crucial not to forget existing, proven technologies.
Caroline Voaden (South Devon) (LD)
I rise to speak to amendment 5 alongside my hon. Friends. I welcome the fact that the Government are keen to increase the amount of energy produced by renewables—we have certainly waited far too long in this country for the priority and urgency needed to try to shift electricity production away from fossil fuels definitively. Unlike the shadow Secretary of State, the right hon. Member for East Surrey (Claire Coutinho), I look forward to the day when I can turn my lights on knowing that the electricity has been produced by the sun or wind.
I will acknowledge four excellent projects in my constituency, which are brilliant examples—or potential future examples—of community energy. South Brent Community Energy Society runs a community energy fund with the surplus from the operation of the wind turbine and solar panels that have been erected in the village. The fund is directed to new energy saving measures and renewable energy generation projects for the benefit of the community. Charities, schools and community groups have all benefited from the surplus energy that it produces, and it is a brilliant example of what can be done in a village environment with a community energy project.
Totnes Renewable Energy Society has solar panels on the roof of the civic hall that I can see from my bedroom window, and that power the electricity in my house, along with others. We also have a turbine in the river, which sadly does not have a name such as Thunder or Lightning like the ones in the constituency of my hon. Friend the Member for Hazel Grove (Lisa Smart), but does power the local high school. I also give a shout-out to Sustainable Blackawton, which is keen to find a site for a wind turbine, and to the Bigbury Fan Club, which is setting out on a long journey to try to get a turbine there.
I have spoken to many constituents who are excited by the prospect of creating new solar or wind projects on community or municipal buildings, or wind turbines in a village, but they are struggling. It is complicated to get planning permission, it is difficult to get funding, and it is virtually impossible to connect new projects to the national grid. We must make it easier, simpler and faster to connect up community energy projects, not only so that we can transfer to clean energy, but so that communities across the country, like the brilliant example from Eigg in Scotland, can connect to renewable energy in that way.
In the early 2010s, we had the Green Investment Bank—what a shame that we lost it in 2014, and with it 10 years of potential investment in green projects. We need to catch up for the lost decade since the Liberal Democrats did so much to grow offshore wind when we were in office. We will support the Government’s ambitions to transform our energy network, but community energy must be at the heart of it and baked into the Bill, so that every village that agrees to a wind turbine can benefit from it, knowing that they are using their own clean, locally produced energy for the benefit of their community, for lower bills and for cleaner energy.
We are calling for larger energy suppliers to work with community schemes across the country so that we can sell power to local customers at a discounted rate and provide community benefits.
Ms Billington
I would like further clarification about this interesting proposition from the Liberal Democrats about community energy groups working with the big energy companies. What plans do the Liberal Democrats have for the concept of securing ownership at community level? My concern about the model being suggested is that, rather than there being a community energy ownership model, it would instead be one of big companies investing in small communities.
Caroline Voaden
I thank the hon. Member for the intervention. The model would involve part ownership by the community and part ownership by large energy suppliers—
Caroline Voaden
And community energy groups—but, yes, I will hand over to my hon. Friend, if I am allowed to do so.
Pippa Heylings
I think I will intervene, if that is okay with you, Madam Deputy Speaker. We welcome that question from the hon. Member for East Thanet (Ms Billington). In fact, there are multiple ownership models, so it is quite right to get clarification. Some of these will need investments from other companies, but others will—
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. Please be seated. We have a speech mid-flow. Is that correct?
Madam Deputy Speaker
Then please continue. If you wish to respond to that intervention, you may do so, and I will go to another speaker afterwards.
Caroline Voaden
Thank you, Madam Deputy Speaker.
To guarantee that local communities receive a fair share of the wealth generated from community energy projects, it is crucial that these are at the heart of the Bill, so I would welcome the Government’s support for amendment 5.
Luke Murphy
I welcome the opportunity to speak at the Report stage of the Great British Energy Bill. It is a pleasure to follow my hon. Friends the Members for Bolsover (Natalie Fleet) and for Erewash (Adam Thompson), who gave such eloquent and powerful maiden speeches earlier in the debate. It is also a pleasure to follow my hon. Friend the Member for East Thanet (Ms Billington), who showed such leadership on this issue prior to her being elected to this House. As well as commenting on the overall thrust of the Bill, I want to comment on new clause 1 and amendments 6, 8 and 5.
It is somewhat surprising and, indeed, interesting to hear Conservative Members calling for a review of the effective delivery of energy policy, for legislation to reduce energy bills by £300 and for the creation of jobs as a result, not least because a review of energy policy and the trajectory of bills and jobs created under the previous Government would reveal some stark facts. Every family and business in Britain paid the price of 14 years of Conservative failure through rocketing energy bills. Indeed, Britain faced a worse cost of living crisis than other countries, because the Tories left us exposed to international fossil fuel markets controlled by dictators such as Putin.
When I said in my intervention on the right hon. Member for East Surrey (Claire Coutinho), who has since vacated the Opposition Front Bench, that we were reliant on Putin, she responded that I did not understand energy markets. I am afraid that just shows that she does not understand energy markets, because the truth is that we are at the mercy of international markets of which Russia is a part. The previous Government did absolutely nothing to reduce our reliance on volatile fossil fuels, and as a result of their failure to invest in clean energy, they left us with a legacy of high energy bills, energy insecurity and a lack of clean energy jobs. With our plans for Great British Energy and clean power by 2030, the new Labour Government are determined to change that.
I am somewhat surprised by amendment 8, which calls for legislating the creation of 650,000 jobs, not least because we create these jobs not through legislation but by having a meaningful industrial strategy, which was lacking under the previous Government. Figures from the Institute for Public Policy Research—which, I must admit, is my former employer—show that around 4% of our GDP is made up of green goods and services compared with the European average of 6%. If we had had an industrial strategy and created jobs from offshore wind at the same rate as Denmark did from its offshore sector, we could have green goods and services making up 11.5% of the economy and we could have created 100,000 more jobs. So although I admire the chutzpah of Opposition Members calling for price reductions, and the creation of 650,000 jobs, through legislation, I welcome instead our approach of creating a publicly owned energy generation company—the first in 75 years.
Andrew Bowie
All we are asking through our amendments is for the Government to put on the face of the Bill what they promised the British people, in their manifesto and many election campaign commitments, that Great British Energy would achieve. Why will the hon. Gentleman not challenge his Ministers to put on the face of this Bill the very things on which he stood for election, such as the creation of 650,000 jobs and the reduction of bills by £300?
Luke Murphy
I have to say that, whoever is the winner of the Conservative party leadership contest, I am not sure legislating for the creation of 650,000 jobs is the direction in which they will be heading. I do not believe we can legislate our way to job creation; I believe that is done by introducing an industrial strategy, something that was so lacking in the last 14 years.
Harriet Cross
Does the hon. Member appreciate that the issue is not legislating for jobs but the lack of accountability in the Bill?
Luke Murphy
We have set out our industrial strategy, along with this Bill on GB Energy, and a few weeks ago, with the investment summit, the investment that will be coming in. I am confident that the best way of creating jobs is through the industrial strategy and the creation of GB Energy. Yes, we made those commitments and I am confident that by 2030 we will have met our clean power target, reduced bills and created jobs and revived the industry across the country.
Nick Timothy (West Suffolk) (Con)
If the hon. Gentleman is so confident in the policies of his Front Bench, will he take this moment to use the words that were used before the election by the Energy Secretary? He can repeat after me if it makes it easier: “We will cut bills by £300.”
Luke Murphy
I will take absolutely no lectures from Conservative Members about the need to reduce energy bills after they soared under the previous Government. Great British Energy’s core focus will be to drive clean energy deployments to create jobs, boost energy independence and ensure British taxpayers, bill payers and communities reap the benefits of clean, secure, home-grown energy. I am also surprised by the Conservatives’ opposition to a publicly owned clean energy company, not least because 50% of our offshore wind capacity is already publicly owned but by foreign states. I am surprised that Conservative Members are so happy with that scenario.
On amendment 5, I welcome the Liberal Democrats’ support for community energy, but as my hon. Friend the Member for East Thanet commented, it is in the founding statement. Labour Members are absolutely committed to community energy. It does not need to be on the face of the Bill, but it is important that it is part of the founding statement of GB Energy. Opposition Members can be reassured that we will champion community energy. In Basingstoke, we have Basingstoke Energy Services Co-op, which is a wonderful champion for this issue. I look forward to seeing what GB Energy will deliver for such community organisations.
Dave Doogan (Angus and Perthshire Glens) (SNP)
I rise to speak in support of amendment 1, in the name of my right hon. Friend the Member for Aberdeen South (Stephen Flynn), and amendment 5, tabled by the Liberal Democrats.
I am supportive of the Bill in the abstract, and I am certainly supportive of its headline ambitions, like many Members, but I trust that the Minister is hearing what the House is saying today about the substantive lack of information and detail, and the troubling direction of travel, which will place significant executive authority in the hands of the Secretary of State in discharging GB Energy’s responsibilities.
It is a pity, too, that the attrition to the original budget of £28 billion has nearly quartered it to £8 billion. I hope that the jobs associated with this implied investment do not go the same way as the budget, before they get the chance to take root in the north-east of Scotland and support my constituents and many others in that part of the country. It is a shame that the only person appointed to GB Energy is not working in Scotland at all. I am not sure that was on the script going into the election, but it seems to be what has happened afterwards.
Amendment 1 from the SNP asks the Labour Government to deliver upon what they said they would do ahead of the election. That does not strike me as particularly unreasonable. I do not think our amendment will be selected for separate decision, so I think we will be forced to vote with amendment 6 in the name of the right hon. Member for East Surrey (Claire Coutinho), which asks for basically the same thing. [Interruption.] The Minister is getting very excited. Of course, we would not have had to table an amendment if the Labour party had just put the measure in the Bill. It was in the leaflets, so I do not know why it was not in the Bill. It is also no longer £300 that we need to see reduced from hard-pressed working people’s bills. Since Labour made that claim, bills have gone up by £149, so the Government will need to get £449 off people’s bills before they can get back to where they started, certainly in terms of them having any credibility.
The Liberal Democrats have a well-worded and noble ambition on community energy, and the SNP would have been pleased to support it. One of the things missing from GB Energy is a statutory responsibility to develop and accelerate community energy at pace in a measured fashion. Referring back to my opening remarks, I am supportive of the Bill’s outline ambitions, but I am worried about the lack of detail. The more we discuss and debate the Bill, the more I am concerned that GB Energy will end up doing lots of things that nobody particularly needed it to do, because they were all done by a department within the Department for Energy Security and Net Zero.
What we do not have is what people want GB Energy to do. We do want it to generate energy independently and to have an effect on the energy market in the United Kingdom. We do want it to sell energy to the retail market. We do want it to buy community energy from community energy generators and to introduce it into the market. And we do want it to enable community energy and to lower bills.
Ms Billington
All the things that the hon. Gentleman mentioned are exactly what GB Energy will do. There is literally no reason why he cannot go through the Lobby with Labour Members this evening, because the Great British Energy Bill will do all the things he has asked for it to do. It is nothing to do with sucking up the energy of the civil servants doing policy; that is a completely different role, and they will continue their work.
Dave Doogan
I thank the hon. Lady for her intervention, but I politely disagree. No amount of emphasis on her part will change the detail in the Bill, and that is what MPs are concerned about.
Dave Doogan
No, I am going to make progress.
The Minister has advised us that GB Energy will not seek to displace foreign-owned energy companies but will instead crowd in investment. In reference to the previously mentioned £300 bill reduction, he has also said that GB Energy will play a role in lowering bills but that that will not happen immediately. When he sums up, perhaps he can tell us when that will be, because it is not unreasonable for people to hear that ambition and to want to see a timeline attached to it. I also mentioned the attrition in GB Energy’s funding. Given its now drastically reduced funding, will the Minister advise us what challenges he sees GB Energy facing?
When the Secretary of State was in opposition, he often made big play of the fact that there is a nationalised energy industry in the United Kingdom but that none of it is owned by the United Kingdom—it is all foreign. It seems a little odd that there is not the ambition, now that he is actually in power, to deliver that ownership.
Luke Murphy
Could the hon. Member update the House on the progress of the SNP Government’s commitment in 2017 to create a publicly owned energy company by 2021?
Dave Doogan
He can indeed. The hon. Member may think he is being terribly smart—he is a self-professed expert in the energy market—but he will know how difficult it is for someone to penetrate the UK energy market unless they happen to be a large plc or a multinational. When the Scottish Government took forward that noble ambition, they found precisely the same barriers to entry as community energy companies and trusts. If the hon. Member wants to get excited about that situation, I suggest he takes it up with the Department for Energy Security and Net Zero.
Mr Angus MacDonald
Will the hon. Gentleman explain why the SNP Government have left community benefit at the same £5,000 level it was in 2014, even though prices have gone through the roof? Their advisory information could have been changed. They have been pressed on the issue many times because it has severely damaged the income of rural communities.
Dave Doogan
I am not sure what the hon. Gentleman is driving at, but if he wants to get in touch with me after the debate, I will be happy to discuss it further.
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. We are debating the amendments to the Bill, not SNP policy.
Dave Doogan
Well, indeed.
Will the Minister advise us whether we are talking about GB electricity or GB energy? I would be keen to know what investments and ambition this supposedly state-owned company—I have to grit my teeth when I say that, because it is actually little more than a trading fund—will be involved in? Will it be involved in carbon capture, utilisation and storage? Will it be involved in attenuated hydro? Will it be involved in pumped storage, geothermal or hydrogen? What are the limits of GB Energy? That is not in the Bill, and we do not understand what it will deliver. As other hon. Members have asked, what is the Government’s ambition on GB Energy when it comes to Grangemouth? Is it just limited to the common or garden production of electricity?
I will not vote with the Government on the Bill. I do not want to condemn it as an election prop that is now desperately looking for some sort of function—I hope it amounts to more than that—but I will vote for the amendments, and so will my colleagues, to try to make some sense of the Bill.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
The Bill’s job is to set up a new and unique public energy company, to work within the clear objects set out in clause 3(2)—not simply as an investment bank, but as part of a developing strategy for renewables across the UK.
Cornwall, where I am from, is set to benefit hugely from the investment from GB Energy into unblocking floating offshore wind in the Celtic sea, which will create jobs. Cornwall was post-industrial a long time ago, and we need the kind of investment that GB Energy can bring. We also have a strong local area energy plan, which is an integral part of Cornwall’s renewable energy offer. It has co-operative, community and local authority energy as part of that plan, and as a Co-operative MP I support the local power plan that the Government are proposing, which will be part of GB Energy. We could have partnerships for deep geothermal energy on council land, which would bring potential for partnerships with local authorities and others. In Cornwall we have had numerous community energy schemes, such as the one in Ladock at the end of last Labour Government, before the Conservatives cut the schemes and the feed-in tariffs. We could invest in infrastructure with GB Energy, in partnership with the Crown Estate, for the cables, the grid and, potentially, even the ports.
The Bill offers a huge opportunity. There is so much that GB Energy can do in future as part of a developing strategy to secure clean energy and reduce greenhouse gas emissions, as it says in the Bill. As its ambitions and horizons expand, in partnership with the Crown Estate and others, so too must its object and its strategy be able to expand.
Sammy Wilson
I rise to support amendments 6 and 8. The Bill was promised in order to do a number of things. First, it was to reduce the cost of energy to consumers—during the election, the Government gave a specific promise that the reduction this year would be £300 per household. As others have said, and as the Government have accepted, that will not be delivered. That is not a great start. Secondly, it was going to deliver a certain number of jobs. Thirdly, it was going to deliver sustainable and clean energy, and energy security. The Government could argue that these things are in the Bill’s strategic objectives and priorities, but they are not. I do not believe that any of those things can be achieved, given the net zero strategy that we are pursuing.
Let us take the first claim: that costs for consumers would come down. We know that they will not come down this year, and given what needs to be done to deliver the strategy, huge costs will be imposed on consumers. We will turn our backs on a lot of the hard plans we already have in place, even though they are not defunct. We are going to build new power sources. Whether they are built by the state or by power companies, capital expenditure will be involved, and there will be a return on that capital. Who will give the return on that capital to the companies? It will be the consumers. We are going to build many of these power sources away from where people live, because the open areas for wind or solar are not beside centres of population.
We already know that putting in a totally new network will require a huge expenditure of billions—indeed, some have mentioned it here today. That will be costly and controversial. I have listened to Members today saying, “Oh, to ensure the lights are turned on and there is a supply of energy, my constituents will be quite happy to have huge pylons erected in their back gardens or down beside their houses.” Of course they won’t; it will be controversial. That is why the Government will have to change the planning system, too.
Graham Stringer
Does the right hon. Gentleman agree that this debate would be much easier if the Committee on Climate Change had produced a year-by-year estimate of the costs of getting to net zero by 2050? The previous Government always promised to do a proper impact assessment on costs, but they never did. I believe that this Government should do that, so we can have an objective and evidence-based debate. Does he agree?
Sammy Wilson
I do agree. There have been variations on the cost, from £3 trillion to £10 trillion by 2050. Those Monopoly money figures mean nothing to people. Setting out the cost on a year-to-year basis, where people understand and Members who vote in this House understand what they are putting in front of their constituents by way of bills, would at least be honest. It would also mean there could be a proper debate.
I support amendment 6, which includes the price commitment. The second commitment was on jobs. We are told there will be 650,000 jobs. I agree with the hon. Member for Basingstoke (Luke Murphy) who said that we cannot legislate for jobs. That is quite right. But if a promise is made about the job implications of a policy, there should be no fear of sticking it in the Bill. Not that the Government are going to produce those jobs; the companies are going to produce them. We could then measure that. If the Government cannot legislate for jobs, they should not promise that they are going to create 650,000 jobs, especially at a time when we know that jobs are being lost as a result of commitments relating to North sea oil and energy-efficient industries. The emissions trading scheme means that there is little or no investment in Grangemouth, for instance, and the place is going to close.
Luke Murphy
Successive Governments have made commitments on jobs, but can the right hon. Gentleman name any Government who have legislated for a jobs target? Can he specify a single Bill that has contained such a measure?
Sammy Wilson
As I have just said, it cannot be done. What I have said is that a Government should not make a promise if they believe that when the Bill in question is scrutinised, that promise will not be fulfilled—especially here, when it is known that the policy will cost jobs, and unions have already made that point.
I have some sympathy with the amendment tabled by the hon. Member for Brighton Pavilion (Siân Berry) in respect of the impacts on nature. I come from one of the most beautiful parts of the United Kingdom—the Antrim coast is famous for tourism—and I am already seeing the impact of net zero policies on the landscape and the flora and fauna of the Antrim plateau. When I look out of my window in the morning, there is the wind farm that has been erected on top of the plateau, which involved stripping off 3 metres of peat and destroying a bird habitat; every year these windmills chew up birds and bats. I have already mentioned the admission that 17 million trees had been cut down in Scottish forests, and the hon. Member for Brighton Pavilion was unfortunate to mention the Sperrins, another beautiful part of Northern Ireland of which I have some knowledge and which has been totally despoiled by hundreds of windmills.
Let us not pretend, then, that the policy of renewables is a green, clean policy, because it is not. Let us be honest: any energy production will require the extraction of fuels and materials from the earth, and that in itself will be destructive, so let us not describe it as nature-friendly or green. Let us just accept that what we need if we are to bring about economic growth and reduce the cost of living for our constituents is the cheapest, most available fuel that we can have. That will drive economic growth and decrease the cost of living, and that is the kind of energy policy that the Government ought to be following.
Perran Moon
The Conservatives are generally adamant that there very are few Labour Members with any business experience, so having spent more than 30 years in business—latterly in electric vehicle charging infrastructure—I was reassured to learn while listening to the hon. Member for Bexhill and Battle (Dr Mullan) that there is at least one Conservative who is not a renewable-energy Luddite, and I am glad to see him back in his place. I wish that the right hon. Member for East Antrim (Sammy Wilson) would spend a bit of time understanding a little more about geothermal energy, which does not require the wind to blow or the sun to shine.
I was honoured to be part of the Committee considering the Great British Energy Bill, a core plank of this Government’s policy programme whose benefits will be felt in every corner of the UK, including my own constituency of Camborne, Redruth and Hayle. I pay tribute to my right hon. Friend the Secretary of State and the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), for their diligent work on and defence of this transformational Bill. Let me also put on record my thanks not just to my right hon. and hon. Friends who sat on the Committee, but to other Members on both sides of the House who contributed to it.
I will refer to the amendments. In Committee we heard from experts and stakeholders, and we extensively debated the issues, from oversight to community benefit. Opposition Members who were on the Committee know that, because they were there. As I said when I made my maiden speech on Second Reading, my focus will be on using the opportunities of this Bill to unleash the Cornish Celtic tiger.
Renewable energy—onshore wind, offshore wind, geothermal, tidal and solar—and critical minerals such as tin, lithium, tungsten and manganese are fundamental for our transition away from fossil fuels. There is no silver bullet; we need a mix of renewable energy, which will form part of our policy going forward. That is what GB Energy will give us the opportunity to do.
There are few areas of the UK where there is a greater distillation of renewable energy and critical mineral opportunities than in Cornwall. I refer to the comments made by my hon. Friend the Member for Rotherham (Sarah Champion) about human rights and the opportunity to produce domestically an awful lot of the energy and the critical minerals that we currently import from places such as China, Indonesia, Australia and South America. As a result, there are extremely high expectations in Cornwall for local jobs in industries that support community initiatives and domestic supply chains in one of the most deprived areas of northern Europe.
Given the distillation of raw materials and natural resources in Cornwall, the fact that the new Centre for Critical Minerals, which will accelerate the move towards a green economy, opened very recently in Cornwall, and the fact that Exeter University, which has a campus in Penryn, has the largest number of top-100 climate scientists in the world, it will not come as a surprise to the Minister that I ask him to consider opening a satellite office for Great British Energy in Cornwall. They may not want it in Aberdeen, but we want it in Cornwall.
I support the Bill as it is. We discussed the amendments in Committee, and I look forward to the opportunities that this Bill will bring to the people of Camborne, Redruth and Hayle.
Several hon. Members rose—
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. To ensure that I can call everybody in the time remaining, Back-Bench speeches will be limited to three minutes, after a maiden speech by Iqbal Mohamed.
Iqbal Mohamed (Dewsbury and Batley) (Ind)
Thank you, Madam Deputy Speaker, for giving me the opportunity to make my maiden speech today. I congratulate my hon. Friends the Members for Bolsover (Natalie Fleet) and for Erewash (Adam Thompson) on their excellent maiden speeches. They have set a high bar that I will struggle to match.
I thank the people of Dewsbury and Batley for the trust they have placed in me. I am honoured and humbled to be their representative and a voice for all residents. Dewsbury and Batley is a newly formed constituency, so I thank my two predecessors. First, I thank my hon. Friend the Member for Spen Valley (Kim Leadbeater) for her service as the MP for Batley and Spen. She helped secure funding for the town centre, and became an MBE for helping to promote social cohesion and tackling loneliness. I wish her well as the new Member for Spen Valley.
Secondly, I thank Mark Eastwood for his service as the MP for Dewsbury. He was a man of great perseverance and helped secure over £40 million in funding for the town. I am honoured to follow Mark as the second locally born and bred MP for Dewsbury.
I stand here as the eldest of six children born to Gujarati Indian immigrants who came here in the ’60s. I am an immensely proud, passionate and no-nonsense British Indian Muslim Yorkshireman who grew up on a council estate in Dewsbury Moor on free school meals and uniforms. My late father, Gulam Ahmed, and my mother, Noorjhan Fatima, gave us love, put food in our bellies and taught us proper British and Islamic values, such as honesty, integrity, hard work, friendship, compassion and wanting the best for others.
My political journey started when I was around nine or 10 years old. I remember standing in front of my parents’ wardrobe mirror and asking God to make me one of two things when I grew up. I asked to be either a “Blue Peter” presenter, because a job that paid you to travel the world, do amazing activities and be on TV was surely the best gig in town, or—and I did not know why at the time—I asked God to make me a parliamentarian. I remember looking down at the colour of my skin and thinking that that might be difficult, but here I am today in the most diverse Parliament in history, where I look forward to breaking down barriers, making friends, doing good and preventing harm. If a “Blue Peter” producer is watching, however, I am still available for a guest appearance or a Christmas special.
Victoria Collins (Harpenden and Berkhamsted) (LD)
I refer Members to my entry in the Register of Members’ Financial Interests.
Energy is at the heart of our economy. It powers our homes, our schools, our workplaces and even our democracy. Most importantly, it is at the heart of our communities. This Bill must ensure that it brings those communities and community energy projects with it, which is why I am speaking wholeheartedly in support of amendment 5.
Local to Harpenden and Berkhamsted is the Grand Union Community Energy benefit society, which runs several community energy fund schemes, including solar canopies, and is investigating heating from aquifers. As a not-for-profit, it aims to use its proceeds to help householders, especially the most vulnerable, to reduce their energy bills and energy use. It also supports other community organisations that do not have a regular income. In Berkhamsted, it has worked with Sunnyside Rural Trust to review the energy strategy of its Northchurch site. I have spoken to passionate members, such as Sarah, Paul and John, about why they are making it work and the difficulties they face.
If we are to reach net zero, community energy is needed to fill a gap between individuals, businesses and councils. It was John who reminded me that if community energy is supported, there is a significant resource of people ready and waiting to put their voluntary efforts into getting schemes off the ground. By their very nature, they are embedded in their communities, and we must bring our communities with us if we are to make the change that is needed.
However, our community energy projects need support. Community energy projects face insurmountable costs when trying to sell the power they generate to local consumers. Grand Union Community Energy is nervous about taking on the delivery of projects, as there is uncertainty about how electricity prices may change in the future. Community energy needs stability too. As it stands, community energy schemes find it nigh impossible to sell their power directly to local consumers, which leaves pricing and some projects financially unviable without further support.
Previously, feed-in tariffs helped to provide pricing stability, but when that scheme ended in 2019, many planned community projects were scrapped and the number of new projects slowed significantly. Current access to funding has been vague, erratic and uncertain, especially since the rural community energy scheme ended, and I know many people have not bothered to apply for funding because they find it so difficult.
We must unlock the potential of our community energy projects, and that is why I support amendment 5. There are many ownership models. The Liberal Democrats are calling for large energy suppliers, when they work with community energy projects, to work with them to sell the power they generate to local customers at a discounted rate and provide community benefits. Overall, we must ensure that these projects are financially viable and supported with technical, commercial and legal advice, and we must seize this opportunity to bring our communities with us.
Wera Hobhouse
I welcome that the Government are taking renewable energy investment seriously and creating a mechanism for it. In common with many Liberal Democrat Members, I will focus on amendment 5, which would specifically require Great British Energy to support community energy projects as part of its strategic priorities.
Labour Front Benchers have supported community energy for a long time, and cross-party support was clearly displayed on Second Reading, as it is by the large number of Members’ signatures on amendment 5. The same was true of my amendment 2, which was sadly defeated in Committee. To their credit, the previous Government introduced the community energy fund, which made a difference, but more needs to be done to support community energy. Despite strong cross-party support for community energy, the Great British Energy Bill makes no mention of it. Liberal Democrat Members believe that it should be on the face of the Bill.
In Committee, the Minister said that including community energy in the Bill was not appropriate. I understand that GB Energy is not precluded from supporting community energy by the Bill, just as I understand the Government’s argument that if the new company is to be able to work flexibly, it should not be hampered by too many provisions in the Bill. However, our concern remains that unless something concrete is included in the Bill, future Ministers, Governments or chief executives of Great British Energy may decide not to support community energy and the full benefits of local energy may not be realised. Amendment 5 would strengthen the Bill in line with the clear parliamentary consensus in support of growth in this highly promising clean energy sector.
The community energy sector has seen minimal growth in recent years. It has suffered from damaging policies, such as the end of the feed-in tariffs that helped fuel growth. Since 2010, there has been no growth in the sector. Regulatory changes are required to ensure that communities receive the benefits they deserve for hosting clean energy infrastructure. All of these arguments are well understood and the benefits of community energy have been well researched. The new Government have said time and again that they support community energy and that it is a shared aim.
I welcome the conversation and the open debate on this issue. I understand that the Government take issue with putting the term “priority” on the face of the Bill. The passage of the Bill has not reached its final stages, and there is room for further debate. I very much hope that the Government recognise how strongly colleagues across the House feel about including specific support for community energy, and that such an inclusion will create cross-party support for the Bill as a whole.
Llinos Medi (Ynys Môn) (PC)
First, let me congratulate the hon. Member for Dewsbury and Batley (Iqbal Mohamed) on his passionate maiden speech.
I rise to speak to amendments 11 and 12, tabled in my name, which seek to provide certainty to particular energy sectors that they will be prioritised by GB Energy. I must declare an interest as an officer of the marine energy all-party parliamentary group, of which the UK Marine Energy Council is the secretariat.
Nick Timothy
I shall speak briefly about amendment 6 tabled by my right hon. Friend the Member for East Surrey (Claire Coutinho).
In this debate, we have heard much from Government Members about cleaner and cheaper energy, not much of which has been connected to reality. This has been exposed by Labour’s campaigning before the election, promising £300 off bills, only to drop that commitment as soon as the party entered government. That disconnect, as I have said, has been present throughout the debate.
Blind faith in renewable technology without the acceptance of the intermittency challenges and costs of wind and solar will lead to less security of supply and higher costs for industry and households. We cannot allow policy to run faster than technology without risking a crisis in the grid and, therefore, in our economy. We need baseload power, which means nuclear—where the Secretary of State is going slow—and oil and gas, where the Secretary of State is refusing new licences. To pursue the ideological objectives of the Secretary of State, we see giant solar farms forced on communities like mine, against expert advice by examining authorities, contrary to the quasi-judicial responsibilities of the Secretary of State and dependent on solar panels made by slaves in Xinjiang. I say enough of the nonsense about fossil fuels and the dependence on dictators.
Tomorrow the Chancellor of the Exchequer will announce her intention to borrow to invest. We know that the borrowing will not just be for investment, but what investment there is will be dominated by energy schemes that will cost more to do less. We do have an underinvested economy, but net zero zealotry will make the problem worse, not better.
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)
I thank all Members who have made contributions to the debate, and I am grateful for all the points raised in Committee. I thank the witnesses who gave their time to the Committee, as well as the Clerks, House staff and civil servants, who put so much work into legislation such as this. I apologise to the House in advance both for the speed of my speaking and the speed with which I will have to go through the amendments—there is not a huge amount of time left.
First, I want to highlight the three maiden speeches that we have heard today. My hon. Friend the Member for Bolsover (Natalie Fleet) gave an incredibly emotional speech, and spoke passionately about the importance of the state having an impact on people’s lives. I also pay tribute to my hon. Friend the Member for Erewash (Adam Thompson) for telling us, apart from anything else, how to pronounce his constituency, and to the hon. Member for Dewsbury and Batley (Iqbal Mohamed), who I am sure will at least receive a Blue Peter badge in the post for his speech.
Great British Energy is at the heart of our clean power mission, and the Bill provides the statutory basis for it, enabling the Government to deliver on the ambitions that we set out during the election and that the country voted for so resoundingly just a few months ago. Let me turn to the amendments. New clause 1, in the name of the right hon. Member for East Surrey (Claire Coutinho), would create additional reporting mechanisms for Great British Energy. I agree with her that Great British Energy should be accountable, transparent and open in all its dealings and in how it delivers a return on investment. That is why we have made provision in the Bill to ensure that regular updates are given in the form of annual reports and accounts, which will be laid before Parliament for all Members to review. Of course, as a company, it will undergo external audit in the usual manner. As I outlined in Committee, my view remains that adding additional requirements at such frequent intervals is disproportionate and will stop the company from getting on with delivering its mission.
On amendments 6 and 7 in the name of the right hon. Member for East Surrey, and amendment 1 in the name of the right hon. Member for Aberdeen South (Stephen Flynn), every family and business in this country has paid the price for our dependence on fossil fuels during the cost of living crisis. Speeding up the roll-out of clean energy is the only way to get our country off the rollercoaster of volatile international gas markets and to protect families from future energy shocks. That is the argument that the Conservative party used to support but that it seems increasingly to distance itself from, as it has with so many principled positions.
Michael Shanks
I do not have time, I am afraid.
We are unapologetic that Great British Energy is a long-term project for this country, as part of a sustainable, long-term plan to protect bill payers for good. I stand by that commitment today. However, I also say, as we have said about so much of the mess that we have to clean up, that we cannot simply flick a switch and turn everything around, which is why these amendments are inappropriate. Conservative Members would never have made such amendments to a Bill when they were in government.
Let me turn to the amendments on jobs and industrial strategy. The Government are clear that clean energy is the economic and industrial opportunity of our time. Around the world, a race for jobs and industries of the future is speeding up, but for too long Britain has opted out and lost out. Great British Energy is at the heart of our plan to change that. It will help to rebuild the UK’s industrial heartlands through its investments across every part of the UK, and locating Great British Energy’s headquarters in Aberdeen will tap into the high-quality talent pool of Aberdeen and Scotland as a whole. We will use every tool at our disposal to win jobs for Britain. We have established the office for clean energy jobs, and are focused on developing the skills of the future, so that we have a workforce that can deliver what we need in future. Crucially, it is why the Government are, as many hon. Members have said, committed to a proper industrial strategy.
The amendments tabled by the hon. Member for South Cambridgeshire (Pippa Heylings) relate to the timeline for establishing Great British Energy, to energy efficiency and to community energy. Although I welcome and, frankly, share the hon. Member’s eagerness to get Great British Energy up and running as quickly as possible, we will not be supporting amendment 3. The Government have already shown themselves to be committed to setting up Great British Energy as quickly as possible, and there will be no further delays in doing so. Indeed, of all the things that my right hon. Friend the Secretary of State could be accused of, not moving quickly is not one of them.
Michael Shanks
I do not have time—I have a minute in which to finish.
I hope the hon. Member for South Cambridgeshire will recognise that there is really no need to put an amendment such as this one on the face of the Bill. Turning to her amendment on the topic of community energy, she will know, however, that I am passionate about community energy, as are the Government. It will form an integral part of Great British Energy’s local power plan, which will put communities at the heart of the energy transition, giving them a stake in the shift to net zero. As a member of not just the Labour party but the Co-operative party, that is at the heart of my politics and that of many of my hon. Friends. We have been advocating for community energy for decades—this is not a new idea for us—and empowering communities is critical. The hon. Lady and I share that passion and a commitment to community energy.
I can assure the House that the Department is looking to take a cross-government approach—not just through Great British Energy but, crucially, on a number of the points that have been made—to ensuring that community energy projects can be delivered, with all the changes to planning and governance that are required to make that happen. I always want to work with Members across this House, and have done so throughout the passage of the Bill. We continue to engage with the Liberal Democrats and other interested parties on this important issue, exploring options to ensure the Bill has the effects they are seeking. I look forward to further such discussions in the weeks and months ahead. I hope all who have tabled or spoken to amendments today will feel reassured by what I have outlined—albeit considerably more briefly than I was expecting—and will perhaps feel able to withdraw, or not move, their amendments.
This is a truly historic Bill, delivering on the Government’s promise to establish a new national, publicly owned energy champion for our country. It has been a privilege to take it through Committee, and I repeat my sincere thanks to everyone involved in that process. Great British Energy is the right idea for energy security, for bills, for jobs, and for delivering the climate leadership that the people of this country demand of their Government. It is the right idea for our time, hugely supported by the British public, and I urge all Members of the House to support it this evening.
Claire Coutinho
I also thank the Minister for his work in Committee, but I am afraid we are not reassured. Labour Members have a clear opportunity to prove to their constituents that they will stick to the promises they made just a few months ago. They promised to cut energy bills by £300 and to create 650,000 jobs; if Labour Members do not vote for amendments 6 and 8 this evening, we will know that they never had any intention of delivering on those promises. With the leave of the House, I will seek to withdraw new clause 1, which stands in my name, but we look forward to dividing the House on amendments 6 and 8.
I beg to ask leave to withdraw the clause.
Clause, by leave, withdrawn.
Clause 3
Objects
Amendment proposed: 4, page 2, line 18, at end insert—
“(e) an emergency home insulation programme with targeted support for people on low incomes, and
(f) the expansion and development of renewable energy and technology.”—(Pippa Heylings.)
This amendment would set objects for Great British Energy of facilitating, encouraging and participating in an emergency home insulation programme with targeted support for people on low incomes, and the expansion and development of renewable energy and technology.
Question put, That the amendment be made.
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
I beg to move, That the Bill be now read the Third time.
It is a privilege to open the Third Reading debate—another milestone in setting up Great British Energy. In less than four months, this Government have incorporated GBE as a company, appointed Juergen Maier as its start-up chair, and launched its first partnership with the Crown Estate. Next will be the national wealth fund. Earlier this month, we announced GBE’s partnership with key public bodies in Scotland. We have also announced its headquarters in Aberdeen. We are acting on our mandate from the British people.
I want to thank everyone who has played a role in getting the Bill to this stage: the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), who has done an incredible job steering the Bill through Committee; Members across the House who have scrutinised the Bill in Committee; all the parliamentary staff who have worked on the Bill; and the fantastic officials in my Department who have moved at such speed over the last four months.
I also want to thank the witnesses who gave evidence to the Committee, all of whom were in support of establishing Great British Energy. I am sure that the House will be interested in the list. They include SSE, EDF, Energy UK, RenewableUK, Scottish Renewables, the Carbon Capture and Storage Association, Nesta, the Green Alliance, the Net Zero Technology Centre, the TUC, Prospect and the GMB. And they are not the only ones. I can inform the House that they join a growing list of supporters, including the CBI, the Aldersgate Group, Octopus Energy, E.ON, the Hydrogen Energy Association, the Scottish Chambers of Commerce, the Port of Aberdeen, the University of Aberdeen and, of course, the British people themselves, who overwhelmingly backed Great British Energy at the general election. Sadly, the only people you can find to oppose Great British Energy are the faction of a sect of a once-great party sitting on the Opposition Benches.
The reason for such support—this will be the argument behind politics for the next few years—is that this country recognises it is time to invest in Britain’s future and put an end to the decline of the last 14 years. That is the choice of this Bill and the choice of the coming years in British politics, and we should relish it: invest or decline.
Sarah Champion
I am fully supportive of GB Energy, but what assurances can my right hon. Friend give to the House that it will be a just transition, that it will be adopted across Government, and that the broadest sector will buy into it?
Ed Miliband
My hon. Friend has made really important interventions on this point. We have been clear that no company in the UK should have forced labour in its supply chain, and we will be working with colleagues across Government to tackle the issue of the Uyghur forced labour in supply chains that she has raised during the passage of the Bill. As part of that, we have relaunched the solar taskforce and we will work with industry, trade unions and others to take forward the actions needed to develop supply chains that are resilient, sustainable and free from forced labour.
Great British Energy is the national champion that our country needs, for three reasons. First, it is at the heart of our mission to make Britain a clean energy superpower. Every family and business has paid the price for our country’s exposure to volatile fossil fuel markets over the last two and a half years. A sprint to clean energy is the way to increase our energy independence and protect families and businesses. We need to invest in wind, solar, nuclear, tidal, hydrogen, carbon capture and more—geothermal too.
Secondly, Great British Energy will help to generate the jobs the UK needs, not just the power. Here’s the thing: our European neighbours recognise that a publicly owned national champion is a critical tool in industrial policy, and the good news is that after 14 years of industrial policy being a dirty, taboo phrase, it is back at the heart of policy making in this Government. Great British Energy is part of our plan to ensure that the future is made and built in Britain.
Thirdly, Great British Energy will ensure that the British people reap the benefits of our natural energy resources, generating profits that can be returned to bill payers, taxpayers and communities across the country. I know that many Members of the House are passionate about the issue of local power, so let me reassure them that the Government are committed to delivering the biggest expansion of support for community-owned energy in history.
Great British Energy is the right idea for our time and has in a short time won huge support. I am sorry that the Opposition have chosen to wallow in their minority status and stand out against it, but let me tell them: their vote tonight will have consequences. For every project that Great British Energy announces in constituencies around Britain, every job that it creates, every local solar project it initiates and every wind project it invests in, we will tell their constituents that they opposed it. They are the anti-jobs, pro-energy-insecurity party, and we will hang their opposition to GBE round their necks from here till the next general election. Invest or decline: that is the choice, and GBE is the right choice for energy security, bills and jobs. I commend the Bill to the House.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the shadow Secretary of State.
Claire Coutinho
When we said that we could not support the Bill in its original form, it was because we had no detail to justify giving this Secretary of State a blank cheque for £8 billion of taxpayers’ money. In the intervening two months, I am afraid that we have not learned anything to give us confidence. We have not seen a business plan, a framework agreement or an explanation of how this is different from the UK Infrastructure Bank, which was set up to do exactly the same thing.
We know that there will be a headquarters in Aberdeen, with a head who will be based 360 miles away in Manchester. We know that that same head does not think that the scope of Great British Energy includes reducing bills. I remind the Secretary of State that, in an interview in June, he said not only that he was ready to launch Great British Energy within days—so he should have this information—but that it would lead to a “mind-blowing” reduction in bills by 2030. Now he has completed the embarrassment of the bright-eyed MPs behind him by forcing them to vote against their own election promises.
Tonight, Labour Members have voted against holding Great British Energy accountable for cutting people’s energy bills by £300 and for creating 650,000 jobs. The Secretary of State talks about hanging things around people’s necks. Well, he made his colleagues repeat those promises over and over again during the election, and we will see what the electorate remember. These are not trivial matters. This is about people’s energy bills, people’s jobs and businesses’ ability to succeed in this country. The risk is that this Government are heading towards a 2029 election in which industries have been lost and bills have gone up—exactly the opposite of what the electorate have been promised. That is not just my argument; it is the argument of the respected energy and climate economist Dieter Helm.
The Secretary of State, whether he is talking about Great British Energy or his plan for a zero-carbon grid by 2030, likes to talk in slogans and political mantras, but he does not deal in detail or fact. He knows that Great British Energy does not have the power to reduce household bills, which is why he has refused our attempts to hold him accountable for his own promises.
The Secretary of State argues that ramping up renewables at breakneck speed will lead to cheaper energy and greater security—I believe he just said that—but the latest renewable auction, which he bumped up, will increase people’s bills by £5. He has advertised to multimillion-pound energy companies that he will be buying whatever they are selling, no matter the cost, until 2030—he even named a few and said that they welcome his approach. I can understand why! I know that he does not have a business background, but he does not need one to understand what kind of signals he is sending.
The Secretary of State has not modelled the cost of constraint payments, network costs or green levies. He has deprioritised exciting new technologies such as small and advanced modular reactors, which will come online after 2030, and he refuses to address the question of dispatchable power. If not gas, what is he arguing for in its place and how much will it cost? Far from making energy cheaper and more secure, he will send people’s bills through the roof. And more and more people are sounding the alarm about whether he will even be able to keep the lights on, which we were able to do even during the height of an energy crisis.
Tonight, Labour Members have shown their true colours by voting against making their own energy company accountable. If the Secretary of State cannot even back up his own election promises, why should we back him on this Bill?
Question put, That the Bill be now read the Third time.