Great British Energy Bill

(Limited Text - Ministerial Extracts only)

Consideration of Lords message
Wednesday 14th May 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

I beg to move, That this House agrees with Lords amendment 2B in lieu.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

With this it will be convenient to discuss amendment (a) to Lords amendment 2B.

[Michael Shanks]

I thank all Members of both Houses for their continued scrutiny of this important Bill. In particular, I extend my thanks to my noble Friend the Minister for Energy Security, Lord Hunt of Kings Heath, for his expertise and, dare I say, resilience, which ensured that we reached the resolution that we are here to discuss. Lords amendment 2B was added to the Great British Energy Bill during consideration of Commons amendments, and the Government motion to accept Lords amendment 2B was passed in the other place.

The Great British Energy Bill delivers on our manifesto commitment to establish Great British Energy, which will accelerate clean power deployment, create jobs, boost energy independence and ensure that UK taxpayers, bill payers and communities reap the benefits of clean, secure, home-grown energy. We recognise the breadth of concern across Parliament and from the public on this issue, and particularly on the issue of how Great British Energy will tackle forced labour in its supply chains. Throughout the passage of the Bill, the Government have consistently stated that they wholeheartedly share that concern and agree on the importance of tackling forced labour in supply chains wherever we find it. That is why we tabled Lords amendment 2B, which is the latest move in the Government’s work to tackle the issue of forced labour while we progress towards becoming a global leader in clean energy.

We expect all UK businesses to do everything in their power to remove any instances of forced labour from their supply chains, and Great British Energy will be no different—in fact, we have stated many times that we expect it to be a sector leader on this matter. Lords amendment 2B makes it clear that Great British Energy is committed to adopting measures so that it can take the appropriate steps to act on any evidence of forced labour in its supply chains, as we would expect from any responsible company.

[Sir Edward Leigh (Gainsborough) (Con)]

I am sure we can rely on the Minister to ensure that no solar panels are installed on British farms that are made by the Chinese Government, using slave labour. I am sure that he can assure us on that point.

[Michael Shanks]

I have set that out in this debate in a number of ways. We have absolutely committed that Great British Energy will not invest in any supply chains in which there is any evidence of forced labour, and the measures that we are outlining today show how we will deliver that. There is a wider question about forced labour in supply chains for which Great British Energy does not have responsibility, and we have outlined a number of actions for tackling the issue right across the economy. Just a few weeks ago, I hosted the first cross-Government meeting with colleagues from the Home Office, the Foreign Office and the Department for Business and Trade looking at how we can make regulations much tighter. We want to ensure that what the right hon. Gentleman wants applies across supply chains, not just in the energy space, but across the economy.

[Chris Vince (Harlow) (Lab/Co-op)]

The Minister is giving an important speech on a really important topic—a speech that I think everyone across the House will agree with. Does he agree that part of the advantage of having a Government-run GB Energy is that we will have greater control over supply chains, and whether slave labour is being used?

[Michael Shanks]

My hon. Friend is absolutely right. We want Great British Energy to be a sector leader in this area. It must meet all the standards that we expect from every other company, but we want it to go further and really demonstrate what is possible in this space. He raises a wider question about the importance of Great British Energy to delivering investment in the supply chain, so that we are delivering not just energy security through the clean power mission, but good, industrial jobs. That is what this Bill is all about.

Great British Energy will strive to be a leading example of best practice, not just in this space, but right across corporate due diligence, setting a benchmark for ethical standards in supply chain management. That involves ensuring that human rights considerations are integrated into corporate policies, procurement and suppliers’ conduct; we will draw on guidance from leading experts in the sector, such as the Helena Kennedy Centre at Sheffield Hallam University.

Lords amendment 2B will strengthen our framework. It demonstrates that both Great British Energy and the Government are absolutely committed to maintaining supply chains that are free from forced labour. I urge the House to agree to Lords amendment 2B and the position that the Government have reached on this critical issue.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

--- Later in debate ---

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

Well, this is a red-letter day: we are in the Chamber to discuss something positive that is happening with GB Energy. I commend the Minister and his colleagues for that, although it is consistent with the function of a significant U-turn in Government policy. I thank Members of both Houses for their work in bringing Lords amendment 2B to fruition.

The amendment would ensure that no material or equipment produced as a function of slave labour is used in GB Energy’s enterprises, but I heard the Minister talk about “expectation” and “striving”, which are much less unequivocal than “ensure”, so I would be very grateful if he could reassure the House that “ensure” means ensure. Consistent with comments from other hon. and right hon. Members, there is a very straightforward way to do that. It is maybe not legislatively or bureaucratically light, but this is an extremely important issue. If it does not attract a burden of administration to ensure that our collective consciences are clear, what will?

As an engineer, I know that many products that we purchase come with a certificate of conformity. In pursuance of ensuring that there is no slave labour in any enterprise of GB Energy, it would be very straightforward for the Government to mandate that a certificate of conformity must be produced for all equipment, which would explicitly guarantee that the supply chains are free of slave labour. That does not seem to be an especially demanding expectation.

I will make a final point. Can the Minister explain something to me? I am genuinely not seeing this with the clarity that I suspect he is—or maybe he is not. In what enterprises will GB Energy be involved as the decider, rather than the provider, in delivering generation, transmission or storage capacity on the ground and in a meaningful way? How will GB Energy scrutinise or mandate bills for materials to say whether they are provided from this provider or that provider? That is not my understanding of the nature of GB Energy. As has been explained in this House and elsewhere, GB Energy is a derisking device that will inject capital into the market and clear the blockages—it will not introduce purchase orders from this company or that company. I would be genuinely grateful if the Minister could clarify that.

[Michael Shanks]

I thank all hon. and right hon. Members for their contributions to this important debate. I will start with the intervention made by the hon. Member for North Dorset (Simon Hoare), which set the tone. He said that there is an important cross-party consensus on this issue, and I think that that has come through in all the contributions we have heard. Hopefully, that gives us a mandate to push further on this issue than any of our parties has done until this point. That is my genuine intent, and the hon. Gentleman’s point is very helpful.

I always welcome my exchanges with the shadow Minister, as he well knows. I thought for a moment that there was an opportunity at this very late stage for him to change his way and support investment in his own constituency through Great British Energy, but he has once again decided to use this opportunity to say to his constituents that he does not want investment and jobs. We will of course remind his constituents of that.

[Perran Moon (Camborne and Redruth) (Lab)]

Bring it down to Cornwall!

[Michael Shanks]

Cornwall is ever present in these debates. Nevertheless, however much the shadow Minister’s teeth were gritted, I do welcome his support for the approach we are taking today.

We are debating Lords amendment 2B, which, combined with the previous commitments that I have made from the Dispatch Box and that my noble Friend Lord Hunt has made in the other place, demonstrates that this Government are committed to using Great British Energy as a vehicle for taking this issue seriously. As came through in a number of the contributions, though, this is not solely the preserve of Great British Energy; it is much broader, both in the energy system and in the wider economy.

I have committed to doing some things already. I have committed to appointing a senior leader in Great British Energy who will have oversight of tackling forced labour in the supply chain; we have confirmed that Baroness O’Grady will take on that role. Many Members will know that she has significant experience in this space, and she will bring much effort to important deliberations at GB Energy. I have committed to cross-Government departmental meetings, which took place on 7 May as a starting point. I have committed to including an overarching expectation in the statement of strategic priorities, and that will be delivered within six months. We have demonstrated our unwavering commitment to tackling forced labour in supply chains, and we are resolute in our determination to go further.

[Sir Iain Duncan Smith]

The question, however, is this: at the end of it all, how will we know that the supply chains have been correctly declared? If they have not been, it will become a matter of avoidance. America checks, tests and sanctions companies that have lied about their supply chains, and that has forced wholesale change to its supply chain process. I ask the Government to learn from America and get companies such as Oritain to use forensic science to test the company supply chains about which they are suspicious.

[Michael Shanks]

I thank the right hon. Gentleman. I was going to come to his substantive contribution shortly, but I will do so now. The first point he made in his speech is important, which is that there is a real danger with the piecemeal approach he mentioned. That is partly why I have resisted the idea that Great British Energy will solve all of these issues in isolation; it clearly is not going to do so. We think it has a really important role in leading the conversation and leading the effort, and certainly in demonstrating that by its own actions, but we have to look at these issues right across Government.

The meetings I have convened are a starting point in looking seriously at where the Modern Slavery Act falls short. We are committed to doing that, and it sounds as though there is consensus across the House about looking seriously at that. That is not only for my Department, and I want to be careful about overstepping, because to avoid the work being piecemeal, it needs to be done right across Government. However, the points the right hon. Gentleman makes specifically on tracking supply chains are very helpful, and I will take them away.

The hon. Member for South Cambridgeshire (Pippa Heylings) made a point about the International Labour Organisation’s principles. Great British Energy will consider the 11 indicators of forced labour, including abuse of working and living conditions, as part of its efforts. I do not think that this Bill is the right place to get into a conversation about defining slavery. We may need to look at that, and I am not against doing so, but this Bill is about creating Great British Energy, and we need to be careful to keep these things separate.

We are already a signatory to a number of conventions, which highlights the Government’s broad support for tackling forced and compulsory labour, and we will continue to take that forward. The Home Office has produced a modern slavery action plan, which sets out the first steps in its departmental responsibilities for tackling modern slavery at its root. The plan, which will be published shortly, confirms that the Government are considering legislative vehicles for strengthening section 54 of the Modern Slavery Act.

These are clearly important issues, and I do not for a second seek to say that the Lords amendment or Great British Energy itself will solve all of them, but I think this is an important step, and I welcome all the contributions made across the House.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I basically want to thank the Minister. This has been quite a robust and rough journey, but he has listened to comments from across the House, analysed the arguments we have made and listened to the other place. I think this is now going to be a very strong Act that will help enormously to shift our global supply chains and get the transparency I think everybody in this House wants, so I thank him.

[Michael Shanks]

I thank my hon. Friend for that intervention, but more broadly, as I have said before, for her significant contribution in this space and for the way she has influenced me and others over the past few weeks on these important issues. I also thank others across the House, because it has been a real cross-party effort, and I think we are in the same place. We want to take this forward, and there is much more work to do. I want the message to be that, while this is progress, it is—as the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) put it very well—the beginning, and certainly not the end, of further work.

Without wanting to tempt fate, this is the last opportunity to speak about the Bill in this place, so I close by thanking everyone who has played a role in getting it to this stage. In particular, I thank my noble Friend Lord Hunt in the other place. I thank all the Members from all parties in this place who contributed to the Bill Committee, and the witnesses who gave evidence. I also thank the parliamentary staff who play such an important role in shepherding Bills through this place and the House of Lords. I especially thank the fantastic team of officials in the Department for Energy Security and Net Zero, who moved at incredible speed to develop the legislation, but always with good humour, which I have personally appreciated.

Great British Energy is at the heart of what the Government are setting out to achieve: delivering clean power, but delivering jobs and investment as we do it; and delivering energy security and climate leadership, owned by and for the people of this country, and headquartered in the energy capital of Europe, Aberdeen. With investments having already been made, including in community energy in Scotland today, which Members from Scotland might welcome, and investment in supply chains and much, much more, this is the big idea of our time. It will deliver on our energy objectives, but with the public owning a stake in their energy future. I am pleased that Parliament will—I hope, without tempting fate—back it today, so that it can receive Royal Assent and get on with doing what we need it to do.

[Sir Iain Duncan Smith]

On a point of order, Madam Deputy Speaker. I just want to remind the House that the Deputy Speaker in the Chair today is also sanctioned by the Chinese Government for her bravery.