(2 years, 1 month ago)
Commons ChamberIn the last two days, we have seen that the climate emergency is here and now, with wildfires raging across our country, tracks and runways melting, schools closing and the government under-prepared, and yet some people aspiring to the highest office in the land have suggested that tackling the climate crisis is a luxury that can be delayed—an indulgence, a niche project. Such people would put the safety of our citizens at risk. They are deeply irresponsible and they are economically illiterate. Does the President of COP26 agree that, given the demonstrable threat that we so obviously face, there is no place in serious political parties for such dangerous folly?
As the right hon. Gentleman knows, I did make an intervention at the weekend. As I have said, from what I have seen and heard, all three of the remaining contenders for the leadership of the Conservative party and to be our next Prime Minister are committed to the “net zero by 2050” agenda, and also to the near-term policy commitments to get there. The final two will have an opportunity to set out further details over the coming weeks.
The President of COP26 was so appalled by his own party’s leadership contest that he threatened to resign, and it is no wonder. He says that all the candidates are committed to the net zero agenda, but only this morning the right hon. Member for Richmond (Yorks) (Rishi Sunak), the frontrunner in the leadership race, said that he would double down on the onshore wind ban because of the “distress and disruption” that onshore wind causes.
What is causing distress is the worst cost of living crisis in a generation. What is causing disruption is the most extreme weather in our country’s history. Onshore wind is a vital tool in tackling these crises, but the bizarre state of the Tory party means that the former Chancellor panders to the fanatics and sides with the sceptics. Will the President of COP26 now repudiate that position and condemn it for the dangerous nonsense that it is?
I am not really in a position to repudiate anybody else’s proposals—[Interruption.] I say to the right hon. Gentleman that we have a clear plan for expanding offshore wind. There is another 32 GW—[Interruption.] I will come on to that. Another 32 GW is effectively in the pipeline. In solving the energy security strategy, we need to keep everything on the table. There is already 14 GW of onshore installed across the country, and where communities are positively welcoming of onshore in return for reduced bills, that is an issue that we should keep on the table.
(2 years, 2 months ago)
Commons ChamberIt has been reported that the COP26 President is in the running to become the executive secretary of climate at the UN. I wish him well, because he would do an excellent job in that post. Part of the reason he won respect at COP26 was for his commitment to phase out fossil fuel subsidies, yet here at home the Chancellor has created a massive loophole in the windfall tax to give away at least £4 billion of public money in new incentives for new oil and gas projects. Can the COP26 President tell us whether he was consulted on that plan? How much does he estimate that it will drive up emissions? Is it not totally at odds with the agreement on fossil fuels that he worked so hard to secure in Glasgow?
The energy profits levy to which the right hon. Gentleman refers is a targeted short-term measure with an effective end date of December 2025. Any company looking to make future energy investments will have to factor in the risks of potentially ending up with stranded assets.
Maybe the COP26 President has one eye on the UN, because that did not sound like a wholehearted endorsement of the Chancellor’s policy, and he is right to think that the Chancellor’s policy does not make any sense. The money will either go to oil and gas projects that would have happened anyway, or incentivise new projects that will make no difference to consumer bills, take years to come to fruition and drive a coach and horses through our climate commitments. What is more, this policy excludes investments in renewables, which are the quickest, cheapest and cleanest form of power. Does that not reveal the truth that on climate, he says one thing on the world stage and the rest of the Government do another here at home? Is it not totally understandable that he wants to jump off the sinking ship?
The right hon. Gentleman will not get rid of me that easily. He needs to look at what the Government have done over the past few years: we have built the second biggest offshore wind sector in the world, which is precisely the reason that we are not dependent on Russian hydrocarbons, as some countries are. We have had a big push on renewables. He talks about the energy profits levy, but he should please have a look—he will have done this anyway, but a detailed look—at the energy security strategy, which sets out a very clear direction to a clean energy future for the UK.
(2 years, 4 months ago)
Commons ChamberThe recent climate assessment by the Intergovernmental Panel on Climate Change was deeply worrying, saying that current global policies will lead to warming of more than 3°, but it also offered hope in the dramatic fall in the price of renewables, which means they are now the right choice for cheap energy and to tackle the climate crisis. Given that onshore wind is the cheapest, cleanest, quickest form of power to deliver and is also supported by a large majority of the public in the UK, will the COP26 President explain why the Government persist—including in their recent strategy—with planning policies that in effect block onshore wind in England?
I certainly agree that we need to do more in terms of renewables, which is what the energy security strategy is all about. We already have 14 GW deployed throughout the country and there is another 5.8 GW in the pipeline. On future developments, we have said that we want to work in partnership with supportive communities that will host new onshore wind farms, and in return they will enjoy such benefits as local energy discounts.
The COP26 President knows that the Prime Minister caved in to those who wanted to block onshore wind—and I think the Minister for Energy knows it too.
Let us try another. To tackle the cost of living crisis and the climate emergency, energy efficiency measures are a no-brainer, but the Chancellor steadfastly refused to offer a penny more for energy efficiency in the recent strategy, meaning higher bills for people and more people in fuel poverty. The COP26 President is responsible for holding Departments to account for net zero; is it not time for him to wield some presidential power, knock heads together and sort this problem out?
The cost of living is an issue facing many families in all our constituencies throughout the country, which is why the Government have put forward more than £9 billion-worth of support in respect of the cost of living. On energy efficiency specifically, the right hon. Gentleman knows that we are investing more than £6.6 billion over this Parliament to improve energy efficiency and decarbonise heat. That will of course lead to lower bills, particularly for those most in need.
(2 years, 6 months ago)
Commons ChamberI am happy to look at the Bill that my right hon. and learned Friend mentions, of course. As we know from the IPCC report, if global warming continues at current rates, by 2070 we could be in a position in which a third of all plant and animal species are extinct.
The House stands in solidarity with the Ukrainian people, and the Minister’s COP presidency now faces an utterly changed context with the Russian invasion of Ukraine. The crisis shows how global dependence on fossil fuels can support the most tyrannical regimes. This is a war underwritten by Russia’s oil and gas. Does he agree that the best route to protect our energy and national security and to undermine the power of Putin is not by increasing our dependence on fossil fuels, whose price is set on the international market, but by supercharging the drive to renewables, nuclear and energy efficiency so that all countries, including our own, have clean, cheap and homegrown power?
No one can fail to be moved by the appalling suffering of the citizens of Ukraine, including children. They are enduring unimaginable conditions, and our hearts and thoughts are very much with them.
The right hon. Gentleman makes an important point about the clean energy transition. I have said in the past that we want to see a managed clean energy transition, which is why we have put forward the North sea transition deal, and of course the Government are focused on renewables, on nuclear and on hydrogen.
An essential part of becoming less dependent on fossil fuels is reducing our demand for gas by making more progress on energy efficiency. On its own, insulating the 18 million draughty homes in our country would cut our imports of gas by 15%—double the amount we import from Russia. In his role holding Departments to account on net zero, will the COP26 President now persuade Treasury and other colleagues that it is time to finally get serious and invest at scale in the national programme to upgrade Britain’s homes, which Labour has long called for?
The right hon. Gentleman is right. Buildings are responsible for 20% of emissions in the UK; in our heat and buildings strategy, we set out our aim to ensure we insulate homes. He is right that that is how to reduce not only emissions, but costs for individuals and businesses.
(2 years, 7 months ago)
Commons ChamberMy right hon. Friend is right: a whole range of commitments were made, some of which will continue beyond the end of 2022. As I said, a key commitment was for countries to revisit their emissions-reduction targets by the end of 2022. We will work with the COP27 presidency from Egypt to ensure that countries deliver.
Two months on from the COP, there is a worrying lack of momentum in this pivotal year, and it could get worse if we learn the wrong lessons from the energy crisis. Does the COP President agree that the lesson is not that, as some in his party would say, we are moving too fast on green energy, but the opposite: we are moving too slowly and our dependence on fossil fuels leaves us vulnerable? The only way, therefore, to keep 1.5 alive and provide energy security is to go further and faster on the climate transition.
The right hon. Gentleman will know that the UK wants to have a managed transition to net zero, including in our energy mix. He will also know that under this Government we have led the world in offshore wind and that this Government are delivering investment in nuclear to ensure that we increase our baseload.
Consumers looking at their energy bills will ask, “If it is going so well, why are our bills rocketing and why are we so vulnerable?” We can keep 1.5 alive only if we have an energy policy that is fair at home and abroad. Many of the fossil fuel companies have made billions as a result of soaring prices, yet the Government say we should not tax them further because they are struggling. Is not the truth that we are only ever going to meet the Paris agreement if we stand up to vested interests, including the oil and gas companies, and that the fair and right approach is a windfall tax to help with the real struggles faced by the British people?
We want to see more private sector investment in offshore wind and, indeed, in renewables and the increasing of our green baseload. The right hon. Gentleman will have seen that in the net zero strategy we have set out a plan for an extra £90 billion of investment from the private sector. That is flowing in because of the actions of this Government.
(2 years, 9 months ago)
Commons ChamberThe make-up and structure of the Government are obviously a matter for the Prime Minister—I know my right hon. Friend will have raised that issue at the Liaison Committee—but our current NDC is aligned to net zero.
I want to commend the COP President, or should I say No Drama Sharma, for his efforts in Glasgow. He is right that we have to spend the next 12 months maximising the pressure on the big emitters, and we can make a difference with the UK-Australia trade deal. Australia’s 2030 target is consistent with 4° of warming. Will he tell the Secretary of State for International Trade to rewrite that trade deal, and not to water down commitments, which is the current plan, but to make it conditional on Australia, as well as the UK, having 2030 targets that are consistent with 1.5°?
I congratulate the right hon. Gentleman on his new role. My only disappointment is that the phrase “shadow COP President” does not appear in his title—that is where he could take some lessons from the deputy leader of the Labour party about how to expand his number of portfolios. On the point about Australia, I confirm that the trade deal will include a substantive chapter on climate change, which reaffirms both parties’ commitments to upholding our obligations under the Paris agreement, including limiting global warming to 1.5°.
I know I am shadowing the Department that the right hon. Gentleman would quite like to run, so perhaps that announcement will be forthcoming in the future. I am mildly encouraged by what he says on Australia.
Let me take two other issues where he can show leadership: the Cumbria coalmine, and the Cambo oilfield, which are the equivalent of 18 coal-fired power stations running for a year. He knows that we need to get others to phase out coal, and that we need to phase out fossil fuels. Surely the right way to send a proper signal to the rest of the world ahead of COP27, is for the whole Government to start practising what he is effectively preaching, and put a stop to Cambo and Cumbria.
We have previously had discussions at the Dispatch Box on both Cambo and Cumbria, and the right hon. Gentleman will know that they are being looked at by independent regulators and that pronouncements will be coming forward. We have significantly reduced the amount of coal in our electricity mix. Indeed, there will be no more coal in the UK electricity mix from 2024.
(2 years, 10 months ago)
Commons ChamberMy hon. Friend is a champion for his Sedgefield constituency and is right to point out that we can bring about change in a number of ways, thereby not only reducing the cost of bills but helping to cut emissions. There is a role for us all to play.
With 10 days to go before COP, much is riding on the shoulders of the COP26 President and we wish him well, but to deliver the 1.5° target we have to cut emissions by 28 billion tonnes by 2030—a halving of global emissions. So far, the pledges made for Glasgow amount to 4 billion tonnes at most, so we are not yet where we want to be. Does the COP26 President agree that we need to be honest about the maths? If he does, what is his assessment of how much of the gap we can close at Glasgow to keep 1.5° alive?
The right hon. Gentleman and I agree that we have to ensure that we close the gap and halve emissions on the 2010 baseline by 2030. As I said in answer to an earlier question, so long as the commitments that have been made are followed through on, we are heading towards the 2° target, but clearly we need the G20 to come forward with its emissions reduction targets, and we will then need a consensus view on how we reach agreement for the next few years.
May I suggest to the COP26 President that the rest of the UK Government could make a difference, even in these final days, by not undermining his work? The Secretary of State for International Trade should not be giving big emitters a free pass by doing a deal with Australia that allows them to drop their temperature commitments; the Prime Minister should deliver on the promise made at the G7 to vaccinate the developing world by the end of 2022; and the Treasury should stop undermining the green transition at home and help to build the international coalition that we need by reversing the cut to overseas aid in the Budget. Does the COP26 President agree that acting on those suggestions would help him to deliver on his historic responsibility at the COP?
The whole Government are committed to our net zero strategy, which was published yesterday. It is about creating 440,000 jobs by 2030 and getting another £90 billion of inward investment, some of which we saw coming through at the global investment summit yesterday. The whole Government are committed to ensuring that we have success at COP26. The very fact that the Secretary of State for International Trade is sat next to me on the Front Bench shows her commitment to COP and to her work on adaptation.
(3 years, 1 month ago)
Commons ChamberThe Copenhagen summit of 2009 was undone by deep mistrust of the developed world by developing countries. Rather than learning from that, rich countries are still failing to deliver on the promised $100 billion of climate finance and the billions of vaccine doses still required by poorer countries. Yesterday, shamefully, the Prime Minister decided to press ahead with the cut in our aid spending. When the COP26 President went to see the PM yesterday, did he explain that COP26 is not some international photo opportunity, but a complex and fragile negotiation, and that the aid cut simply deepens mistrust, damages our moral standing and undermines our COP presidency?
The right hon. Gentleman raises two issues. On vaccines, he will know that we now have an offer open so that any accredited delegates who are not able to get vaccinated in their home country are able to receive vaccinations through the programme that we are setting up. Secondly, I can tell him that there is huge appreciation for the UK’s leadership on climate action around the world. That is based on conversations that I have day in, day out with world leaders.
The COP26 President knows that world leaders and others are asking him why the UK is the only G7 country cutting aid spending in the year that we are hosting the COP. He knows that delivering support to developing countries is not just morally right, but essential to building a coalition to pressure the world’s largest emitters.
The most significant of those emitters is China. To have a chance of keeping global warming to 1.5°, we need China to ensure that its emissions peak and start to decline by 2025 at the latest. Does the COP26 President agree? If so, can he tell us what the Prime Minister is doing to engage directly with China on the issue and persuade it to step up?
We are engaged with all big emitters; as the right hon. Gentleman knows, I am travelling around the globe talking to different countries. To come back to his point about aid spending, I just point out that this year we will spend more on aid as a percentage of our GNI than the US, Japan, Canada or Italy.
(3 years, 2 months ago)
Commons ChamberThe Government are committed to getting the transition to net zero right for all consumers. We are committed to driving savings and making our homes better insulated with more energy-efficient measures. My right hon. Friend will know that through the energy company obligation and the expanded warm home discount, we will provide at least £4.7 billion of extra support to low-income and vulnerable households between 2022 and 2026.
For a successful COP26, we have a particular responsibility as hosts to build trust with developing countries. The Government’s decision to cut aid spending—the only G7 country to do so—is therefore an appalling one, not just because it is wrong in principle, but because it is staggeringly self-defeating. The COP26 President knows that that decision makes a successful outcome at the conference of the parties harder, not easier, so may I invite him to add his voice to the powerful calls we heard yesterday, including from the former Prime Minister, the right hon. Member for Maidenhead (Mrs May), to immediately restore Government aid spending to 0.7% of GDP?
As the right hon. Gentleman knows, the UK is doubling its international climate finance commitment to support developing countries; I can tell him that that has been very much welcomed around the world. With regard to the overall official development assistance spend, this is a temporary measure, as he knows. As the economic situation improves, I hope that it will be possible to restore the 0.7% target at the earliest opportunity.
The problem is that cutting aid spending severely undermines the ability of developing countries to tackle the challenges of climate poverty and public health. The COP26 President knows that: it is what developing countries are telling him in the negotiations. We need vulnerable countries to be calling for more ambition from big emitters such as China, but they will be much more reticent in doing so when they do not feel that we can be trusted.
Totemic on the issue of trust is the promise made at Copenhagen for $100 billion of public and private finance for developing countries. More than a decade on, it still has not been delivered. It is our job as hosts to deliver on that promise. Can the COP26 President therefore tell us whether the $100 billion will finally be delivered this weekend at the G7 meeting?
(3 years, 4 months ago)
Commons ChamberLast month, the COP President wrote that the world is doing nowhere near enough to limit global warming to 1.5° C, and he is right. A green economic stimulus could make a huge difference to meeting the target, but while we have put it as the top item of the G7 agenda, the sum total of the Chancellor’s measures here in the UK promised just £12 billion of green spending over a decade, and he has already cut £1 billion from that. Our investment is 60 times smaller than President Biden’s green infrastructure plan. Is it not a very significant challenge for COP26 that when it comes to a green stimulus we are telling others to act but not doing so ourselves?
The right hon. Gentleman knows that we agree on many of these issues on tackling climate change, but when it comes to Government money, we have also ensured that we leverage in private sector money. It is not just about Government money; it is also about leveraging in private sector money. Ultimately, this is about not just cutting emissions but creating jobs for constituents across the UK.
As the right hon. Gentleman will know, as COP26 host, our actions face particular scrutiny, and I think he will know that the international community is increasingly concerned, and not just on green recovery. The Government call on others to power past coal but flirt with a new coalmine; say to others, “Adopt a net zero target”, but are off track on ours; and tell countries to support the world’s poorest but slash aid spending. Rachel Kyte, former special representative of the UN Secretary-General, said this week of our record on climate:
“What the UK is doing is like dad dancing…they are very uncoordinated.”
Is it not time the Government gave up the dad dancing on climate and showed some consistent leadership?
The right hon. Gentleman himself is obviously a very good dancer and therefore unlikely to take part in dad dancing; we should try it together at some point.
Of course every country, including the UK, needs to make more progress on cutting emissions. The right hon. Gentleman makes particular reference to coal. He will know that our energy mix with regard to coal has gone from 40% in 2012 to less than 2% last year, and we have been leading the Powering Past Coal Alliance, to which a large number of countries have now signed up. So we are making progress; of course, there is more that we can do.
(3 years, 6 months ago)
Commons ChamberI have never been called that before.
I warmly welcome the President of COP26 to his full- time role. It is in all our interests that he should succeed, and we want to do everything that we can to help. The central judgment of COP26’s success is whether it keeps alive the Paris target of limiting global warming to 1.5°. To make that happen, the UN says that we need to more than halve global greenhouse gas emissions from 52 gigatonnes today to 25 gigatonnes by 2030. Will he assure us that he recognises the scale of this challenge and the need for maximum ambition, and tell the House how close to that target he thinks we can get at COP26?
The shadow President raises a vitally important point. We did make progress towards the end of last year—70% of global GDP is now covered by the net zero target—but he is absolutely right when he alludes to the fact that what we need is near-term targets to 2030 to cut emissions. We are working very hard on that, and I am very happy to hear his thoughts on how we may be able to go faster.
A crucial issue for the success of the COP is international finance for developing countries, as the right hon. Gentleman knows, and they are facing poverty, the pandemic and climate change. Yet the Government have shamefully chosen this moment to cut £25 billion to £30 billion from overseas aid over the course of this Parliament. They say that they are protecting climate aid, but they have not set out what that means year on year, so will he guarantee today that, in the coming financial year when the COP takes place, there will be no cut to the level of the UK’s climate finance budget or to the climate programmes that we fund?
What I would say to the right hon. Gentleman is that, like him, I am very proud of the work that successive Governments have done in supporting the most vulnerable around the world. At 0.5% of gross national income, the UK will still remain a leading international aid donor. On the issue of international climate finance, he will know that, over a five-year period, our commitment is £11.6 billion, which is indeed a doubling of the last figure.
(3 years, 8 months ago)
Commons ChamberBusinesses face a double whammy from the ongoing economic crisis and potential Brexit disruption. They want the Business Secretary to stand up for them. Some 61% of the country will be in tier 3 from tomorrow, and the situation for many pubs, restaurants and bars is catastrophic, as this morning’s record redundancy figures show. Will the Secretary of State now finally recognise what he has been told repeatedly by Members across the House—and again today—and by industry that support for the hospitality sector is hopelessly inadequate if many of these businesses are to survive through the winter?
I completely accept that it is a very difficult time for lots of businesses, particularly in the hospitality sector right now, but as the right hon. Gentleman will know, support is being provided. Businesses that are required to be closed can get grants of up to £3,000 a month. I also point him in the direction of the International Monetary Fund, which said that the support the UK Government are providing is
“one of the best examples of coordinated action globally”.
I am afraid that the Secretary of State is failing to stand up for the hospitality sector. Let us talk about the 150,000 businesses that, even with a trade deal, will have to fill in customs forms for the first time from 1 January. The ports are struggling, the IT systems are not ready, the customs agents are not in place, and businesses still do not know the rules that will exist in just 16 days’ time. Are these firms not entitled to conclude that they are being badly let down by a Government who have left them totally in the lurch and a Business Secretary who seems asleep at the wheel?
I will refrain from coming back on that jibe. As a Government, we have been working incredibly hard to support businesses. I know that it is very difficult. The right hon. Gentleman talks about the end of the transition period. Of course, there are a lot of changes that businesses can already put in place and, as he knows, we are communicating with businesses to ensure that that happens. I think that businesses do want us to continue talking to the European Union, and that is precisely what we are doing.
(3 years, 8 months ago)
Commons ChamberCan I thank the Secretary of State for his statement? This White Paper has been promised year after year, so there have been high expectations for it, and I know I should say that the Secretary of State and his Minister are deeply committed to the fight against the climate crisis, but the test of this White Paper is not just good intentions, but whether it is a plan at the scale of ambition we need to create the jobs we need and deliver the fairness we need. While there are certainly elements in the White Paper we welcome, I fear that too often the sound we hear when we read its pages is of the can being kicked down the road.
First, on ambition, we would like to go further and faster than Government targets, but the very least they must be doing is meeting, with policies, the target for 2030 they have set and the recent proposal by the Committee on Climate Change for a 78% reduction in emissions by 2035. The CCC is clear that, as part of its plan, we need to deliver zero-carbon electricity by that date—2035—but my understanding from the White Paper is that it appears simply to have an ambition of 2050 for zero-emissions electricity. Can the Secretary of State explain what appears to be lesser ambition?
On onshore wind, tidal and solar, it is concerning that the White Paper has little to say. There is only one mention, for example, of tidal in the whole document. Can the Secretary of State explain why and what he is going to do to remove the remaining barriers there are to onshore wind?
On new nuclear, we too believe that it can play a part in the energy mix, but the Government appear not to have come to a view after years of consultation, frankly, about how to pay for it, so can the Secretary of State expand on what is his preferred method of financing? Beyond nuclear, there appears to be more, I am afraid, kicking into touch. On hydrogen, France has committed £8 billion, Germany £6 billion and the UK £240 million, and all we are promised is a strategy next year. Is the Secretary of State not worried that we are going to be left behind?
Secondly, let me turn to the theme of job creation. We would like further ambition from the Government on a green recovery. While other countries are investing tens of billions in a green stimulus to create jobs now, we are investing a fraction of this amount. The Secretary of State must recognise that he is way off his 60% target of domestic manufacture of offshore wind turbines. There is a widespread view that the £160 million investment in ports, while welcome, is a drop in the ocean compared with the scale of need if we are to meet his target. Can he tell us what assessment he has made on this issue?
Crucial to jobs is also a just transition for any workers in industries that will lose out. Does the Secretary of State recognise that there needs to be a proper plan for those in fossil fuel industries, including through using their skills in renewable sectors? Can he explain why there is not such a plan already, and will he work with trade unions and others to develop such a vital plan with urgency?
Thirdly, let me turn to the issue of fairness for consumers. I am glad to see the Government trying to build on the energy price cap—once said to be part of a Marxist universe, now part of the mainstream policy of a Conservative Government. But the biggest issue here, as the Secretary of State knows, is the massive job that we have to do in changing the way in which we heat our homes. I fear that the White Paper falls very short on fairness and delivery. Years ago, the Government abolished the zero-carbon homes standard due to come in in 2016, and we still have no date or plan for new homes to be built to zero-carbon. Why not? This is a false economy.
For existing homes, the Government have known for years about the challenge of insulation and conversion of the way they are heated, but, frankly, we still have one-off announcements of resources with no proper plan. They are actually cutting the green homes grant from this year to next. For homes owned by private landlords, the targets are still too weak and too far off; and they hardly scratch the surface when it comes to social housing. All this is on top of the fact that it is still being paid for through bills. These are very difficult issues, but does the Secretary of State recognise that the only answer to meet the transition and fairness is a proper long-term, street-by-street, house-by-house plan? When will that be published?
That brings me to my final point: markets have a role in this transition, but the Government must have a guiding hand. Whether it is a plan to decarbonise our homes, the future of the network infrastructure or the planned energy mix, the Government must match their intentions by playing their proper role to deliver in a way that is fair, creates jobs and shows the requisite ambition. If the Government do that, we will support them; but, on the basis of today’s effort, they still have a long way to go.
I thank the right hon. Gentleman for his comments. Let me just say to him: we are all revolutionaries now. We believe in the green industrial revolution, as he does himself. I note the points that he has made, but I will tell him what some in the energy sector have been saying about the White Paper. The chief executive of Energy UK has said:
“Today’s White Paper reveals the scale and opportunity of the energy transition”.
The chief economist of the CBI has said:
“The Energy White Paper is an important next step in our plans to reach our net-zero emissions target…Business stands ready to deliver the investment and innovation needed to turn ambition into reality”.
The chief executive of RenewableUK said:
“Today’s white paper provides greater clarity to the companies investing across the UK to deliver our net zero emissions target.”
The acting chief executive of Citizens’ Advice said:
“There’s a lot to welcome in today’s announcement.”
I could go on. [Hon. Members: “Go on!”] No; I know that other colleagues want to ask questions.
This Government have shown a great deal of ambition when it comes to the green industrial revolution. The right hon. Gentleman has seen the road map that is being laid out. We have, of course, had the Prime Minister’s 10-point plan with the £12 billion investment, leveraging in three times as much from the private sector, creating and supporting 250,000 jobs by 2030; he has seen the nationally determined contribution that was published, which was universally welcomed; and he will now have seen that the energy White Paper has been published, building on the 10-point plan. He talked about the fact that this White Paper has now appeared. When I spoke about this last week with the Chair of the Select Committee and said that I would get it out by Christmas, he asked me, “Which Christmas?”. I was keen to point out that it was Christmas this year.
Let me address some of the points that the right hon. Gentleman has raised. First, he talked about the CCC, which has made a recommendation regarding the NDC of a reduction of at least 68%. We have adopted that recommendation, and that puts us on the pathway to net zero by 2050. The right hon. Gentleman also talked about tidal. He will know that we have had a call for evidence on that subject. There will be an opportunity through the contracts for difference auction process next year to bring forward projects in that area. On offshore wind, let me be clear that we are talking about the 60% UK supply chain. He will know that in the last few days we have launched the ports infrastructure competition, which will be an opportunity for ports to bid for Government funding. This will ultimately allow us to build products relating to offshore wind in the UK and to create jobs in our country.
The right hon. Gentleman talked about financing for nuclear. As I said, we are at the start of that process of discussions with EDF, the developer at Sizewell C. There is a whole range of financing models that we need to work our way through. On hydrogen, he will know that the Minister for Business, Energy and Clean Growth, my right hon. Friend the Member for Spelthorne (Kwasi Kwarteng), has been doing a brilliant job, working with the sector and academics. He leads the Hydrogen Council. I will be setting out our strategy at the start of next year and, of course, it is also about unlocking private sector investment.
The shadow Secretary of State talks about fairness for consumers. I am pleased that he welcomes that, and, as he will have seen, the acting chief executive of Citizens Advice has also welcomed the White Paper. In conclusion, of course we need to go further, but the Government are putting their best foot forward in delivering on a green industrial revolution.
(3 years, 9 months ago)
Commons ChamberMy hon. Friend is a great champion of manufacturers in his constituency. As he will know, the Government are committed to helping businesses to reduce their costs through resource and energy efficiency. We have established a package of compensation exemptions from electricity costs worth more than £470 million, which will of course benefit businesses in energy-intensive sectors such as ceramics, which is a particularly important industry for Stoke-on-Trent.
One obvious way to help our manufacturers is with a green stimulus equal to the scale of the economic emergency that we face. President-elect Biden has pledged $2 trillion for such a stimulus; the French and German Governments have pledged tens of billions of euros; and Britain has pledged just £5 billion. Will the Secretary of State tell us when this Government are going to show the same scale of ambition—not in 10 years’ time but now—to create hundreds of thousands of jobs in this country?
The right hon. Gentleman may have been reading the Conservative party manifesto, because we have been clear that we have an ambition to create 2 million green jobs by 2030 and have already set out some of the measures, including £2 billion in green homes grants to support 100,000 green jobs. The Prime Minister has also announced that we will be boosting the Government’s target for offshore wind by 2030 from 30 GW to 40 GW, thereby bringing additional jobs to the sector. We will set out more plans over the coming weeks.
I thank the Secretary of State for that answer, but the rhetoric does not match the reality. Look at what other countries, including France and Germany, are doing, and look at the scale of what we are doing. He mentions offshore wind; let us take that as an example. As he says, the Government want to see 40 GW of offshore wind by 2030, but to ensure that the jobs in manufacturing the turbines are created here, we need the ports and supply-chain investment. The amount that the Government have pledged—£160 million over 10 years—is woefully inadequate. What is the Secretary of State’s estimate of the public investment required to meet his own target that 60% of the content of the offshore wind industry should be British—a target he is missing badly? Will the Government now fund and support the scale of investment required?
We are making funding available to upgrade ports, as the right hon. Gentleman said. I hope he would acknowledge that, as a result of the Government’s work on contracts-for-difference auctions, we have the biggest offshore wind industry in the world, which has driven down prices significantly and made offshore wind viable. We will continue to work to support those jobs, and we are talking about tens of thousands of extra jobs in the sector by 2030.
(3 years, 11 months ago)
Commons ChamberMy hon. Friend and other Members are champions for the businesses in their constituencies. Airbus has been discussed with me and other ministerial colleagues. Of course, Airbus is a vital part of UK aerospace. We are currently providing the aerospace and aviation sector with over £8.5 billion of support through the covid corporate financing facility, R&D grants, loan guarantees and export support. We are in regular dialogue with Airbus, to see how we can assist it and its employees.
Over 1 million people are employed in sectors that are currently shut down, including weddings, events and nightclubs. The Chancellor last week refused to support them because he said they are not “viable”, but those businesses are shut because they are rightly following the Government’s public health guidance to help tackle the virus. As the person responsible for standing up for the businesses of this country, does the Business Secretary not think it is wrong, insulting and terrible for our long-term economic future as a country to write off as unviable these businesses and jobs that provide livelihoods for so many people in our country?
As the right hon. Gentleman knows, I talk to businesses every day, as he does, and I know it is very difficult for many of them right now. The job support scheme announced by the Chancellor provides targeted support for jobs and business facing lower demand over the coming months. He will also know that the measures have been welcomed by business groups and, indeed, trade unions. The TUC said:
“the Chancellor has listened and done the right thing.”
In addition to the JSS, there are other measures available to support all businesses across the country.
The Secretary of State did not answer my question about these businesses that are currently shut down and that are doing the right thing. Many of them have no income coming in, they are excluded from the JSS and they are already loaded up with debt, yet they have rent to pay and overheads to cover, and the Government are just leaving them out in the cold. I believe these were good, viable businesses before the pandemic. They were good enough for the Government to support them back in March, and we need them for our economy after the crisis is over. Will he stand up for these businesses that need help and give them the support they need to help at least survive the crisis?
Let me assure the right hon. Gentleman that this Department does stand up for businesses. We have a very regular dialogue with sectors on an ongoing basis. As I said, I acknowledge that some of them are facing particular difficulties. As he himself knows from his time in government, we are not going to be able to protect every single job—very, very sadly—but that is why we are providing extra support in the welfare system but also, really importantly, in support with skills and, indeed, apprenticeships and the kickstart scheme for young people, so that we can help people into better jobs.
(4 years, 1 month ago)
Commons ChamberMy hon. Friend highlights an important point. Throughout the covid-19 period, the Government have provided unprecedented support for employment and worked in close partnership with the business community. I understand that it continues to be a difficult time for many businesses, but as he highlights, in that spirit of partnership, we expect all employers to treat their employees fairly and follow the rules.
I want to return the Secretary of State to the question asked by the hon. Member for Penrith and The Border (Dr Hudson) about the many businesses that are part of the 3 million ExcludedUK group. They include over 2 million people who are essentially self-employed but have been disqualified from help under the self-employment scheme for various—often arbitrary—reasons. In many cases, this is not simply rough justice but deep unfairness. Many of these individuals are not high earners. Will the Secretary of State give an indication that he recognises that this is an injustice, and can he tell us how he plans to address it?
The right hon. Gentleman will also acknowledge that the Government have provided unprecedented support to businesses across the whole economy. As I said, the key right now is to support businesses to open, to get the economy up and running. That is the best way that we can support businesses across the United Kingdom.
This issue of 3 million people being excluded is not going away. Let me ask him about the winding down of the furlough scheme. Yesterday, Make UK, the manufacturers’ organisation, said that a furlough extension was vital to prevent a “jobs bloodbath” in aerospace and automotive. We see the looming threat too in sectors that have not yet reopened, such as events and exhibitions, and those operating well below capacity, such as hospitality. Yet from next week, the Government are insisting that every single employer, whatever their industry, will have to start contributing to the furlough. Does the Secretary of State not recognise that this decision to phase out the furlough, irrespective of circumstances, risks handing a P45 to hundreds of thousands of workers?
The furlough scheme will have been up and running for a full eight months, providing a huge amount of support for more than 9 million jobs. It is becoming more flexible and allowing people to return to work part time. The right hon. Gentleman will know that the Chancellor has also set out the job retention bonus which, if it is taken up by all employers, will represent a £9 billion boost for the economy. I say to him again that the key is to get the economy up and running and to get businesses trading.
(4 years, 1 month ago)
Commons ChamberI thank the Secretary of State for his statement. We support the principle of maintaining the UK’s internal market, which is vital for trade, jobs, and prosperity across the whole United Kingdom. The way the Government go about that has profound implications for whether we drive up standards across the UK, or drive them down, and for whether that issue becomes a source of tension across the four nations of the UK. We believe in our United Kingdom, and there is a big responsibility on the Government to seek to build consensus, and ensure that we do not drive a wedge between our nations or give an excuse to those who wish to do so.
By those standards, there are significant problems in the announcement. On the process, for example, the Welsh Government were promised a draft of this White Paper last March, yet when I talked to the Welsh First Minister yesterday afternoon, the Government had still not shared it with him. That approach does the Secretary of State and the Government no good. On the substance, we should be honest that there is a real challenge regarding how we maintain an internal market without barriers in the UK as we leave the European Union, while at the same time respecting devolution when issues such as food standards and labelling, animal welfare, and other important environmental issues are devolved.
For the past 40 years, including 20 years of devolution, that has been achieved by the EU setting minimum standards, which all four nations had to abide by. The crucial question is not whether we have an internal market, which we need, but how we now set minimum standards to ensure that each nation has a proper voice in doing so, and a means of resolving any disputes that arise. By answering those questions, we can do what we need to do, which is both keep the internal market and respect devolution. Unfortunately, despite the warm words from the Secretary of State, the approach of the White Paper as presented for England, Scotland and Wales appears to be simply to legislate that the lowest standard chosen by one Parliament must become the minimum standard for all.
The risk is that one legislature would be able to lower its food safety standards and animal welfare standards, and force the other nations, which would have no recourse, to accept goods and services produced on that basis— in other words, a race to the bottom. The Secretary of State talks about levelling up, but there is a real risk of levelling down. That is not in the interests of consumers, workers or businesses, and it does not adequately respect devolution. For Northern Ireland, if standards in the UK diverge significantly below those of the EU, there is a real risk that checks on food and other products going from Great Britain to Northern Ireland would increase in parallel.
The Secretary of State must, in the course of this consultation, provide better answers for how we avoid that race to the bottom, so let me ask him four specific questions. First, will he explain what is the mechanism, if any, by which the four nations of the UK will agree minimum standards that respect the voice of each nation? He mentions the common frameworks process and an ongoing process of dialogue, but he must realise that that is superseded by the White Paper, which simply states that the lowest standard among the nations wins. If the framework process is to prevent that danger, how will it be incorporated into legislation?
Secondly, there needs to be a means of resolving disputes that can command confidence. The White Paper states:
“The Government will consider tasking an independent, advisory body to report to the UK Parliament”.
That is far too weak. Surely the Secretary of State must recognise that any independent body, if it is to respect devolution, must be accountable to all four nations, with its functions agreed by all four nations.
Thirdly, the Secretary of State must understand that the anxiety caused by the White Paper is partly due to the gap between the Government’s warm words about raising standards—we heard them again today—and their deeds. They had a chance in the Agriculture Bill to agree that no trade deal would be signed that lowered animal welfare, environmental protection or food safety standards, through an amendment tabled by their own side, but they refused to do so. The spectre of a Trump trade deal that would drive down standards and be imposed on the whole of the UK hangs over this White Paper. For years they have denied that their real agenda is a bonfire of much-needed standards. Great, but if they do not plan to lower standards, why cannot the Secretary of State agree to legally binding commitments?
Fourthly, the state aid rules need to be in place in just five months’ time, but even after this White Paper we still do not know any details about how they will work. Will the Secretary of State tell us when we will get the Government’s plans?
I want to end by saying to the right hon. Gentleman that we absolutely need to maintain the internal market from 1 January, but it is time the Government showed—in deeds, not just in words—their commitment to levelling up, not levelling down. It is time, too, that they showed a desire to build constitutional consensus, rather than risking constitutional conflict, and the White Paper is not a good start. The Secretary of State and the Government must do better in the weeks and months ahead.
I thank the right hon. Gentleman for his comments and for his support for the principle of the UK internal market. I hope that that is something we will hear echoed across the House as we open up to questions. Let me address some of the points that he has raised. The first thing worth noting is that he talked about anxiety. The real issue at the moment is giving certainty to businesses, so that they know from day one that they are able to operate as they do now within a coherent, seamless internal market. That is what this White Paper proposal absolutely gives them. I have spoken, as I am sure he will have done, to business representatives and organisations over the last 24 hours, and they have told me that this is one big issue off the risk register of companies.
The right hon. Gentleman talked about standards. I would point out to him once again that the UK has some of the highest standards in the world across a whole range of areas. I have listed issues around maternity and paternity pay, around the exclusions and around zero-hour contracts. I say to him once again—I am sure that this issue will be raised by others as well—that we are not going to be compromising our high environmental standards, our high animal welfare standards or, indeed, our high food safety standards in the deals that we do.
The right hon. Gentleman then raised the issue about working together. He will know that the common frameworks programme has been running for some time, and we have had consultations and discussions around that. If colleagues in the devolved Administrations want to have a discussion about standards, that is absolutely the right forum in which to do it. He also mentioned the state aid rules. I know that he will understand the reason that we want to continue to have this as a reserved matter. We want to ensure that there is effectively equality across the whole of the UK and that there are no distortions. I understand his desire for us to set out the details on this, and that will come.
In conclusion, the White Paper gives certainty to businesses. It is about protecting jobs and livelihoods, and about supporting businesses in making their investment decisions. That is good for consumers as well. It is about underpinning our recovery from covid as we seek to work together. I say to all colleagues that this is about businesses and people, not about politicians, and I hope that that is the spirit in which we will conduct the rest of this debate.
(4 years, 2 months ago)
Commons ChamberMy right hon. Friend, I know, has been engaging with businesses through virtual networks across Warwickshire, and I thank him for the work that he is doing locally. What I would say to him is that, of course, we have ensured that loan schemes are available across the economy. Smaller businesses in hospitality, leisure and retail have been able to access a £25,000 grant. The key issue is to have a safe and phased reopening of the economy to get it going again, which is what we are currently undertaking.
I join you today, Mr Speaker, in both mourning and remembering Jo Cox.
I welcome much of the help that the Government have provided, but, according to Make UK, we could see the loss of 170,000 manufacturing jobs this year. In France, steel got loans within 10 days of applying for them, and aerospace is benefiting from billions of pounds of support, including for low-carbon engines. Here, three months after the crisis began, 60% of companies that have applied for large loans are still waiting and there has been no targeted help for our manufacturers. Will the Secretary of State tell us when specific help will actually materialise for sectors such as steel and aerospace?
I do welcome the constructive tone in which we have approached our exchanges over the past few weeks, but what I would just say to the right hon. Gentleman is that if he looks at the sum total of what this Government are providing, he will find that it is significant and incredibly favourable when compared with international comparators. On loans, as he knows, we have increased the coronavirus business interruption loan scheme to allow up to £200 million to be made available, and we will continue to support businesses. He will also know that in certain cases we do have individual discussions going on with businesses.
I urge the right hon. Gentleman to get a move on when it comes to those sectors, because they really need the help. I want to ask him additionally about sectors such as hospitality, tourism and the creative industries, which have just been raised. They will take longer to reopen and recover because of public health measures, and I want to ask him about the impact on them of the one-size-fits-all winding down of the furlough. Can he explain to thousands of pubs across the country how they are supposed to find an employer contribution for furloughed employees from August when they are struggling even to survive? Is not the risk of that approach, and we have seen the jobless figures this morning, that hundreds of thousands more workers will lose their jobs, and all of us will end up paying the costs in higher benefit bills and a weaker economy? Would it not be better to have a different approach for those at-risk sectors?
We have taken a whole-economy approach, as he knows, and I have set out the measures that we have put in place. With regard to the retail and hospitality sectors, we have provided specific support for them in the one-year rates holiday, as well as the additional support that is available, but the key issue here is the safe reopening of the economy, and that is what we want to continue with over the coming weeks.
(4 years, 3 months ago)
Commons ChamberThank you, Mr Deputy Speaker. May I thank the Secretary of State for his statement, and add my thanks to all the workers and businesses that have kept our country going during these past few weeks? I say to him that we do not underestimate the challenges of lifting lockdown in certain parts of the economy. We agree that it is in all our interests for it to happen if it can be done safely, and that there are difficult decisions confronting Government, businesses and workers, who have to adapt to these unprecedented circumstances. I also want to welcome a number of steps forward in the guidance published last night, which he has talked about in his statement. They do represent progress from previous proposals, and I also welcome the tone of his statement.
However, I also say to the Secretary of State that what really matters to workers and businesses in these highly sensitive and difficult matters is proceeding in an orderly and judicious way. The confusion and mixed messages of the past 48 hours have been ill-advised and avoidable. Let me ask him six specific questions. First, on the impact of the Government’s change of emphasis on going back to work in phase 1, Ministers say that the reproduction rate of the disease—the R number—is currently between 0.5 and 0.9. How many extra people does he expect to go back to work as a result of the Government’s change of emphasis? What is the scientific advice about the impact on the R number?
Secondly, we are being told that in our daily lives, outside our places of work, that we must not come within 2 metres of those from other households, for reasons I understand. I listened carefully to what the Secretary of State said, but for workplaces the overview document he has published asks for an observance of 2-metre distancing only “wherever possible”. If it is not possible, the only requirement is that employers should “look into” various mitigation measures. I understand that in some workplaces 2-metre distancing may not be possible, but can he explain why there is no requirement for mitigation if social distancing cannot be observed?
Thirdly, on enforcement, the challenge is, as the Secretary of State said, not the vast majority of employers, who want to do the right thing, but the small minority who do not. I welcome £14 million more for the HSE budget, but it is a drop in the ocean compared with the £100 million of cuts over the past decade. Given the challenges of enforcement, will he discuss with the trade unions how their tens of thousands of health and safety reps could player a bigger and, I believe, constructive role in ensuring covid-19 compliance, including in non-unionised work- places?
Fourthly, can the Business Secretary now provide an answer for parents who are being asked to go back to work tomorrow but are not deemed “essential” workers and therefore have nobody to look after their children, because they cannot send them to school or nursery? What are parents in those circumstances supposed to do?
Fifthly, can the Secretary of State clarify the position on the 2.5 million workers who are deemed clinically extremely vulnerable and are advised to shield at home until at least the end of June?
Currently, they have no automatic right to be furloughed and many have felt pressured to keep working. As workplaces reopen, the pressure will become greater. To protect their health and provide clarity, would it not make sense to place an obligation on employers to furlough these individuals if they cannot work from home?
The chief medical officer, Chris Whitty, said at the press conference last night that the reopening of workplaces was dependent on whether they can be made safe for work. Can the Secretary of State confirm that workplaces that are not safe should not reopen tomorrow and that, by law, workers who have a reasonable belief that they will be in danger do not have to be at work?
Finally, the Secretary of State will know that it is the highest paid workers who will generally carry on being able to work from home and lower paid workers who are being asked to go back to work. We also know from yesterday’s figures from the Office for National Statistics that, among men, construction workers have so far been more than twice as likely to die from covid-19 as the average member of the population. I know the Secretary of State will agree that working people are being asked to go back to work to help us all. Whatever the economic pressures, their health must be protected. They deserve to be safe. That is what the Government must take every action to ensure.
I thank the right hon. Gentleman for his comments. I also thank him for the very constructive discussions that we have had, particularly last Friday, on a range of issues. He wrote to me yesterday on the issue of safer working and I hope he has received my response. I also want to thank him for the acknowledgement that what we have put out represents progress. I think there is consensus across businesses and trade unions for what we have sought to provide.
The right hon. Gentleman raised a number of issues, which I will try to address. His first question was about the R number and the numbers of people potentially going back to work. We have been very clear that we want to ensure that people are safe in the workplace and, at the end of the day, that we are saving lives. That is why we produced the guidance, which has been put together with the HSE and Public Health England. We are also very clear that people who can work from home should continue to work from home.
The right hon. Gentleman talked about the fact that there was some confusion. The Prime Minister made reference to the manufacturing sector and the construction sector; those sectors are already open. Millions of people are already going to work and their employers are doing everything they can to keep them safe.
The right hon. Gentleman talked about how employees can feel safe in the workplace. We have had this discussion previously. We know for a fact that many employers are already open, and they are working incredibly constructively with their trade unions. When I held my stakeholder calls as part of preparing the guidance, that was abundantly clear.
He talked about enforcement. I am pleased that he welcomes the extra money for the HSE; we need to make sure that we provide support if it is needed. I want to be very clear that the HSE is able to do spot checks and to be proactive. We ultimately want to make sure that if employees feel unsafe in a work environment, they are able to get in touch with the HSE or with their local authority.
He asked about parents and made a very reasonable point about schools. The Prime Minister set out the timetable for that. Again, it is a question of employers and employees working flexibly together. That is already happening in the workplace. I would say to all employers that they should look to see what they can do to support their workers to continue to work from home if that is at all possible.
Finally, the right hon. Gentleman raised a point about reopening, whether it is safe to open workplaces, and what to do about workplaces that are not safe. He is absolutely right. People should not have to feel that they are going into an unsafe work environment; frankly, from my experience, that is not what employers want either. We absolutely need our workers to feel safe. If they feel unsafe, they can get in touch with the HSE and with local authorities. I would say to all employers to please do absolutely everything you can, because it is in all our interests that the economy gets going again.
(4 years, 4 months ago)
Commons ChamberThank you very much, Mr Speaker.
I can tell the Secretary of State that we are committed to working constructively with the Government on all issues, and we welcome the recent changes to the loans system. I have two specific questions about his draft guidelines on workplace safety. We share the desire for a return to work as soon as it is safe, but he will know that firms with more than five employees are obliged by law to carry out risk assessments on safety. First, does he plan to ensure the publication of these risk assessments to give confidence to workers? Secondly, on enforcement of safe working, the Health and Safety Executive is operating on substantially reduced resources. What will he do to ensure that the guidelines are enforced so that all workers can feel safe?
I also take this opportunity to welcome the right hon. Gentleman to his new role. We have already had two very constructive discussions. I hope that will be the tone of our future interactions. He raises an important point. We both want workers in our country to feel safe and confident that they are returning to a safe workplace. Work on the consultation is ongoing, and obviously I do not want to pre-empt it, but he makes some very important points, and of course he is always welcome to write to me. I will look at what he says very carefully.
I thank the Secretary of State for that answer, and I hope that he will come to the House to make a fuller statement on these matters at the earliest opportunity.
I want to ask about another aspect of the lifting of the lockdown, which is financial support for businesses and workers. Does he recognise that there will need to be a second phase of financial support for those businesses that will have to stay closed for longer, including an extension of the furlough scheme, with more flexibility for part-time working? Secondly, on the hospitality sector, which he knows is facing very challenging times, can I urge him to look favourably at the proposal, which has the support of over 80 of his own Back Benchers, to extend business support grants to businesses with rateable values of up to £150,000? It would make a difference to tens of thousands of pubs, restaurants and other businesses that are the lifeblood of our communities.
As the right hon. Gentleman knows, we have provided support for the hospitality, leisure and retail sector. There is a 100% rates holiday for all businesses in that sector, and we are also making £25,000 grants available to them. Under the grant scheme—the £25,000 and £10,000 grants—as of last Monday, £7.5 billion had been paid out. I hope he will welcome that. On the wider measures he talks about, we keep everything under review, and I will look at anything that comes forward.