Great British Energy Bill

Debate between Baroness Noakes and Lord Cryer

Committee stage
Tuesday 3rd December 2024 Lords Chamber

[Lord Cryer (Lab)]

I see the point the noble Lord is making, but that is a matter for the board. I have a certain degree of faith in the Secretary of State and we have an extremely competent chair with a well-proven track record. In due course, we will hopefully have a board with a similar track record. I do not think we will be dealing with the sort of people who fritter money away because they happen to fancy it. But that is a matter for the board of GBE.

[Baroness Noakes (Con)]

At the outset, the Minister said that Great British Energy was going to be capitalised at £8.3 billion. That formulation was used in the manifesto, the July statement, et cetera. He then seemed to imply that the amount of financial assistance given under Clause 4 was not within the £8.3 billion. Could he clarify whether it is or not?

[Lord Cryer (Lab)]

Yes, it is within the £8.3 billion.

[Baroness Noakes (Con)]

Perhaps I could take us on to another aspect of the £8.3 billion. Helpfully, the noble Lord confirmed in response to my noble friend Lord Offord’s Amendment 40 that financial assistance would be included in general government debt, so we expect to see the £8.3 billion in the measurement of debt. At Second Reading, I raised the issue that I could not see the £8.3 billion in the Budget Red Book and therefore within the forecasts produced by the OBR for government debt—one of the key items in the Chancellor’s fiscal rules. I failed to ask the Minister for direct confirmation of that at the time. I do so now: is the £8.3 billion included in the current OBR forecasts for government debt?

[Lord Cryer (Lab)]

As far as I know, the answer to that question is yes. That is to the best of my knowledge. If it is not, I will have to write to the noble Baroness.

[Baroness Noakes (Con)]

I would be very grateful if the noble Lord would write, because it is very difficult to see the £8.3 billion. The £125 million for 2025-26 is visible in DESNZ’s departmental numbers, but it is not clear that anything else is. If the Minister is right, there is no problem. If he is wrong, it looks like another potential black hole in the nation’s finances—one wholly of this Government’s making. So it is important that we sort this out.