Great British Energy Bill

Debate between Baroness Noakes and Lord Offord of Garvel

Committee stage
Tuesday 3rd December 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

My Lords, I rise to speak in support of amendments tabled to Clause 4 of the Great British Energy Bill, particularly those in my name and the name of my noble friend Lady Noakes. These amendments are crucial as they aim to provide clarity, ensure accountability and protect the taxpayer in what is undoubtedly an ambitious and complex policy area.

Let me first address the central issue that these amendments seek to probe: the nature and scope of the financial assistance the Secretary of State can provide to Great British Energy. We all agree that our energy future is crucial, both for achieving net zero and for ensuring security of supply in an increasingly uncertain world. However, noble intentions must be underpinned by rigorous safeguards, and the current wording of Clause 4 leaves far too much ambiguity.

Amendments 35, 37 and 38 in my name are designed to question the breadth of the financial powers the Bill affords the Secretary of State. It is entirely appropriate to scrutinise these provisions. The taxpayers of this country, who have faced significant financial pressures in recent years, deserve reassurance that the Government are deploying their public funds prudently. The inclusion of vague terms such as the ability to provide assistance by way of guarantees, indemnities and other financial assistance could allow for open-ended commitments.

These are not theoretical concerns. History is replete with examples of well-meaning initiatives that spiralled into financial mismanagement. By narrowing or better defining these provisions, we can ensure that GBE operates within a framework that prioritises efficiency, accountability and value for money.

I turn to Amendment 36 in the name of my noble friend Lady Noakes. This amendment questions the inclusion of specific provisions under subsections (2)(b) to (2)(d). These allow for financial support in connection with acquisitions, liabilities or the provision of assets. While there may well be situations in which such support is necessary, we must ask what checks and balances will be in place and what mechanisms will ensure that public money is not used to underwrite reckless decision-making or speculative ventures.

These amendments are not designed to obstruct the creation of Great British Energy or its objectives; rather, they are about ensuring that its financial underpinnings are solid, transparent and accountable. British principles dictate that the Government must always act as a careful steward of public funds, balancing ambition with fiscal prudence. It is also worth noting that robust safeguards will strengthen the Bill. Clear financial rules do not hamper innovation; they foster confidence for investors, for industry and for the British people.

In conclusion, I urge the Government to take seriously the concerns raised by these amendments. By supporting them, we send a clear message that while we are committed to achieving our energy goals, we will not do so at the expense of fiscal responsibility. The energy transition must be sustainable, in not only environmental terms but economic ones. I beg to move.

[Baroness Noakes (Con)]

My Lords, in this group I have Amendment 36, which partially overlaps Amendment 37 from my noble friend Lord Offord of Garvel. My noble friend asked some general questions about the financial assistance clause. My Amendment 36 is somewhat narrower: it is trying to find out exactly how paragraphs (b) to (d) actually work.

I understand how paragraph (a) works: the Secretary of State gives money to Great British Energy, or possibly lends it money, or guarantees or indemnifies something that Great British Energy does. However, when we get to paragraph (b), somehow the financial assistance is provided by the Secretary of State acquiring shares or securities, but Great British Energy does not appear to be involved at all in that transaction.