Net Zero

Baroness Scott of Needham Market Excerpts

Thursday 26th January 2023 Lords Chamber

[Baroness Scott of Needham Market (LD)]

My Lords, I too thank the noble Baroness, Lady Hayman, for securing today’s debate so soon after the publication of this excellent report. In his report, Skidmore says that

“there must be more place-based, locally led action on net zero. Our local areas and communities want to act on net zero, but too often government gets in the way. The Government must provide central leadership on net zero, but it must also empower people and places to deliver.”

I could not agree more. At this point, I should declare an interest as President of the National Association of Local Councils, the representative body for town and parish councils. They cover everything from the tiny parish in which I live, with a precept of a few thousand pounds. to some of our largest towns with budgets of many millions.

So, as the first tier of local government, they should not be overlooked in the delivery of net zero. Many are already providing place-based, locally led action. Many have put climate change on their agenda and are actively looking for ways in which they and their communities can play their part in delivering net zero. If time permitted, I would share with the House some of the many case studies of strong local leadership and practical projects, such as tree planting, recycling schemes, car charging points and much more.

With their clear place-based remit, they are uniquely positioned not just to act themselves but also to act as a catalyst for community and faith groups, local businesses and local government at other levels. Crucially, they can ensure that action is not just concentrated in large urban centres, and that even rural parishes can play their part. So, when the Government come to consider recommendation 20 on the establishment of trailblazer net-zero communities, I do hope that at least some of them will be led by ambitious town and parish councils with a proven track record. But they could do more. These councils need to be empowered by extending the general power of competence, and by the removal of administrative barriers.

Government funding streams are, frankly, a mess. Across government, there are too many funding streams that are too complex, too expensive to administer and deliver and often incoherent. That is not just my view but that of the NAO. Indeed, the Climate Change Committee has made many of the same points on this agenda. Local authorities now find that they cannot bid because they simply cannot afford to. The Government should undertake a massive simplification, particularly with regard to net-zero funding, and ensure that, this time, town and parish councils are entitled to bid and play their part, because they are often denied access.

I would add the Levelling-up and Regeneration Bill to the list of Bills that have already been mentioned. There is an opportunity to do some of this quite quickly, since what I have said reflects not just what Skidmore said but what all the organisations that gave evidence to him said. Parish and town councils are leading the neighbourhood planning revolution, and they will be vital to the next stage of delivering net-zero neighbourhood plans with their communities and their buy-in. However, that Bill offers some challenges to the neighbourhood plan process, and we will explore that as it progresses. Can the Minister assure us that the levelling-up Bill will be assessed against Skidmore’s report to make sure that it is not actively working against it?

Polling shows that there is a great public appetite to do more, but people are unsure about how best to contribute. It all feels somehow remote and too big for them as individuals to make a difference, but local action can bridge that gap by involving people and communities and making a real contribution to net zero.

Cost of Living

Baroness Scott of Needham Market Excerpts

Thursday 3rd February 2022 Grand Committee

[Baroness Scott of Needham Market (LD)]

I, too, thank the noble Lord, Lord Whitty, for securing today’s debate. It is easy to say that it is timely: it has almost been too timely, as announcements have been coming thick and fast and we have all been hastily rewriting. The announcements about the energy price cap and the Chancellor’s response have meant that we are focusing largely on energy, but we are all aware that the general cost of living crisis is the context in which this debate sits. I particularly note the Bank of England’s prediction today that inflation will reach 7%; it has been some time since we have seen that.

As the noble Lord, Lord Whitty, said, both medium and long-term issues come into play here. I want to use most of my time to speak about a longer-term issue—energy efficiency. Research by Carbon Brief has shown that a series of cuts to energy efficiency measures has meant that today’s bills are around £2.5 billion higher than they might otherwise have been. The number of homes getting their lofts insulated fell by 92%, and cavity wall insulation fitting dropped by 74% when the grants were cut. A year before it was due to be introduced, the zero-carbon homes standard was scrapped. As a result, around 1 million new homes have been built since then with lower energy efficiency standards, meaning higher energy bills for occupants and owners facing expensive retrofitting.

The decisions to scrap those schemes were made because gas prices were high and energy bills growing. However, the decisions were short-sighted and there is a lesson for us to learn now because the answer to high gas prices is not more gas, as the evidence clearly shows; it is to double down on renewable energy sources and home efficiency improvements. If we do not act now, the peaks and troughs of fossil fuel prices will continue and we will be in this position over and over again.

State intervention is needed to deal with the problem of an inherently energy-inefficient housing stock in this country. I shall explain why. By their nature, many energy efficiency measures require up-front cash and often take some years to pay back. For those in the private rented sector, neither landlords nor tenants have any incentive to invest in those measures, even assuming that they can afford it. In the social rented sector, a lot of good work is done by local authorities and housing associations to reduce energy costs for their tenants, who quite often lack their own financial resources. But those bodies are themselves increasingly strapped for cash and unable to finance the energy efficiency measures that they know are required.

However, the majority of us are owner-occupiers. In a country with high levels of home ownership and a flexible job market, houses are no longer seen as places where people live for a long time. Houses are not just homes nowadays; they are property and often the main or only financial asset. Putting scarce cash resources into measures that take years to pay back and do not really add to the value of the house does not look like an attractive option for many people. Take the example of a heat pump, which can cost between £6,000 and £8,000. If we are to improve the energy efficiency of our national housing stock, government intervention is required. I remind the Committee that around 22% of UK carbon emissions comes from domestic energy consumption, so there is a significant contribution to net zero to be made.

As other noble Lords have said, Shell announced today that it made £17 billion profit in the past year. I agree with all those who said that it is beyond time that we thought about—indeed, introduced—a windfall tax. Like the noble Baroness, Lady McIntosh, I pondered on the extra VAT that has accrued to the Treasury, which ought to be available to help people. The cost-of-living increases and today’s announcements on energy will hit everyone but the impact on the poorest is absolutely devastating. The Chancellor’s package is not sufficiently aimed at helping them. The council tax rebate is an untargeted, blunt instrument. A scheme that helps people this year but has to be paid back in future years is just a gamble on gas prices falling. If they do not, at best the pain is postponed but it could get considerably worse.

It seems to me that by far the easiest way to target help to the poorest would be to reintroduce the £20 a week universal credit uplift. There is a strong case for having a look at the grant situation. I am sure that other noble Lords received a briefing from Marie Curie, which set out the difficulty that terminally ill people are having in receiving grants. That is a desperate situation; you do not get more vulnerable than people who are dying at home and are cold because they cannot access things—so we need to look at that.

A coalition of 27 charities has written to the Government urging them to respond to the energy crisis with measures that create a green, fair and affordable energy system, and I am afraid that the Chancellor’s response does not do any of that today. It does not help the worst off and does not provide any means of longer-term security through energy efficiency.

Domestic Energy Efficiency: Retrofitting

Baroness Scott of Needham Market Excerpts

Monday 1st March 2021 Lords Chamber

[Lord Callanan (Con)]

I am not sure that the noble Baroness’s figures are correct, but I will write to her with the correct information. The scheme is not failing low-income families. We have maximum grants of £10,000 available, many of which are being taken up by low-income families. We have issued thousands of vouchers to installers to retrofit works in low-income families’ homes.

[Baroness Scott of Needham Market (LD) [V]]

What consideration are the Government giving to reducing or eliminating VAT on energy-efficient products and services, as recommended by the Environmental Audit Committee? I was always told that EU membership prevented the Government doing that, so what is to stop them now?

[Lord Callanan (Con)]

The noble Baroness is tempting me down the same path as the noble Lord, Lord Mann, of trying to predict what the Chancellor might announce in his Budget. She will need a little patience.

Maritime Industry

Baroness Scott of Needham Market Excerpts

Thursday 17th September 2020 Lords Chamber

[Lord Callanan (Con)]

I know the noble Lord takes a close interest in developments on the Isles of Scilly; I have dealt with him in my previous jobs on similar matters. However, as I am sure he is aware, I cannot give specific spending commitments at this stage.

[Baroness Scott of Needham Market (LD) [V]]

My Lords, decarbonising the maritime sector is going to require concerted effort on a global scale. Can the Minister say what position the UK is taking within the IMO with regard to incentives for the sector to decarbonise and, in particular, a proposal to introduce a small tax on bunker fuel—which is currently untaxed—which could be used to build a fund to carry out more R&D into decarbonisation?

[Lord Callanan (Con)]

I know that, as one of the leading shipping nations, we are working closely with a number of other nations in the IMO to bring about a reduction in emissions from the maritime sector. I am not aware of our precise position on the matters that the noble Baroness mentions, so I will write to her on that.