UK Energy Costs

Debate between Keir Starmer and Andrea Leadsom

Thursday 8th September 2022 Commons Chamber

[Keir Starmer]

I will make some progress: I have taken a lot of interventions.

Let me turn to home insulation, which reduces energy consumption like nothing else. We have the draughtiest homes in Europe. The last Labour Government set about fixing that. Then the Conservative party said, “cut the green crap”, and the whole project all but collapsed. Installation rates fell by 92%—utterly short-sighted, and costing millions of households £1,000 a year on their energy bills right now.

The Prime Minister is right to recognise that immediate support needs to be combined with longer term action. Fracking and a dash for gas in the North sea will not cut bills, nor strengthen our energy security, but they will drive a coach and horses through our efforts to fight the looming climate crisis. The Prime Minister should listen to her Chancellor, who is sitting next to her. What did he have to say on fracking just a few months ago? I see him leaning forward. This is a long quote, and I have tried to cut it down, but every sentence is worth repeating.

“Those calling for its return misunderstand the situation we find ourselves in…if we lifted the fracking moratorium, it would take up to a decade to extract sufficient volumes—and it would come at a high cost for communities and our precious countryside.”

Those are his words. I will go on, because this is so good. He said, just a few months ago:

“Second, no amount of shale gas from hundreds of wells dotted across rural England would be enough to lower the European price any time soon.”

He went on:

“And with the best will in the world, private companies are not going to sell the shale gas they produce to UK consumers below the market price. They are not charities”.

Spot on, Chancellor.

What did the Chancellor have to say about North sea gas at the same time? He said that,

“additional North Sea production won’t materially affect the wholesale price”.

Indeed, earlier this year his previous Department helpfully put out a series of Government myth-busting documents. Here is one of them—Chancellor, your document:

“MYTH: Extracting more North Sea gas lowers prices.”

Answer:

“FACT: UK production isn’t large enough to materially impact the global price of gas”.

I have a copy for the Prime Minister.

We do need to carefully manage our existing resources in the North sea, and the industry has an important role to play in our future as we transition to a different form of energy, but doubling down on fossil fuels is a ludicrous answer to a fossil fuel crisis. If all countries took the approach advocated by the Prime Minister’s new Energy Secretary of squeezing “every last drop” out of their fossil fuel reserves, global temperatures would rise by a catastrophic 3°. That would be devastating for our planet and for future generations, and it is totally unnecessary.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

rose—

[Keir Starmer]

I am going to make some progress, because other speakers need to get in.

New wind and solar power are now nine times cheaper—nine times cheaper! We need a clean energy sprint, urgently accelerating the rollout of offshore wind, onshore wind, solar, nuclear, hydrogen, and tidal. Last year, I set out a new national mission to insulate 19 million homes and cut bills for good. If the Government had taken me up on that challenge, 2 million homes would already be insulated by this winter.

Britain needs a fresh start. We need a Government who will never leave working people to pick up the tab for excess profits in the energy industry. We need a Government who plan for the long term rather than leaving us badly exposed to the whims of dictators, and we need a Government who will drive us forward to energy independence rather than doubling down on fossil fuels. The change we need is not the fourth Tory Prime Minister in six years; it is a Labour Government.

International Aid: Treasury Update

Debate between Keir Starmer and Andrea Leadsom

Programme motion
Tuesday 13th July 2021 Commons Chamber

[Keir Starmer]

Yes and yes. It was not ambivalent in the manifestos and it was not conditional; it was clear.

On the first part of the argument—the national interest—British aid saves lives, it builds a more secure world, and it promotes democracy and British soft power. For the last 20 years, that has been the political consensus across this House. Tony Blair and Gordon Brown first set the goal of the UK reaching the 0.7% target—[Interruption.] I am making a speech to the House and for the House. David Cameron and the right hon. Member for Maidenhead made it a reality, and we acknowledge that in the right way. It has been supported—[Interruption.] The chuntering is all very well, but this has been a cross-party position for 20 years, and successive Prime Ministers have kept to the commitment. Every other living Prime Minister thinks this is wrong; there is only one Prime Minister who is prepared to do this, and he is sitting there, on the Front Bench. I acknowledge what those on the Benches opposite did in relation to this—the previous Prime Minister is sitting opposite. I am openly acknowledging that, and it has been supported by all parties, and rightly so. As the sixth richest country in the world, Britain has a moral obligation to help the world’s poorest, and our aid budget has done that with fantastic results.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

Will the right hon. and learned Gentleman give way?

[Keir Starmer]

I will in a moment.

This has been providing education for women and girls; fighting poverty; providing sanitation, healthcare and vaccines; building resilience and infrastructure; and doing incredible post-conflict and reconstruction work, where I think Britain does a better job than anyone else, so it has real results. Let us be clear what these cuts would mean: 1 million girls losing out on schooling; nearly 3 million women and children going without life-saving nutrition; 5.6 million children left unvaccinated; an estimated 100,000 deaths worldwide. [Interruption] The Prime Minister says “Rubbish”; that is the human toll of the choices the Government are making, and it is not rubbish.

--- Later in debate ---

[Keir Starmer]

I am aware of that, and it exposes the false economy argument in the Prime Minister’s case.

This cut will also reduce UK influence just when it is needed most, and of course it risks leaving a vacuum that other countries—China and Russia, for example—will fill. At a time when Britain will host COP26 and has hosted the G7 we should be using every means at our disposal to create a fairer and safer world, but we are the only G7 country that is cutting our aid budget—the only G7 country. That is not the vision of global Britain that those of us on the Labour Benches want to see, and I do not think it is the vision of global Britain that many on the Benches opposite want to see either.

[Dame Andrea Leadsom]

All of us in this House long to see our aid commitments re-established at 0.7% of national income, but the Leader of the Opposition will nevertheless appreciate that we continue to be one of the most generous foreign aid donors. He is making a good point about the 0.7%, but can he explain why, in all the Labour years of Labour Government, they averaged 0.36% of national income on overseas aid?

[Keir Starmer]

They doubled it, actually.

Let me turn to my second point, which has already been debated: the economic argument behind the Government’s position. The Prime Minister and Chancellor say that these cuts are unavoidable because of the pandemic and the economic consequences we now find ourselves in, but the whole point of the 0.7% target is that it is relative to the UK’s economic success or challenges: it rises when we grow and falls when we experience economic shock like the pandemic. Nobody in this House is arguing for overseas aid to be maintained at the pre-pandemic level during the downturn in strict terms. We all recognise that a contracting economy means a relative contraction in our aid budget, but the Chancellor and Prime Minister are asking the House to agree to go beyond that, to impose a new target of 0.5% and to create entirely new criteria for ever returning to 0.7%. In effect, the Chancellor is proposing a double lock against reverting to 0.7%. The written ministerial statement makes it clear that Britain will go back to 0.7% only when public debt is falling as a percentage of GDP and there is a “current budget surplus”.