Climate Change

Debate between Wera Hobhouse and Caroline Nokes

Thursday 19th March 2026 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

The UK has a lot to be proud of in our record on climate change, such as halving our greenhouse gas emissions since 1990, being the first EU nation to phase out coal, and massively scaling up renewable energy. It is no coincidence that many of these accomplishments came against a background of cross-party consensus on the need to reach net zero.

The parties used to compete to have the most ambitious environmental programme, but since the last election the Conservatives have abandoned our ambitious climate commitments. Instead, they have kowtowed to the politics of fear, and seized on net zero in a culture war of trying to out-Reform Reform—and where are the Reform Members? Even while still in government, the Conservatives squandered some of the huge economic, social and environmental opportunities of net zero, and now they are falling even further behind the curve. Their recent decision to call for the Climate Change Act to be scrapped would critically endanger future generations, who deserve a safer planet, energy security and a stronger economy. The Climate Change Committee frequently warned that the last Government were not moving fast enough. Let us not forget that they were defeated twice in the High Court due to their inadequate climate plans.

We Liberal Democrats recognise the urgent need to go further and faster on climate change. This generation should be the first to leave the country and the world in a better condition than we found them in. We also recognise the huge opportunities that new renewable energy brings to support skilled jobs and economic growth. Previous failure to invest sufficiently in renewable energy and insulate our homes has led directly to the energy crisis, pushing up energy bills for everyone and squeezing family finances. The situation in Iran has laid bare the state of UK energy security as prices have shot up because we are so reliant on oil and gas. Home-grown, renewable energy does not have to pass through the strait of Hormuz, and its price is not set on the rollercoaster of international markets.

Conservative and Reform Members have their heads in the sand in adopting anti-renewable, anti-environmental policies that would leave us vulnerable to more energy crises in the future. The Climate Change Committee has found that the cost of net zero by 2050 is less than the impact of one fuel crisis. Conservative and Reform Members would have us believe that we cannot afford net zero. In reality, the truth is that we cannot afford not to get to net zero.

We cannot escape the fact that our electricity prices are among the highest in Europe, but that is not inevitable; it is the result of a pricing imbalance. Right now, the cost of electricity is set by the price of gas 97% of the time, even though half of our electricity comes from renewables, which are much cheaper. That disconnect is driving up bills unnecessarily, and we must break that link. We Liberal Democrats propose the practical solution of moving older renewable projects off expensive renewable obligation certificates and on to cheaper contracts for difference. The UK Energy Research Centre estimates that that change alone would save a typical household about £200 a year.

At the same time, the Energy Security and Net Zero Committee’s inquiry into the cost of energy has uncovered serious concerns about transparency. We have heard evidence that profits can be obscured within network charges on energy bills. Energy companies must be transparent, so consumers can clearly see what they are paying for and where profits are being made. Our constituents deserve energy bills to be fair, affordable and easy to understand.

In Bath, the majority of my constituents are firmly behind climate action, and so is my Liberal Democrat council. I was delighted to hold a pop-up surgery at Bath climate hub last week. The hub supports people to reduce their carbon footprint through diet, energy use or transportation changes. It also facilitates the meaningful conversation that we must keep having on climate issues. From action to rewild nature-depleted land to community owned energy initiatives, local areas in Bath are making changes that together make a big difference.

In Bath, like the rest of the country, retrofitting our homes through a national insulation programme is crucial to lowering carbon emissions and reducing bills. The Government’s warm homes plan unfortunately falls short of the scale, ambition and long-term certainty we need. An emergency home upgrade programme should have been implemented in the first 100 days of this Government. We Liberal Democrats would upgrade our homes, making them cheaper to heat with a 10-year emergency home upgrade programme, starting with free insulation for those on low incomes and ensuring that all new homes are zero-carbon. We would also provide further incentives for installing heat pumps that cover the real cost. That would reduce emissions and bills, combating both climate change and fuel poverty.

Climate change is, after all, a global issue. We must bring others with us. The UK and European partners must lead the global effort to tackle climate change together, even more so given that the US has abandoned the multilateral approach to international climate policy. One choice the Government could take immediately to help global efforts towards net zero would be to reverse the cut to the aid budget and set out a road map for restoring official development assistance to 0.7% of gross national income. UK aid provides vital support for the most vulnerable people in the world and is a key tool in meeting our climate commitments.

We Liberal Democrats have also pushed for a long time for stronger marine environmental targets, both internationally and domestically. We welcome the Government’s decision to ratify the global oceans treaty through legislation. However, much more needs to be done to work with our coastal and fishing communities to ensure a sustainable future for fishing and our marine environment.

Public support for climate action remains strong across the UK, but we cannot take it for granted. We must continue to bring the public with us throughout the energy transition. A part of that is ensuring that misinformation and disinformation is effectively challenged. That means tackling myths about renewable energy head-on, and making sure that households right across the country actually feel the benefits through lower bills, warmer homes and secure jobs in their communities.

The Conservatives and Reform are all too often happy to talk down Britain’s renewable industries. They would have us scraping the bottom of the North sea oil barrel. In doing so, they overlook the remarkable innovation happening right here in the UK: home-grown green technology companies driving growth, creating skilled jobs and shaping a more sustainable future. Even if more oil was extracted from the North sea, it would be sold on the international market at international prices. That would not lower energy bills. The Conservatives know that, so it is particularly callous to ask for something that would leave our constituents less safe and secure economically.

Our constituents want to tackle climate change. They want lower fuel bills. They want their wildlife and landscapes to be protected. They want a strong economy that supports British jobs. That is what the energy transition must give them. We Liberal Democrats will keep making the case for the urgent transition away from fossil fuels.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Minister.

Transport

Debate between Wera Hobhouse and Caroline Nokes

Monday 9th September 2024 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

I sense that there is a great deal of consensus across the House on this statutory instrument. There is consensus that the aviation sector is one of the hardest to decarbonise, and probably also that the new technology that is being proposed—SAF, in its different iterations—needs a great deal of technological knowledge. However, the principle of taking the first steps towards creating the SAF mandate—of the requirement for SAF to meet 2% of total jet fuel demand from 1 January, and of increasing that on a linear basis, to 10% by 2030 and to 22% by 2040—has no opposition, and we will absolutely support the Government in that effort.

Virgin Atlantic has already demonstrated that a plane can fly across the Atlantic on 100% SAF, but that was just one flight, and there are hundreds of flights every day. That is the challenge. I congratulate Virgin Atlantic on this groundbreaking achievement but we really need to see how industry, the Government and indeed everybody who is developing new technologies can produce sustainable aircraft fuels at the scale that is needed. This needs a great deal of investment.

We know that biofuels are not a long-term solution, as they compete with food production. SAF from waste, the next generation of SAF, is not a long-term solution either. It is obviously part of the solution, but as the shadow Minister has pointed out, the real challenge is to get to the third generation SAFs—that is, synthetic fuels. We need to develop them as soon as possible, and they need a great deal of electricity. Whatever we say about this, direct air capture needs a great deal of electricity. Producing hydrogen in a sustainable way—that is, getting to green hydrogen—will also need a great deal of electricity. The crunch in all this is: where is all that renewable energy coming from, unless we are ultimately overproducing renewable energy? I believe that GB Energy will have a big say in this and will be crucial in developing all the renewable energy that will ultimately help us to decarbonise the aviation sector. This is really the challenge.

While I welcome the kick-start of a journey to net zero in aviation, the 10% to 22% mandate between 2030 and 2040 is a concern for the Liberal Democrats. We want to get to net zero by 2045, but having planes still running on 78% fossil fuels is just not good enough. The UK has the third largest aviation network in the world and the second largest aerospace manufacturing sector. Almost 1 million UK jobs are directly or indirectly supported by the aviation sector. The future of the aviation industry with SAF is obviously a wonderful opportunity and challenge. Making the right choices on SAF will ensure that the UK can continue to be a global leader, and I think that we are as one across the House in wanting this to happen in order to make the UK the global leader in this area.

It is only right that we take these steps, which support decarbonisation and also create the jobs that we need in the future. What is important is that the Government collaborate with the aviation fuel suppliers to ensure that this initiative really succeeds. I would like to hear a little more detail from the Minister about how the Government will work alongside suppliers to make this a long-term success.

As I have said, we welcome this, but there are other examples of what we can do in the meantime to decarbonise the sector. For example, we could ban short-haul domestic flights on journeys that can be done by rail in less than 2.5 hours. Such a ban already exists in France, so it would be good if the Government at least looked at this. The cost of flying must be linked to the environmental cost. It is ridiculous that I can, at least on some journeys, fly 100 miles to a European city for less than it costs me to go by train from Bath to London. The Liberal Democrats would focus on those who fly the most to reduce the unfair burden on households who fly only once or twice a year. Plus, we would impose a new super-tax on private jet flights and remove VAT exemptions for private, first-class and business-class flights.

To conclude, while we welcome today’s introduction of the SAF mandate on 1 January, I urge the Government to review the targets set from 2030 to 2040 and to be more ambitious than what they are proposing today, so that by 2040 a much higher percentage of aviation fuel comes from sustainable aircraft fuel than the 22% that is currently proposed.

[Madam Deputy Speaker (Caroline Nokes)]

I call Steve Race to make his maiden speech.

Contracts for Difference

Debate between Wera Hobhouse and Caroline Nokes

Tuesday 3rd September 2024 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Wera Hobhouse (Bath) (LD)]

We Liberal Democrats very much welcome the results of this round. It is a significant improvement on last year, when the previous Conservative Government completely failed, with zero bids from the onshore wind developers.

The results show that the CfD programme is back on track. They demonstrate the power of industry and Government working together to identify a fixed problem, so that we can widen the level of private sector investment we bring in, which is required for a clean power system transition.

Britain’s unique geography, with its abundance of natural resources, is an asset. We must harness the wind and the world’s largest tides. It is hugely encouraging that a record-breaking amount of solar capacity has been procured. Whatever the Conservatives are saying now about their record in government, solar targets were repeatedly missed, and this round is a welcome change. Unlike the Conservative Government, who, as has been pointed out, left us at the whim of the global oil and gas market, this Government are making choices that will increase our energy independence and lower energy bills for our consumers.

Future allocation rounds, especially in the next few years, must continue to deliver increasing quantities of renewables. That can be achieved by setting ambitious budgets and bringing forward incremental reforms of the CfD regime. Can the Secretary of State assure me that this round is not just a one-off and that we will increase the pace of the CfD allocation rounds?

Passenger Railway Services (Public Ownership) Bill

Debate between Wera Hobhouse and Caroline Nokes

2nd reading
Monday 29th July 2024 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

Thank you for calling me to speak, Madam Deputy Speaker. I do not think that I have yet had the opportunity to express my pleasure in seeing you in your new role. May I also congratulate the right hon. Lady on securing her new role as Secretary of State?

Our railways are in dire need of improvement. Under the last Conservative Government, passengers were repeatedly failed. Services are poor and the ticketing system is in shambles. All the while the public keep paying more and more, year on year. Rail fares in the UK are already some of the highest in Europe and are set to rise again. I am sure that all Members of this House have heard about, or experienced, cancellations, delays and a ticketing system not fit for purpose. People are crying out for a functioning rail network that they can rely on.

Too often, my Bath constituents would rather travel by train, but take the car instead because a train ticket is far too expensive. If we are serious about meeting our net zero target and reducing emissions, rail must be not just a green option, but an affordable one. Since privatisation, passenger journeys have more than doubled to 1.71 billion per year. However, satisfaction is at its lowest level in over 10 years. We agree with the Government that competition is not working as intended. Fewer and fewer companies are bidding for new franchises as the costs have ballooned. Meanwhile, Government subsidies have increased and intervention is desperately needed.

The UK needs a world-class rail network to support growth and reach net zero. For too many years, it has been held back by under-investment and lack of ambition, particularly in the north and south-west. However, may I ask what will happen to investment after nationalisation, when Great British Rail will have to compete for funding with the NHS and schools? I am sure this Government will agree with us that they must guarantee that funding for a nationalised rail network will not come at the expense of other public services.

We Liberal Democrats want the fairest deal for passengers. Anything that brings down fares is welcome and I look forward to the Government setting out how services will improve when in public hands. Nationalisation is an interesting idea, but Liberal Democrats want an approach that benefits passengers right away. We would freeze fares immediately and then get on with reforms to the broken system. Passengers might not be that interested in who is running the trains, but they are interested in whether they are running on time and at a fair price.

There is inconsistency within the proposed policy: just as private companies do now, Great British Rail will continue to lease rolling stock. Rolling stock leasing companies benefit from a monopoly out of the 1994 privatisation and make excess profits. One quarter of operators’ costs go to those companies and I hope the Government will urgently look into that.

The Liberal Democrat approach is pragmatic. We will scrutinise the legislation according to what is best for passengers. We want one nationwide body with proper powers to put investment in the right place and hold train companies to account. Our proposal is for a railway agency to act as a guiding mind for the railways, putting commuters first, holding train companies to account and bringing in wholesale reform of the broken fare system.

It is currently unclear what the financial impact of nationalisation will be. There are potential savings due to management and performance fees no longer being payable. However, subsidies might increase after nationalisation. Private operators are already subsidised to run unprofitable services, and public sector companies would similarly need financial support, which might increase over time. We are putting down these concerns to make sure that we are properly holding the Government to account on their proposals. Can the Government really ensure that funding will be adequate without fares increasing further?

There is no reason for nationalising companies purely based on their contract expiry date; the Government should start by focusing attention on operators that are demonstrably failing passengers. GBR could then focus on turning those services around to deliver tangible improvement for the public. The Government should at least look at that, and operators that are performing well should be deprioritised. That would be better for travellers and reduce the cost to taxpayers.

There are other questions that we need clarity on. When the contract is up, will train operating companies go straight to Great British Rail or to the operator of last resort? If it is to the operator of last resort, what incentives will there be for operators to grow rail revenues, which are still at 70% of pre-pandemic levels? A larger OLR team will be necessary to manage the increased number of rail journeys while GBR is being set up. The explanatory notes to the Bill do not consider that increased cost.

All that must be part of a wider, long-term rail strategy. Instead of fixating on the issue of ownership, our railways need a rapid and significant change to put passengers first with a focus on the quality of service. We are interested in looking at what benefits nationalisation will bring, but we urge the Government to be pragmatic.

[Madam Deputy Speaker (Caroline Nokes)]

I call Josh Dean to make his maiden speech.