North Sea Oil and Gas Producers: Investment Allowances

Alan Brown Excerpts

Monday 6th June 2022 Commons Chamber

[Lucy Frazer]

What we have proposed is a windfall tax that will recover more than what Labour proposes would recover. That money—£5 billion—will support those who are the most vulnerable, which is why we have introduced the measure.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

This policy confirms that we are seeing more take, take, take from Scotland’s North sea oil and gas. The Government are taking resources and taking money. Norway has the biggest sovereign wealth fund in the world, but Westminster squandered all the income from oil and gas from the North sea. At the very least, will the Government reverse their decision and support the Scottish carbon capture and storage cluster and make it a track 1 cluster, and will they consider matching the Scottish Government’s £500 million just transition fund?

[Lucy Frazer]

I think the hon. Member is aware that the Scottish CCS is a reserve. [Interruption.] I am grateful to the hon. Member for confirming that he is aware of that.

Economy Update

Alan Brown Excerpts

Thursday 26th May 2022 Commons Chamber

[Rishi Sunak]

My hon. Friend is right that this intervention accords with our values by supporting those most in need at a time of acute distress, but he is also right to focus on the long term. The best way to help people over time and sustainably is to ensure that we have a growing economy with more jobs, higher wages and better skills. That is what we will deliver.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

After the Chancellor’s previous announcement of the £150 council tax rebate and the £200 energy bill rebate, 6.5 million households were still classed as fuel-poor. That is 6.5 million households where people will be ill and more likely to die early. With the cap rising to £2,800 in October, there are predicted to be 12 million fuel-poor households. Some of today’s measures are very welcome, but they will just keep the most vulnerable standing still. How many more millions of households will go into fuel poverty in October because of his lack of real action?

[Rishi Sunak]

As I have said, it will be a difficult time, given the degree of shock that we are seeing to energy prices. We know that energy bills will, on average, will increase by about £1,200 this year. Roughly, most of the 8 million most vulnerable households should receive support worth around £1,200.

Tackling Short-term and Long-term Cost of Living Increases

Alan Brown Excerpts

Tuesday 17th May 2022 Commons Chamber

[Edward Miliband]

No; I will make some progress. The final excuse—[Interruption.] I want to come to this because it is important, and I am perhaps anticipating the Chancellor. The final excuse is that it is somehow anti-business to levy a windfall tax. Let us dispose of that argument, too. I strongly recommend that Members who believe that argument read an article that I have with me—I am happy to put a copy in the Library of the House—by Mr Irwin Stelzer, a long-time confidant of Rupert Murdoch. This is the first time I have quoted him in the House. A few days ago, in an article entitled, “Now is the time for a windfall profits tax”, he wrote:

“People who believe in capitalism believe that private sector companies should be rewarded for taking risks…not be rewarded for happening to be around when some disruption drives up prices, producing windfalls.”

That is the point: these profits are unearned and unexpected, and the British people are paying for that windfall. These companies are profiting not from decisions they have made, risks they have taken or wealth they have created, but from a global spike in prices to which Britain is badly exposed—a spike exacerbated by Putin’s invasion of Ukraine.

What is the principle that the Government are defending here? What is their hill to die on? Is the principle that they really wish to defend that oil and gas companies should pocket any profits, however bad the geopolitical instability? Is that however large the crisis and however gigantic the windfall, taxation must not change? That proposition was rejected by Margaret Thatcher, Geoffrey Howe and George Osborne—remember him?—all of whom levied windfall taxes. Who else do we see supporting a windfall tax today? I have to say, it is a pretty big tent: John Allan, the guy who runs Tesco; Sharon White, the woman who runs John Lewis; Lord Browne, the guy who used to run BP; and Lord Hague, the guy who used to run the Conservative party—the usual leftie suspects.

The truth is that the Government have run out of excuses and, amid the chaos and confusion about their position, I think a massive U-turn is lumbering slowly over the hill. I say this to the Chancellor: “Swallow your pride and get on with it.” Every day he delays is another day when the British people are denied the help they need. Millions of families are having sleepless nights because the Chancellor will not act. What is he waiting for? As proposed by the shadow Chancellor, my hon. Friend the Member for Leeds West (Rachel Reeves), the Chancellor should come to the House with an emergency Budget that has a windfall tax, gets rid of VAT on energy bills, increases the warm home discount to £400, includes an emergency plan to insulate 2 million homes this year, and cuts business rates.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Will the right hon. Gentleman give way on that point?

[Edward Miliband]

I will not for the moment. The Government’s position on the windfall tax is part of a wider problem with this Chancellor and this Government. Just look at the political choices he is making: he leaves non-doms shielding their millions while millions of families and pensioners face a cut in their incomes; he whacks up taxes on tenants and lets landlords off the hook; and he makes young people at work pay more, but those getting money from capital gains pay not a penny extra. Wrong, unfair, unjust, out of touch—that is who he is.

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[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I would like to say it is a pleasure to follow the Chancellor, but we have just heard 16 minutes of platitudes and no new ideas. He said that Opposition Members are causing people more worry. What is causing people more worry is not having enough money in their pockets to pay their bills. It is nothing to do with what we say here; it is what they see in reality.

The Chancellor mentioned yet again his £9 billion support package for energy bills, but he did not say that only a third of that is money from the Treasury that will not be clawed back. Two thirds of that £9 billion will be added to our energy bills and recovered through our bills, so he is making bills higher for some while providing crumbs of support to the most vulnerable. He mentioned growing the economy while ducking the fact that, after the past five years, the economy had already started to contract in March. Then, for good measure, we heard some bluster about Labour’s past record, as if to hide the issues. What that tells us is that Westminster has not been working for a very long time.

It is a dereliction of his duty as Chancellor to have no new measures and no new finances associated with the Queen’s Speech to address the Tory cost of living crisis. The stark reality is that the longer nothing is done, the more people will plunge into fuel and food poverty. The April 2022 price cap is 75% higher than just a year ago. National Energy Action estimates that up to 6.5 million households could now go into fuel poverty. That underlines why more action is needed by the Chancellor. The October increase coming could see up to 40% of households becoming fuel-poor. National Energy Action previously estimated that about 10,000 premature deaths a year arise from fuel poverty. How many more premature deaths are likely to occur with these increasing fuel costs? They have such an impact that people die early through fuel poverty. How can any Minister who claims to have compassion stand by and do nothing? Even the British Chambers of Commerce has asked for an emergency Budget. Companies such as Scottish Power are calling for £1,000 of support for energy bills, and yet the Chancellor has insisted that taking measures now would be silly. Why is he so out of touch with reality when even businesses are telling us what is required?

Looking back to April 2020 and the onset of the covid crisis, the Government increased universal credit by £1,040 to help people to live, but back then home energy bills were 75% cheaper and petrol was 50% cheaper, and we are now dealing with food inflation and with general inflation rising to 10%. If that £20 a week uplift was required for people to live two years ago, surely the Chancellor must recognise that he needs to reinstate that uplift and do so quickly. Even Asda chairman and Tory peer Stuart Rose backs reinstating the £20 per week uplift to universal credit, so it really is time for the Chancellor to listen. People on universal credit are more likely to be on prepayment meters and are therefore further penalised with a higher energy tariff. Those people will be forced to self-disconnect this winter, as they simply will not have the funds to put in the meter. They do not have a dilemma about whether to turn the heating on; they do not have the choice.

Yesterday I was at a meeting with Ewan McCall of the Wise Group. He and others within the Wise Group deal with people who are on the frontline of fuel poverty. A survey of nearly 300 people in Glasgow found that 24% were self-disconnecting or rationing their heating. There are really heartrending individual stories behind this: people reliant on candles and using hot water bottles, reduced to living in misery. The Wise Group, like others, provides fantastic help with turnaround, but it can only do so much. Other groups such as the Trussell Trust, which does fantastic work with food banks, have confirmed that ever more people are reliant on their services.

Rather than action, we have had the bizarre admission from the BEIS Secretary that his Department’s nuclear power policy will increase our energy bills. It is economic madness—and, unfortunately, madness cheered on and encouraged by Labour. It should come as no surprise that new nuclear will add to our bills. With an upper estimate of £63 billion for the capital and finance costs for one new nuclear power station, it is crazy to proceed when the costs of renewable energy are ever falling. So-called small modular reactors are neither small nor cheap, at circa £2 billion per new station. Rolls-Royce does not want a contract for just one small modular reactor; it wants a contract for 12 to 15. The Government should be focusing on providing cheaper dispatchable energy and agreeing a minimum electricity price for the proposed pumped storage hydro scheme at Coire Glas and the proposed extension at Cruachan Dam. Those can be delivered much quicker and at a fraction of the costs of nuclear. Indeed, the £1.7 billion that the Chancellor has used to buy a stake in Sizewell C would pay for Coire Glas to be built outright.

One obvious way to reduce bills and emissions is to increase energy efficiency measures massively. The Scottish Government rightly treat that as a national infrastructure programme and spend four times more on it per capita than the UK Government. The Green Alliance estimates that retrofitting 11 million homes will reduce peak heat demand by 40%. Shamefully, instead of showing increased ambition, the UK Government have not even brought forward the regulations for ECO4, yet the programme was supposed to have started on 1 April and is part of the £9 billion package the Chancellor keeps bragging about.

This Government are trapping more children in poverty who are therefore destined to have fewer opportunities and to be less likely to have positive outcomes in life. The Child Poverty Action Group estimates that there are currently 4 million children in poverty and says that the legacy of this Queen’s Speech will be even more children going into poverty. Yet at a stroke, overnight, the Chancellor could lift 250,000 children out of poverty by scrapping the two-child limit for universal credit. When he knows that he has at his disposal the power to take 250,000 children out of poverty overnight, why does he not act and scrap the cap? Why are Tory Back Benchers not calling for the two-child limit to be scrapped altogether? Instead we hear demands for tax cuts which the Chancellor has promised are coming, but which will disproportionately help the richest and not the poor.

Another decision taken by this Government is not to uprate benefits even close to the rate of inflation. That is a conscious decision, and as others have said, blaming the IT system is a piece of nonsense. The Chancellor is hiding behind weak excuses. There is something far wrong if the Government’s IT system is so poor that they cannot press a button to provide a percentage uplift.

We have heard one new policy announcement, which is making 91,000 civil servants redundant during this crisis. It beggars belief that the Government use the slogan “Making work pay” while wanting to sack 91,000 people. Unfortunately, many who are working know that work does not pay. The number of people who are in work and in poverty is increasing, and no amount of bluster will change that statistic. The Government could help by making the minimum wage equivalent to the real living wage. At a stroke, that would take more people out of poverty, and it would not cost the Government any money, so why do they not do that?

There is talk about balancing the books, and another cohort on whom the Government have balanced the books is pensioners. Scrapping the triple lock is costing pensioners more than £500 a year during this crisis. If inflation is running at 10% when the next uprating assessment is undertaken for pensions, will the Chancellor stand by the pledge to reinstate the triple lock? Will he actually increase pensions by 10%, if that is what inflation is telling us? It would be good if he could confirm that. Okay, he is just staring into space.

The topic of pensions takes me to the Women Against State Pension Inequality Campaign and the millions of women still awaiting compensation. The recent Parliamentary and Health Service Ombudsman report has highlighted and confirmed that there was clear “maladministration” in how the Department for Work and Pensions delivered—or failed to deliver—the news of the increased pension age for millions of women. Some form of compensation would not only be at least a nod towards justice, but put money in people’s pockets at this time of need.

I met two representatives from Ayrshire WASPI on Friday, and they highlighted that fair compensation in Ayrshire will be about £150 million for 15,000 women. That money would then be spent locally on services and goods in a real form of levelling up. Even then, much of that money would return to the Government in various taxes. Sadly, by the end of this calendar year, more than 220,000 women across the UK will have died waiting for justice in the seven years since the WASPI Campaign began. Thousands more women will die waiting unless the DWP and the Treasury sit down with campaigners to agree fair, fast compensation. I put it to those on the Front Bench: how acceptable is it just to sit back and let people die, instead of providing them with justice and the compensation they deserve?

Returning to the issue of the Treasury and how to pay for support, we agree with Labour on the principle of a windfall tax. However, it should not just be a cash raid on the North sea; rather, it should be a wider pandemic profit levy. Tax Justice UK has identified that just six companies made an excess profit of £16 billion in the financial year 2020-21. A 10% additional levy on them would realise £1.6 billion for the Treasury. A much wider pandemic profit levy of 10% across the board would raise even more money.

The right hon. Member for Doncaster North (Edward Miliband) said that companies should not profit from circumstance and from just being there. On that principle, he should agree that a pandemic profit levy makes more sense, because that would affect companies that benefited from the covid situation just by virtue of being there. That levy would also target the companies that made excessive profits from personal protective equipment contracts awarded to them directly by the Government.

There is no doubt that things have moved with the oil and gas sector. As the right hon. Gentleman pointed out, the chief executive of BP has said that investment would not be at risk. If we look at the reality of it, Shell and BP combined are on course to reach £40 billion in profit this year, so there must be some loose change there for the taking. It is interesting that the Tesco chairman wants a windfall tax on oil and gas, so I am sure he would also welcome a windfall tax on Tesco and other companies that benefited during the pandemic.

[David Duguid (Banff and Buchan) (Con)]

I genuinely thank the hon. Member for giving way. It is two or three short months since I welcomed his stance against Labour’s calls for a windfall tax, but putting that aside, he quoted Bernard Looney, the chief executive of BP. Is he aware that, as well as saying that currently committed investments would not be at risk from a windfall tax, Bernard Looney has also said that future investments could be?

[Alan Brown]

At the end of the day, there is so much excess profit here that something needs to be done. We need to have a serious conversation about it. Interestingly, in front of the Business, Energy and Industrial Strategy Committee, the chief executive of Centrica spoke about the record profits it is making and about how it pays much more tax in Norway than here. He confirmed that a tax regime can be balanced and that he is quite happy paying more if it is a stable regime. We could have a serious debate about a tax regime that realises more money for the Treasury, especially in this time of need.

That takes us to the Treasury. The Chancellor has generated his own windfall. As our energy bills have nearly doubled, so has the VAT intake to the Treasury. As petrol prices have soared, so have the VAT returns to the Treasury. Indeed, the duty cut he was bragging about is actually a loan paid for by the extra VAT that was already getting raked in. As we have heard, there is now a real risk that that duty cut is being gouged out by greedy petrol companies and not being passed on to consumers. That is another thing on which the Chancellor needs to get a grip. Oil and gas revenues have increased by £3.5 billion in the past couple of years, and I have a funny feeling that in the autumn statement, the Chancellor will predict even greater income from oil and gas revenues. That income alone should be getting recirculated and used to support people.

The Scottish Government are doing what they can to mitigate the crisis, but we cannot make decisions a normal country can make. The Scottish Government introduced the game-changing child payment and doubled it to £20 a week, and it will increase to £25 a week later this year. That could lift 50,000 children out of relative poverty, but it cannot have the positive impact it otherwise would have had due to Tory cuts. That also demonstrates the lack of real options for Scotland within the current constitutional settlement. We cannot make decisions a normal country can make. It is not in our gift to change VAT on energy bills. Whatever the views are on a windfall tax, we cannot do that. We do not have control over fuel duty or VAT either. We have limited borrowing powers. We are locked into bad decisions by the UK Government on the race for nuclear—encouraged by Labour—on money on nuclear weapons, and on being taken out of the EU, and we are short-changed in funding from the UK Government in relation to that.

As a country, we are energy-rich, yet we have citizens living in fuel poverty. We have exported oil and gas for years, but we do not even have an oil and gas fund. It is time for a different direction. We have had 315 years of the so-called most successful Union ever, yet we have a Government whose slogan is “level up” and “we know best”. If the Union is so successful, we should not need a slogan about levelling up. It is time for independence and time we made decisions for ourselves.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Chair of the Treasury Committee, Mel Stride.

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[Dr Coffey]

The hon. Gentleman is right to say that food banks are present and providing support in many communities, especially where people are trying to work out the best way to spend their resources. He mentions in-work poverty, and it is why we have a plan for in-work progression, why we have been investing in skills, why we are investing in our jobcentres and why, through the plan for jobs, we are doing more to help people not only to get back into work but to get on in work too. That is what we are doing.

On top of the activity we have been undertaking, there are things we can do and are doing to cushion families from the worst effects of inflation and to ease the squeeze on household budgets. As my right hon. Friend the Chancellor set out, £22 billion has already been committed to support the hardest hit this year. The £150 of support for households in bands A to D is landing in people’s bank accounts, with a further £144 million discretionary fund available to councils. From October, the £200 reduction in energy bills will help families spread this year’s increased costs over the next few years.

We initiated the household support fund, through which we invested £500 million across the UK to help with the cost of household essentials. We are increasing that to £1 billion every year. For the second phase of the grant we have put a particular focus on people on fixed incomes, which is why a third is ringfenced for pensioners. That is on top of existing targeted support such as the warm home discount, cold weather payments and winter fuel payments. We are stepping in at this challenging time, and we are ready to do more to help.

We are discussing an Opposition amendment, and I make it clear that we will reject all Opposition amendments to the Queen’s Speech as a matter of precedent. The Queen’s Speech sets out the Government’s legislative programme for the year, and it is for my right hon. Friend the Chancellor to introduce fiscal measures, and he will make all future decisions on tax in the usual way. I reiterate that he told the House today that no option is off the table.

We know that the best way to raise living standards over the long term is to grow the economy, to invest in skills and to get people moving into and progressing in decent jobs. The latest statistics cut through the Opposition’s charge that poverty has increased since the Conservatives came into power. There are 1.2 million fewer people, including 200,000 fewer children and half a million fewer working-age adults, in absolute poverty, before housing costs, than in 2010. In March we published statistics that, for the first time, combine absolute low income and material deprivation among working-age people. Those statistics show a fall of three percentage points, from 3.1 million when we came into power to 2.2 million in 2019-20.

[Alan Brown]

Will the Secretary of State remind the House of how much money the Treasury puts towards the warm home discount?

[Dr Coffey]

The hon. Gentleman is trying to be clever, as he knows the answer is that it is a redistribution within the energy policy. [Interruption.] Would he rather not have it? Would he rather be with his fellow SNP people who voted against any rise in benefits at all? That is what several of his colleagues did. They did not vote for a lift in benefits.

After a decade of rising employment, we are building on our track record. We are ensuring that people have stronger incentives to work and can keep more of what they earn. Some 1.7 million working people on universal credit are, on average, £1,000 a year better off following our cut to the taper rate. Last month’s 6.6% rise in the national living wage has provided the lowest paid with an increase of £1,000 a year in their income, and in July the increase in the national insurance threshold will benefit 30 million working people, with a typical employee saving over £330 a year.

Oral Answers to Questions

Alan Brown Excerpts

Tuesday 17th May 2022 Commons Chamber

[The Economic Secretary to the Treasury (John Glen)]

Absolutely I can. I note the observations of some economists yesterday; we will have an obligation on regulators to take account of competitiveness and of where we are in the global context.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

T5. Compared with April 2020, our energy bills are now 75% more expensive and petrol is 50% more expensive. If the Chancellor thought an extra £20 a week was needed for universal credit two years ago, surely he agrees it must be reinstated as a matter of urgency?

[Rishi Sunak]

Of course the Government recognise that energy bills are the single biggest challenge households face. That is why we have provided £9 billion-worth of support, including £150 for English households in the most recent month, with £200 more in support to come later this year.

Financial Statement

Alan Brown Excerpts

Wednesday 23rd March 2022 Commons Chamber

[Rishi Sunak]

Because of the increases to local housing allowance that this Government put in place for the pandemic, and that they have maintained, about 1.5 million people—the poorest in our society—will have £600 a year more in local housing allowance, which will help. The hon. Lady talked about a family on low income. Just so that she is aware, as a result of all the tax and welfare changes we have made, including to the taper and the national living wage, a family with two children that is renting, with one parent working full time and the other working part time on the national living wage, will be about £3,000 better off. I know that that will help them through the challenging months ahead.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Brownings the Bakers makes and sells products and distributes them right across the UK through some of the major UK supermarkets. I wrote to the Chancellor highlighting the fact that its electricity costs have increased from £4,000 a week to £11,000 a week. If it wants fixed costs, it has been offered an eye-watering £17,000 a week for a two-year contract. Obviously, the Treasury makes more money in VAT returns out of these eye-watering increases, so rather than the Chancellor having to write back to me, can he confirm to me here and now that I can tell John Gall, the managing director, that he is doing nothing to help businesses such as Brownings the Bakers?

[Rishi Sunak]

The hon. Gentleman is simply wrong on VAT. If he looks at the figures published today, he will see that the OBR’s estimate of VAT receipts in the forthcoming year is actually lower than the amount it had expected in the autumn. We are providing a tax cut for small businesses today—£1,000 due to the increase in the employment allowance, and that will kick in in just a couple of weeks.

Economic Update

Alan Brown Excerpts

Thursday 3rd February 2022 Commons Chamber

[Rishi Sunak]

I thank my hon. Friend for his question. On VAT, I have nothing further to add. He is right; what we are doing is more targeted, faster and more generous to those who need our help. With regard to sanctions on Russia, I can assure him that absolutely nothing is off the table. We are working closely with our international partners, as the Foreign Secretary has outlined, to prepare a very robust package of sanctions.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The Chancellor brags about having the fastest recovery, but that is actually wrong because Italy, for a start, has a higher growth rate. If the economy is doing so well, why is he still introducing a £12 billion tax on workers this financial year? Why has it taken to the last minute to try to do something about the cost of living crisis? Why is so much of this measure actually a loan that bill payers will have to pay back? He talks about not doing a VAT cut because he wants a more targeted approach. How is giving everybody a rebate a targeted approach? It is illogical.

The reality is that the Treasury is currently raking it in compared to where it thought it would be in the March 2021 Budget: an extra £3 billion this financial year and next year from oil and gas revenues; and VAT receipt predictions in October last year were nearly £40 billion higher than what they were in March 2021. That is a lot of money that the Treasury could be freeing up. Meanwhile, average energy bills increased this year to nearly £1,200, up from £700 the year before, bringing in an extra £0.6 billion in VAT. The VAT increase due to the cap rise will bring the Treasury another £0.8 billion a year, so there is much more money it could free up.

The Scottish Government are bringing in a £20-a-week child payment and uprating the child winter assistance payment. Could the Chancellor not look at doing something similar? Will he confirm that the council tax rebate proposal he is bringing in will have Barnett consequentials, how much they will be and that they will go to the Scottish Government? Will he look at devolving further budgets and powers so that Scotland can take a more targeted approach?

National Energy Action estimated that increasing the cap would put 6 million people into fuel poverty. With the Chancellor’s measures, what impact assessment have the Government done of how many households will be in fuel poverty? How many more premature deaths will there be because people are in fuel poverty? Lastly, the highlands of Scotland generate electricity and send it to the rest of the UK, yet electricity users in the highlands on the restricted meters pay 4p a unit more for electricity, or £400 more on their bills. When will the Treasury and the Department for Business, Energy and Industrial Strategy work with Ofgem to remove that ridiculous surcharge for ageing people in the highlands?

[Rishi Sunak]

I am happy to confirm to the hon. Gentleman that the Barnett consequentials for Scotland will be around £290 million, which I hope he will welcome. My right hon. Friend the Chief Secretary to the Treasury will be speaking to Kate Forbes later today to go over the details, and I very much hope that the Scottish Government will choose to do something very similar to what we are doing, to the benefit of Scottish citizens. Of course, Scottish citizens will benefit from the rebate scheme on bills, because that is a Great Britain-wide policy, as I outlined.

With regard to the hon. Gentleman’s broader points on the North sea, there is a clear point of difference between us on the Government side of the House and the SNP. We believe in the future of the North sea, in the oil and gas industry, and in the 200,000 jobs it supports, and we want to ensure it plays an important part in our transition to net zero. I hope he can see that that is the right thing for Scotland and will join us in supporting that very important industry.

Cost of Living Increases

Alan Brown Excerpts

Monday 24th January 2022 Commons Chamber

[Mr Clarke]

If we look at the Office for Budget Responsibility forecasts, we see that they are for 6.5% growth in 2021 and 6% growth in 2022. That is an incredibly strong economic recovery, and one of which we should be very proud. With regard to the Kickstart scheme, we obviously always want to encourage maximum uptake and we continue to work to refine that scheme and make sure it works to best effect, but it must be considered in the context of an unemployment rate that is now only just over 4%. We have a very tight labour market, and that very success is leading to some of the challenges that we face in getting people through every different scheme.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Given the increases in energy costs, can the Chief Secretary tell us how much extra VAT the Treasury is taking, what extra oil and gas revenues are coming in and how much extra is coming in from the increased price of petrol at the pumps? Why are the Government not using that money to mitigate costs for the 6 million households that will be plunged into fuel poverty when the cap rise kicks in in April?

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[Ian Murray]

I thank my constituency neighbour for that question. I hope that she watched with great interest the speech of the leader of the Labour party just a few weeks ago, and, indeed, the other speech he made before Christmas about making Brexit work. The reality is that this Conservative Government have given us a position whereby Brexit does not work. We have a thin deal that we said would fall apart, and it is falling apart. What we have to do is to get into power to fix the problems with that and to build on that relationship. That is the reality of where we are.

I listened with interest to the Minister not answering the hon. and learned Lady’s question about HGV drivers and the cost of food and supply chains. He rightly said that there is an ageing workforce, but that shows that the Government have not planned for the medium to long term in that regard—it is as if everybody just got older overnight, rather than there being some plan. It sums up the Government that they have not had the foresight to see some of those problems coming. None of the promises that the Brexiteers opposite made to us about sunny uplands have come to pass; indeed, the opposite has come to pass, as we can see in the supermarkets and in prices themselves.

Those of us elected to this place owe it to the millions of people across the country who face such hardship to do everything we can to alleviate and change it. In the UK in 2022, nobody should have to choose between heating and eating. The Government have shown no compassion and not even pretended to care. Let us remember that they voted to cut the £20 a week universal credit uplift for the poorest in this country and refused to feed school kids in the holidays. The only response to the crisis from the Government so far, in all the noise of partygate and everything else, was when they snuck out a £4.3 billion fraud write-off from covid funds and business loans, which was branded “nothing less than woeful” by their very own anti-fraud Minister, Lord Agnew, shortly before he resigned at the Dispatch Box a few hours ago in the other place. Maybe the Minister would like to do the same this afternoon: get to the Dispatch Box, resign, grab his folder and suitcase full of wine, and head for the hills. Any Minister with any kind of morality would be doing just the same thing.

I am pleased that the SNP has called the debate, but it is not a bystander in this crisis either. The SNP is the Government in Scotland and has been for 15 years. A 33-year-old today, struggling to feed their family while paying their energy bills, has spent their entire adult life under the Scottish National party Scottish Government. Such a person might wonder why the SNP did not support legislation put forward by Labour colleagues in Holyrood to enshrine as a human right the right to food. Perhaps we might be able to find out this afternoon why not.

Parliamentary time will be taken up “in weeks” with legislation for another referendum. People are having to choose between heating and eating, but that will be the SNP’s priority in Parliament and elsewhere for months. I accept that Parliament has the capacity to do other things, but nobody should be under any illusions. All the oxygen in the vacuum will be taken up in Scotland with another referendum or the thought of another piece of referendum legislation. That is the reality of what will happen. With the paralysis in this place, the Scottish Government are obsessed by what gets them out of bed in the morning, rather than the real, everyday issues of Scots.

[Alan Brown]

While the hon. Member is on the action of the Scottish Government, I presume he is going to commend them for bringing forward the £20 a week child payment as one way to help to mitigate the poverty being imposed by Westminster. Earlier he said that we all have a duty in this place to try to help people with the cost of living and energy crisis. In which case, why did Labour vote for the Nuclear Energy (Financing) Bill, the impact statement for which said that it could add up to £63 billion to household energy bills? How on earth is that helping people with the energy crisis?

[Ian Murray]

What a valuable and timely intervention that was, because I was just about to talk about the child payment. Indeed, we campaigned for the £20 child payment for some time in the Scottish Parliament and were delighted that the Scottish Government eventually introduced it. However, it is a key, targeted intervention that helps to address child poverty, so what we would like now—all the Scottish charities are saying this—is for it to be doubled to £40 a week.

--- Later in debate ---

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

It is incredible that in this cost of living crisis the UK Government have done nothing and that the Chief Secretary earlier did not give us one new Treasury policy. Even when there is a chance for Tory Back Benchers to vote for a VAT holiday on energy bills, the Brexiteers dutifully voted it down.

In only a couple of weeks’ time, Ofgem will undertake its review of the energy price cap and is likely to confirm the April increase of about £600, a 50% increase. There is limited time for action. Tinkering at the edges, such as delaying the impact of the £2 billion administration costs of 28 energy companies going bust, is not enough. Direct Government action is needed to prevent the cap rising or to support those affected by it. In UK Government policy, the Tories have already made matters worse for those who are struggling—a cut in pensions of more than £500 per year, the removal of the £20 a week universal credit uplift—and that in the midst of the cost of living crisis, with inflation at a 30-year high and household incomes dropping in real terms by up to £1,200.

National Energy Action estimates that the cap rising to £2,000 will lead to 6 million households in fuel poverty, a shocking 33% increase in only a six-month period. Worse, and shamefully, it also estimates that approximately 10,000 premature deaths a year arise from fuel poverty. How many more premature deaths will occur if the Government do not do something?

To date, the only direct Government intervention on energy has been the allocation of £1.7 billion for the development of Sizewell C. Not content with Hinkley Point C being the most expensive power station in the world, the Tories are determined to create another one. In their own impact assessment, they estimated costs of as much as £63 billion being added to our energy bills.

If people live in the Scottish highlands, they are more likely to be off the gas grid, so energy costs them more. Worse, many customers are on what are called restricted meters, so they pay about £400 more per annum for their energy, due to a 4p surcharge per unit of electricity. How is that fair? People in the highlands who export energy to the rest of the UK pay a surcharge for the privilege. It is time that the Scottish Tories stood up for their constituents on that.

To return to direct intervention, that can be paid for by levying a windfall tax on the Treasury. As our energy bills have increased, so has its VAT returns on them. As fuel prices have increased, the Treasury has raked in more money in fuel duty and VAT. As for the North sea, the November Budget confirmed that this year alone the Treasury would receive an extra £1.1 billion in oil and gas revenues, or £6 billion over the lifetime of the Parliament. The Treasury should release that money now. It is astounding that the Chief Secretary to the Treasury does not seem to understand that 5% of £2,000 is twice the value to the Treasury as 5% of £1,000.

By contrast, in Scotland, the Scottish Government are doing their best while operating on a fixed budget with limited borrowing powers. The Scottish Government’s child winter heating assistance supports 14,000 families with disabled children through automatic payments of £200 a year. The low income winter heating assistance will help 400,000 low-income households with £50 every winter, instead of complicated cold weather payments of £25. For families there is a game-changing £20 per week child payment; compare this with the hapless £20 a week universal credit cut.

It is absurd that Scotland has paid £375 billion of oil and gas revenues to the Treasury, and that this has been squandered, with no legacy. We only need to look at Norway to see what a small independent country that is in charge of its own resources can do, and I look forward to Scotland’s joining it.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

The hon. Member for Glasgow Central (Alison Thewliss) speaks with conviction —I know that from having listened to many of her debates in the past—but it will be no surprise that I will come to a very different conclusion in my arguments today. Let me begin by thanking all hon. Members who have taken part in this important and sometimes lively debate. The pandemic has been a very challenging time for many. We acted quickly to put in place unprecedented levels of support. Since the start of the pandemic, we have spent more than £400 billion protecting people’s jobs and livelihoods, supporting businesses and public services and providing unprecedented welfare support. That is not inactivity, as alleged by the SNP, and it has been conveniently overlooked by hon. Members, including the hon. Member for Kirkcaldy and Cowdenbeath (Neale Hanvey).

Universal credit has stood up to the challenge of covid-19, providing a vital safety net for 6 million people, thanks to the hardworking staff in DWP across the nation, including in Scotland. Thousands of work coaches worked tirelessly to ensure that the benefits system did its job. Our successful vaccine programme is providing us with the protection to fight the virus in all its forms.

The latest labour market statistics prove that time and again we have made positive decisions during the pandemic. As has been highlighted during the debate, it is important to put the rising cost of living in context. Prices are rising in countries around the world. I know that Members such as the hon. Members for Ceredigion (Ben Lake), for Glasgow East (David Linden) and for Edinburgh East (Tommy Sheppard) have raised concerns, but we need to look at the issue in context. As the global economy recovers from the pandemic, consumer demand is surging at a time when global supply chains are disrupted. We recognise and understand the pressures that is causing for people’s wallets, and their worries as they see the cost of food, energy and other essentials increase.

The Prime Minister, the Chancellor and the Secretary of State for Work and Pensions—and, indeed, the Chief Secretary sitting next to me—are listening to those concerns. As shown during the pandemic, the Government will do what it takes to support those most in need, and we are looking at the best way to build on the support that is already available. With the economy moving into a higher gear, it is time to focus our attention on getting people into work and progressing in employment. That was ably highlighted by my hon. Friends the Members for Broadland (Jerome Mayhew) and for Moray (Douglas Ross).

[Alan Brown]

The Minister said that the Government will do everything it takes to resolve the cost of living crisis. What will they do to mitigate the energy price cap rise in April?

[David Rutley]

We have shown what we can do when faced with challenge. We are monitoring the situation and looking at all the solutions—we will come forward—as, I understand, the Scottish Government are monitoring the situation to see what more they can do.

Household Energy Bills: VAT

Alan Brown Excerpts

Tuesday 11th January 2022 Commons Chamber

[Mr Clarke]

Well, this is the Government who have introduced the £500 million household support fund, which is designed to help the most vulnerable households during the course of this winter. This is the Government who are making sure that we are delivering through our action on universal credit and on the national living wage, the rise in which will come into effect in April, and through the wider package of support, which I will come on to in a moment, including the warm home discount, cold weather payments—all the things that are designed to ensure that we give targeted support to people like Gillian who need it. I would remind the hon. Gentleman that Teesside is one of the best examples of levelling up that we have had anywhere in this country. One only needs to look at the response of the Teesside public to what is happening in our area to see the difference that a Conservative Government are making for our community.

Our record of investment in renewable energy is, of course, in great contrast to that of the last Labour Government. Labour’s 1997 manifesto specifically stated:

“We see no economic case for the building of any new nuclear power stations.”

The legacy of that is now seen today. While in government Labour failed to diversify our energy supply, with renewables making up just 7% of our energy mix, compared with 43% today.

While the up-front costs of certain technologies may be high in the early years of their deployment, they are falling over time. We have already seen the cost of offshore wind fall dramatically, together with that of solar panels and batteries. Our heat and buildings strategy set a clear ambition of working with industry to reduce heat pump costs by at least 25% to 50% by 2025, and to parity with gas boilers by 2030.

On the specifics of this debate, as I alluded to a moment ago, we have already introduced measures to support vulnerable households with the costs of energy, including increasing the warm home discount, winter fuel payments and cold weather payments, which together provided almost £2.5 billion in support to households last winter.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Can the Minister tell me how much the Government pay for the warm home discount?

[Mr Clarke]

I am sorry, could the hon. Gentleman repeat that?

--- Later in debate ---

[Alan Brown]

Can the Minister tell me how much funding the Government put into the warm home discount that he is bragging about?

[Mr Clarke]

The share of our support is going up. We are also increasing the number of people who are likely to be in scope. We are consulting on increasing the number of people for whom that discount provides a benefit by 780,000. It will also likely rise in value from £140 to £160, so it is an expanding benefit.

Vulnerable households will also be supported with the cost of essentials through the £500 million household support fund. That funding has been made available to local councils across England to support their residents this winter. Importantly, in recognition of the fact that families should not have to bear all the VAT costs they incur to meet their needs, domestic fuels such as gas and electricity are already subject to a reduced VAT rate of 5%. In response to the Opposition’s calls to go further on VAT costs, I would note that that would mean our spending a significant amount on subsidising the fuel consumption of some of the wealthiest. When we look at our response to all these challenges, we need to ensure that we spend taxpayers’ money on the most effective possible interventions to support the households struggling the most with the cost of living.

The cost of living is not about any single bill or expense. That is why, at the autumn Budget, the Government put in place a host of measures to help families with the cost of living.

--- Later in debate ---

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

It is incredible, given the current cost-of-living crisis, that the UK Government seem to be incapable of doing anything different. The Chief Secretary reeled off a list of measures that the Government were already taking, but there was nothing new in his speech. There was nothing about what the Government are doing to tackle the current crisis, and they need to think again.

We have already seen the broken promises about lower energy bills post Brexit. Now all the Tory Back Benchers who campaigned for lower VAT on energy bills are queuing up to back the Government not to introduce a VAT holiday, and that makes no sense either. The fact is that without Government action, a real crisis looms. It is not credible for the energy cap to rise to approximately £2,000 a year in April. National Energy Action estimates that there are already 4.5 million fuel-poor households in the UK, which is a disgrace, and if the cap rises, as is predicted, the number will rise to 6 million. The Government really need to think about that, and take action to prevent it.

It is also worth looking at how the cap operates at present. It does provide protection for the vulnerable, but not enough protection. A constituent of mine who is on the standard variable tariff is struggling to pay her bills. Because the cap is based on average energy units, she is already paying £200 more per annum than the predicted cap. I urge the Government and Ofgem to look at how the cap works in reality.

As has been said, raising the cap to the extent that the average user will pay £600 more per annum would be so damaging that it cannot happen. I therefore support the calls for Government loans to be used to help energy companies to smooth over the transitional costs over, say, 10 years. I certainly support further direct intervention to mitigate any fuel rises. On that basis, I am happy to support the VAT holiday proposed in the Labour motion, although the predicted £89 annual saving will be wiped out if the Government do not take action to mitigate the cap.

[Sammy Wilson (East Antrim) (DUP)]

I am glad that the hon. Member appreciates one of the benefits of Brexit, namely that we now have the option of reducing VAT—and I do not understand why the Government will not do that—but does he recognise that as a result of the flawed deal in Northern Ireland and the fact that the Northern Ireland protocol leaves Northern Ireland under the EU VAT regime, any reduction in VAT could not apply to consumers in Northern Ireland, because EU VAT rules still apply there?

[Alan Brown]

I was not aware of that, but it appears from recent figures relating to the impact of Brexit that the protocol is protecting Northern Ireland, and it is not taking the same hit to its economy as the likes of Scotland. It is swings and roundabouts. The Northern Ireland economy is doing much better than it would have as part of Brexit Britain.

I have said that I certainly support the VAT holiday, but I am not sure that some of the rest of Labour’s £6.6 billion package and rhetoric has been completely thought through. The real windfall tax should be levied on the Treasury. As our energy bills have increased, so have VAT returns to the Treasury; as fuel prices have increased, the Treasury has raked in more money in fuel duty and VAT; and as for the North sea, it was confirmed in the Red Book for the November Budget that this financial year the Treasury will receive an extra £1.1 billion in oil and gas revenues compared with the March 2021 prediction, and the Treasury will receive an extra £2 billion from oil and gas revenues in this coming year and £6 billion in total over the Parliament. The Treasury should release the additional windfall revenue it has received.

Although to impose a windfall tax directly on oil and gas companies is an easy political soundbite, it has potential implications, so what discussions has Labour had with the industry? What assessment has Labour made of the levels of investment—which could be part of the decarbonisation agenda—that might be clawed back because of such a tax? The harsh reality is that every previous windfall tax on the oil and gas industry has led to a drop in capital investment.

In our transition to net zero, we do need to get off our dependence on oil and gas, but the reality is that carbon capture and storage is part of the pathway to net zero. What assessment has Labour made of the potential impact on such projects, and particularly on the Scottish carbon capture cluster, which has already been sacrificed to reserve status by the Tory Government?

[Jacob Young (Redcar) (Con)]

On low-carbon energy, if the hon. Gentleman wants us to get on a more sustainable footing where we do not rely on oil and gas as much, why did he, his SNP colleagues, the Lib Dems and even some Labour MPs oppose the Nuclear Energy (Financing) Bill last night?

[Alan Brown]

Let me come to the next part of my speech, which will address that point. I am absolutely incredulous that, as the hon. Gentleman pointed out, Labour MPs were whipped to vote for that Bill, which will add billions of pounds to electricity bills. The Bill’s impact assessment, published by Ministers, shows an upper estimate of £63 billion for the capital costs and financing of a new nuclear power station. That is to be paid for by bill payers. That is not low cost: it is a burden of something like £40 billion to £60 billion added to our energy bills—and Labour voted for it. How can Labour MPs talk about lowering energy bills when they just voted to add £50 billion to our bills as bill payers? It is nonsensical and they need to rethink their nuclear policy rapidly.

On nuclear, the Chancellor allocated £1.7 billion for the development of Sizewell C to the final investment stage. That sum of money could pay for the Coire Glas pumped hydro storage scheme in Scotland, as well as the Cruachan dam extension. Those projects could be delivered quicker than Sizewell, they do not come with a £50 billion capital finance burden, and further investment in pumped hydro storage would save £700 million per year in operational costs compared with a reliance on nuclear.

Greater imagination is required in energy policy. The policies from both major UK parties sum up Scotland’s place in the Union: the Scottish CCS project has been relegated to reserve status; Scottish bill payers are having to pay for a new nuclear power station; and we are stuck paying the highest grid charges in Europe, which not only disadvantages Scottish renewable projects but means higher bills for everybody across Great Britain. Meanwhile, the Scottish oil and gas industry is asked to pay to mitigate high fuel bills throughout the UK. What about demanding that at least some of the additional oil and gas revenues are released to match fund the Scottish Government’s £500 just transition fund for the north-east of Scotland?

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

The Business Minister said it was a “mistake” for the UK Government to withdraw support for the UK’s gas storage site in 2017. That site provided 70% of UK storage capacity and helped to protect consumers from price shocks; we now have some of the lowest gas-storage capacity in Europe. Does my hon. Friend agree that the Minister should have acknowledged that and apologised when he was on his feet?

[Alan Brown]

I agree wholeheartedly. It is interesting that the Government are now revisiting the Rough gas-storage scheme. Yes, there has been a global impact on wholesale prices and prices would have risen, but it is clear that storage facilities would help to provide a buffer for the UK in times of need.



If we look at the history of North sea exploration, Scotland has paid £375 billion of oil and gas revenues to the Exchequer, which has been squandered by successive UK Governments. For all these years, the SNP has called for an oil and gas fund to be set up, which could have been utilised in this time of need. Norway did not start its oil fund until 1990, yet it is already the largest sovereign wealth fund in the world. It grew by £90 billion during 2020—one of the covid years—and now has assets worth well over $1 trillion. That is the kind of long-term strategic planning that has been missing in the UK but that would create a buffer when required.

[Craig Mackinlay (South Thanet) (Con)]

I may have missed it, but an element of clarity may be needed in the SNP’s position. The hon. Gentleman said that the SNP will support the reduction in VAT. Is it right that the SNP’s ambition is to be an independent country in the EU, under which his ambition to have 0% VAT on fuel would be completely scuppered and dictated to by other people in Brussels? Is that the SNP’s position?

[Alan Brown]

I will make it clear for the hon. Gentleman: yes, our ambition is to be an independent country and yes, we want to join the EU. The vote today is about a temporary VAT holiday. The argument could be made that that could not happen under the EU, but energy policy would be reserved to Scotland so we would have much fairer policies. We would be able to do more and make other decisions, which would not rely on us having to back a 5% VAT holiday in Westminster. We would be able to do a lot more as an independent country, even in the EU.

[David Duguid (Banff and Buchan) (Con)]

I am interested in the hon. Gentleman’s point about an independent Scotland being able to make its own decisions. Within their devolved responsibilities, the SNP Scottish Government announced the £500 million north-east just transition fund. Is he aware of any announcement yet from the Scottish Government of precisely what the money will be spent on?

[Alan Brown]

That will come out. There have been some initial announcements. I presume from that intervention that the hon. Gentleman does not welcome the development of a £500 million fund that will serve his area and that he does not support any calls for the UK Government to add to that. Does he not welcome it?

[David Duguid]

I want to know what it will be spent on.

[Alan Brown]

I take that to mean that the hon. Gentleman does not welcome it.

[David Duguid]

I welcome any funding in support of the energy transition. Much of it comes from the oil and gas companies themselves. In that respect, I welcome the stance of the hon. Gentleman and the SNP against Labour’s calls for a windfall tax on the oil and gas industry. I believe that is what he said, so I welcome that. The specific question that I am asking of the Scottish Government via SNP Members of this House is what precisely that nice-sounding £500 million will be spent on. It is not that I do not welcome it.

[Alan Brown]

I am not responsible for the administration of the £500 million fund, but the hon. Gentleman should just be grateful that it is there. It is for a 10-year investment period, so clearly it is for long-term planning.

[Sammy Wilson]

I am confused about where the hon. Member stands on energy policy for Scotland now. He wants to have an independent country that is a member of the EU and subject to EU VAT rules, which unfortunately will still apply in Northern Ireland. I also understand that the Scottish National party does not actually want to exploit the oil and gas that lie around our shores, so how does it hope to reduce the cost of energy for consumers in Scotland and ensure the supply to them?

[Alan Brown]

The right hon. Gentleman seems easily confused, but of course he is a climate change sceptic. If Scotland was in charge of its own energy policy, there would be more investment in renewables and greater hydrogen development, and we would not be paying for nuclear power. I have already said that the nuclear power stations will put up to £63 billion on to our bills; that is the estimate. We would have a much better energy policy that we could implement as an independent country and we would not have the highest grid charges in the whole of Europe.

[David Linden]

I am looking on with a degree of bemusement—the hon. Member for South Thanet (Craig Mackinlay) is engaging in a debate about Scottish independence. Does my hon. Friend welcome the fact that the Government are finally engaging in the debate about Scottish independence? Perhaps the hon. Member for South Thanet will come up and campaign in the coming referendum.

[Alan Brown]

I welcome that intervention. It is good that people recognise that Scottish independence through a referendum is going to happen, and we look forward to a continued debate about the nuances of what will happen in an independent Scotland that has control of its own policies and can choose to go back into Europe.

As I said, we need to understand that the warm home discount is actually paid for by other bill payers. I am uncomfortable with the fact—the Chief Secretary did this earlier—that the Tories brag about the warm home discount as if it is a Government-funded measure. The reality is that, as a stand-alone tax measure, the warm home discount is actually regressive, because the people who can least afford it pay the same levy as those that can afford to pay more. So while the warm home discount does help people that require help, it is actually a regressive tax measure. If Labour’s proposals were implemented in the way the scheme operates just now, that would add £200 per annum to the bills of those who are left paying for it. It is inferred that Labour’s proposals would be funded from £3.5 billion of additional Treasury receipts, but that needs to be made clear. We also need to make sure that the Tories are not allowed to do a fudge when they raise the warm home discount, but by making other bill payers pay for it, giving them a free pass to pretend they are doing something. Similarly, there has been a call for policy levies to be removed from our electricity bills. I have argued this for a while because state levies on bills are also regressive, so we need to come to a fairer taxation measure to pay for our transition to net zero.

I have another concern about current Labour rhetoric about tax rises. It is as if all tax rises are bad. That plays to the Tories’ narrative and encourages them to make tax cuts ahead of the next election. So yes, the national insurance rise is an unfair tax on workers, and it is correct to highlight that, but we need to debate fair taxation. The Chancellor shied away from setting capital gains tax at the same rate as income tax. Had he done that, it would negate the need for a national insurance rise.

In Scotland the Scottish Government have shown that this can be done differently with a low starting rate of income tax and incremental increases across the bandings so that those can afford to pay a bit more do so. This is a model that Labour should be espousing. It should be demanding that the UK Government match our £20 per week child payment and reinstate the £20 per week universal credit cut.

It has been highlighted that tax burdens are the highest in peacetime since world war two. If this were to create a fairer society as part of a genuine levelling-up agenda, it could be managed. But we have right now in the UK the worst levels of poverty and inequality in north-west Europe and the highest levels of in-work poverty this century. The UK has one of the worst pensions in the world, made worse by the Government’s cap on the triple lock, so the Chancellor is balancing the books on already hard-hit pensioners struggling to heat their homes. How is it credible to reduce pensioners’ income by over £500 a year on what it otherwise would have been this year? The UK has one of the lowest sick pay rates in the OECD with the current rate of £96 per week. That is wholly inadequate, especially if people still need support in self-isolating.

Small independent countries continue to demonstrate that they can create a fairer, more equitable society. It is time Scotland had these powers rather than having to continually tinker around the edges and have decisions imposed on us. The debate has started today. I look forward to continuing the debate in that form.

[Several hon. Members rose—]

--- Later in debate ---

[Edward Miliband (Doncaster North) (Lab)]

I want to thank all hon. Members who have spoken in this debate. I particularly thank my hon. Friend the shadow Chancellor, my hon. Friends the Members for Tooting (Dr Allin-Khan), for Sheffield, Brightside and Hillsborough (Gill Furniss), for Merthyr Tydfil and Rhymney (Gerald Jones), for Batley and Spen (Kim Leadbeater), for Bradford West (Naz Shah), for Brighton, Kemptown (Lloyd Russell-Moyle), for Newport West (Ruth Jones), for Bedford (Mohammad Yasin), for City of Durham (Mary Kelly Foy), for Salford and Eccles (Rebecca Long Bailey), for Warwick and Leamington (Matt Western) and for Birkenhead (Mick Whitley), and my hon. Friend the Member for Easington (Grahame Morris) for his just-a-minute speech, which was excellent.

There are three questions at the heart of this debate. How did we get here? What short-term action should we take? And, what is the long-term plan to stop it happening again? First, on the crisis, there is no question but that there is a global dimension to this crisis. Many countries are facing strains as a result of what has happened to wholesale energy prices, but there are some undeniable facts about how badly we have been hit. No other country has seen 28 energy companies go under. They are failures that we already know will cost consumers £100 on bills. No other major European country has gas storage equivalent to just 2% of its energy demand. No other country in western Europe performs as badly on fuel poverty and insulation as the UK. These undeniable facts are symptoms of Government failure over the past decade. There were failures of regulation. They were warned repeatedly about the regulation of the sector, and did not act—in fact they loosened regulations. As the recent Citizens Advice report said:

“From 2010 onwards, dozens of companies entered the market with limited checks. Some offered good services to consumers, but others were poorly prepared.”

It went on to say that the regulatory system

“allowed unfit and unsustainable energy companies to trade with little penalty.”

It is consumers and businesses that are paying the price. There were failures of strategic decision-making, too, such as the closure of the Rough storage facility, which my hon. Friend the Member for Leeds West (Rachel Reeves) warned about when she was Chair of the Business, Energy and Industrial Strategy Committee.

Let me get to the heart of this debate, and I say this to the anti-net zero tendency in the Conservative party. We can reach two different views. Some Conservative Members say that it is because we have gone too fast on the green transition. I say that they are dead wrong; it is because we have gone too slowly. It is continued dependence on fossil fuels that makes us more vulnerable and less resilient. Let us take energy efficiency. A 2014 study showed that a comprehensive programme of energy efficiency could cut gas imports by a quarter, but what have we seen? We have seen the abolition of the zero carbon home standard, the fiasco of the green deal and the fiasco of the green homes grant. That is why emissions from buildings are now as high today as they were in 2015, and it is not just about energy efficiency. Before this debate, I looked up the number of onshore wind turbines being constructed each year in the past four years—it is because I am a nerd. I will not do a guessing game in the House as I do not have the time. The answer is that just four turbines a year were granted planning permission in the past four years. It makes no sense, because onshore wind is the cheapest power at our disposal—so much for being the Saudi Arabia of wind power; it is just hot air.

I come now to what short-term action should be taken. There is a divide in this House between a party that has some proposals and a party that does not. Fundamentally, that is it. Conservative Members can talk all they like about the Order Paper and all that stuff, but they do not have an answer. We have come forward with an answer. What is the principle of the answer? It is this: we help all families, and we give most to those who need it most. I want to explain this to the House. We have said that we want to increase the warm home discount from £140—£150 from April—to £400. We want not just to increase it, but to extend it from 2.2 million households to 9 million households, or one third of families. That is the right decision to help the poorest people in our society who are going to be so badly hit. But we all face a dilemma, and we need to be honest about this. It is right to help the poorest, but it is not just the poorest who are facing tough times as a result of this crisis; it is those in the middle as well, and the swiftest, most direct way of helping those families is to get rid of VAT on energy bills.

Perhaps I am a bit naive in thinking it surprising that this idea is controversial, because this is a Government whose Prime Minister and Home Secretary, along with 26 Conservative MPs, used to think that it was the bee’s knees. They thought it was a great idea. It was not some random, chance remark made by the Prime Minister; it was a promise made over and over. Given the Prime Minister’s long and distinguished record of integrity, demonstrated again today, surely the British people were entitled to take him at his word when he said that

“we will be able to scrap this unfair and damaging tax”,

and again, just two years ago, when he said:

“Not only will we be able to reduce VAT in the UK, but we will be able to do it in Northern Ireland as well.”

As Conservative Members consider how they will vote in a few minutes’ time, instead of making arguments about the Order Paper, why do they not look at the substance of the motion? Labour Members say, “Let us take action”; their Government have nothing to say. That is the difference, and they should join with us. The problem is not just that the Government have nothing to say. I think we got to the heart of where they really stand on Sunday when we heard what the Education Secretary said when he was sent out to comment. It is not great being a Government Minister going out there at the moment, to be honest; I remember times like that in the Labour Government too. The Education Secretary—I had to double and triple-check this quote—said:

“A windfall tax on oil and gas companies, who are already struggling in the North Sea, is never going to cut it.”

“Already struggling”? As my hon. Friend the Member for Leeds West said, the chief executive of BP, Bernard Looney, said that the price rises were a “cash machine” for his business. It is not putting that money into investment; it is putting it into dividend share buy-backs from its shareholders. Who is filling up that cash machine? It is working people. All we are suggesting is something quite simple, which is a one-off windfall tax for a year to get some of that money back and help families right across this country.

Short-term action is essential, but we need long-term action as well. There is a very big difference we could make to families, and that is a national mission to retrofit homes in this country. It is the closest thing there is to a no-brainer with regard to energy policy. We could cut bills by up to £400. We could make ourselves much less dependent on volatile fossil fuels. That is why we put forward a plan for a £6 billion a year retrofit and zero-carbon energy programme to insulate 19 million badly insulated homes. But the Government refuse to act. They offer piecemeal privatised programmes that do not work, and they are still short of their very inadequate manifesto promise on this. We can get a sense of where the Government stand. When they had the fiasco of the green homes grant—I do not blame them for thinking it was not going very well—they did not plough the money saved back into retrofit but simply cut £1.5 billion of investment. We need to go faster on energy efficiency. We need to invest in our ports and grid so that we can meet and exceed 40 GW of offshore wind. We need to end the effective moratorium on onshore wind, embrace tidal power and other forms of renewable energy, drive forward our nuclear programme and invest in clean energy storage.

There needs to be a proper inquiry into how we ended up with the disastrous regulation system under this Government and a root-and-branch reform of that system so that we never again have a situation where so many companies go bust and it is the British people who are left to pay the price, with such a dramatic impact on their bills. I am afraid to say that the culpability lies directly at the Government’s door: they were warned and they did not act.

This debate has been revealing in very many ways.

[Alan Brown]

Will the right hon. Gentleman give way?

[Edward Miliband]

I will not.

We have a Government who got us into this mess and have no clue how to help the British people out of it. They are paralysed in the face of this cost-of-living crisis. They do not have any answers for the British people, either now or in the future. That is why we are acting. I urge Members from all parties to join us in a few minutes and vote for relief for hard-working families across this country.

Downing Street Christmas Parties Investigation

Alan Brown Excerpts

Thursday 9th December 2021 Commons Chamber

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Just today, the Tories were fined nearly £18,000 for not declaring the donation for Downing Street refurbishment. So will the Minister confirm that a gathering to look at the Prime Minister’s shiny new curtains still would breach regulations? More importantly, will the Minister confirm that even if people stick to the line, “It was a socially distanced gathering, with bring-your-own booze”, that is still a party that breached the regulations and that if the Prime Minister was armed with that information, he misled Parliament and must resign?

[Michael Ellis]

The nature of any gathering is, as I have repeatedly said, going to be a matter for the investigation.

Conduct of the Right Hon. Member for Uxbridge and South Ruislip

Alan Brown Excerpts

Tuesday 30th November 2021 Commons Chamber

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Madam Deputy Speaker,

“The Scotch—what a verminous race!”

So says a racist poem that calls for the “comprehensive extermination” of the Scots—a poem that the current Prime Minister thought merited publishing when he was editor of The Spectator. We know that he thinks that

“a pound spent in Croydon is far more of value to the country…than a pound spent in Strathclyde.”

That is his view of our place in the Union. We have already heard the hon. Member for Dudley North (Marco Longhi) telling us to be grateful for what we get.

The Prime Minister has suggested that it is English subsidies that pay for Scottish Government policies such as free personal care and free tuition fees. He has also called for the abolition of the Barnett formula. Not long ago, he told Tory Back Benchers that devolution was Tony Blair’s “biggest mistake” and a “disaster”, so it is both bizarre and pathetic how the Scottish Tories defend this man and his attitudes.

The Prime Minister tried to woo us with the Union bridge, but we did not need the feasibility study to tell us that it was a stupid idea and that it could not be done. Meanwhile, while he kept trying to find money for his vanity project, the Scottish carbon capture cluster—the most advanced such project—has been ditched in favour of two clusters in the north of England that are targeted at the red wall seats. Yet again, that is our place in the Union according to the Prime Minister.

This is also the Prime Minister who helped to inflict Brexit on us—a man happy to be on a bus with a slogan that was a downright lie, with a leave campaign that broke the rules on the use of data and was partly funded by dark money.

[Paul Holmes (Eastleigh) (Con)]

On a point of order, Madam Deputy Speaker.

--- Later in debate ---

[Madam Deputy Speaker]

The hon. Gentleman may not have been in the Chamber at the beginning of the debate, but the Chairman of Ways and Means made it very clear that, in the particular circumstances of this debate, some language that could not normally be used is allowed because of the nature of the motion.

[Alan Brown]

For the record, the slogan on the bus was a downright lie.

This is a Prime Minister who gave us an illegal prorogation of Parliament, and was willing to break international law. This is a Prime Minister who clearly does not respect democracy, and is seeking to undermine it further. We have the introduction of voter ID, and lifetime votes for expatriates because he thinks that that they are more likely to vote Tory. He has given himself the power to call an election. We have seen the attack on the Electoral Commission, the privatisation of Channel 4, the attempts to install Paul Dacre as chair of Ofcom, and the secret freedom of information clearing house. All those are further levers to manipulate and to hold on to power. Moreover, this a man who once conspired to have a reporter beaten up, and who was sacked from his own job as a journalist for lying in a story. As we have heard, he also continues to stuff the House of Lords with cronies and donors. It is outrageous that he suggested to the Liaison Committee that that was necessary to counteract the power of trade unions.

All this explains why the Prime Minister rushed to the defence of Owen Paterson over paid lobbying. So many of my constituents ask me how I can put up with the antics in this place, but one thing I can tell the Tories is that this is driving people towards independence.