Oral Answers to Questions

Debate between Alan Brown and Anthony Browne

Thursday 16th May 2024 Commons Chamber

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

The Government recently announced yet another consultation support mechanism for the production of sustainable aviation fuel. Meanwhile, other countries across the world are getting on with producing SAF at scale. When will the Government get the mechanism in place, and will they meet their unambitious target of five SAF plants by 2025?

[Anthony Browne]

On 25 April, we published the SAF mandate, requiring 10% SAF across the aviation industry by 2030, and announced the revenue certainty mechanism consultation. It is an eight-week consultation. We have been inviting the whole industry to respond to it. We have to ensure that we get it right, and we will produce the final result very shortly after that.

Nuclear Energy (Financing) Bill

Debate between Alan Brown and Anthony Browne

2nd reading
Wednesday 3rd November 2021 Commons Chamber

[Anthony Browne]

I absolutely agree. As I said, we have had nuclear for 70 years and we know that it works. The point I was about to come to, which my hon. Friend touched on earlier, is that the French have 70% of electricity produced by nuclear and they have a very well-established industry. It is not politically controversial at all. They have made it work and made it cost-effective. That is one of the reasons why France has far lower carbon dioxide emissions that we do in the UK. We should change to other technologies. We heard mention of tidal power earlier—yes, absolutely. However, there have been many projects to try to make tidal power work over the past few decades and none of them has yet quite succeeded, although we should still carry on trying.

As I have said many times in this House, the UK has had a really good track record in reducing carbon dioxide emissions, roughly halving them. Our per-capita emissions are now lower than those of many other countries, including green icons such as Denmark and Norway, but France has had lower emissions than us for decades because of nuclear power. I used to live in Belgium and got my electricity bills from France, and they used to have to say where the electricity came from: “nonante-neuf pour cent nucléaire”, which is—in Belgian French, not French French—“99% nuclear power”. That was always a delight for me. Driving around France, nuclear power stations are all over the place. It is not a political issue; people are very comfortable with it.

The environment movement has been very successful in demonising nuclear power beyond any scientific justification. That in part is why UK Governments have been so nervous, and it has meant as a country we have gone from being a world leader in nuclear power and one of the first to introduce it to being a straggler with a semi-clapped-out sector, as we have heard, with all these power plants going out and without much expertise, so that we end up depending on foreign companies and foreign Governments to be able to do anything. We have to build up our capacity again as a country. As we move away from nuclear fuels, we need a strong nuclear sector more than ever.

[Alan Brown]

The hon. Gentleman is talking about demonising nuclear, but is having a £132 billion waste legacy to clean up demonising nuclear, or pointing out a harsh reality?

[Anthony Browne]

I thank the hon. Gentleman for raising that point, which I was going to come to. Clearly nuclear has to be cost-effective throughout the whole lifecycle, and there is a burden of responsibility on the Government to ensure that is the case, although I must admit I do not recognise the £132 billion figure.

As we move away from fossil fuels, we need nuclear power more than we did in the ’50s, ’60s, ’70s when we were developing it. As we start using electricity to heat our homes and power our cars, we need more production capacity that is resilient and secure. The hon. Member for Richmond Park (Sarah Olney) made a point about energy efficiency, and I completely and utterly support that, but as we move away from fossil fuels across other areas of the economy and our lives, the demand for electricity will go up rather than down, whatever we do with efficiency. That is inevitable, so we need to ensure we have more production and more secure production.

The recent spike in gas prices has shown our national vulnerability if we do not have resilient energy suppliers, and we must guard against that happening to electricity suppliers. We cannot risk windless days and dark days leading to blackouts in future. Wind, solar and hydrogen power are wonderful. We have done great in rolling them out—wind power produces more energy than any other source and that is great—but they are not the sole solution. We need every tool in the toolbox. We need to ensure that we can provide the stable, resilient base-load that we will increasingly need as we move away from fossil fuels.

In the various debates I have had about nuclear power over the decades, anti-nuclear campaigners normally pipe up at this point with, “Nuclear power is not a good use of taxpayers’ money.” That is when I know they have largely run out of other arguments. Obviously nuclear has to be value-for-money. I am an economic, fiscal Conservative. We want to go for the best value forms of energy, not the expensive ones. It needs to be financially sustainable, and we need to look at the whole lifecycle costs of nuclear power. Clearly the Government have a duty to do that, and that is what the Bill is about. The Government have to ensure we have the right financial framework to ensure that the nuclear industry can survive and thrive and in the most cost-effective way possible. If companies are to invest multiple billions of pounds to build nuclear reactors, they need to do it in the lowest risk way, otherwise the cost of capital becomes prohibitive and the projects are not viable.

I used to work at Morgan Stanley, the US investment bank, and we had a big infrastructure fund investing in projects around the world—not nuclear, I have to say, but many other different sectors. When assessing new infrastructure investment, we have to factor in many of the risks. There is construction risk: can we build the thing? There is technology risk: if it is a new technology, will it work? There is political risk: what if there is a new Government who change their mind and say no? Then there is demand risk or volume risk: will there be enough demand for the product and will it be at the right price to generate the revenues to pay for the cost of capital being put up front to build it?

The trouble with the previous financing regime is that it did not deal with the first risks and expected companies to bear all those risks up front at cost to themselves. That meant that many companies found they had just too much risk to make the projects viable. It is not surprising that some companies ended up pulling out of nuclear power stations they had been planning to build.

The regulated asset base model that the Bill brings about is a far better model for financing the building of nuclear power stations, because it properly shares construction risk, political risk and technology risk between the public sector, consumers and companies. The RAB model is a completely standard model that has been widely used in other areas of infrastructure for decades and is well understood, as various Members have pointed out. The Government and companies have experience of the RAB model. We know it works well and we know how to make it work well in the interests of both parties. I am delighted that we are on the front foot again with nuclear power as a country. As we progress and improve our expertise as a nation, as we have heard we need to do, nuclear power will get more standardised, easier to build and better value for money. The Government must continue to have courage in their convictions with nuclear power. I fully commend the Bill to the House.

Climate Change Committee Progress Report 2021

Debate between Alan Brown and Anthony Browne

Thursday 21st October 2021 Westminster Hall

[Anthony Browne]

That is a very good point and I will come to it briefly. We need absolutely to try and get to net zero, but also to promote measures such as insulation and energy efficiency in housing and industry to reduce consumption.

We need other measures, rather than just decarbonising power. These other measures are where the potential political pain comes. Decarbonising electricity production did not really require consumers to change anything. The electricity supply to their homes and their sockets was the same as before, but produced in a climate-friendly way. They had the same cars and same central heating systems. However, with other sectors needing to decarbonise, future policies will inevitably have a more direct impact on consumers. That is why we need more political will in the coming decades, not less. This should be doable. The public are very supportive; a large majority say they want stronger action on climate change.

The CCC did welcome the advances in policy that have already been made. In last year’s report they made 92 different recommendations; this year’s report says that 72—over 75% of them—have either been achieved, partly achieved or are underway. That is a good record. However, it thought that things were going too slowly. It concluded that clearly policy progress is being made, but it is not yet happening at the necessary pace. Only 11 of the 72 recommendations have been achieved in full.

The report states that in 21 areas of abatement—places where we can make real changes—sufficient ambition is being maintained in only four. The report welcomes the Government’s ambitions until 2025 on electric cars and vans, off-shore wind and tree planting. I very much welcome that here the Government are in line with the committee’s recommendations. In last year’s 10-point plan for climate change, the Government committed to 40 GW of offshore wind power by 2030, which is what the CCC is calling for—tick! They also committed to 30,000 hectares of tree planting a year by 2025, which again is what the CCC is calling for—tick!

In some ways, the Government have arguably gone further than the CCC wanted. It wanted to ban the sale of new petrol and diesel cars by 2032, but the Government are bringing in the ban from 2030—two years earlier. That really is a world-leading ambition. Sales of electric vehicles are already escalating rapidly, and although the charging point infrastructure is not being rolled out quite fast enough for some electric car drivers, it is going at pace. Industry is taking the lead from the Government, with Jaguar having committed to selling only electric vehicles from 2025, and Ford has just announced that it will make parts for electric cars at its Halewood plant in Liverpool, giving it a new lease of life.

I am delighted to say that there has been significant progress since the CCC published its report in June and since this debate was applied for. In particular, the CCC was critical of the Government for not having published their transport decarbonisation plan, their hydrogen strategy, their heat and building strategy and their overall net zero strategy—it criticised them for the uncertainty and delay. To their credit, the Government published the first two, on transport and hydrogen, in the summer, and the heat and building strategy and the net zero strategy were published just a couple of days ago. Those included measures such as: a £5,000 grant to make clean-heat heat pumps affordable for homeowners; working with industry to ensure that clean heat is as cheap as gas-fired central heating by 2030; and a target to stop any new gas boilers from being installed by 2035—another world-first commitment.

The CCC has also chastised the Government for a lack of ambition on carbon capture and storage, which was the subject of a debate in this Chamber yesterday. It has said that we need to capture 22 million tonnes of CO₂ a year by 2030 while the Government were targeting only 10 million tonnes a year by then. It noted that that was the biggest single gap between what it had called for and what the Government were planning. When I drafted my speech at the beginning of the week, I was going to call on the Government to be more ambitious on CCS. Then, on Tuesday, they were: they announced two new clusters and a target of between 20 million and 30 million tonnes a year by 2030, which is potentially more than the CCC asked for. Hurrah! Those targets must be turned into reality, but the announcement is a big step forward.

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

Does the hon. Gentleman not agree that the Government could be even more ambitious on carbon capture and storage by progressing the Scottish cluster on track 1 as well, instead of having it stuck as a reserve?

--- Later in debate ---

[Anthony Browne]

The more ambitious the Government are, the happier I will be, but I totally bow to the Government’s metrics. The first two projects are right for the first phase, and the Acorn project is in reserve. I think the Minister said yesterday that being the reserve puts the project in a more advanced position for the second phase of the next two that will come—I am not sure whether anyone picked that up.

[Alan Brown]

It is still in reserve.

[Anthony Browne]

Hopefully it will get there in the second phase.

In my draft speech, I was also going to echo the Climate Change Committee’s call on the Government to commit to greenhouse gas removal targets, for which they had no target at all. The CCC said that the UK Government need to target 5 million tonnes of removal by 2030. In the net zero strategy this week, I discovered as I read through it that the Government committed to do exactly that—I did not see that reported anywhere, however. They also committed to a robust monitoring, reporting and verification process for greenhouse gas removal, which the CCC called for and which I was going to call for. In short, many of the policy gaps between the CCC’s report and Government policy have been closed since the report was published. Four months is an extremely long time in politics.

I strongly welcome this week’s announcements, even though it meant I had to rewrite my speech. Yes, the strategies have been delayed, but I am sympathetic to how the Government’s machinery has been distracted by the worst pandemic for 100 years. It is much better to have a good strategy late than a bad strategy early. However, there are still a few areas where more progress would be good. One of our biggest carbon sinks is peatland, and the Government are aiming for 32,000 hectares of peatland to be restored each year by the middle of the decade, but the CCC would like to see 67,000 hectares restored. That is quite a big difference. The CCC also says that the Government need to do more on consumer choice and behaviour: in particular, diet change—eating less meat, presumably—and reducing demand for flights. Those are indeed sensitive areas. I am hopeful that new technologies such as cultured meat and synthetic aviation fuels will help bridge that gap.

Taxation (Post-transition Period) (Ways and Means)

Debate between Alan Brown and Anthony Browne

Ways and Means resolution & Ways and Means resolution: House of Commons
Tuesday 8th December 2020 Commons Chamber

[Anthony Browne (South Cambridgeshire) (Con)]

It is a great honour to speak after my right hon. Friend the Member for Wokingham (John Redwood) and hear his impassioned plea for a vision about life in Britain after Brexit. Let me say one thing on that. In my one year here in Parliament, I have spent a lot of time working on different bits of legislation about what life will be like after Brexit. For example, the Environment Bill sets out a whole new framework, one far more ambitious than the EU’s, to preserve the environment, and the Agriculture Bill removes the totally discredited common agricultural policy, which I would like to see any Opposition Members support, and replaces it with a new regime in the UK that is fit for purpose.

I am the proud product of the EU and its internal market; I am half Norwegian, part Irish, part French, with extended family in Italy and Denmark. I have also been engaged in European politics for about 20 years. I was Europe correspondent for The Times, living in Brussels for three years. I was in charge of all the EU funding in London during the Prime Minister’s first term as Mayor of London. As chief executive of the British Bankers’ Association, I led all the negotiations for Britain’s biggest export industry in the European Commission, Council and Parliament, with meetings up to and including Jean-Claude Juncker. So I have had a ringside seat at many European negotiations, and we all know that they are part showmanship, part brinkmanship. Everything is always left to the last minute, and for a very good reason—this picks up on the point made by the shadow Minister, the hon. Member for Houghton and Sunderland South (Bridget Phillipson)—which is that we are negotiating with 27 different countries and they all have differing interests. A lot of them have a vested interest in trying to leave everything to the very last moment. I have sat through many Council meetings and summits where things went to not just to one minute to midnight, but several hours past it.

[Alan Brown]

Earlier, the hon. Gentleman tried to do the whole “oven-ready deal was to do with the withdrawal agreement”, which we know is a fudge. If this is so complicated, as he highlights just now, with 27 other countries involved, what does he say about the former International Trade Secretary, the right hon. Member for North Somerset (Dr Fox), who said that a free trade agreement with the EU would be the “easiest in human history”? How does the hon. Gentleman conflate or twist that?

[Anthony Browne]

I never thought that it would be a really easy negotiation. It was clearly going to be complicated, and the Government have been negotiating in good faith.

Another thing I have noticed from EU negotiations is that there are many different negotiations happening in parallel, and virtually no one knows what is going on. In fact, no one really knows what is going on apart from the people in the negotiating room, and often the people in the negotiating room do not know what is going on, because there is some ambush being plotted somewhere else that then slips into the negotiations. We have to trust our negotiating team. They are the only ones with the insight and knowledge of what is going on to be able to make judgments about when an issue should be pushed, when to play hard ball and when to turn up the charm.

That brings me back to the “notwithstanding” clauses. I strongly welcome the Chancellor of the Duchy of Lancaster announcing this agreement on all the Joint Committee issues with the European Commission. That protects the Good Friday agreement and the Northern Ireland protocol, and it will protect peace in Northern Ireland.

Those “notwithstanding” clauses were needed only in case the Joint Committee did not reach agreement. It has reached agreement, and therefore those clauses are not needed. The hon. Member for Houghton and Sunderland South said that the damage is done, but it is not. Often in negotiations, we need to play hard ball to get an agreement. It is entirely plausible that if we had not had those clauses, this agreement would not have been reached. We have that agreement, and the whole House should welcome it.

But it’s not all over till it’s over. We do not have the trade deal yet. There are still negotiations going on. I hope that we do get a trade deal, as I think the whole House does; very few people do not want that. It is very much in both sides’ interests that we get an agreement. It is in President Macron’s interest as well. I would not like to see him have to tell his entire fishing industry that it is about to lose 100% of its access to British fishing waters. Until we have a trade deal, the Government have to negotiate for all the different scenarios of having or not having a trade deal. We do not have to legislate for the Joint Committee not reaching an agreement, because it has done so. Therefore, we do not need those “notwithstanding” clauses in the Bill.

The Government have an absolute duty to ensure the integrity of the UK and its internal market and to do everything they can to ensure as much continuity as possible for businesses affected by this. The Government have an absolute obligation to the people of Northern Ireland—I speak as someone with a lot of family in Northern Ireland—to ensure that they have unfettered access to the UK in all circumstances. There must be no tariffs on goods from Northern Ireland to GB or GB to Northern Ireland, so long as those goods are consumed in the UK.

I welcome the agreement on the Northern Ireland border, which is be welcomed, but there is still the possibility of a no-deal scenario, and there might therefore be tariffs. It would be a dereliction of the Government’s duty if they did not legislate to have a tariff regime in Northern Ireland, which is what the Bill does.

The Government have a duty to ensure as much continuity as possible for businesses. The Bill ensures continuity of administration for VAT and excise duty in Northern Ireland, so that businesses in Northern Ireland know that they will still be part of the VAT and excise duty regime in the UK.

[Alan Brown]

The details of the Bill have not been made clear, so I am not sure how it provides the certainty that the hon. Member is talking about.

[Anthony Browne]

We have been given enough information so far to know the general principles of the Bill, but we are discussing a Ways and Means motion. The Bill will be published after this, in time for Second Reading.

There are two provisions on tax evasion in the Bill that are very welcome. The first is on ensuring that VAT is paid on goods bought online from overseas. We all know the scenario, and I am sure we have all done it: we order goods online from overseas and they are delivered through the post. The VAT payment is not made in the UK—it is often made overseas—or often not made at all. That mattered less when we were part of the EU, because we had an agreement with the EU under which VAT was charged. Following Brexit, it is even more important that we have a system where there is proper, robust payment of VAT. This is really important for high streets in Britain. The high streets in my constituency have really suffered from the coronavirus closures and lockdowns and from people moving to e-commerce. More than ever, we need a level playing field between the high streets and e-commerce, so I fully support that provision.

The second tax evasion provision is on the insurance premium tax. Again, this was less of an issue when we were in the EU. It is about whether somebody who buys insurance from other countries pays the insurance premium tax that insurance companies in the UK are required to pay. We had an assistance agreement with the EU to ensure that EU insurance companies paid that insurance premium tax. At the end of the transition period, that comes to an end, and this provision fills that gap, so I very much welcome it. This Bill is absolutely necessary. It would be a dereliction of the Government’s duty to ensure the integrity of the UK if we did not pass it, and I fully commend it.