NATO and the High Arctic

Debate between Alex Ballinger and Graeme Downie

Wednesday 4th March 2026 Westminster Hall

[Alex Ballinger (Halesowen) (Lab)]

I beg to move,

That this House has considered Government policy on NATO and the High Arctic.

It is a pleasure to serve under your chairship, Dr Huq. There are slightly fewer people here than I was expecting—I think we have a clash with the Ministry of Defence estimates debate—which is a bit of a shame, but I am delighted to see that we have a brace of bootnecks in the debate. I was hoping to see the Minister for the Armed Forces joining us—then we would be nearly a fire team. I note that the hon. Member for Exmouth and Exeter East (David Reed) has just told me he has never been to Norway and therefore is not a proper bootneck. The Minister for the Armed Forces went earlier this year, so maybe he has had his fill of the ice-breaking drills.

This debate is happening at the same time as the war in the middle east, which reinforces not only the importance of naval assets, as we see the impact of the closure of the strait of Hormuz on our economy at home, but the importance of naval air defence. I am pleased that HMS Dragon will be joining the US taskforce in the Mediterranean very soon.

The importance of the Navy cannot be overstated in the middle east, but it is even more important in the High North. That is because the High North is central to the UK’s security, to its economic resilience and to NATO’s ability to deter Russia. If we get our posture wrong, we do not just lose influence in the polar region; we take risks in the north Atlantic, take risks with our critical national infrastructure and risk our ability to reinforce our allies during a crisis.

I will make three points in the debate today: why the High Arctic matters, what has changed in the recent past, and what NATO and the UK should do about it. The High Arctic matters because climate change is changing the geography. Receding ice is extending operating seasons, opening access and drawing in more strategic interest in shipping, minerals and energy. Those create opportunities for states bordering the Arctic, but they also create risks. More access means more traffic. More traffic means more accidents and more opportunities for coercion, especially in a region with vast distances and limited infrastructure.

The Arctic is becoming busier and more contested at the same time. Undersea competition is now a frontline issue. Our economy relies on seabed infrastructure for fibre-optic communications, power cables and gas pipelines. A single major incident with this critical undersea infrastructure can cause disruption beyond the immediate area.

[Graeme Downie (Dunfermline and Dollar) (Lab)]

I thank my hon. Friend for leading a debate on one of the most important security and defence issues that we face. I was in Estonia at the start of January, in my role as chair of the all-party parliamentary group on Estonia. I met members of its military, as well as the British troops in Estonia, to talk about the importance of the High North and Arctic. Does he agree that partnerships such as the joint expeditionary force and other work being done in the area are vital to the protection of the undersea cables that he correctly highlighted? It is important that we look for those effective models to defend the High North and the Arctic.

[Alex Ballinger]

I absolutely agree that the JEF is a vital alliance for our operations in the High North. I met the Estonian ambassador only a couple of weeks ago, and we were pleased to discuss opportunities for co-operation, in addition to the UK forces that are based in Estonia, as part of deterring the Russian threat to that part of the world.

Importantly, the High Arctic is a top priority for Moscow strategically, militarily and economically. Russia has been building up its military presence, and it is not subtle about it. The northern fleet is modernising: it has a more capable navy and increasingly active submarine operations, and it focuses on controlling access to the European High North. We should be clear about what that means for the UK. Russia’s sea-based nuclear forces are concentrated around the Kola peninsula, and the High North is central to its nuclear deterrent strategy. That raises the stakes for NATO.

The Royal Navy has also seen a 30% increase in Russian vessels threatening UK waters over the past two years. Russia’s navy is increasingly capable and willing to test our defences from the High North. Russia wants to exploit the Arctic for more than military leverage; it wants to dominate access to sea routes and mineral resources. For Russia, this is about economics and security, which is why we cannot treat Arctic competition as “just defence”.

Recently, the big change we have seen in this region is what is happening in Ukraine. Russia’s invasion has transformed European security, and the Arctic is a part of that. Two Arctic countries, Finland and Sweden, joined NATO because they concluded that, in the context of Ukraine, neutrality no longer protected them. As a result, every Arctic country except Russia is now a NATO ally. That strengthens NATO’s hand, but it means that NATO’s northern responsibilities have expanded.

The second development is Greenland. We all saw Trump’s threats and rhetoric, which have thankfully receded. I am pleased that European countries were united in saying that Greenland’s sovereignty should not be a bargaining chip.

Road Fuel Market

Debate between Alex Ballinger and Graeme Downie

Wednesday 6th November 2024 Commons Chamber

[Graeme Downie]

I thank the hon. Member for his intervention; I believe that taking an intervention from him is a rite of passage in this House. I could not agree more, particularly in relation to constituencies such as my own, where there is a mix of urban and rural areas and the rural pricing hits particularly hard. Those are often areas that have poorer public transport as well, so the impact is felt even more.

Most small businesses rely on efficient and cost-effective transport for their deliveries, staff and customers, and that often means running and fuelling a car or van. High prices at the pumps have a direct impact on small businesses and squeeze already thin margins in the ongoing crisis in the cost of living and of doing business. Research by the Federation of Small Businesses shows that more than three quarters of small businesses saw their costs go up in the last quarter, and of those more than a quarter said that the increased price of fuel was one of the main reasons for that rise.

My constituency is just 20 miles from Scotland’s oil refinery in Grangemouth, yet residents in Dunfermline consistently pay a full 5p a litre more than those nearby in Glasgow, Stirling, Glenrothes or Kirkcaldy. That is despite the local supermarkets Tesco and Asda, as well as a host of other outlets in the city such as BP, all supposedly competing to be the driver’s choice. What we see in Dunfermline is a cluster of prices around the same level within the city, and price clustering around Dunfermline as well, with all supermarkets and suppliers at roughly the same price. That is not local competition; that is a local cartel. Even worse, my constituents are paying 134.7p per litre at Asda in Dunfermline, whereas in the Asda Bridge of Dee store in Aberdeen, 112 miles further north, they pay just 121.7p at the pump. Never mind 5p—that is a difference of 13p per litre.

In rural and semi-rural areas, as was said earlier, where public transport infrastructure is less entrenched—certainly in my constituency, where the train service is frequently short-formed, delayed or cancelled at short notice—fuel is not a choice; it is a necessity. My Dunfermline and Dollar constituents rely on their vehicles more heavily, yet often face the highest prices. That is an issue of basic fairness. I am all in favour of market forces being used to shape prices, but not where the market is demonstrably broken, and fuel pricing has all the signs of a broken market mechanism.

It is nothing short of outrageous that the most essential aspects of daily life are subject to broken competition, a non-functioning market and what appears to be price clustering by retailers. Across the constituency, small businesses and sole traders such as plumbers, builders, florists and taxi drivers, along with families, are paying the price. As we might say in Scotland, small businesses are being pumped at the pumps. Like many fellow Members of this House, I welcome the Chancellor’s announcement in the Budget, which we passed this evening, on freezing fuel duty, which will help people who are still feeling the impact of out-of-control inflation on their take-home pay. However, while this pricing behaviour by retailers continues, I am concerned that the full benefit of the Government’s efforts to keep down fuel costs will not be passed on to my constituents.

To help the House understand fully the consequences of this kind of price clustering and the effects of a broken market, I will share the experience of one of my constituents, Aimee, a 20-year-old apprentice who wrote to me last month. Aimee was proud to secure her apprenticeship, which she started this autumn, earning the apprentice minimum wage of £6.40 an hour. With just over £1,000 a month to live on, Aimee uses £200 a month of her hard-earned wages on fuel. She gets her petrol at Asda in Dunfermline where, as I mentioned, unleaded was 134.7p per litre yesterday. Her £200 is buying her 148.48 litres of fuel. However, if Aimee was buying her petrol at Asda Bridge of Dee in Aberdeen, where unleaded was 121.7p a litre yesterday, she would have paid just £180 for the same amount of fuel. That is a full £20 a month difference. Over the course of a year, Aimee would have to work an additional 36 hours just to pay for the difference in price of petrol for her to get to and from work. That is not justifiable. Aimee, who is learning while earning, is experiencing a real-terms pay cut differential due not to anything she has done, but to the effects of this broken market.

We encourage the use of greener transport, but we have seen the failures of the SNP Government and ScotRail to provide Fife with a reliable service, so that is not an option for people such as Aimee, with short trains and unreliable service, particularly in West Fife. One step that the SNP-Green coalition at Holyrood did take was to remove peak fares, which saw a 6.8% increase in train usage. However, that encouragement of behavioural change was swiftly removed—just like the Scottish Greens from the coalition—when the financial incentive of fairer train fares was also removed.

Behavioural change of a positive nature does not happen overnight, but the switch back to the car from the train does, and has. That short-sighted decision—like the short-formed trains that often serve the region—has put people off using green transport. Having been let down by the Scottish Government, commuters in Dunfermline are being taken advantage of by fuel retailers and market competition in my constituency.

[Alex Ballinger (Halesowen) (Lab)]

My hon. Friend is making an excellent speech. I have also noticed in my constituency that many fuel retailers are not passing on benefits to drivers and, as he recognises, the Competition and Markets Authority has said that those competition practices are unfair. I notice that the Government are taking forward a fuel finder app, which will allow customers and drivers to find out more information about different retailers and will drive competition. Does he agree that the Government should do that as soon as possible, so we can get that transparent and accurate information, and drivers in my constituency and others are able to get savings on fuel?

[Graeme Downie]

I thank my hon. Friend for that intervention. I will come on shortly to the action the Government are taking and where I think there is still more to be done.

The impact goes beyond personal strain; it creates an uneven playing field for businesses, hindering economic growth by harming small business owners in Dunfermline who rely on vehicles for operation. In this Budget the Government have taken a wide range of steps to help working people across the country, including in my constituency: a wage rise for 200,000 Scots, record funding to Scotland, fixing the mineworkers’ pension scheme, protecting the pensions triple lock and, as I have said, committing funds to maintain the freeze on fuel duty that the Conservatives failed to do and which would otherwise have seen people like my constituent Aimee paying even more for fuel.

I am also pleased that this new Government have confirmed that they will implement two of the CMA’s recommendations: an open data scheme called fuel finder that will require all fuel retailers to share their prices in real time, and a road fuels monitoring function that will report on the state of competition in the road fuel market. Scenario modelling by the CMA suggests that pump prices could reduce by between 1p and 6p a litre as a result of these measures, helping to ensure that drivers get a fair deal for fuel across the UK. I am keen to hear from the Minister what more she thinks the Government can do specifically around ensuring a fair and functional fuel market, so that pricing is fair and not allowed to cluster into local price-fixing, as seen in Dunfermline.

Fuel prices are undoubtedly subject to a range of external factors, as we have seen over the years, but by increasing transparency and ensuring real competition between forecourts, we can have a functioning market where competition helps drive down prices. However, nothing is preventing fuel retailers from choosing to do the right thing right now and to stabilise fuel prices, to remove price clusters like we see in Dunfermline and to ensure that people such as Aimee are not financially penalised for where they live. I hope this Government will build on the excellent start they have made to protect working people and small businesses, and I hope we will be able to do more to stop fuel retailers profiteering on the back of hard-working people up and down the country.