Budget Resolutions

Alex Sobel Excerpts

Monday 11th March 2024 Commons Chamber

[Alex Sobel (Leeds North West) (Lab/Co-op)]

The Secretary of State talks about a number of productions and studios, all of which are in the south of England. What support will the Government give to ensure that we have post-production and production facilities in the north of England—for instance, by matching Mayor Tracy Brabin’s ambition to have a studio in West Yorkshire?

[Lucy Frazer]

The Government are supporting creativity across the country. In June, I announced £50 million, which we know from experience will leverage £250 million of investment, for creative clusters across the UK. Only recently, I was at Aviva Studios in Manchester. The £100 million invested in Manchester is the biggest investment since the Tate Modern. The hon. Member will have heard in the Chancellor’s statement about the significant investment in Teesside, particularly in the creative industries.

--- Later in debate ---

[Alex Sobel (Leeds North West) (Lab/Co-op)]

What we saw last week was a Budget with no vision, no plan for getting us to net zero, no plan to drive investment in renewables and low-emission technology, no plan to boost the roll-out of electric vehicles, and no plan for retrofitting homes. The British people deserve better than that.

The windfall tax on oil and gas profits that the Government extended by one year until 2029 will raise an additional £1.5 billion, according to the Chancellor, as the tax, introduced in May 2022, raised £2.6 billion in its first year. Think what those billions could do if they were properly directed towards our net zero goal. The funds from the windfall tax could be ringfenced for renewable energy, fixing our grid, green skills training and securing the well-paid jobs of the future—our green transition—but they just disappear into a Treasury black hole.

When will the Government end the absurd practice of subsidies for industrial-scale wood burning? We heard nothing about this in the Budget last week. Drax power station burns wood pellets imported from north America to produce energy. It has had a subsidy of £11 billion of taxpayers’ money, and it is considered a renewable energy power station. Drax depends on Government subsidies for its support. When Drax was a coal power plant, it emitted 10 million tonnes of carbon. In 2022, Drax, now burning wood, emitted 12 million tonnes of carbon. Drax is the UK’s biggest emitter of CO₂. The funds that subsidise Drax could be redirected to funding genuinely green and renewable technology, but under this Government, these funds are fuelling the climate crisis.

My hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) gave an excellent speech, including on the crisis in live music venues. I support the tax credits for the film industry, the video games industry and orchestras. Why is there not a tax credit for live music venues?

We Labour Members have a vision for Britain of a green sustainable energy future, and we have a plan to deliver it. Labour will introduce a proper windfall tax on the massive profits of oil and gas companies. In government, Labour will go further than the Conservatives and raise the windfall tax on oil and gas profits from 75% to 78% until 2029. A Labour Government will create a new national wealth fund, with £7.3 billion to be invested in the jobs that can rebuild Britain’s industrial strength. We will crowd in private investments in our ports, gigafactories and hydrogen, and protect our steel industry, which the Government have allowed to fail.

Labour will create Great British Energy, a new publicly owned energy company that will champion green energy to give us real energy independence. Great British Energy will invest in and deliver projects in partnership with the private sector. With our commitment to an ambitious £8.3 billion capitalisation of Great British Energy, we will invest in clean, home-grown power, which will cut Britain’s energy bills. Great British Energy will invest in leading-edge clean energy technologies, such as floating offshore wind, hydrogen and tidal. Labour is committed to clean power by 2030, and will pioneer offshore tidal by fast-tracking at least 5 GW of capacity, more than doubling our onshore wind capacity to 35 GW, more than tripling solar power to 50 GW, and quadrupling offshore wind; our ambition is for 55 GW. We will also double the Government’s target on green hydrogen, so that there is 10 GW particularly for use in the steel industry.

Labour’s British jobs bonus plan will boost new clean energy jobs. Clean energy developers will be rewarded with a British jobs bonus if they invest in good jobs and supply chains here at home. Labour will allocate a fund of up to £500 million, starting in 2025-26, to invest in those industries, and it will guarantee 35,000 new jobs in those industries. The Government stole a number of Labour policies last week, so perhaps they will think about those ones as well. They have clearly missed an opportunity to create our energy transition.

After 14 years of Conservative failure on climate change, Labour is ready to invest in Britain’s clean energy future. We are ready to make Britain a world leader on climate change, drive investment in renewables and low-emission technologies, transform our energy sector to lower our power bills, and create good clean energy jobs for Britain’s future.