Amendment of the Law

Debate between Andrew Bridgen and Chris Heaton-Harris

Wednesday 21st March 2012 Commons Chamber

[Chris Heaton-Harris]

As the hon. Lady knows from the Public Accounts Committee, where we have often talked about such matters, it would be lovely if Government Departments had a holistic approach to any area of policy. If we could start with small business, that would be fantastic, but I do not think we are quite there yet. That is something we would all support across the political spectrum and without political point-scoring.

I was speaking about the waving of Order Papers and the 2 million people being lifted out of paying tax altogether—a thoroughly good thing, which I would like to think is welcomed in all parts of the House. It benefits everyone who is working—people who are trying hard for themselves, have got on the job ladder and are moving forward. I benefit. From what I see on Twitter and other media sources, if people are earning around £60,000, have children and drive a car, they are not in a great place after the Budget. That includes most Members here. We have managed to produce a Budget that penalises MPs, which I am sure our constituents will be relatively happy with. Most people want to see the lowest paid in society not paying tax, and long may that continue.

I have one or two concerns and plenty of suggestions. The Treasury Minister will know of my long-running love affair with onshore wind turbines and what they do to my constituency. Although there was not much about renewables or the subsidy levels, I welcome the words spoken by the Chancellor in his speech. An investment in gas and in nuclear is proposed. If we chose that method to hit our 2020 carbon target, we would save more than £35 billion, compared with the route that we are currently choosing to go down, which involves other types of renewables that cost an awful lot more. The subsidy that is given to landowners and energy companies makes energy cost more, increasing fuel poverty at the other end of the cycle. I suggest wholeheartedly that we look carefully at the policy choices we are making when we talk about energy, green taxes and fuel poverty in the future.

Personally, I do not mind consumption taxes. I know that Labour Members take issue with that, so let me give an example. I would love to see the end of vehicle excise duty. Fuel prices are too high, as we all know because we all regularly fill up our fuel tanks. Getting rid of vehicle excise duty would add, I believe, roughly 1.5p to the cost of a litre of unleaded petrol and diesel. But we would not have to pay vehicle excise duty and we would pay as we drove, so if we drove a gas-guzzler we would pay a lot more. The old lady who drives hardly at all would pay a lot less. There would be a huge simplification of the tax system. That might not work, but I would like us to think outside the box and consider areas where we could simplify taxes.

[Andrew Bridgen (North West Leicestershire) (Con)]

Is my hon. Friend aware of the millions of vehicles that are not paying vehicle excise duty? Putting the tax on fuel would catch them all and bring them within the scope of taxation.

[Chris Heaton-Harris]

I am aware of that; it is one of the reasons I moot the idea at this point.

I would like to finish by talking about personal taxation and the general excitement across the House about the reduction in the top rate of tax from 50p to 45p, based on the Laffer curve. I have been reading the document that the Treasury has produced and note that the comparison has been made on the changes to the additional rate of income tax and the money that we might have expected to get in, or not to get in, as a result of increasing taxes. I humbly suggest that that completely underestimates the value of reducing taxes, because reducing taxes means that there is more of an incentive to pay and not to try to divert or put off paying them for a certain amount of time. I would love to see more work done in the Treasury on what those figures would end up like, because we want to encourage the creators of wealth, and one way of doing so is by saying to them, “You can keep more of the income you generate.” We want people to take a chance and a risk and to set up their own businesses, and this is one way of encouraging them to do so.

Onshore Wind Turbines

Debate between Andrew Bridgen and Chris Heaton-Harris

Wednesday 13th October 2010 Westminster Hall

[Chris Heaton-Harris]

I agree with my hon. Friend, and I will talk about that point later. It is significant and important with regard to issues of noise and flicker, which I will come on to.

I believe that wind is a burden on the grid. It forces other forms of capacity to be shut down to accommodate wind production when the wind is blowing, and then instantaneously to come back on line when the wind stops. I would like to ask the Minister how much additional gas-fired power capacity—that is the only way that we can power up instantaneously—will be required to accommodate the current targets for wind capacity in the UK? What is the anticipated cost to the electricity markets in lost efficiency and stranded capacity associated with gas-fired plants operating as back-up for wind power? Will the Minister outline the efficiency losses, and the operational and economic impact on other forms of generation that have to modify their behaviour to accommodate the power that comes from wind?

Taking all those factors into account, will the Minister state how many grams of carbon dioxide, or just carbon in general, onshore wind will save per kilowatt hour? Is it not the case that, without massive hydro or other bulk storage, wind capacity must be matched on the UK grid almost megawatt for megawatt by fossil back-up operating at inefficient part load?

RenewableUK has publicly acknowledged that profits for wind farm operators are impressively large. That is largely a consequence of the operation of the indirect renewables obligation subsidy mechanism.

[Andrew Bridgen (North West Leicestershire) (Con)]

Is not the crux of the problem the huge amounts of subsidy involved in operating wind farms, as my hon. Friend is explaining? I understand that it is in the region of £20,000 per mast to the landowner per annum and £100,000 possibly to the operator. That is what is driving the keenness to build wind farms, and we are in real danger of the sustainable tail wagging the energy dog.

[Chris Heaton-Harris]

I agree. In 2006, the National Audit Office highlighted the fact that the subsidy for onshore wind was excessive and gave poor value as a carbon-saving measure. Those costs are borne by the electricity consumer, and the Office of Gas and Electricity Markets has questioned whether the growing level of that indirect and regressive taxation is acceptable.

The high profitability for onshore wind is skewing renewables investment across our country towards onshore wind and away from research and development for other technologies and other remedies such as energy saving and consumption reduction. It is also, as my hon. Friends have mentioned in relation to each of their constituencies, encouraging large numbers of speculative applications for wind farms.

--- Later in debate ---

[Chris Heaton-Harris]

I would very much welcome the Minister committing to that. Indeed, I have asked him about whether there are secondments from the noise industry to DECC at the moment, and I believe that the reply I got was slightly incorrect. I will contact the Minister.

[Andrew Bridgen]

rose—