Net Zero Strategy: High Court Ruling

Barry Gardiner Excerpts

Thursday 21st July 2022 Commons Chamber

[Greg Hands]

I am afraid to say that is an extraordinary attack, even by the hon. Gentleman’s standards. Actually, this Government were the first to introduce a net zero target. At COP26, we saw our Prime Minister and our COP President leading the world on action against climate change—action that others now seek to copy.

[Barry Gardiner (Brent North) (Lab)]

The UK has the lowest tax take in the world from offshore oil and gas. Even with the temporary energy profits levy, the tax take will still be six percentage points lower than the global average, and the new investment allowance announced by the Government will compensate companies 91p for every £1 they spend on new oil and gas projects. Will the Government look carefully at the fiscal regime and abolish the obscene subsidy that is distorting investment into outdated fossil fuels instead of new renewables, which do not qualify for that investment allowance?

[Greg Hands]

I return to what I said earlier. The situation we inherited from the last Labour Government is that renewables provided only 7% of our electricity mix; it is now 43%. When it comes to oil and gas taxation, the Government’s energy profits levy—the hon. Gentleman will know this, as I very clearly remember him debating it in the Chamber—is set to raise £5 billion this year, which is considerably more than the tax proposed by the Labour Front Bench, which he backed.