Oral Answers to Questions
Bill Esterson Excerpts(2 days, 20 hours ago)
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Dan Tomlinson
I agree with the right hon. Member that Reform’s rabble yesterday was deeply underwhelming. As for fuel duty, the rate is currently lower than it was at any point under the last Government, or, at least, it was never lower under the last Government than it is now. In real terms, it is lower than it has been at any point since 1993.
Bill Esterson (Sefton Central) (Lab)
The fuel duty freeze is of course very welcome for drivers of petrol and diesel vehicles, but this is the second time in just over four years that petrol and diesel prices have gone through the roof as a result of international oil and gas uncertainty. Is it not time that we gave as much support as possible to those who want to make the transition to electric vehicles? According to Autotrader, the average price of electric vehicles is already lower than that of petrol and diesel vehicles. Will the Government confirm that they are bringing forward plans for greater ability to charge at home and bringing down the cost of electricity as far and as fast as possible, so that more drivers can benefit from long-term lower driving costs?
Dan Tomlinson
My hon. Friend is right to say that we are seeing a continued uptake of electric vehicles—we saw that in March this year. More electric vehicles were purchased in March than in any month in British history, and we can see that take-up is continuing to increase. This Government are increasing and expanding the grants for those who want to buy an electric vehicle, and we are making progress on permitted development rights, so that those who do not have easy access to charging in their driveways can have easy and cheap access to on-street charging.
Middle East: Economic Update
Bill Esterson Excerpts(1 week, 2 days ago)
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Rachel Reeves
That response exposes a shadow Chancellor who is out of credible ideas. I was sad to read in the weekend’s newspapers that once again, he is being lined up for the sack by the Leader of the Opposition, but to be honest, after his performance today, I can understand her choice.
The shadow Chancellor talks about the IMF. Yes, the IMF did downgrade the forecast. Why? It is because of a war, which his party unquestioningly backed, and because of our high exposure to global energy markets, which his party allowed. We are taking the right choices. We did not back this war, nor did we follow the calls of the Leader of the Opposition and the leader of Reform to join in. We are investing in and reforming our energy market, so that we can take back control of our energy security.
The shadow Chancellor talks about the economy. Well, let’s talk about the economy. Before this war broke out, our economy grew by 0.5% in the three months to February and 0.3% in the three months to January. Inflation was expected by the Bank of England and the Office for Budget Responsibility to return to target, and interest rates had been cut by their fastest rate in 17 years, compared with hitting 5.25% under the Conservatives, which saw mortgage costs going through the roof. [Interruption.] The hon. Member for Wyre Forest (Mark Garnier) says it is the Bank of England’s job to address inflation, but we had the same Bank of England when the Conservatives were in government. It has cut interest rates while we have been in government because we got control of the public finances, and the Conservatives lost control of the public finances.
The shadow Chancellor says that the response to a fossil fuel crisis is to rely more on fossil fuels and to reduce investment in clean, home-grown energy. He is ignoring the fundamental lesson of both Russia’s invasion of Ukraine and the conflict in the middle east. The shadow Chancellor opposed new solar energy, opposed onshore wind power and did not invest in either Sizewell C or small modular reactors, as this Labour Government are doing. Just today, the CEO of RenewableUK has said that
“reducing the link between the volatile global gas prices and the cost of electricity is the best way to protect households, businesses and industries against the unpredictable and volatile costs of fossil fuels in the long term, to strengthen the UK’s energy security.”
The shadow Chancellor says that tiebacks make no difference, yet Offshore Energies UK says that
“developing fields as tiebacks reduces costs, lowers emissions, and extends the life of existing critical infrastructure”,
which is exactly why we are doing it.
The shadow Chancellor says that delinking would lead to higher prices. It is the exact opposite. The whole aim here is to move to fixed prices. By increasing the electricity generator levy—we do not know whether the Conservative party supports or opposes it—we incentivise those energy companies to come off the levy and come on to contracts for difference. We are beginning the negotiations with industry, so that we can reduce that volatility in prices. As the CEO of E.ON has said today,
“For too long, the value in our energy system has flowed to those at the top of the chain. Today’s move starts to turn that around”,
because we can take out of the system the volatility and the spikes, which are so damaging for both family finances and business finances. But the shadow Chancellor had nothing to say on that.
Fuel duty was never lower in 14 years under the Conservatives than it is today. Of course, we are keeping all scenarios under review, but it is quite clear that the best way to bring down fuel prices is to de-escalate this conflict, not ramp it up like the Conservatives want to do.
The shadow Chancellor has nothing to say on international co-operation, nothing to say on global negotiations to keep the strait of Hormuz open, nothing to say on reform of our energy market and nothing to say on investment in our infrastructure. Why? It is because he has no plan. Why? Because he does not have any ideas. Why? Because his party has no economic credibility. Labour has the right plan for our country. The Conservatives would take us right back to the bad days of high inflation, high interest rates and the mess they made of our economy.
Bill Esterson (Sefton Central) (Lab)
The conflict in Iran is also a matter of energy security and the cost of energy. It is a reminder for the second time in four years of the dangers of being dependent on international fossil fuel markets and of the need to reduce our dependence. The Energy Security and Net Zero Committee has heard a lot of evidence about the importance of decoupling the price of electricity from the price of gas, so may I encourage the Chancellor to bring forward measures that will reduce the amount of time that gas can continue to set the price of electricity? It is a pity that the Conservative party did not take that approach following the invasion of Ukraine in 2022 when it had the chance.
Rachel Reeves
I thank the Chair of the Energy Security and Net Zero Committee for that question, and for his important work on this issue. There are two ways to reduce the number of days in which the gas price sets the electricity price. First is to invest more in home-grown renewables and in nuclear, so that more of the mix is made up of electricity. The second way is to delink gas and electricity prices, first by increasing the electricity generators levy to bring in money but also—this is crucial—by incentivising those companies that are currently getting the market price to go instead on to a contract for difference, which gives greater certainty for families, pensioners and businesses with their bills. That is exactly what we are doing.
Middle East: Economic Update
Bill Esterson Excerpts(1 month, 3 weeks ago)
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Rachel Reeves
The hon. Lady talks about energy security, but she has never once acknowledged her party’s failure when they were in government. In 2010, her then party leader Nick Clegg justified opposing new nuclear energy on the grounds that it would take until 2022 to become operational. Well, 2022 has been and gone, but what is here is another example of Britain paying a high price today for the choices of the Opposition parties.
I turn to the hon. Lady’s specific questions. We announced at the Budget that we will take £150 off bills—that will come in in April and continue until June—by taking the failed energy company obligation levy, over which the last Government presided, off bills. People on heating oil also use electricity in their homes and will benefit from reductions in their energy bills from April. As I said, the Financial Secretary to the Treasury will meet relevant MPs this week.
The hon. Lady walked with her colleagues through the Lobby to oppose the Budget measures, which included freezing fuel duties, so it is a bit rich of her now to say that she wants us to cut fuel duty. On ensuring that homes are properly insulated, at the spending review last year I announced £15 billion for the warm homes plan, which is focused on lower-income families.
The hon. Lady is absolutely right that contracts for difference are crucial in weaning ourselves off imported oil and gas. We are in a better place because of the CfD auctions we have been holding and the energy infrastructure we have been building, and which we can build because of the Planning and Infrastructure Act 2025, which Opposition parties opposed.
Finally, as I said in my statement, the Competition and Markets Authority has an important role in ensuring that markets are functioning properly on heating oil, on petrol forecourts and for small businesses. We will ensure that it fulfils that role so that people are not overcharged for the energy they use.
Bill Esterson (Sefton Central) (Lab)
I welcome the Chancellor’s commitment to giving us energy security by reducing our dependence on international fossil fuel markets and moving to clean energy instead. I also welcome what she said about her support for jobs and investment in the North sea, her commitment to protecting consumers through the warm home discount and the warm homes plan, and indeed the commitment she made in the Budget to take £117 off consumer bills.
My right hon. Friend rightly pointed out the dire record of Opposition parties on new nuclear—14 years in which they failed. Will she give a commitment that this Government will add to their already announced successes on Sizewell C and on small modular reactors, and give policy certainty to the industry through a fleet approach to both large-scale and small modular reactors?
Rachel Reeves
I thank my hon. Friend for that question. We have already signed off commitments to both Sizewell C—a publicly funded nuclear power station—and small modular reactors, which we will build with Rolls-Royce in north Wales. The purpose of the Fingleton review is to ensure that we can build those quickly and cheaply, as—more than ever—the current situation demands.
Spring Forecast
Bill Esterson Excerpts(1 month, 3 weeks ago)
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Rachel Reeves
We have taken action to reduce energy bills by £150 from next month. As I said in my speech, because of the stability that we have returned to the economy, and the cuts in interest rates, in inflation and in the cost of Government borrowing, we are in a strong position to respond to the headwinds from the middle east and Iran.
Bill Esterson (Sefton Central) (Lab)
The conflict in the middle east is a reminder of the need to reduce our dependence on fossil fuels, which set the price of our energy bills for consumers and businesses; 80% of the time, gas sets the price of electricity. The £117 reduction in bills that the Chancellor announced in the Budget is welcome, but will she recommit to giving long-term stability to our energy prices, and to bringing bills down in the long term, by supporting investment in the generation of renewables and nuclear, in the expansion of the grid, and in battery storage, which will help domestic and industrial consumers at the same time?
Rachel Reeves
I thank the Chair of the Energy Security and Net Zero Committee for that important question. He is absolutely right: whether through the successful auction round 7 that we have just completed for investment in new renewable energy, or through the planning reforms to make it even easier to build grid connections and wind farms, we are taking action to secure our energy supplies. Through the spending review last year, we invested in Sizewell C and small modular reactors, which will be built in Wales by Rolls-Royce.
Oral Answers to Questions
Bill Esterson Excerpts(3 months ago)
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Lucy Rigby
I am grateful to the hon. Member for his question. Indeed, he and I have discussed this issue previously. We are due to meet to discuss it later this month, and I am very much looking forward to that discussion.
Bill Esterson (Sefton Central) (Lab)
Mersey Care NHS foundation trust has plans for a world-leading mental health research and development facility at Maghull health park in my constituency. Will the Minister meet me to discuss how the Treasury might support investing in such an important research and development project, not least as it is fundamental to the Government’s plans for improving healthcare?
Lucy Rigby
My hon. Friend raises an important point. This Government are investing an extra £29 billion in our national health service. I would be happy to meet him to discuss it further.
Oral Answers to Questions
Bill Esterson Excerpts(5 months, 3 weeks ago)
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Rachel Reeves
My hon. Friend is a strong champion for people in Hornsey and Wood Green, including small businesses. Last year at the Budget, we set out the principles in the consultation on business rates reform. Our principle is to make it easier for small businesses and high street businesses, while making sure that the online retail giants pay their fair share of tax. We will be setting out more information on our reformed business rate system to help our high streets and help our small businesses on 26 November.
Bill Esterson (Sefton Central) (Lab)
The Conservative party gave us austerity, Brexit and Liz Truss, including high interest rates and high inflation. This Government, so far, have delivered the highest growth in the G7, five interest rate cuts and record high levels of investment. Is it not the truth that the Conservative party, over 14 years, was the reason businesses were struggling?
Mr Speaker
Order. This is just a rant, with nothing relevant to the question.
Oral Answers to Questions
Bill Esterson Excerpts(7 months, 3 weeks ago)
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Rachel Reeves
I very much agree with my hon. Friend. That is why we published the spending review earlier this year. The review set out plans for day-to-day spending for the next three years and capital spending for the next five. Everything in the review is fully funded and fully costed through the difficult decisions that we had to make in the Budget last year to increase taxes. At the same time, the deficit is expected to fall by 1 percentage point of GDP this year.
Bill Esterson (Sefton Central) (Lab)
Both the Conservatives and Reform want to repeat the medicine that Liz Truss inflicted on this country, pushing interest rates and mortgages through the roof. Is not the contrast that this Government have provided stability and confidence; that, as a result, we have record levels of private investment in this country; and that we are on the right track to rebuilding this country as a success story, which can be seen in the fact that we have the fastest growth in the G7 as well?
Rachel Reeves
The Office for Budget Responsibility forecasts that debt is going to fall during the course of this Parliament—something that never happened under the Conservative Government—and that the deficit as a share of GDP will fall by 1 percentage point this year. This is a Government who have a grip on the public finances and on public spending, because of the choices that we made. All those choices were opposed by all the Opposition parties.
Oral Answers to Questions
Bill Esterson Excerpts(9 months, 4 weeks ago)
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Rachel Reeves
It is a bit rich for anyone in the Conservative party to mention black holes, after the one that they left for us to clear up. The hon. Gentleman will have seen the Lloyds business barometer, which has recently been published and shows that business confidence is now at a nine-year high, led by increases in confidence in retail and manufacturing. That report referenced the impact of the spending review on boosting business confidence—a recognition that this Government are backing Britain and backing Britain’s businesses.
Bill Esterson (Sefton Central) (Lab)
The Chancellor is quite right to mention that business confidence is at a nine-year high. Does that not go to show that not only were the announcements in the spending review right for business, but her emphasis on stability and certainty in the economy is exactly what is needed? Moreover, it is in sharp contrast to the chaos, constant changes of policy and complete disaster in economic policy that we saw from the Conservative Government.
Rachel Reeves
The stability that this Government have returned to the economy has meant that the Bank of England has been able to cut interest rates four times in the last year, taking hundreds of pounds off people’s mortgages—there was such a big impact in that regard under the last Government. The reasons for the increase in business confidence also include the industrial strategy publication, the spending review and the three trade deals, all of which are boosting business confidence and have helped to create 385,000 new jobs in Britain since the last general election.
Spending Review 2025
Bill Esterson Excerpts(10 months, 2 weeks ago)
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Rachel Reeves
Okay, that is just the Tories—well, they need to explain how they would pay for it.
I appreciate the fact that the hon. Lady welcomes some of our policies, but the job of the Chancellor and the Government is to ensure that the sums add up. We made difficult decisions last October, but I stand by those difficult decisions; without them, today we would not have been able to make the investments we have made in schools, energy and our health service. I am proud of what we have achieved as a Government, and I am proud of the investment that we are putting in today.
Bill Esterson (Sefton Central) (Lab)
The warm homes plan will mean healthier and warmer homes and will see lower bills and create jobs in communities right across the country. It is a very good plan, especially for those facing fuel poverty. The last Government’s home energy programme changed every few months, which meant that businesses could not plan and consumers had no confidence in it, not to mention the scandalous misapplication of fixed-wall insulation. Will my right hon. Friend confirm that this is a long-term warm homes plan that will deliver warmer homes and cut bills to the benefit of millions of our constituents for years to come?
Rachel Reeves
I thank the Chair of the Energy Security and Net Zero Committee for that question. Warm homes are a big part of our plan to tackle the cost of living crisis, and the money that we have put into the warm homes plan today will mean that millions more homes can be retrofitted with better boilers, insulation and solar panels. On average, that takes £600 a year off people’s bills not just for one year, but for every year to come. My hon. Friend is absolutely right. What we have done today is set out a five-year package of capital investment, because it is crucial that the industry is able to plan for the future and that young people are therefore willing to train up and businesses are willing to invest in apprenticeships. That is why on all of our capital spending, including the warm homes plan, we have set out a five-year plan.
Regional Growth
Bill Esterson Excerpts(10 months, 3 weeks ago)
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Darren Jones
I thank the right hon. Member for his question, which recognises the significant increase in investment in defence and security that this Labour Government are making. He has asked for a hint, but the only hint I can offer is that the answer will come next Wednesday at the spending review.
Bill Esterson (Sefton Central) (Lab)
I thank my right hon. Friend for listening to Steve Rotheram, the Liverpool city region’s metro mayor, and Liverpool city region MPs, who jointly asked for pretty much what he has announced for the region in today’s statement. I also congratulate him on recognising the value that transport investment has for communities and for growth. In 2027 a new fleet of electric buses will arrive in my constituency as part of the expansion into the borough of Sefton. Can he confirm that today’s announcement covers the improvement in grid connections and infrastructure for charging that will be necessary to take advantage of the very welcome transition to electric buses?
Darren Jones
I congratulate my hon. Friend and colleagues from the Liverpool city region on securing £1.6 billion of transport investment. As he will remember, he and I were on a visit together looking at some of the potential for that money to be spent not long ago, including at a roundtable with local employers and workers at the Everton stadium. It was great to be able to see out the window of the office of the Liverpool city region mayor the potential that that investment will unlock in housing, jobs and great opportunities for people in the area. My hon. Friend asks about how the rest of this money will be spent on what sounds like very sensible infrastructure upgrades. As he will know, that is a decision for the mayor of the Liverpool city region.