Budget Resolutions and Economic Situation

Carol Monaghan Excerpts

Monday 20th March 2023 Commons Chamber

[Carol Monaghan (Glasgow North West) (SNP)]

I cannot remember ever speaking in a Budget debate dedicated entirely to science, so it is a real pleasure. Like the hon. Member for Manchester Central (Lucy Powell), I have a science degree, although mine is of a different flavour, being in physics. It is nice to speak in this debate as the SNP spokesperson.

A flourishing research and development landscape will produce major economic benefits, so the focus on science should be a positive. The problem is that this Government are not creating an environment conducive to flourishing research and development. First and foremost, they have to convince those working in the sector that they are valued. They have to consider the push and pull factors for a career in science. The Secretary of State talked about financially stable families, but she has to recognise that the wages and job insecurity mean that many cannot afford to stay in the sector, so they leave for other occupations.

I will now digress a little. A number of years ago, I visited a hydroelectric museum in the Alps. It is more than 150 years since we started developing hydroelectric as a means of generating electricity. The museum had an interesting display that said hydroelectric power would have been developed to a far greater extent if not for the discovery of oil. We saw oil stifling innovation, particularly in renewable sources, 150 years ago, and now we have the nuclear revival.

Rather than investing properly in renewable technologies, this Government are happy to throw billions at what they consider to be an easy source of energy. Proper action on decarbonisation would mean revising grid connection charges that see Scottish renewable producers paying, on average, £7.36 per megawatt-hour to access the grid, whereas producers in England pay, on average, 49p per megawatt-hour. Worse still, producers in Germany, the Netherlands and Luxembourg pay absolutely nothing. The Budget was an opportunity to address this inequality, to encourage greater energy innovation and, ultimately, to lower energy bills for my constituents and for constituents across the UK. Instead, we are repeating the mistakes of the past by taking the easy but expensive and environmentally unfriendly route.

Nuclear is environmentally unfriendly. The mining of uranium is a dirty process, as a lot of acid is used to extract it from rocks. There is then the storage of used fuel rods. For the Government to classify nuclear power as environmentally sustainable, with the same investment incentives as renewable energy, is a sinister attempt to pull the wool over the public’s eyes, and it shows a lack of real commitment to renewables.

As chair of the all-party parliamentary group on photonics and quantum, I am pleased to see a continued focus on quantum technologies. The creation of the quantum hubs in 2014, to which the Secretary of State referred, enabled the UK to place itself at the centre of this technology, and a number of Scottish universities—notably, Glasgow, Strathclyde, Edinburgh and Heriot-Watt—played a key role. But the sector requires sustained support and proper vision.

I was recently made aware of an ambitious proposal made by a group at Glasgow University, in collaboration with universities across the UK, to secure commercial leadership in the manufacturing of quantum hardware, which is crucial for its penetration into volume applications. A national institute for quantum integration would deliver nano-fabrication facilities for the integration of this hardware. The Secretary of State said, in her statement two weeks ago on the science and technology framework, that she will have

“a ruthlessly outcome-focused approach to this new Department.”—[Official Report, 7 March 2023; Vol. 729, c. 182.]

I would love to hear her thoughts on a national institute for quantum integration absolutely focused on outcomes.

With quantum, as with other technologies that are critical to national security, the issue is rarely starting up; it is almost always scaling up. There does not seem to be much commitment at all to supporting the scaling up of small and medium-sized enterprises. To scale up, some companies will potentially need to move out, which means that some are looking to other places around the world in order to develop their technologies. Of course, we are still waiting for the semiconductor strategy, something that would support the development of quantum, photonics and the wider technology sectors. Perhaps the Secretary of State will prioritise that.

It was disappointing to hear, yet again, that investment in carbon capture and storage is not coming to the Scottish Acorn project. We need such clusters across the UK, in every part of it. The Acorn project is perfectly situated and the proposals are mature enough to merit Government funding; this should not be a phase 2, with something in the future, perhaps, if we are lucky.

[Dr Evans]

It was announced in the Budget that £20 billion would go towards carbon capture. Is that not substantial enough?

[Carol Monaghan]

That would be substantial if it were coming to Scotland, so when will we see action on the Scottish cluster?

The Chancellor also made a song and dance last week about R&D tax credits. That system has been grossly mismanaged and therefore abused in the past. I would like more detail on how the new system will provide more value for money for both taxpayers and genuine researchers. How will it be managed? What checks and balances will be taking place? We need to make sure, once again, that the mistakes of the past are not repeated.

The ambitions of the Secretary of State, and indeed the Prime Minister, in science are laudable. However, they fail to mention the key issue: the people. That issue cannot be solved by cash alone. Supposed commitments to science clash entirely with this Government’s hostile environment on immigration, and the lack of progress on association to Horizon is having a huge impact. While the Secretary of State dithers about whether association represents value for money, researchers are leaving the UK for better opportunities abroad, where they can develop rich collaborations and enjoy freedom of movement.

In response to last week’s Budget, Sir Adrian Smith, president of the Royal Society, said:

“After a prolonged period of uncertainty, the Government urgently needs to deliver on its pledge to associate to Horizon Europe, and set out a longer-term, cross-party plan for science. This is vital to restore confidence among global research talent and investors that they should build their futures in the UK.”

Stephen Phipson, the head of Make UK, said that Horizon had

“always been one of those areas of the EU budget where the UK gets more out than it puts in”.

A number of other notable organisations in the UK —including the CBI, the British Heart Foundation, the Russell Group, the University Alliance and Cancer Research UK—and in EU R&D sectors have signed a joint statement to the UK Government, urging rapid progress on association to EU programmes, including Horizon Europe, Copernicus and Euratom.

However, there were worrying reports last week that the Prime Minister is unconvinced on Horizon, with the Financial Times reporting that “senior colleagues” said the Prime Minister was “sceptical” about the value of Horizon Europe and the cost of participation. Researchers need to know where the UK is headed. Is the dithering on Horizon a deliberate attempt to kick the can down the road? More than anything, Horizon is about people; there is no monetary replacement for this. So will this Government keep blaming the EU while projects and collaborations are lost?

However, there are areas where money is important and where I would have wanted to see action in the Budget. We heard from the Secretary of State about financially stable families. Let us assume that I am a quantum researcher from somewhere in the EU, I am at the top of my field and I have an invitation to join a team at one of the UK quantum hubs. I will, first, have to apply for my global talent visa, at a cost of £623, and that will also cost me £623 for my spouse and for each of my children. I have two children under 18, so my costs are now £2,492. I have to pay the annual health surcharge for myself, my spouse and my children, so that is £624 for myself and my spouse. There is great news, as children get a discount and so it is only £470 for each of them. We are now at £4,680 for me to come here under the global talent scheme, although that assumes that I have only two children—I know the Government like to pretend that people do not have any more than two children, but many of us do.

As an EU researcher, I have many options, so why would I put myself through the hassle of such an immigration regime? That is hardly how we attract the brightest and best. If the Government are serious about science, those fees have to be dropped. It would not be costly and it would have great benefits.

[Alison Thewliss (Glasgow Central) (SNP)]

My hon. Friend is making excellent points about the cost involved in people coming to our city to work and share their talents. Is she as concerned as I am about stories from constituents of mine who have been here already and have been asked to take on a job with a promotion, but who have almost lost that opportunity because of Home Office delays?

[Carol Monaghan]

I do share those concerns. I have heard stories about individuals who were invited here and who were hoping to come, but the delays meant that that opportunity was lost. These people have been asked to come to the UK because of their particular skills. We are losing talent time and again.

While we are at it, international students seem to be a target again. The return of the post-study work visa took a lot of effort on the part of Members—from both sides of the House, it has to be said—but there is now news that the Home Secretary is talking about cutting it again. Many people who work in science first came here as international students and on the promise of a post-study work visa. There must be no change to the current system.

A commitment to research and development means a commitment to people, to international collaboration and to developing an immigration environment that supports companies, research groups and individuals to contribute. Ultimately, if that cannot happen in the UK, the powers should be given to Scotland. We will develop an immigration system that works for our science sector.