Oral Answers to Questions

Chris McDonald Excerpts

Tuesday 18th November 2025 Commons Chamber

[Perran Moon (Camborne and Redruth) (Lab)]

4. What estimate he has made of the value of private sector investment in clean energy since 4 July 2024.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)]

I know from my time in industry that what business and industry need in order to invest is certainty, and this Government have provided that certainty. Over £52 billion of private sector investment has been won into clean power, thanks to the certainty of our clean power mission. That is why the Conservatives’ decision to trash our reputation as climate leaders was roundly rejected by business groups and the energy industry. We are delivering jobs and growth; they would put all of that at risk.

[Perran Moon]

Critical minerals are essential to power our renewable energy future. Since the general election, the National Wealth Fund has invested £28 billion into the South Crofty tin mine and £35 billion into Cornish Lithium, both in my constituency of Camborne, Redruth and Hayle. This is alongside major clean energy investment nationwide, including £33 billion from SSE, with 80% of that going into upgrading the UK’s power grid. Does the Minister agree that this is exactly the kind of long-term investment that we need, using public funding to crowd in private investment, which was inexplicably ignored by the Conservatives and would be cancelled by Reform?

[Chris McDonald]

The Government recognise the important role of the public sector and private sector working together to unlock these benefits, such as in critical minerals, as my hon. Friend mentioned. I thank him for his invitation to visit some of the companies that he mentioned in Cornwall, and I look forward to taking up that opportunity for a visit very soon.

[Stephen Flynn (Aberdeen South) (SNP)]

On this Government’s watch, Grangemouth has shut and oil and gas jobs are being pushed off a cliff. In the last 20 minutes, it has been announced that 400 jobs are to be lost at the Mossmorran plant back home in Scotland. The company blames the UK Government’s policy environment. The Government stepped in to save jobs at the steelworks in Scunthorpe. Are they going to intervene to save jobs in Scotland?

[Chris McDonald]

Of course, my thoughts and those of the Government are very much with the workers and their families at what I know from personal experience is a very difficult time. We must recognise that the company has taken a commercial decision. Although we have explored every reasonable avenue of support, the firm faces significant global challenges. The Government stand ready to provide support through the Department for Work and Pensions rapid response service, and I and other Ministers would be very happy to meet the right hon. Member to discuss what more we can do.

[Brian Leishman (Alloa and Grangemouth) (Lab)]

The breaking news that the Mossmorran chemical plant is to close is yet more industrial vandalism put upon Scotland. Like what happened with Grangemouth, hundreds of on-site workers and their communities will be plunged into chaos. Why will the Government not take a future stake in what comes next at Grangemouth to give workers and communities prosperity and security?

[Chris McDonald]

As my hon. Friend mentions, this is a difficult time for the workers and their families both at Mossmorran, after this morning’s announcement, and across Grangemouth. In both areas, the Government have been and remain in regular contact with the companies, but we must recognise that significant global challenges have faced Exxon—the company involved in this morning’s announcement—which has already closed another chemicals plant in France.

[Nick Timothy (West Suffolk) (Con)]

The Government seem to accept that China presents a range of threats against this country. There will be a statement later today about threats against Members of this place. We also know about China’s domination of the world market in cellular internet modules and the ability to insert kill switches into technology. Will the Minister take this opportunity to rule out any role for Mingyang in our energy infrastructure?

[Chris McDonald]

Many companies want to invest in the UK because of our clean energy mission. Any decision that the Government take will never compromise our national security. If the hon. Gentleman wants to talk about China, let us compare this Government’s record with that of the previous Conservative Government. The Conservatives built a nuclear power station that relied on the Chinese Government. We are building new nuclear at Sizewell, and it will be financed by the British Government.

[Mr Speaker]

I call the shadow Minister.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

Thank you, Mr Speaker.

“The skills, infrastructure and experience built by Scotland’s oil and gas sector are vital assets that must be safeguarded and redeployed as we accelerate the transition to clean energy.”

These are not my words, but the words of Scottish Renewables. Why are the Government pursuing a strategy that is decimating that very industry and costing jobs across the country?

[Chris McDonald]

The hon. Gentleman is indeed right that the skills of the North sea oil and gas workers are essential for the green transition. We will come forward with our North sea plan shortly. I am sure that he will want to take this opportunity to welcome our clean energy jobs plan, which highlights not only the many thousands of jobs across Scotland that the clean energy industries are creating, but the support that the Government are giving people in those industries to transfer across to new green energy industries.

[Andrew Bowie]

It is a bit rich for a Minister to come here, on the day that further jobs are being lost as a direct result of the Government’s policies, to talk about their clean jobs plan as if that will somehow mean anything to the workers at Mossmorran, Grangemouth and all the other sites that have lost jobs as a direct result of Government policies over the past few years. I understand why the Minister will not listen to me, but surely the Government must start listening to the renewables sector, the trade unions or their own Great British Energy, and use next week’s Budget to start reversing their damaging anti-growth, anti-jobs and anti-Britain tax and ban on North sea oil and gas.

[Chris McDonald]

The Government have been clear that North sea oil and gas has a future for decades to come, but let us be clear that the closures in that and other industrial sectors are a result not of this Government’s policies but of the poor, uncompetitive business environment created over 14 years and a lack of investment in British industry by the previous Government. That has been reversed under this Government, with £50 billion of investment in new clean energy industries and investors wishing to continue investing in those industries in the UK.

[Victoria Collins (Harpenden and Berkhamsted) (LD)]

5. What recent discussions he has had with Cabinet colleagues on support for businesses facing increased energy costs.

[Christine Jardine (Edinburgh West) (LD)]

7. What recent discussions he has had with Cabinet colleagues on support for businesses facing increased energy costs.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)]

This Government recognise the importance of reducing energy costs to boost UK manufacturing competitiveness. Under the modern industrial strategy, the British industrial competitiveness scheme will reduce electricity costs by up to £40 per megawatt-hour for over 7,000 manufacturing businesses. We will also increase support for our most energy-intensive industries under the British industry supercharger, uplifting the network charging compensation scheme from 60% to 90%. These measures are supported by the connections accelerator service.

[Victoria Collins]

Businesses across my constituency, such as Redbournbury Mill and Total Cow Burger in Redbourn, have written to me about the crippling increases in energy costs. Coupled with the increased cost of national insurance and business rates, that means they are struggling to keep going. Ahead of the autumn Budget, will the Government commit to break the link between gas and electricity prices, as the Liberal Democrats have called for, to provide much-needed relief for businesses and families?

[Chris McDonald]

I acknowledge the work the hon. Member does in Parliament on energy-related issues and her Adjournment debate on high street businesses; that theme clearly runs through a lot of her work. She is right to point out the fundamental weakness we have that, when it comes to our investment in renewable energy, the price is ultimately set by gas. We want to address that through our clean power mission.

[Christine Jardine]

UKHospitality estimates that the industry contributes £8 billion a year to the Scottish economy. A major increase in standing charges would hit it hard. Many businesses in the sector are energy-hungry—for example, distilleries, pubs and restaurants—and across my constituency there is concern about the winter ahead. They want to know what this Government will do to protect them and ensure fairness for small businesses.

[Chris McDonald]

I do understand just how important the hospitality sector is to the hon. Member and her constituents, as a major part of the local economy. The Government’s clean power mission—investing in renewable energy, lifting the onshore wind ban and investing in offshore wind at pace—is bringing down energy costs and will bring down energy costs from 2030 onwards. The crucial challenge is how we help businesses to manage the transition between now and 2030. Measures such as the British industrial competitiveness scheme, which was announced in our industrial strategy, will support over 7,000 businesses across the country.

[Jessica Morden (Newport East) (Lab)]

I very much welcome the increased help the Government are giving to energy-intensive industries such as Tata’s Llanwern works in my constituency through the increase to the electricity network charges discount. However, given that they still face problems competing with other European steel producers, may I urge the Minister to keep discussing with ministerial colleagues and trade unions what further measures we could take to protect them and shield them, to the benefit of sites such as Llanwern?

[Chris McDonald]

I thank my hon. Friend for raising the issue of Llanwern; it is a site that I know very well and have worked on in the past. She is right to raise the competitiveness of energy-intensive industries. In my earlier answer, I talked through a number of measures we are taking to reduce levies and energy costs for those industries, but she can rest assured that I continue to look at whether anything more can be done.

[Dave Robertson (Lichfield) (Lab)]

The ceramics industry across the country is foundational to every single part of the Government’s industrial strategy. Ceramics is an energy-intensive industry. Can the Minister confirm whether recent discussions about high energy costs for business have made mention of ceramics, an energy-intensive industry with deep roots in my constituency, where Armitage Shanks has been operating for over 200 years?

[Chris McDonald]

I was pleased to meet my hon. Friend recently to discuss Armitage Shanks. I am concerned about the ceramics businesses in his constituency and across the region. We want those businesses to be competitive, and while much of our earlier discussion was about electricity prices, for ceramics and many other energy-intensive industries, the issue is gas. After policy costs, the UK is competitive with many European countries on gas, but I understand that there are competitive pressures from outside the EU, and I will continue to engage with him and the ceramics sector to look at these issues.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Tim Farron (Westmorland and Lonsdale) (LD)]

The recent Cumbria Tourism business survey showed that 56% of businesses are struggling to pay their energy bills, with an astonishing 14% actively considering selling up or closing down. Once a community loses its pub, it loses its heart, and it very rarely gets it back. Ahead of the Budget, will the Minister speak with the Chancellor and others in the Treasury to back the Liberal Democrats’ call for a 5% cut in VAT to support this vital industry, which is, after all, at the forefront of sustainable business practices and at the heart of so many of our communities?

[Chris McDonald]

I must admit that, as a regular tourist to Cumbria myself, I absolutely appreciate the joys of a countryside pub in the hon. Member’s constituency, and I understand the pressures that they are under. I will leave any commentary on the Budget to the Chancellor at the appropriate time, but rest assured that every day in this job I am making the case for increased competitiveness in British industry.

[Tom Gordon (Harrogate and Knaresborough) (LD)]

6. What steps he is taking to improve consumer confidence in energy efficiency schemes.

--- Later in debate ---

[Dame Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)]

T4. The north-east is a vital hub for clean energy supply chains, and my constituents in oil and gas want to be part of that transition, but years of under-investment by the Tories mean that many North sea ports cannot host modern turbine manufacturing. As the Government prepare their plan for the future of the north-east, will the Minister consider infrastructure investment to enable communities and workers in the north-east to better benefit from clean energy jobs?

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)]

I recognise what my hon. Friend says about the importance of port infrastructure in the north-east. We made a manifesto commitment to support investment in our ports through the National Wealth Fund, and I would be happy to discuss with her how the north-east in particular could benefit from that.

[Alex Brewer (North East Hampshire) (LD)]

T5.   In North East Hampshire, small energy-intensive businesses such as hair salons are struggling, because they cannot reduce their consumption. What plans does the Minister have to support those kinds of small businesses?

[Chris McDonald]

In response to earlier questions, I outlined the British industrial competitiveness scheme, which we announced in our industrial strategy. That will extend support to a wider range of businesses. We recognise the issues that businesses are facing with high energy prices, primarily as a consequence of the previous Government’s policies not to invest in renewable energy. We are changing that by investing in British home-grown renewable energy.

[Catherine Fookes (Monmouthshire) (Lab)]

T6. I am sure that Members from all parts of the House will join me in sending their best wishes to residents across Monmouthshire who have been severely affected by floods this weekend, particularly residents of Monmouth. One has told me that a tidal wave came down Drybridge Street at 1.30 am—in the middle of the night. It was terrifying, and businesses and houses have been decimated. The Minister recognises that we are facing a climate crisis, which means such events are all the more frequent. Can he reassure me that he will continue to work with Cabinet colleagues to meet our climate change commitments, so that we stop such events happening so frequently?

--- Later in debate ---

[Mr Jonathan Brash (Hartlepool) (Lab)]

Hartlepool has one of the largest clean energy economies in the north of England with thousands of local jobs—jobs that Reform would destroy. At the same time, we have one of the largest nuclear industries. We have signed the biggest deal in our history—jobs that the Greens would destroy. Does the Minister agree that when it comes to energy policy, we’ve got clowns to the left of us and jokers to the right?

[Chris McDonald]

As my constituency neighbour has said, the green energy industry in his constituency is delivering thousands of jobs. On this issue, certainly, I am very happy to be stuck in the middle with him.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

In October 2024, I asked the Secretary of State about the previous Government’s idea of pumpwatch. He said,

“I will not comment on the Budget, obviously. We are very sympathetic to pumpwatch”.—[Official Report, 8 October 2024; Vol. 754, c. 159.]

The Competition and Markets Authority has looked into this, and the Government seem to be bringing something forward called fuel finder. It is apparently due to be launched at the end of the year. Can the Minister update us on what that will mean and how the public will know about it? Cheaper fuel at the pumps is really important.