Oral Answers to Questions
Chris McDonald Excerpts(6 months, 3 weeks ago)
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Perran Moon (Camborne and Redruth) (Lab)
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 million into the South Crofty tin mine and £35 million 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.
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)
Christine Jardine (Edinburgh West) (LD)
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.
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)
Dame Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
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)
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)
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.
Carbon Budget Delivery Plan
Chris McDonald Excerpts(6 months, 4 weeks ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
I can say with absolute sincerity that it is a real pleasure to serve under your chairmanship, Sir John. I could not have wished for a more benevolent Chair for my first outing at the Dispatch Box here in Westminster Hall. I apologise to Members who may have been expecting the Minister for Climate, my hon. Friend the Member for Leeds North West (Katie White), but she is attending the COP. I do hope that I am not too mean a substitute.
I have thoroughly enjoyed the debate. We all recognise how important the issue is. For me, it has been a real pleasure to sit and listen attentively to colleagues from throughout the House with such expertise. I shall endeavour to respond to many of the remarks that have been made, although I feel slightly sorry for the shadow Minister, the hon. Member for Mid Buckinghamshire (Greg Smith). Everyone else in the Chamber challenged the Government for being too fast or too slow, while ultimately working towards the same objective, but he occupied a slightly lonely position. That is the position his party has chosen to take.
An investment in fighting the climate crisis, and in net zero, is fundamentally an investment for our future generations. The economic opportunity before us can improve the lives of working people not only in the future but here and now, and our policies are intended to do precisely that. We want to tackle the climate crisis while ensuring that we crowd-in private sector investment. In Prime Minister’s questions earlier, my right hon. and learned Friend the Prime Minister mentioned the £33 billon investment from SSE; the pursuit of net zero is clearly the pursuit of economic prosperity. Members have already mentioned the fact that the Confederation of British Industry says the green economy is growing three times faster than the rest of the economy, as are the good jobs provided by the green energy sector around the country.
Carbon budgets were a significant part of the debate. Ten years ago, the world was on course for 4° of warming, which would have posed a severe threat to human life. Today, through international action, we are on course for 2.6°, or below 2° if countries meet their full climate commitments. I was asked earlier about the Government’s focus at COP; fundamentally, our focus is multilateralism to get the world working together again. Of course, that is about ensuring that Britain retains its place as a climate leader, and that we do so in a way that supports communities and families through the UK’s transition.
I was pleased to hear the hon. Member for Strangford (Jim Shannon), who is no longer in his place, bring home the importance of thinking about the poorest in our society. I want to reassure him, and the House, that they are very much in my mind, and the minds of all Ministers, as we take forward these issues. That is why we are so concerned about getting bills down.
The previous Government left us an energy system that was tied to the international price of gas, which has left households with gas prices 75% higher than they were the year before Russia’s invasion of Ukraine. We have decided not to leave our future in the hands of international dictators and petrostates, but to return to energy security. That is what clean power provides us, and that is why we set up Great British Energy, which invests in the necessary kinds of projects. It also invests in community energy projects, which were mentioned by many Members, including my hon. Friend the Member for Sheffield Central.
Barry Gardiner
Does the Minister recognise that the policy costs mentioned by the shadow Minister are a regressive tax, and that it may be better to put those on to general taxation? Of course, the energy company obligations and other policy costs were introduced by the Conservative Government. Will the Minister give consideration to where they may best lie to ensure that what he said in response to the hon. Member for Strangford (Jim Shannon) is realised?
Chris McDonald
Matters of tax are left to the Chancellor, particularly this close to the Budget.
The Government’s approach to the transition is about incentives rather than punishments—it is about carrots rather than sticks. The economics are working in the direction of net zero, and net zero is no longer a political discussion, wherever the Opposition think they are. Net zero is an economic discussion, and one in which industry has been quite clear about where the benefits lie. As industry is decarbonising, it is also digitising, automating and becoming more productive. That is what will fundamentally drive down costs for consumers and provide good jobs.
Essentially, we have a choice ahead of us about the type of country that we become. We can either seize this opportunity and capture international investment, which is going two to one into green energy versus fossil fuel energy, or take the regressive approach of the Opposition, which leaves us at the mercy of petrostates.
British Steel
Chris McDonald Excerpts(7 months ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
The Government committed to updating Parliament on British Steel every four sitting weeks for the duration of the period of special measures being applied under the Steel Industry (Special Measures) Act 2025. In addition to today’s statement, on 23 October my ministerial colleagues Baroness Lloyd of Effra and Baron Stockwood of Great Grimsby and Cleethorpes led a debate in the House of Lords entitled “Steel Industry (Special Measures) Act 2025”.
The Government’s priority remains to maintain the safe operation of the blast furnaces at British Steel. Government officials are continuing to provide on-site support in Scunthorpe, ensuring uninterrupted domestic steel production and monitoring the use of taxpayer funds.
On funding, the position remains that all Government funding for British Steel will be drawn from existing budgets, within the spending envelope set out at the spring statement 2025. To date, we have provided approximately £274 million for working capital, covering items such as raw materials and salaries, and addressing unpaid bills, including for small and medium-sized enterprises in the supply chain. This will be reflected in the Department for Business and Trade’s accounts for 2025-26.
I visited British Steel on 6 November to meet with the company’s UK management and trade unions. The visit was in the same week as the 50th anniversary of the Queen Victoria blast furnace disaster, which occurred in Scunthorpe in 1975, which British Steel employees and the local community commemorated on 4 November. The loss of life and the profound impact of that event on the local community remain a stark reminder of the critical importance of health and safety standards across all industrial operations. I laid a wreath at the memorial to the disaster in remembrance to those who had lost their lives.
Work continues to develop an impact assessment, which will be published in due course following Regulatory Policy Committee scrutiny. We are also continuing work on the introduction of a compensation scheme for steel undertakings in scope of the Act.
We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel. As we have stated previously, our long-term aspiration for the company will require co-investment with the private sector to enable modernisation and decarbonisation, to safeguard taxpayers’ money and to retain steelmaking in Scunthorpe. Once a solution is found, we will terminate the directions issued to British Steel under the Steel Industry (Special Measures) Act 2025 and make a statement on the need to retain, or repeal, the legislation.
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Oral Answers to Questions
Chris McDonald Excerpts(7 months, 1 week ago)
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Oliver Ryan (Burnley) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
All Jaguar Land Rover’s UK factories have restarted and the company is offering a financing scheme to qualifying suppliers. UK Export Finance has also provided a partial guarantee for a £1.5 billion loan from commercial lenders to help JLR manage its businesses and pay its suppliers. I am grateful for my hon. Friend’s continued advocacy for the Jaguar Land Rover supply chain, in particular small businesses in the Burnley constituency. I understand that small businesses are now receiving support through the scheme, although more work needs to be done.
Oliver Ryan
I thank the Minister for that answer, for his work thus far, and for his extensive correspondence with me and the industry during this crisis. Local suppliers, such as the brilliant BCW in Burnley, have told me that the finance just is not getting to suppliers and that some of them are going to the wall or cutting jobs. JLR is not doing enough to avoid widespread supply chain job losses. This is affecting the entire British car industry through contagion effects, and suppliers are telling me that they are not out of the woods yet. What more can he do to get more support for our suppliers, such as BCW?
Chris McDonald
BCW in my hon. Friend’s constituency is an extremely important engineering firm not only for Jaguar Land Rover, but for our manufacturing supply chains. The concerns he has raised about access to finance for companies lower down in the supply chain are ones that I have raised with both Jaguar Land Rover and banks—I had with a meeting with most of the lenders. However, I commend the work of the Confederation of British Metalforming, which works with the supply chain. I understand that it had positive meetings with Jaguar Land Rover recently, although of course there is a cash financing issue as factories come up to speed. I will be paying close attention to that in the coming weeks.
Ben Obese-Jecty (Huntingdon) (Con)
Michael Payne (Gedling) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
I was pleased to address a meeting of Hydrogen UK just last week, where I reaffirmed Government support for the sector, which we have recognised through our industrial strategy and the clean energy industries sector plan. I would be happy to meet my hon. Friend to discuss in particular Luxfer’s ambitions to invest more in the UK.
Dame Nia Griffith (Llanelli) (Lab)
Workers at Tata’s Trostre site in my constituency have been hard hit by the five-week annual stoppage, leaving them short of money over Christmas. Despite reassurances from Tata, the Minister will understand that they are worried that this is a sign of worse to come. What is he doing to bring down energy prices, negotiate preferential treatment for our products to access the EU, and ensure that we strengthen our protections against cheap imports—all vital to the future of our steel industry?
Chris McDonald
We recognise the importance of the steel industry in Wales and of Trostre in particular, which has more than 70 years of tinplate production and is the only tinning line in the UK. I met the chief executive of Tata Steel this week to discuss this very issue. He referred to a softening in market demand, but fundamentally, this Government are committed to creating a better business environment for steel in the UK, so that it can compete with Europe, including on energy prices.
Claire Young (Thornbury and Yate) (LD)
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
To make steel in this country, we need ceramics. To build houses in this country, we need ceramics. Five of the eight industrial strategy growth sectors require ceramics. Ahead of the launch of the British industrial competitiveness scheme, might there be any interim relief from energy prices for energy-intensive industries?
Chris McDonald
My hon. Friend is a fantastic champion for ceramics. This is only my second time at the Dispatch Box, but it is also the second time that he has asked me about this. He and I have already met to discuss it, and I am happy to have further conversations with him and industry about everything we can do, as soon as possible, to support the sector with its energy costs.
Vikki Slade (Mid Dorset and North Poole) (LD)
I launched my “Pub of the Year” award at the Goods Yard in Broadstone last week. Fifty-four pubs and two breweries in Mid Dorset and North Poole support 1,600 jobs and underpin the vibrancy of our towns and villages, but two thirds of them have had to cut jobs or hours since the damaging jobs tax. Hospitality venues typically operate seven days a week, and sometimes more than 12 hours a day, so they need many part-time workers. Will the Government consult on a new lower rate of employer national insurance for workers earning £5,000 to £9,100, to support the employment of part-time workers and drive growth?
Perran Moon (Camborne and Redruth) (Lab)
Meur ras, Mr Speaker. Spinning out of the industrial strategy is the eagerly awaited critical minerals strategy, the launch of which will happen in due course—or dreckly, as we say in Cornwall. It is of particular interest to my constituency. Canada, the US and Australia have already established new mineral exploration funds. Such funds support junior exploration companies in building up energy security and contributing to export-led growth. Is the Department considering such a fund as part of the critical minerals strategy?
Chris McDonald
I thank my hon. Friend for his continued advocacy for the Cornish critical minerals industry—in fact, I thank all our fantastic Cornish MPs. He knows that the critical minerals strategy is eagerly anticipated in Cornwall and across the UK. The minerals in Cornwall are crucial to the future of our critical minerals industry and the security of the UK. We have the largest lithium deposits in Europe; we need to take advantage of that. We will look at all options to ensure that we get the financing to exploit those minerals.
Josh Babarinde (Eastbourne) (LD)
Many small businesses rely on Facebook advertising to reach customers, but too many find that if they get hacked, it takes too long for Meta to let them back into their account. That has been the case for Andy Campbell, who runs ATR Carpet Cleaning. Will the Minister advise on how we can get the likes of Meta to reconnect these people with their accounts, because Meta is not doing that for us?
Grahame Morris (Easington) (Lab)
Power Roll in my constituency has pioneered a world-beating, flexible, lightweight solar panel module. The next four weeks are a critical period for the company; a £5 million investment is needed to keep production and jobs in the north-east. Will my hon. and right hon. Friends on the Front Bench work with me to help secure this Great British innovation’s future in east Durham?
Chris McDonald
I am familiar with Power Roll. I have met the chief executive, and my hon. Friend has advocated extremely well for the company. I have also met potential investors in the business. I am happy to discuss that further with him after questions today.
Amanda Hack (North West Leicestershire) (Lab)
In recent years, imported bricks have made up nearly 20% of the UK brick market, yet I know that organisations such as Ibstock Brick in North West Leicestershire can supply the bricks for the homes that we need. How do we make sure that UK brick manufacturers can maximise investment, employ local people and deliver the bricks that we need for the future?
Chris McDonald
I am determined that this Government’s grand ambition for building will ensure that we supply more UK bricks, have fewer imports, and increase the productivity of our brick kilns around the country, including at Ibstock. The key is getting energy prices down, and that is what we are working on for our industrial strategy.
UK Export Finance Contingent Liability: Jaguar Land Rover
Chris McDonald Excerpts(7 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
A departmental minute is being laid before Parliament today setting out the particulars of a new contingent liability associated with Jaguar Land Rover.
It is normal practice, when a Government Department proposes to undertake a contingent liability in excess of £300,000 for which there is no specific statutory authority, for the Minister concerned to present a departmental minute to Parliament giving particulars of the liability created and explaining the circumstances; and to refrain from incurring the liability until 14 sitting days after the issue of the minute, except in cases of special urgency.
Given the particular urgency of the Jaguar Land Rover financing requirement, particularly in order to provide urgent support to members of its supply chain, it is regrettable that we were unable to provide the House with the normal period for consideration prior to the guarantee being entered into. Due to an administrative error, it is also regrettable that we were not able to provide the House with a departmental minute with the previous WMS on this matter. We are rectifying that today.
JLR requested that UKEF provides its export development guarantee product to a commercial loan for working capital of £1.5 billion, repayable over five years, to help it manage the impact of the recent cyberattack on its export business and wider operations. UKEF had existing exposure to JLR and providing this additional support fell outside UKEF’s normal underwriting criteria. If this liability is called, provision for any payment will be sought through the normal supply procedure.
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Decarbonisation of Cement
Chris McDonald Excerpts(7 months, 2 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
I am so pleased that, due to a quirk in the timings, we have almost two hours for the discussion of cement. I will endeavour to make the best use of the time available.
I very much thank my hon. Friend the Member for Derbyshire Dales (John Whitby) for raising the issue of cement manufacture in the UK. I share his concerns about the current level of cement production both for Derbyshire and for the UK. I hope that by the time I resume my place on the Treasury Bench, he may feel a certain sense of reassurance given the priority I am personally giving to this issue. He made the case admirably for the cement sector based on the jobs and the impact on the local economy. I will endeavour to add to that economic argument by outlining the importance of the cement sector to the UK more broadly.
Breedon’s Hope cement works in my hon. Friend’s constituency is the largest in the UK. It supports 270 jobs in his constituency and contributes £60 million to the local economy. In my role as Minister for Industry, I intend to be as vocal and visible an advocate of British industry as he is for the industry in his own constituency. To be clear, my objective as Minister for Industry is to ensure that we secure a sustainable and prosperous future for this UK heavy industry.
Before I talk more broadly about the challenge of decarbonisation, I will briefly set out the role that the cement sector plays in the UK. Cement is of course an incredibly ancient material, which was developed and used extensively across Europe by the Romans. However, it would be wrong to think of it as a material of the past. It is subject to constant innovation, as we heard from my hon. Friend.
If you will forgive me for saying so, Madam Deputy Speaker, cement is quite literally the foundation of our modern economy. It is the essential ingredient used to construct everything from homes and hospitals to bridges, schools, roads and energy infrastructure. Without cement, there would be no new housing developments or transport networks. That is why we recognise in our industrial strategy that the cement industry is an essential ingredient in our eight key growth-driving sectors and part of our foundation industries.
Some of this Government’s biggest and most ambitious delivery programmes depend on the strength and durability of cement, including our plan to build 1.5 million homes over the course of this Parliament and the development of our clean energy infrastructure such as nuclear and offshore wind. However, it is also an economically important sector in its own right, contributing £340 million in gross value added and employing 1,500 people in high-skilled, high-wage jobs, with a wage premium 24% above the national median wage and 6% to 8% above manufacturing benchmarks. Indeed, businesses in places where there are cement kilns are often the most highly productive, with the most highly paid jobs.
My hon. Friend outlined the challenge of decarbonisation, and we need to find a way for the UK cement industry to cut emissions in the future. He mentioned that it is a very energy-intensive energy, and he rightly pointed out that the challenge in decarbonising cement is due to the calcination process in the manufacture of clinker. I have no extreme desire to turn the House into a lecture theatre, but it may be helpful to dwell for a moment on the chemistry of cement production.
The process involves heating limestone to over 1,450°C to transform it into lime. In and of itself, this process releases the carbon dioxide that had been trapped in the limestone for millennia, and two thirds of the emissions are from the calcination process. They are an inevitable by-product of the cement production process, and they cannot be abated by fuel switching.
That problem was recognised a few years ago by none other than Bill Gates. We imagine that Bill Gates goes to very exciting parties in California, but maybe they are not as exciting as we might think. He says that when he is at a barbecue with friends talking about decarbonisation, as they often do, his friends say to him, “Bill, decarbonising steel is very difficult,” and I know that is true from my career. He always says to them, “If you think decarbonising steel is difficult, decarbonising cement is almost impossible.” This is a challenge that even Bill Gates finds it difficult to address.
However, the UK has always been a pioneer in overcoming such challenges. As we have heard, many technologies have been developed in the UK, and I will expand on those in a moment. The UK has been a pioneer in cement, too. The invention of Portland cement 200 years ago by William Aspdin sparked a construction boom that shaped the country that we know today. That is what we need to harness now: innovation to face the challenge of decarbonisation. I will outline some of the progress that the industry and Government are making. There are, essentially, three opportunities for us in decarbonisation. The first is reformulating cement, so that it intrinsically has less carbon. The second is reduction—using less cement on each construction project. There are a number of ways of doing that. The third, which my hon. Friend described extensively, is carbon capture, which is a good place to start.
My hon. Friend spoke of the Peak Cluster carbon capture utilisation and storage project, which is partly located in his constituency. As he mentioned, the project has been developed outside the Government’s carbon capture usage and storage cluster sequencing process. It is an important project that aims to store over 3 million tonnes of carbon dioxide from the cement and lime factories that support jobs across Derbyshire, Staffordshire and the north-west. It could potentially decarbonise around half of our cement industry.
My hon. Friend mentioned the investment of £28.6 million secured from the National Wealth Fund, alongside £31 million of private sector investment. Just this week I met not only the Peak Cluster team, but Sumitomo, which is one of the largest private sector investors in the proposed pipeline. I look forward to further conversations with the Peak Cluster project to help bring this initiative to fruition. He asked me about contracts for difference. I recognise that there could be a role for contracts for difference. It is an area that I would be prepared to look at more closely in future.
Reformulation is about changing the recipe for cement, so that there is less embodied cement in each tonne produced. There are a number of other cutting-edge projects at various stages of development, although none has been fully commercialised. I alluded earlier to the historical role of cement. Again, this is not an entirely new endeavour. I mentioned that the Romans were particularly strong in the development of cement. The Pantheon in Rome has a marvellous dome, over 43 metres in diameter, which is constructed from three different formulations. There is limestone in the heavy cement at the bottom, and pumice stone at the top. Ultimately, changing the clinker that we use is at the heart of how we reduce carbon emissions in cement. I will outline a few projects that are ongoing.
First of all, there is Material Evolution’s MevoCem green cement project. It is working with global building materials company CRH, and has a pilot production facility in Wrexham that uses alkali fusion technology to produce cement at ambient temperatures, with no heat and using industrial by-products. Reclinker, formerly Cambridge Electric Cement—another project my hon. Friend mentioned—uses electric arc furnace slag and demolition waste to reduce clinker. Both projects began their experimental and pilot work at the Materials Processing Institute. Madam Deputy Speaker, if you refer to my entry in the Register of Members’ Financial Interests, you will see that I worked there in the past; I have worked on one of those projects, and supported another.
There is also Ecocem’s ACT, or activating cementitious technology. It is a low-clinker cement including limestone filler—this takes us back to that original initiative in ancient Rome—which is chemically activated to produce a strong, durable and low-emissions product. Today, I met one of the company directors when I visited the Amtest laboratories in Canning Town. You may think, Madam Deputy Speaker, that I do nothing other than talk to people in the cement industry, so interested am I in this technology.
However, it is not just the technology that we need; we also need improvements in standards. Developing cement is no good if we cannot use it, and we can use it only if we have confidence in its application in the long term. I was pleased to learn that industry is working on this, having developed a Flex 350 standard, which aims to be part 3 of BS 8500. That should hopefully give insurers confidence, and enable builders and designers to use some of these new materials. Innovate UK, as my hon. Friend mentioned, has supported many of these products; in fact, it has been overwhelmed by applications for new cement technologies.
Between the cement technologies and the reduction in cement that I mentioned, we could reduce carbon dioxide emissions per tonne and overall by around 40%. Of course, that leaves a residual amount for which carbon capture and storage, either through a pipeline or some other transport network, would be required.
Let us turn to the economic opportunity of cement. The pioneering work I have referred to is not just about cutting emissions and protecting our environment; we should not be blind to the huge economic opportunity. In 2023, the UK consumed just over 11 million tonnes of cement, but we produced only 7 million tonnes ourselves. The remainder, around 30%, was imported from primarily European countries, including France, Spain, Portugal and Ireland. This is quite a new situation, as it was usual for the UK to produce the cement that we needed in our own economy. Cement is very heavy, and it is expensive to transport. I see this as a lost opportunity to capture additional economic value for the UK.
Let me put it this way: if we produced domestically what we currently import, we would need to increase production by half. A 50% growth rate in the UK cement industry is conceivable; it would mean around five additional cement plants in the country. Between them, they would create around 750 jobs and £170 million in gross value added, and would eliminate nearly half a billion pounds in the trade deficit on cement that we had in 2023. Low-carbon cement also opens up new market opportunities. The Norwegian Brevik cement plant is now operating with carbon capture. It has sold out of its low-carbon cement in 2025, and has a growing order book.
I recognise that there is an important role here for not just technology but people. I welcome the support of the Institute of Concrete Technology, and I hope to be able to work with the Institution of Chemical Engineers. I place a very high value on the role that our professional institutions can play in helping people in our industries to transfer their skills across to new green technologies.
I turn to how the Government are supporting the industry. I start by acknowledging that the previous Government failed to recognise these opportunities. They neglected our heavy industry. By failing to invest in clean energy infrastructure, they left us dependent on fossil fuels and uniquely exposed to high energy prices, which led to a bills crisis across society. Heavy industry, including cement, was neglected.
The previous Government accepted that decarbonisation meant de-industrialisation; this Government do not. Through our industrial strategy, we are taking action to reduce industrial electricity prices. We are consulting on uplifting the network charging compensation scheme, a component of the British industry supercharger, from 60% to 90%, and we will publish a response shortly. The Government will also introduce the British industrial competitiveness scheme from 2027, which will reduce electricity bills by up to 25% for over 7,000 eligible British businesses.
The Government are also committed to delivering a UK carbon border adjustment mechanism to tackle the risk of carbon leakage, and we have published draft legislation to enable us to deliver it by January 2027. That mechanism will ensure that highly traded carbon-intensive products from overseas, including products in the cement sector, face a comparable carbon price to UK goods. I understand that it will give industry the confidence that it needs to invest in the UK. I was asked today to ensure that the cement industry faces a level playing field, and the carbon border adjustment mechanism will contribute to that.
I know that my hon. Friend is also interested in emissions reporting. The Government have just consulted on an embodied emissions reporting framework, which will simplify and harmonise existing private sector data and instil more confidence in the data that is being produced. It aims to help producers with measuring, reporting and verifying the embodied emissions of industrial products in a more standardised and comparable way. The objective of that is to remove information failures and support buyers in making informed purchasing decisions.
The Government are determined to mark a departure from the de-industrialisation of the past. We know how vital heavy industry such as cement is to our economy, to our most important building projects, and for thousands of well-paid jobs across the country. The Prime Minister himself has spoken of our determination to renew Britain through investment in new homes, infrastructure and public services. That renewal will also mean a re-industrialisation of parts of our country that suffered from factory closure and a lack of investment under the previous Government.
A new age of industrial renewal has begun. I thank my hon. Friend for securing this debate, and I look forward to working with him and the cement industry on how we can secure investment and grow the industry in the future.
Question put and agreed to.
Clean Energy Jobs Plan
Chris McDonald Excerpts(7 months, 3 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
Britain’s drive to home-grown clean energy is creating a new generation of good jobs around the country, and clean energy industries are booming. The action we have taken has already delivered more than £50 billion of clean energy investment announcements since July 2024. This represents the biggest investment in home-grown clean energy in the UK’s history, and is allowing us to take back control from petrostates and dictators and to bring down bills for good.
Our mission to make Britain a clean energy superpower is not just about energy security; it is the best opportunity we have had in a generation to deliver economic security for workers and their communities—creating hundreds of thousands of secure, well-paid jobs with strong trade unions, as we roll out clean energy infrastructure, upgrade millions of homes and build our domestic supply chains.
That is why on 19 October, the Department for Energy Security and Net Zero published the clean energy jobs plan. It sets out how the Government will work in partnership with industry and trade unions to help workers in all parts of the country to benefit from these opportunities—supporting our existing workforce to find new opportunities, training up the next generation, and helping our young people to get good, unionised jobs.
Our analysis for the jobs plan estimates that we will need to see the clean energy workforce double from around 440,000 in 2023 to over 860,000 jobs supported across clean energy sectors and their supply chains by 2030. These opportunities will be distributed nationwide, encompassing all nations and regions, while some regions have high concentrations of particular clean energy sectors.
The jobs plan
The jobs plan sets out how we are taking action to address key challenges in delivering the skilled workforce our clean energy sector will need.
To deliver the pipeline of skilled workers, we will align the skills system and employment support to our industrial strategy sectors, including clean energy industries. The Government are providing an additional £1.2 billion per year to support skills development over the course of the Parliament, including funding for 1.3 million 16 to 19-year-olds to access training, supporting an additional 65,000 learners per year. We will also establish five clean energy technical excellence colleges to specialise in training skilled clean energy workforces for local and national businesses, in addition to the 10 construction TECs already confirmed.
To harness the potential of the UK workforce, we will: provide up to £20 million of funding from UK and Scottish Government to aid the transition of North sea workers into clean energy sectors; deliver £3.6 million of funding across 2025-26 to support innovative regional skills interventions in Aberdeenshire, Cheshire, Lincolnshire and Pembrokeshire to pilot support for up to 2,000 workers; support RenewableUK and Offshore Energies UK, in collaboration with the Scottish Government, to expand the energy skills passport; and develop and promote new employment pathways and career opportunities for veterans into the clean energy sector.
To deliver not just jobs, but good jobs, we will support greater trade union recognition and promote collective bargaining across the clean energy sector as a mechanism to facilitate engagement with industry, improve job quality, secure fair work and build a resilient workforce. We will also embed trade union representation across DESNZ governance, and close loopholes in legislation to extend to the clean energy sector employment protections, including the national minimum wage, enjoyed by offshore oil and gas workers working beyond UK territorial seas. We will leverage additional private investment into skills and strengthen workforce protections, through introducing workforce criteria across relevant Department for Energy Security and Net Zero grants and procurements, including in the clean industry bonus. We will develop a fair work charter with the wind sector and trade unions, which outlines a sector-wide commitment to provide high-quality employment through the CIB, and we will improve the inclusivity and visibility of clean energy job opportunities through a new social inclusion forum and an industry-led public awareness campaign.
To ensure benefits for every nation and region, we will: work with local areas to develop our regional mapping of clean energy jobs; establish a skills forum and a net zero network to bring together representatives of industrial strategy zones across the UK; work closely with local growth plans; and utilise the Department for Energy Security and Net Zero’s local net zero delivery group and ministerial-led mayoral roundtables to identify opportunities for collaboration and alignment between central and regional Government.
[HCWS972]
British Steel
Chris McDonald Excerpts(7 months, 4 weeks ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
The Government committed to updating Parliament on British Steel every four sitting weeks for the duration of the period of special measures being applied under the Steel Industry (Special Measures) Act 2025.
The Government’s priority remains to maintain the safe operation of the blast furnaces at British Steel. To that end, Government officials are continuing to provide on-site support to continue steel production, ensure that health and safety issues are being remedied, stabilise operations and improve the steady state of the business.
Work continues to develop an impact assessment, which will be published in due course following Regulatory Policy Committee scrutiny. We are also continuing work on regulations under section 7 of the Act, to introduce a compensation scheme for steel undertakings that have received a notice under the Act.
On funding, the position remains that all Government funding for British Steel will be drawn from existing budgets, within the spending envelope set out at spring statement 2025. To date, we have provided approximately £235 million for working capital, covering items such as raw materials, salaries, and addressing unpaid bills, including for SMEs in the supply chain. This will be reflected in the Department for Business and Trade’s accounts for 2025-26.
As we have stated previously, our long-term aspiration for British Steel will require co-investment with the private sector to enable modernisation and decarbonisation, support jobs, safeguard taxpayers’ money and retain steelmaking in Scunthorpe. However, this will not be without challenges. Jingye acquired a troubled business in 2020 and it has faced challenging market conditions and circumstances in the years since. The company has not been able to overcome these difficulties and achieve profitability at British Steel. But this Government remain committed to restoring the long-term viability of steelmaking at Scunthorpe, and the UK steel sector as a whole, and we continue to see tangible benefits resulting from the wide-ranging actions we have taken, such as tackling high electricity prices via the uplift to the British industry supercharger and changing Government procurement rules.
International trade
Last month, the United States confirmed that the UK will not face an increase in metals tariffs to 50% and will remain the only country in the world to benefit from a preferential 25% rate on steel, aluminium and derivative exports to the US. This provides the certainty that UK industry has long been calling for. The UK is uniquely positioned as the only country to have secured this commitment, giving our companies a 25% competitive advantage over global competitors. It further strengthens the UK’s reputation as a trusted supplier of high-quality steel and aluminium. We continue to work closely with our US counterparts to reduce tariffs further and secure the best possible outcomes for UK manufacturers.
On 10 October, the Parliamentary Under-Secretary of State, Minister for Digital Economy (Liz Lloyd CBE), joined Ministers from partner countries at the Global Forum on Steel Excess Capacity ministerial in Gqeberha, South Africa. At the meeting, Ministers agreed to develop a comprehensive framework for joint action to address global steel excess capacity by June 2026.
On 7 October, the EU announced a new steel trade measure, which will replace its existing steel safeguard, which includes significantly reduced quota sizes and a higher out of tariff rate replacing its current safeguard. This decision is not targeted at the UK but will be highly concerning for many of our steel producers and their workers.
We will always defend our critical steel industry and have already engaged the EU at ministerial and official level to understand the details of this proposal. It is vital that we protect trade flows between the UK and EU, and we hope there is a way to work with our closest allies to address global challenges rather than adding to our industries’ woes. We reserve the right to take any action in response to any changes to our trading relationships.
In addition, we will ensure we have robust protections in place for our sector. We amended the steel safeguard to make it more effective in June and we continue to explore stronger trade measures to protect UK steel producers.
Steel procurement
We have now published the steel pipeline of UK public infrastructure projects taking place over the next few years and have announced targeted action to provide relief on electricity network charges via the British industry supercharger. We remain committed to publishing the steel strategy, which will articulate what is needed to create a competitive business environment in the UK with the aim of attracting new private investment to secure and expand UK steelmaking capability.
Liberty Steel
As Members will be aware, Liberty Speciality Steel UK entered compulsory liquidation on 21 August. On 2 September, my predecessor, my hon. Friend the Member for Croydon West (Sarah Jones), delivered an oral statement to the House, providing reassurance that there would be no immediate changes to the company’s operations or the status of employees’ jobs.
I recognise that this continues to be an unsettling time for the SSUK staff, their families and the local community. Responsibility for the day-to-day management of the process, including ensuring employees continue to be paid, now lies with the independent official receiver and the appointed special managers. Following the official receiver’s recommendation, the Government have agreed to initiate a sales process. This offers the potential to safeguard jobs and preserve steelmaking capability. To facilitate this, the Government have provided funding to the official receiver to enable him to carry out his duties effectively.
The Government are committed to securing a positive outcome for the SSUK sites, one that delivers a sustainable, commercially viable future for steel production. More broadly, we remain committed to supporting a sustainable and prosperous future for the whole of the UK steel industry. We are taking decisive steps to revitalise the sector after years of neglect, working to secure good jobs in Scunthorpe and other proud steelmaking communities for the long term.
[HCWS957]
Jaguar Land Rover: Government Support
Chris McDonald Excerpts(7 months, 4 weeks ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
On 28 September the Secretary of State for Business and Trade announced that the Government are supporting Jaguar Land Rover through a guarantee provided by UK Export Finance for a commercial loan.
JLR is a major exporter and employer, supporting around 34,000 UK jobs directly, and a further 120,000 in its supply chain, but over the summer it was the victim of a prolonged cyber-attack, causing it to suspend much of its business operation.
Ministers recognised that the risk to JLR’s supply chain was far reaching, and that it is in the national interest for UKEF to issue this guarantee. The loan, which will be repaid over five years, will help ensure that JLR has liquidity to maintain operations, as well as to direct to suppliers as appropriate. UKEF will receive a premium, ensuring that the Government are appropriately compensated for the risk taken, and to cover administrative costs.
Providing a guarantee for a commercial loan to JLR is an expedient route to relieve the pressure being experienced by the supply chain. JLR already has an established relationship with its various suppliers, with whom it will work in a constructive and informed manner as production restarts. The Government moved to protect thousands of jobs and potentially billions of pounds in export earnings.
Cyber-security of the UK is a key priority for this Government, and the Department for Science, Innovation and Technology and the National Cyber Security Centre have been taking significant action to help protect businesses against cyber-attacks. This includes providing businesses with the tools, advice and support to protect themselves from cyber-threats, including free training for boards and staff. We have also put in place:
The cyber governance code of practice, which shows boards and directors how to effectively manage the digital risks to their organisation.
The highly effective cyber essentials scheme to prevent common attacks, reducing the likelihood of a cyber insurance claim by 92%. The certification scheme includes automatic cyber liability insurance for any UK organisation who certifies their whole organisation and has less than £20 million annual turnover.
As the decision was made over recess, I am notifying Parliament at the earliest opportunity. Notification has been sent separately to the Chairs of the Public Accounts Committee and the Business and Trade Select Committee.
[HCWS962]
Other Corrections
Chris McDonald Excerpts(8 months, 3 weeks ago)
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Chris McDonald
Hospitality Sector
The following extract is from the debate on the Hospitality Sector on 3 September 2025.
Chris McDonald
My hon. Friend is doing an amazing job of talking about the importance of small hospitality businesses to the local community. Does he agree that that extends beyond economic value to their value more generally? The Golden Smog, a friendly family pub in my constituency, supports an inclusive basketball team and has raised £700,000 from its annual “pALEgrimage”—it is like a pilgrimage but involves ale, so it is even better. Will he join me in congratulating that pub?
[Official Report, 3 September 2025; Vol. 772, c. 370.]
Written correction submitted by the hon. Member for Stockton North (Chris McDonald):
Chris McDonald
My hon. Friend is doing an amazing job of talking about the importance of small hospitality businesses to the local community. Does he agree that that extends beyond economic value to their value more generally? The Golden Smog, a friendly family pub in my constituency, supports an inclusive basketball team and has raised £170,000 from its annual “pALEgrimage”—it is like a pilgrimage but involves ale, so it is even better. Will he join me in congratulating that pub?