(6 days, 20 hours ago)
Commons ChamberLabour’s policy on the North sea will cost the country £12 billion in tax receipts, which would be enough to cover the winter fuel payment for many, many years. Pensioners will be in the cold this winter, and this is a policy that no other major economy is pursuing. How can the Government possibly justify it?
These are more fantasy numbers from the right hon. Lady. The truth is that the North sea has lost a third of its employment in the past decade. The only future for the North sea is in what this Government are doing: investing in carbon capture and storage, in offshore wind and in hydrogen. That is the future.
That is not my figure; it is a figure from industry—£12 billion in lost North sea tax receipts, in addition to £8 billion for an energy company that will not generate energy, and at least £200 billion for a 2030 target that we now know will not cut bills. Is it not true that pensioners will be sitting in the cold this winter to pick up the bill for this Secretary of State?
No. The case is that the Conservatives left us dependent on fossil fuels, which led to the worst cost of living crisis in living memory. The tragedy is that they are doubling down on their failed policy. The only answer for lower bills is clean, home-grown energy that we control.
(2 months, 2 weeks ago)
Commons ChamberThe Secretary of State promised in the general election to cut everyone’s bills by £300 by 2030—a pledge he will not repeat now that he is in office. In fact, one of his first acts has been to snatch the same amount away from millions of pensioners in poverty. The right hon. Gentleman likes to preach, to politicise and, dare I say it, to patronise, but I have one simple question for him. To the millions of pensioners who are worried about their heating bills this Christmas, will he apologise?
The people who should be apologising are the last Government, who left this country in a total mess—a £22 billion black hole. I have to say to the right hon. Lady that she does have a brass neck. She said of the right hon. Member for North West Essex (Mrs Badenoch), whom she is backing in the leadership contest, that she “tells the truth”, and what did the right hon. Member for North West Essex say? She said:
“I have people in my constituency telling me that they don’t need the winter fuel payments…Why do we not have a…mechanism for means-testing?”
That is her position.
There we have it: no apology; no recognition that it is the right hon. Gentleman’s Government’s decisions that are going to leave pensioners in the cold this winter. He has to acknowledge this: from the trade unions to the CBI, from blue Labour to Blairites and from the left to the right of his party, people are sounding the alarm that his ideological approach will see jobs lost and bills go through the roof. Even his old pal Ed Balls does not think that GB Energy is going to deliver the green transition, and I read this morning that the Prime Minister’s brand-new chief of staff is a sceptic of the Secretary of State’s approach. The Secretary of State is increasingly isolated in his party, so when will he do the decent thing and set out the full systems cost of his approach, so that the British public can see what he is going to do to their bills?
Oh dear, oh dear. The truth is that after three months of this Government, people have breathed a sigh of relief that there is finally a Government with a plan for the country. [Interruption.] I think the right hon. Lady should listen to what her own ministerial team has been saying about her. The former networks Minister has said that their infrastructure approach is hopeless. The former Energy Minister says that the onshore wind ban was “always mad”, and Lord Callanan said that the right hon. Lady had kicked the solar consents “into the long grass”. If I were her, I would be hoping for just one thing from the next Tory leader: a shadow Cabinet reshuffle.
(2 months, 2 weeks ago)
Commons ChamberI thank the Secretary of State for giving me advance sight of his statement. While I welcome the news today, I am saddened, if not surprised, that he has not had the grace to acknowledge the work of the last Government in getting us to this place. I know that his opinion is not that of the many partners who have come together to get this project over the line, and it does a huge disservice to his officials, who have worked so incredibly hard over the last couple of years to get us here. As far as I can see, the only positive investments that the Labour party seems to have made in its first 100 days—the Blackstone artificial intelligence data centre in Northumberland, the sixth assessment report and now this—were negotiated under the Conservatives. This is what the right hon. Gentleman’s party has turned into reality: it has crashed business confidence, and overseen £666 million of assets from UK-focused equity funds fleeing the country. No wonder it has had to have a change of management.
In 2022, in the Energy Security Bill, we set out £1 billion of investment and the business models to support the CCUS market. Our aim was to have four industrial clusters by 2030. I must pay tribute to all who have worked together on those plans, including BP, Equinor, Eni, and all those involved with HyNet and the East Coast Cluster.
The brilliant Mayor of Tees Valley, Ben Houchen, has been a leading light in this regard for many years. I noted that the Secretary of State did not mention him, which was pretty graceless, but I am sure that he would like to welcome his work. I must also mention the former Chancellor, my right hon. Friend the Member for Godalming and Ash (Jeremy Hunt), who first announced Government support for carbon capture technology amounting to £20 billion last year. That, ultimately, was the breakthrough step that got us here.
The Secretary of State says that CCUS was not funded. Let me remind him of the extent to which he is resting his laurels on a set of draft policy statements for nuclear from back in 2009 that had no Treasury funding attached. I had agreement that at least £20 billion would be spent following the next spending review. The Secretary of State is a former Treasury spad, so he knows what that means. As always, it is the cheap politics that he reaches for. He is, I am afraid, the ultimate career politician. In fact, the funding that we had announced, which would run for 20 years, was about £200 million more per year than what he has set out today. Can he confirm that the projects have not been scaled back, and if they have been, will he tell us where the losses will be?
We have also had no word on the track 2 clusters, Acorn and Viking, on which we were due to make progress over the summer; they were conspicuously absent from the Secretary of State’s statement. Many people will be deeply concerned, so can he update the House on those two projects? More widely, while his announcement rightly drew attention to the importance of British industry, both the TUC and the GMB have warned repeatedly about his net zero plans and what they will mean for British industry. In the words of Gary Smith, the leader of the GMB, the Secretary of State’s approach has been to export jobs and import virtue.
Let us look at what has happened on Labour’s watch. At Grangemouth, 400 jobs are at risk, with nearly 3,000 potentially affected. At Port Talbot, 3,500 jobs are under threat, and at Scunthorpe, there is the potential for 2,500 job losses before Christmas. Moreover, Labour are putting 200,000 jobs at risk through their plans to ban new oil and gas licences and to make the UK regime the most punitive fiscal regime for the sector anywhere in the world. When will the Secretary of State publish an assessment of the impact that his plans for the North sea will have on jobs, and on investment in clean energy? After all, this carbon capture investment today would not be possible without Eni, Equinor and BP—companies using the stable finances of their oil and gas businesses to invest in clean energy.
The Secretary of State has talked about the importance of UK decarbonisation in tackling climate change, but will he acknowledge that his plans to target UK production will not mean that we use less? They will just leave us importing more from abroad—importing more oil and gas from the United States and the middle east, and importing more steel from China, which is still 60% powered by coal. Will he acknowledge that both those developments will actually increase global emissions? It would be carbon accounting gone mad. It might leave some in the green lobby cheering at our reduced emissions, but overall there would be more carbon in the atmosphere and fewer jobs here in Britain. Is the Labour party seriously going to be responsible for the end of steelmaking in the UK, with the added cost of the loss of more than 10,000 jobs in our most left-behind communities? The Secretary of State must acknowledge that a better balance has to be found.
The Secretary of State has still made no comment on, and no apology for, promising the British public at the general election savings of £300 on their energy bills by 2030. Will he finally give an answer to his Back Benchers, the House and all our constituents, and explain what has happened to that pledge?
I know that the right hon. Lady is in a difficult position, and it rather showed today. Let us be honest: the truth is quite painful for her. She failed, as Energy Secretary, to get carbon capture over the line, year after year—well, to be fair, she was only in the job for 10 months, but certainly month after month. The funding was never secured, because there was not the political will from the Chancellor or the Prime Minister. We have seen a long line of 20 Energy Secretaries and 14 years of failure. I must give the right hon. Lady her due: she did try, I am sure; but there was nothing but dither and delay. When we came to office, the funding had not been accounted for as part of a spending review; it simply was not there. There was just a vague promise. Now it is quite difficult for the right hon. Lady, and perhaps we should have a little sympathy for her, because she has had to come to the House and see what a Government actually delivering looks like.
Let me deal with the right hon. Lady’s questions in turn. She had the brass neck to suggest that the problems at Grangemouth and Port Talbot were somehow due to the negligence of this Government. Let me tell the House about Grangemouth. I came to office with the closure of Grangemouth already announced and likely to happen. I have probably had more conversations with my counterpart in the Scottish Government than Tory Ministers had in 10 years, because they just were not interested. We should be extremely angry about that. So what did we do? We funded the Willow project, which the Tories did not fund. We added to the growth deal, which they did not do. We said that we would have a national wealth fund with the potential to fund Project Willow. We had none of that from the right hon. Lady. She just was not interested. She just did not care; that is the truth of the matter. Of course it is ideological, rather than accidental. [Interruption.] Yes, it is. A bit of honesty from the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie)! I noted that he was very honest about the right hon. Lady at the party conference. The truth is that the Tories did not have an industrial strategy because they do not believe in an industrial strategy.
Let me deal with the rest of the right hon. Lady’s nonsense. I am very pleased that she is interested in Gary Smith, because he has said:
“This is a serious step in the right direction and a welcome investment in jobs and industries after years of neglect under the previous administration.”
That is the reality. As for the other stuff that the right hon. Lady said, I think that she has a decision to make. She began her political career in the Conservative Environment Network, and she has ended up backing a net zero sceptic for the Tory leadership. I think it is a little bit sad. She should take some time to reflect on that, and on the utter contrast between her failure and this Government’s delivery.
(5 months ago)
Commons ChamberI would like to put on the record my disappointment not to get the statement in good time. I know that the right hon. Gentleman will want to provide us with the same courtesy that we tried to provide him when we were in government. That being said, I congratulate him on his return to government. I was sad not to see more of him during the election campaign, particularly because our ability to secure enough cheap energy will be crucial to this nation’s success in the decades ahead. I would also like to put on record my thanks to the officials he will now work with.
I wish the right hon. Gentleman well in his endeavour, but energy will be this Government’s big test. They talk a good game on growth, but the Secretary of State’s energy policy is their greatest liability. In government, we built more offshore wind than any other country bar China. We set out the largest expansion of nuclear power in 70 years. We said that, yes, we will need oil and gas in the decades ahead, as the Climate Change Committee has said, and we should use British oil and gas where needed. We are in a global race for energy, and demand will be higher in the years ahead because of data and artificial intelligence.
If the right hon. Gentleman’s plans to decarbonise the grid by 2030 are in place, we need to know what they will do to people’s energy bills, our energy security and our reliance on the current dominant player for cables, batteries and critical minerals—China. He is happy to quote the Climate Change Committee, but it also acknowledged that we will need oil and gas well into 2050. He must answer: where would he like that to come from?
When it comes to quotes, he should consider some from the business world who have commented on his policy, such as the chief executive of Mitsubishi Power, who said that his plans would require a “huge sacrifice” by the country, citing the costs of the Secretary of State’s approach. The chief executive of Ineos said that his approach to energy was “absurd”, leaving us dependent on imports of foreign fuels with higher emissions and doing nothing for the climate. Even the GMB said that his plans were “unviable” and would lead to power cuts, blackouts and enormous cost. Unite has said that the Government’s plans for the North sea would turn oil and gas workers into the coalminers of their generation.
The right hon. Gentleman must answer why he would like to import gas with much higher emissions. How many jobs will be lost from his plans? How much investment into the new technologies of the future, such as hydrogen, carbon capture and offshore wind, will be lost? Will he meet those workers and explain to them what will happen to their livelihoods?
During the election, the right hon. Gentleman claimed that he would lower bills and save families £300. However, those numbers are already in the savings, and no one on his side can set out the cost of his plans to decarbonise the grid by 2030. Who will pay for those network costs? What will they do to people’s standing charges, which were already too high?
The right hon. Gentleman also, I think, commented on having a say in terms of communities. The energy infrastructure he will need, and the fact that he wants to go further and faster, will have a huge impact on rural communities. Their concerns must be addressed. As I set out, the plans for our energy cannot come at the expense of our food or national security.
In his statement, the right hon. Gentleman accused me of dither, but as he will know from his officials, in at least one of the cases he has signed off I had already instructed some time ago that I was minded to reject it, and that paperwork was being prepared. He must set out urgently what his criteria will be. In one case, he overturned an expert examining authority. In another case, he signed off a solar farm which will be 40% on our best and most versatile agricultural land. Did he know that was the case? If so, what was his basis for finding that acceptable? Will he continue our efforts to build more solar on rooftops? I think he mentioned that he would reconvene the solar taskforce. I hate to tell him, but it had never been disbanded and we were due to publish that work. So, I would like to know what date he will be able to publish that work.
In conclusion, the Secretary of State’s party won the election and promised change, but he was not on show during that campaign to answer these critical questions of how he was going to provide that change and what it will mean for the country. What will his plans mean for the price of electricity? What will they mean for our ability to keep the lights on? What will they mean for struggling families’ bills, for our economy, and for the livelihoods of oil and gas workers? What will they mean for our reliance on China? For all that the Labour Government talk about growth, they will not be able to deliver on that with the Secretary of State’s plans for energy. I hope that in the months ahead he will set out some of that detail to be examined.
May I start by congratulating the right hon. Lady on her recent engagement? I wish her and her fiancé all the best for the future. We may disagree on some issues, but I believe this Government and the right hon. Lady can at least share a belief in long honeymoons. [Laughter.]
On the right hon. Lady’s response, I have to say that I was disappointed. The lines were very, very familiar. That is because they were the lines she has used for the last year. And here she comes today to the House and repeats the lines as if the intervening meteorite has not hit the Conservative party: the worst election result in 200 years for her party. The truth, as sensible Conservatives know, is that the lurch she worked on a year ago with the former Prime Minister, the Leader of the Opposition, the right hon. Member for Richmond and Northallerton (Rishi Sunak), was an electoral disaster for the Conservative party—the lurch away from climate action. What we saw in her statement is the classic dilemma for the Conservative party, which we will see played out, I hope, for many long years of Opposition. The dilemma is do they go the Reform route to be climate deniers, or do they actually re-embrace climate—[Interruption.]
(7 months ago)
Commons ChamberTwo weeks ago the Government were found, for a second time, to be in breach of the law over their climate targets. That failure will mean that families across the country will pay higher energy bills. The Court found:
“The Secretary of State’s conclusion that the proposals and policies will enable the carbon budgets to be met was irrational”.
Last time, the Government claimed that their breach of the law was just on a technicality. What is the right hon. Lady’s “dog ate my homework” excuse this time?
Let us be clear: the Court did not question the policies that we have set out, which we have done in more detail than any of our peers. It did not question the progress that we have already made, as the first G20 country in the world to halve emissions, and it did not question the ambition of our future targets, which are among the most ambitious of our peers. If the right hon. Gentleman wants to look at what would smother the transition and private investment in this country, he need only look at his own mad, unachievable 2030 target.
With a defence like that, I can see why the Government lost in court not just once but twice. Buried in the court documents is the confidential memo that reveals the real reason they lost the case—officials were telling Ministers that they had low or very low confidence that half their carbon reductions would be achieved. That is why they were found unlawful. The right hon. Lady comes to the House each month with her complacent nonsense, but the court judgment exposes the truth: the Government are way off track, abysmally failing to meet the climate emergency and pushing up bills for families as a result.
I have learned in this role that the right hon. Gentleman likes to call people who disagree with him names. Last week, representatives from the Tony Blair Institute said that his plans would raise bills and harm our energy security. Are they flat earthers? An industry report said last week said that his plans would see up to 100,000 people lose their jobs. Are those people who are worried climate deniers? When will the right hon. Gentleman admit that his plans are based on fantasy and ideology and are the last thing that this country needs?
(8 months, 1 week ago)
Commons ChamberMr Speaker, can I start by paying tribute to your father, Doug? He was a remarkable fighter for social justice, and we share your sense of loss.
A year ago, after presiding over the absolute scandal of the forced installation of prepayment meters, the right hon. Lady’s predecessor promised full compensation for anyone affected. Unbelievably, she has left it to the energy companies to decide who gets compensation and how much. They have assessed 150,000 people and just 1,500 got anything—99% got nothing. Why has she so catastrophically failed to deliver justice for those affected by the PPM scandal?
The right hon. Gentleman does actually raise an important issue. We have gripped the question of prepayment meters since the scandal first emerged. Not only have we made it clear that the horrors that we saw last winter, of people forcing prepayment meters on vulnerable households, should not take place, but I have been in contact with Ofgem in recent days about making sure that people can get the compensation they deserve at the speed with which they need it.
That is simply not good enough. It is a year on. The right hon. Lady is the Energy Secretary; she should be delivering that compensation to people, and she is failing across the board. The onshore wind ban remains; the offshore wind market crashes; the insulation schemes are a disaster, while she spends her time appeasing the flat-earth, anti-net zero brigade in her own party. No wonder the former Energy Minister, the right hon. Member for Beverley and Holderness (Graham Stuart) resigned. Is it not the truth that the Secretary of State is failing in her job and the British people are paying the price?
The right hon. Gentleman did not listen to my previous answer. It was this Government who worked with Ofgem to make sure that forced prepayment meter installation stopped taking place for vulnerable households. We have said very clearly that it is abhorrent, and we do not want to see it again. On compensation, we are working with Ofgem.
However, if the right hon. Gentleman talks about the wider energy plans—and we should do that—I think that he should consider the recent comments from industry that Labour’s plans would leave the country uninvestable, that they would hike the bills that people would pay, and that they would cost so much in needed taxes—over £100 billion of costs for Labour’s mad plans to decarbonise the grid by 2030, which, let me be clear, are not backed by industry, the unions or consumers.
(9 months, 3 weeks ago)
Commons ChamberLast September, the Energy Secretary claimed she was lifting the onshore wind ban, but in the whole of 2023 and so far in 2024 there have been zero applications for new onshore wind farms designed for domestic electricity supply in England. She said that her decision would speed up the delivery of projects. Why does she think it has not worked?
Let me be clear about our record on onshore wind. Energy production has quadrupled since 2010, when we had 3.9 GW of onshore wind, to 15.4 GW in 2023. We have connected the second highest amount of renewables anywhere in Europe, whereas the right hon. Gentleman’s plans have been widely discredited by industry and would deter billions of pounds of investment in clean energy.
The right hon. Lady did not answer the question. I will tell her why it has not worked: because she has left a uniquely restrictive planning regime in place for onshore wind. Her failure is costing families across this country £180 a year on their bills. We know that her policy has failed. She could dump the ban at the stroke of a pen. If she is vaguely serious about clean energy, why does she not face down the headbangers on her Back Benches and lift the ban?
As I said, we have connected the second highest amount of renewable electricity anywhere in Europe since 2010. Our record on renewable energy is clear. This is the most extraordinary deflection that I have seen. In recent weeks, the right hon. Gentleman’s leader has shredded his policy platform on energy. To be honest, I feel quite sorry for him, because thanks to the action of his leader and his shadow Chancellor, he has been hidden away, his policy has been ripped up and it is now obvious to everyone that Labour has no plan for energy.
(11 months ago)
Commons ChamberI beg to move an amendment, to leave out from “That” to the end of the Question and add:
“this House, while affirming the need for urgent action to tackle the UK’s energy insecurity, the cost of living crisis, and the climate crisis, and for a managed, fair and prosperous transition for workers and communities, declines to give a Second Reading to the Offshore Petroleum Licensing Bill because mandating annual oil and gas licensing rounds will not reduce energy costs for households and businesses as the Secretary of State for Energy Security and Net Zero has stated, will not enhance energy security, offers no plan for the future of the UK’s offshore energy communities, will ensure the UK remains at the mercy of petrostates and dictators who control fossil fuel markets, is entirely incompatible with the UK’s international climate change commitments and is a totally unnecessary piece of legislation which will do nothing to serve the UK’s national interest.”
I want first to express my deep condolences to the families of the two people killed by storm Isha and my sympathies to all those facing power cuts and disruption from the storm.
The proposed legislation we are considering today will not cut bills or give us energy security, drives a coach and horses through our climate commitments and learns nothing from the worst cost of living crisis in memory, which the British people are still going through—a cost of living crisis caused by our dependence on fossil fuels. Since the launch of the Bill two months ago, the case for it has disintegrated on contact with reality. Let me remind the House of the series of unfortunate events that has befallen the Bill since its publication. On day one—launch day—the Energy Secretary went on TV with the big reveal, telling the public the Bill would not cut bills. Next we discovered from confidential minutes of the North Sea Transition Authority that it thought the Bill was unnecessary and compromised its independence. [Interruption.] The Minister for Energy Security and Net Zero, the right hon. Member for Beverley and Holderness (Graham Stuart) says from a sedentary position that that is not the case. He is wrong and I will read him the minutes:
“the Board expressed a unanimous view that such a proposal was not necessary for the NSTA…The Board noted that the proposal would significantly challenge one of the tenets of independence for the NSTA”.
As the right hon. Gentleman is enjoyably quoting the NSTA minutes not its on-the-record comments, will he also support its position that we should maximise all of the oil and gas production in the North sea?
That is not the NSTA position, as I have discussed with it.
Next, Lord Browne, the former CEO of BP, attacked the Bill and said it was
“not going to not make any difference”
to energy security. Then Britain’s most respected climate expert, Lord Stern, pilloried it as “a deeply damaging mistake”. Then on the eve of COP—the conference of the parties—the former Prime Minister the right hon. Member for Maidenhead (Mrs May), who signed net zero into law, said she disagreed with the Bill; to my knowledge, she does not support Just Stop Oil.
Of course I don’t.
Then the former COP president—[Interruption.] Let’s be serious. Then the former COP president the right hon. Member for Reading West (Sir Alok Sharma), a man respected around the world who we were lucky to have playing that role at COP26, said the Bill was
“smoke and mirrors…not being serious…the opposite of what we agreed to do internationally”.
Finally, their own net zero tsar—the man they trusted to guide them on questions of energy—is so disgusted by the Bill that he is not in the Chamber today. In fact, he is so ashamed that he has fled to the Chiltern Hundreds. That is certainly getting a long way away from the right hon. Lady the Secretary of State and her policies. It shows how far people will go. It is not so much the oil and gas extraction Bill but the Conservative MP extraction Bill that she is putting forward today. The former net zero tsar said:
“I can no longer condone nor continue to support a government that is committed to a course of action that I know is wrong and will cause future harm.”
We should take all these voices—Lord Browne, the former Prime Minister, the former net zero tsar and the former COP President—[Interruption.] I will come to all the arguments that the Secretary of State made, if she will give me a minute, as I develop my argument. The bigger point is that we face massive challenges as a country, but it is not the scale of our problems that is so apparent today, but the smallness of the Government’s response. We have a risible two-clause Bill that she knows will not make any difference to our energy security, because everyone who knows anything about this subject says so.
As the Bill has fallen apart, the Government have thrashed around to try to find a rational justification, and they have made one futile argument after another. Let us take each in turn. The first argument was that the Bill will cut prices. In case the House is thinking, “Did they really make that claim?”, the claim was made by the Prime Minister in a tweet. At 9.57 am on launch day, he said that the Bill will
“help reduce energy bills as we’re less exposed”—
The Secretary of State nods, but I put on record my thanks to her, because she has been an internal one-woman rebuttal unit against the Prime Minister. She went on breakfast TV—before the tweet, so we might call it a prebuttal—and said that the Bill
“wouldn’t necessarily bring energy bills down, that’s not what we’re saying.”
She is right, because oil and gas is traded on international markets.
If the right hon. Gentleman had read the full quote, I said that indirectly, through support to the renewables sector, the Bill brings down bills. The fact that we can raise tax to help people with the cost of living also brings down bills. If he would like to bring down bills for people in this country, he should back this Bill.
That is great, because the Secretary of State anticipates my rebuttal of the second bad argument for this Bill, which is the argument she has just gone on to make. She said that the tax revenues we get from fossil fuels justify this policy, and we have heard it again today. If anything, that is an even more complete load of nonsense than the Prime Minister’s argument, because these are the facts: it is our reliance on fossil fuels that has caused rocketing energy bills. That meant that the Government were forced to step in to provide support for households and businesses [Interruption.] Ministers should just listen.
The cost to Government of the support with bills has far outweighed any tax revenues. According to the Office for Budget Responsibility, the windfall tax receipts from oil and gas companies raised £25 billion, and the cost of Government support is more than £70 billion or, the Government say, £104 billion. The idea that our dependence on fossil fuels can be justified by the tax revenues we get, when they have spent £100 billion trying to help people, is obviously nonsense.
There is a third bad argument, and again we heard it today, which is that somehow this Bill strengthens our energy security. Again, it is important to have a few facts in this debate. Here are the facts: the UK’s North sea gas production is set to fall with new licences by 95% by 2050, or without new licences by 97%. That is the equivalent of four days of our current gas demand. All this absolute codswallop about the Bill guaranteeing our energy security and somehow guaranteeing 200,000 jobs is risible nonsense.
Here is the thing. We have had a real revelation in this debate—the Government have admitted the truth—which is that the vast majority of oil is not used in this country; it is exported elsewhere, and 70% of our remaining reserves are oil, not gas. The idea that this makes any difference to our energy security is nonsense—these are private companies selling on the private market—and the Government have absolutely no response.
The fourth bad argument is that the Bill will somehow protect jobs. That is wrong. We owe it to oil and gas communities to protect them in the transition, but given the Conservatives’ record in constituencies such as mine, we will not take lectures from them on just transitions. We should admit a truth: the fossil fuel market is not just deeply unstable for consumers, as we have seen over the last two years, but deeply unstable for workers. It is a total illusion that new licences will somehow guarantee jobs for North sea workers. In the last 10 years, the number of people working in oil and gas has more than halved. The International Energy Agency predicts a peak in fossil fuel demand by 2030. That is why its head said:
“New large-scale fossil fuel projects not only carry major climate risks, but also business and financial risks for the companies and their investors.”
That applies to workers, too.
The right way to have a managed transition in the North sea is to carry on using existing fields—a Labour Government will do that—and to have a plan for North sea workers by driving forward with jobs in the industries of the future: offshore wind, carbon capture and hydrogen. But that is not what the Government have done. We had a graphic example of that last week. The world’s largest floating wind prototype sits off Peterhead—that is a good thing—but it needed maintenance, so where did the maintenance happen? Not in Scotland, and not anywhere in the UK; it has been towed back to Norway. That is the scale of their industrial policy failure; we know it very well.
The Government have not generated the jobs that British workers deserve, and their fossil fuel policy and net zero roll-back has sent a terrible message to investors around the world. This is what Amanda Blanc, the chief executive officer of Aviva and the head of its UK transition plan taskforce, says about oil and gas and the Government’s position:
“This puts at clear risk the jobs, growth and the additional investment the UK requires to become more climate-ready.”
It is Britain losing the global race in clean energy jobs that will destroy the future of oil and gas communities. The Government have no proper plan for those workers; Labour does have a proper plan.
(1 year ago)
Commons ChamberThe world sorely needs leadership at COP28, but the verdict of our most globally respected climate expert, Lord Stern, earlier this month was damning. He said that the Government’s backsliding on climate action is a “deeply damaging mistake”—damaging for the UK, the world and the future of us all. Will the Secretary of State take this opportunity to place on record her response to Lord Stern?
The right hon. Gentleman should understand that we have the most ambitious climate target of any of our international peers. If he looks at the delivery today, he will see that we overshot on carbon budgets 1 and 2, and we are on track to overshoot on carbon budget 3. In fact, the UN gap report showed just last week that between 2015 and 2030 the UK is expected to reduce emissions at the fastest rate of any of the G20 countries.
The Secretary of State has no response to Lord Stern. The problem is that he sees a Government preaching one thing and doing another. Her negotiators at COP will argue to phase out fossil fuels, but she wants to drill every last drop at home and open new coalmines. She will tell developing countries that climate action is good for the economy, but the Government use climate delay to divide people here at home. Does she not realise that climate hypocrisy just trashes our reputation and undermines our leadership?
I completely reject that characterisation. At COP28, we will be talking about the UK’s leadership when it comes to cutting emissions. We had cut emissions more than any of our international peers by 1990. Even if we look forward to our targets for 2030, we see that we will still be cutting emissions by more than any of our international peers. That is something that the right hon. Gentleman would do well to welcome.
(1 year, 1 month ago)
Commons ChamberI will happily look at that.
The UK was the first major economy to set a legally binding date for net zero. Our ambitions for 2030 are ahead of those of our peers and we have the plans in place to meet them. In fact, we have met every single one of our stretching targets to reduce carbon emissions, thanks in no small part to our clean energy success. Labour seems to have conveniently forgotten about the shameful state of our renewables sector when it left office. Just 7% of our power came from renewables in 2010; today, thanks to the actions of the Conservatives, that figure stands at near 50%. Never forget that it was the right hon. Member for Doncaster North (Edward Miliband) who described the idea of the UK getting to 40% renewables as “pie in the sky”.
I had to correct the right hon. Lady’s predecessor on the point she has just repeated. Her mistake is quite basic, confusing electricity and energy. The Guido Fawkes blog—not an institution I often praise—pointed this out when her predecessor made this mistake. What I actually said—it comes from David Laws’ memoirs—was that it was pie in the sky to say we could have 40% of our energy provided by renewables. Currently, the figure is 18%. The Secy of State’s remark is inaccurate and wrong, and I would be grateful if she withdrew it.
I will happily go and look at that, and take that point on board, but I will say that it sticks with the trend of the right hon. Gentleman talking our energy and power down.
I will read from David Laws’ memoirs. During the coalition talks, I said,
“all this stuff about getting 40% of energy production”—
energy production—
“from renewables by 2020 is just pie in the sky.”
Energy production from renewables is currently just 18%. I would be grateful if the right hon. Lady corrected the record.
As I said, I will happily look at that, but the right hon. Gentleman has made comments about nuclear—
I ask the Secretary of State for the third time. She claims that I said that it was “pie in the sky” that 40% of our electricity could come from renewables. I did not say that, and I have pointed out to her the exact quote, where I talk about 40% of energy coming from renewables. When one has said something inaccurate about another hon. Member in the House, the right thing to do is not to just keep reading the Conservative campaign headquarters lines, but to correct the record.
As I said, I am happy to do the right hon. Gentleman the courtesy of withdrawing on this occasion, but I would also suggest that he correct the record himself about the fact that he said we needed no new nuclear in the past.
Now that I am allowed to move on, let me say that energy security means national security, and that means powering Britain from Britain and making sure we never have to worry again about generating enough power to keep the lights on or heat our homes. We saw what happened last year when Putin weaponised energy, and the full impact his illegal war in Ukraine had on energy bills for households around the world. I am proud that the Government stepped in with an unprecedented level of support, paying around half of people’s energy bills. With continued global instability, I know that households are anxious about the coming winter. That is why we have the energy price guarantee until April 2024 and why we will always protect the most vulnerable in society with targeted support such as the winter fuel payment, cost of living payments and the warm home discount.
Does the right hon. Gentleman acknowledge that I said it would also help fund renewable energy? Does he disagree with the view that a future with renewable energy would help to bring bills down?
I think that that is what we call wriggling.
As I was saying, I commend the Energy Secretary on her outburst of candour. She is right—she is telling it like it is—and, by the way, she is in good company. Let me read this to the House:
“MYTH Extracting more North Sea gas lowers prices. FACT UK production isn't large enough to…impact the global price of gas.”
Who said that? Not somebody on this side of the House. [Interruption.] No, not a former Chancellor. It was the current chairman of the Conservative party, the right hon. Member for Chelsea and Fulham (Greg Hands), when he was the Energy Minister.
So here they are, they really are going to the country and saying with a straight face, after all the pain and anguish that the British people have faced, “Here is our grand offer to you: the ‘we won’t cut your bills’ Bill.” That is the offer from the Secretary of State: “Vote Conservative, and we promise we won’t cut your energy bills.” No wonder the Back Benchers are despairing. The Government could have done so much. They could have lifted the onshore wind ban to cut energy bills, but they did not. They could have legislated for a proper programme of energy efficiency to cut bills, but they did not. [Interruption.] I will happily give way to the Energy Secretary’s Parliamentary Private Secretary if he would like to intervene.
(1 year, 2 months ago)
Commons ChamberI thank the Secretary of State for advanced sight of her statement. My only disappointment was that she did not read out the multiple paragraphs defending the Prime Minister’s claim about seven bins, which was in the copy sent to me. Obviously, she was too embarrassed to defend it, because it was made-up nonsense.
We profoundly disagree with the Secretary of State and the Prime Minister when they suggest that the answer to the cost of living crisis in our country is dither and delay on building a clean energy future for Britain. It will not work and their approach will make it worse. If you want the evidence, Madam Deputy Speaker, just look at their previous failures. The ban on onshore wind did not cut bills; it raised them. The slashing of home energy efficiency—cutting the “green crap”, as they called it—did not cut bills; it raised them. The fiasco of the offshore wind auction last month did not cut bills; it will raise them. It is not going too fast on climate that has caused the cost of living crisis; it is the Conservatives’ failures that have left us exposed to the worst energy bills crisis in generations. Rather than learning the lessons, they are doubling down.
The definitive analysis of the recent announcements came last Thursday from the Government’s own watchdog, the Climate Change Committee. It said this:
“The cancellation of some Net Zero measures is likely to increase both energy bills and motoring costs for households”.
Why did it say that? Let me explain. The Government now say that landlords will not have to insulate homes, but as the CCC points out, these regulations
“would have reduced renters’ energy bills significantly.”
Moreover, the cost savings would have outweighed any changes in rent. Therefore, they are not lowering costs; they are raising them.
On electric vehicles, the CCC says that
“any undermining of their roll-out will ultimately increase costs.”
That is because the lifetime costs of EVs are already cheaper than those of petrol and diesel vehicles. By 2030, the up-front costs of EVs are forecast to be at parity with petrol or diesel cars. Again, the Government are not lowering costs for families; they are raising them.
When the Secretary of State dumps other targets, I have to ask: who set these targets and then failed to take the action to meet them? The Government did. Laughably, they say that this is about long-term decisions. The biggest long-term cost that the British people face is failure to act at the scale required to tackle the climate crisis. The Secretary of State says again that the Government are on track to meet their 2030 target, but their own watchdog said in June that they were “significantly off track”. It says—this is from last Thursday—that the Government have not offered evidence to back their assurance
“that the UK’s targets will still be met.”
There is no evidence that they are on track to meet their targets.
Perhaps worst of all, imagine being a business trying to make decisions and invest in our country when they literally do not know from one day to the next what the Government policy is. Since the Prime Minister’s announcements, businesses from around the world have said that, by backing off climate action, the Prime Minister is turning his back on the greatest economic opportunity of the 21st century. Meanwhile, the UK heads into yet another winter where people cannot afford their energy bills. There are still no proper plans for a roll-out of energy efficiency, no plans to properly lift the onshore wind ban, and no proper plan to get the offshore wind market back on track.
Finally, let me say to the Secretary of State that the consensus on net zero has been hard-won over two decades. We have a duty to debate it on the basis of facts, not falsehoods. I have to say to her that it is deeply regrettable that she used her first major public appearance—two weeks ago at her conference—literally to make up complete nonsense about meat taxes, which I notice she did not defend today, and for which frankly she was exposed on national television. I say to her that it demeans her, it demeans her office and it demeans public debate. The Government said that they were going to move on from the premiership of Boris Johnson, but people will be deeply disturbed to find that that appears to mean dumping commitments to net zero and keeping his peculiar relationship to the truth.
I thank the right hon. Gentleman for his response to my statement. He raises a number of questions that I wish to address. He mentions the prospect of the seven bins policy. He has forgotten that he voted for it. The Conservatives, by contrast, came to the good sense to course correct. He has taken leave of his senses and forgotten what he has voted for in the past.
On the question of dietary changes, the right hon. Gentleman might like to speak to his shadow climate change Minister and shadow Chief Secretary to the Treasury, who both have pushed to treat meat like tobacco in the past. The substantial point that I would make is that we need to be practical about our net zero policy and to make sure that we are having honest debates. We on the Conservative Benches stand by our record. We are proud to be the party that has decarbonised faster than any G7 country, and it is regrettable that the Opposition cannot acknowledge that achievement. We are proud that we have secured almost £200 billion of investment in low-carbon energy projects since 2010 and that we have helped to secure this country’s energy independence by backing North sea oil and gas, protecting 200,000 jobs.
Can the right hon. Gentleman be proud of his record? He said that we should sacrifice our growth to cut emissions and that we should borrow £28 billion in his blind ambition for 2030. He supported coal, before he changed his mind and is now against it. He also said that growing our renewables sector to 40% was pie in the sky, but in the first quarter of 2023, 48% of our power came from renewable energy. He spent years at Gordon Brown’s side and as Energy Secretary but did nothing to boost British nuclear in his time in government, whereas we are forging a new path, with every operational nuclear power station in this country having started life under a Conservative Government. Members do not need to take my word for it that our energy security is safer with us, because just this weekend the owners of Grangemouth made it clear that the threat Labour’s plans pose to the future of the refinery, potentially putting thousands of jobs at risk, would be a danger for energy security. Furthermore, we cannot allow oil and gas workers to become the coalminers of our generation. It has been said that Labour
“does not properly understand energy”,
with it being “self-defeating” and “naive”. Those are not my words but those of the general secretary of the Unite union and the head of the GMB.
Furthermore, the right hon. Gentleman talks about uncertainty. If he would like to give the business and industry certainty, he and the shadow Chancellor need to sit down and agree how much money they will actually spend—is it £28 billion or £8 billion? Is it no new money, or is it what we heard over the weekend, which is as much as £100 billion of new borrowing for GB Energy? Conservatives will prioritise energy security. We are set on delivering the most ambitious net zero targets of any major economy, and we will do this all without forcing families to choose between protecting their family finances and protecting the planet.
(1 year, 3 months ago)
Commons ChamberI wish the Clerk of the House well in the future, and I warmly welcome the Secretary of State to her new role and congratulate her on her appointment to the Cabinet. I look forward to working together. Let us start with the truth. The offshore wind auction that she inherited was a totally avoidable disaster. It means another lost year for our country and another year of higher bills, and it is because Ministers obstinately refused to listen to warning after warning from industry. RenewableUK estimates that the auction failure will add £2 billion to bills. What is the Secretary of State’s estimate of the cost to families of this fiasco?
I thank the right hon. Gentleman for welcoming me to my place. I am delighted to serve opposite him and face him at the Dispatch Box.
There are a couple of things I will point out. If we had tried to do what the right hon. Gentleman suggested, we would have delayed the 3.7 GW of clean energy that we secured, which is able to power 2 million homes. If we want to look at what is going to hurt people and their bills, I would point to his disastrous policies, whether it is the ultra low emission zone, which is hitting people who can least afford it, or his borrowing spree, which will raise inflation.
I am afraid the Secretary of State is quite wrong about that, because Ireland adjusted the price and had 3 GW of offshore wind. Let us talk about the way that this Government are jeopardising our energy security. They have delivered—[Interruption.]
This Government have delivered the worst cost of living crisis in a generation. There is a pattern here: they banned onshore wind and raised bills, they slashed energy efficiency and raised bills, and now they have trashed offshore wind, raising bills. That is why we are so exposed. I know that the right hon. Lady did not make those decisions, but now that she is the Secretary of State, she needs to tell us, after 13 years of failure, what is she going to do differently?
Let me tell the right hon. Gentleman about the last 13 years. We have decarbonised faster than any G7 country, while also growing the economy. We have grown renewable energy from 7% of our electricity when Labour left power to 50% now. I am proud of what we have achieved over the last 13 years. We have a proud record when it comes to climate change and a proud record when it comes to renewable energy, and I am proud to defend it.