Finance (No. 2) Bill (Fifth sitting)

Debate between Dan Tomlinson and John Cooper

Committee stage
Tuesday 3rd February 2026 Public Bill Committees

[Dan Tomlinson]

I thank the shadow Minister for his questions and engagement. This is one of the largest parts of the Bill, and sets out a significant change to taxation and the treatment of imports in order, as he says, to support domestic businesses that may face higher prices than companies seeking to export to the UK that have cheaper prices and higher emissions.

To go through some of the questions that were asked, the criteria that were looked at internally—over many years and starting under the previous Government; it has taken five years of work to determine which sectors will be in scope—were whether sectors were already in scope of the UK emissions trading scheme, because it is important that those are aligned; whether there was real risk of carbon leakage; and whether it was feasible to implement in 2027. That is why these five sectors were chosen, after significant engagement across Government and with stakeholders. The sectoral scope will be kept under review, and there are some sectors that the Government will continue to have conversations with in the coming weeks to understand their concerns and the benefits that there may be to widening the scope in future. We will keep it under review because, at the moment, the focus is on making sure that we can implement this significant change. It is a long piece of legislation and there are lots of good questions, but we want to get this in as drafted first.

The shadow Minister made several points regarding the sectors that are already in and the extent to which, in his words, they might be made “worse off”. It is important to note that they will be better off than without a CBAM in terms of competition and fairness in imports. At the moment, there is no CBAM, so the imports that come to the UK in these five sectors are, in a sense, undercutting domestic production if we have higher costs. With the introduction of CBAM, that undercutting will be significantly reduced. The prices faced by importers will be brought into line with those faced by those companies in the UK. There is a valid point to make about the detail and specificity with which the carbon prices that are used within CBAM are set, and that is something that I certainly want to keep under review, but it is good and it is right that we make progress with CBAM as set out in the legislation.

[John Cooper (Dumfries and Galloway) (Con)]

The Minister talks about people being better off, but my farmers are very concerned about the fertiliser impact. Four or five years ago, fertiliser was around £180 a tonne; today it is about £400 a tonne, and the introduction of CBAM might put another £100 on top of that. Farmers’ margins are so narrow that they simply have to pass that on, which will have a direct effect on food prices in this country. The Minister says that there will be talks about that. Farmers should be front and centre of those talks, because this is really worrying.

[Dan Tomlinson]

We will engage, and have engaged, with the industries that are directly affected by this change, including the fertiliser industry, and those for whom there will be knock-on effects from higher import prices. With fertiliser in particular, it is worth noting that UK-based fertiliser manufacturers have received more free allowances in recent years than they needed to surrender to be able to cover their emissions. As such, they are not, in practice, paying a carbon price at the moment. The CBAM rate will therefore be set at a low level to reflect that. It is something that I have been looking at as Minster because of these issues, and we expect the initial impact of CBAM on the fertiliser sector to be very modest. None the less I take the point that the hon. Member raises, and the Government will continue to look at it.

On the point around groupings and EORI numbers, that is not a phrase that I have come across before, but I am glad that I have heard it. I will make sure to remind myself of the torturous Brexit process and will, I am sure, understand the context there in more detail. We engaged with businesses in advance of making the proposal and feedback indicated that group treatment would confer relatively minimal benefits, so we chose not to implement it at this time. We will, of course, keep that under review though.

CBAM is a significant change that has been welcomed by many of the industries in the UK and should go a long way to levelling the playing field for those firms that are producing in these five sectors.

Agricultural Property Relief and Business Property Relief

Debate between Dan Tomlinson and John Cooper

Monday 5th January 2026 Commons Chamber

[Dan Tomlinson]

This Government have our farming road map. We have also published the Batters review, and we will be taking forward many of the proposals and the recommendations in it, so that we can continue to support profitability and sustainability for farmers and our farming communities.

[John Cooper (Dumfries and Galloway) (Con)]

A guid new year to you, Madam Deputy Speaker, and the staff of the House.

The past 14 months have been hell for the farmers of Dumfries and Galloway, and the Minister has made it clear that he will not apologise for that. Will he stop fantasising, like the wealthfinder general, about the money he can take out of agriculture and instead concentrate on helping British farmers to put British food on British tables?

[Dan Tomlinson]

We need to continue to do all we can to support British farming so that we can have more British produce on our shelves and so that countries overseas can have more British produce, too. That is why we have been working hard on our trade deals to secure more access for British farmers to markets overseas.

Energy Profits Levy: North-east Scotland

Debate between Dan Tomlinson and John Cooper

Tuesday 14th October 2025 Commons Chamber

[Dan Tomlinson]

As I said just a few moments ago, 100,000 jobs are directly or indirectly linked to the work and activities in this sector, and it is vital that we support people with that transition. In the long-term, carbon capture and storage alone is expected to support 50,000 skilled jobs by 2050 as we move towards a clean energy transition. I am acutely aware—I have heard it from Opposition Members, and I am sure that I will hear it from my hon. Friends in a second—that we must get the balance right between the timing of phasing out and winding down production in the North sea, and ramping up the clean energy and good jobs that we need for the future. We have to do all we can to protect the sector.

[John Cooper]

Will the Minister give way on that point?

[Dan Tomlinson]

I will first take the intervention from my hon. Friend the Member for Edinburgh South West (Dr Arthur).

[Dan Tomlinson]

I believe the hon. Member for Moray West, Nairn and Strathspey (Graham Leadbitter) was slightly quicker in standing up than my hon. Friend.

I do understand my hon. Friend’s points. It is very important not to be cowardly in politics, which is why I will make sure that we come forward as fast as we can to set out the approach after the EPL is set to end. This Government, under the leadership of a whole range of Cabinet Ministers, is making sure that we can provide that long-term certainty, not chopping and changing when it comes to our policies on net zero.

The hon. Member for Gordon and Buchan mentioned energy security, which links to the challenge we have with energy bills. It is worth recognising the truth that, even if we extracted every single drop of oil and gas in the North sea, that would not make any material difference to people’s energy bills or the prices that people pay at the pump. Oil and gas are traded on international markets, and given the declining basin on the UK continental shelf, domestically produced oil and gas do not do anything to reduce prices. In fact, it is our reliance on oil and gas that leaves British consumers exposed to unstable fossil fuel markets.

In closing, this Government are determined to provide a balance—

[John Cooper]

rose—

[Dan Tomlinson]

Does the hon. Member really wish to intervene? [Interruption.] Go on.

[John Cooper]

I thank the Minister for giving way on that point: this is about balance. We need to find a balance in the transition of people coming out of oil and gas and moving into renewables. The difficulty is that we cannot say to these highly-skilled people that there is a great job for them in renewables but it is going to be 10 years down the line. That is no use to them at all: they have bills to pay and families to feed. The balance is out of kilter, and I am afraid that the Government are getting this wrong.

[Dan Tomlinson]

I disagree that the Government are getting this wrong. We are doing our best to try to find the right balance to support people, industry and jobs.

We will continue to provide a balanced, responsible and predictable regime for the UK oil and gas industry, which I hope will continue to drive growth, support workers and communities, protect our energy security and ensure a prosperous future for the North sea as we make our way towards net zero. Our commitment, and my commitment as a Minister, to the future of the North sea is clear, and I will continue to engage closely with the industry, workers and Members across the House on this important issue.

I again thank the hon. Member for Gordon and Buchan for securing this important discussion, and I thank Members from across the House for their contributions.

Question put and agreed to.