Oral Answers to Questions

David Duguid Excerpts

Tuesday 16th November 2021 Commons Chamber

[Greg Hands]

Of course, I share the hon. Lady’s concern for vulnerable people who face potential rises in energy prices. She will know that VAT is a matter for the Treasury but, of course, a VAT cut would be very untargeted towards vulnerable people. That is why we have schemes in place, such as the warm home discount, winter fuel payments and cold weather payments, to help vulnerable and elderly people. The Government have got the policy right.

[David Duguid (Banff and Buchan) (Con)]

On energy security, UK natural gas production has come down from around two thirds of UK demand in 2015 to less than half in the first quarter of this year—with, by the way, around 25% coming ashore at St Fergus in my constituency. Does my right hon. Friend agree that although we see a welcome increase in UK renewable capacity, it is far preferable, while a reducing demand for gas still exists, to source that gas domestically rather than to depend on foreign imports?

[Greg Hands]

My hon. Friend is absolutely right that we will always prefer British gas production to foreign imports. Some 50% of the gas we currently consume comes from the UK continental shelf, with an additional 30% from Norway. My hon. Friend is right to mention the transition; I know how much he fights for his constituency’s huge extent and variety of energy producers. Earlier this year, we were delighted to agree the North sea sector transition deal, which will offer a fantastic future for my hon. Friend’s constituents and those right across north-east Scotland.