All 2 Ed Miliband contributions to the Great British Energy Bill 2024-26

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Thu 5th Sep 2024
Tue 29th Oct 2024

Great British Energy Bill

Ed Miliband Excerpts
2nd reading
Thursday 5th September 2024

(3 months, 2 weeks ago)

Commons Chamber
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Ed Miliband Portrait The Secretary of State for Energy Security and Net Zero (Ed Miliband)
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I beg to move, That the Bill be now read a Second time.

May I congratulate you on your elevation to your new role, Madam Deputy Speaker?

At the general election, the British people voted for change, and they voted for our party’s promise of the first new national, publicly owned energy generation company in our country for more than 75 years: Great British Energy. Today, with this Bill, we deliver. British public ownership is back at the heart of our energy system. To every right hon. and hon. Member behind me, I say that it is thanks to each and every one of their victories in their constituencies that today we can start to create a lasting legacy for the country, which breaks from 14 years of failure—14 years of leaving Britain exposed to fossil fuel markets, which led directly to the worst cost of living crisis and energy bills crisis in generations.

Graham Stuart Portrait Graham Stuart (Beverley and Holderness) (Con)
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Will the Secretary of State give way?

Ed Miliband Portrait Ed Miliband
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Not at the moment. [Interruption.] The right hon. Gentleman needs to calm down a little bit; I know he gets very angry.

We have had 14 years of blind faith in free markets and a refusal to have an industrial policy, which offshored clean energy jobs, and 14 years of a Government who were perfectly happy with state ownership of our energy system, but with one crucial overriding condition: that it would be state ownership by any country except Britain. That is the reality of what we inherited.

We already have widespread state ownership of Britain’s energy assets by other countries—Denmark, Sweden, Norway and France—through their state-owned companies. Indeed, the city of Munich owns more of our offshore wind capacity than the British Government. Following the auction results I announced on Tuesday, the largest two offshore wind projects to win a contract will be built by Ørsted, a Danish state-owned company. I strongly welcome its investment, but the question before the House today—the question at the heart of this Bill—is simple: do we think there should be a British equivalent of state-owned energy generation companies such as Ørsted, Vattenfall, Statkraft and EDF investing in our infrastructure?

We have a simple proposition: if it is right for the Danes, the French, the Norwegians and the Swedes to own British energy assets, it is right for the British people to do so as well. That is why we fought the election on the crucial principle that the British people should have a right to own and benefit from our natural resources. To every Member of the House who is considering their vote on this Bill this afternoon, I urge them to vote for that principle. To those thinking about voting against the Bill, I ask them how they will defend to their constituents the idea that other countries should own our national energy infrastructure, but Britain should not.

Graham Stuart Portrait Graham Stuart
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I am grateful to the right hon. Gentleman for giving way. He is normally a fair man, but what he did not mention was the risible state of renewable energy when we took power in 2010. It accounted for less than 7% of electricity, and we increased the figure to nearly 50%. We are a country that has led the world in this area. It was the Conservatives who transformed our energy system to remove coal from the system. I am sure I am just setting up the Secretary of State, which I am happy to do, but what will state ownership do? Our system is arguably one of the most effective in the whole world at delivering green capacity, and has been the most successful in cutting emissions. What will state ownership do, other than simply put the state and its complicated mechanisms into programmes that need to be speeded up, not slowed down?

Ed Miliband Portrait Ed Miliband
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The right hon. Gentleman surprises me; he is a brilliant set-up man, and he is welcome any time. I will now explain to him what state ownership will do. Here is why it is the right idea for our time. It is the right idea for energy security, because Great British Energy will invest in home-grown, clean energy that we control, and speed up its delivery. It is the right idea for jobs—this is the learning from all those other countries I mentioned—because Great British Energy will partner with the private sector to create jobs and make sure that we build the supply chains and jobs that the British people deserve.

It is the right idea for creating wealth for Britain. This is what I do not understand about the Conservative party, because state-owned companies from other countries are not investing in these assets as a charitable endeavour; they are doing so to generate wealth for their countries—wealth that flows back to their taxpayers. State ownership is the right idea for creating wealth for Britain, because Great British Energy, through its investments, will help generate return for the taxpayer. To answer the right hon. Gentleman directly, it is right for energy security, it is right for jobs, and it is right for creating wealth for our country.

Sammy Wilson Portrait Sammy Wilson (East Antrim) (DUP)
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I will not support this Bill tonight. The Secretary of State claims that it will put the British people in ownership of the renewable electricity supply market, but that market is estimated is £50 billion a year. He is proposing to invest £1.6 billion a year. Can he not see the difference that £1.6 billion will make to the overall investment? The infrastructure will still not be owned by the British people.

Ed Miliband Portrait Ed Miliband
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The right hon. Gentleman and I have a long history on these issues, which makes me rather old. Indeed, we used to spar about them 15 years ago. He is wrong about £1.6 billion; it is £8.3 billion of investment over the Parliament—a significant sum. Great British Energy will not become EDF overnight—of course not —but the point is that this Government believe in creating a lasting, long-term legacy for Britain, which is what GB Energy will do.

None Portrait Several hon. Members rose—
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Ed Miliband Portrait Ed Miliband
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I am going to make some more progress.

Let me go through what Great British Energy will do. First, it will invest in and own clean energy projects, particularly leading-edge technologies such as floating offshore wind, by working with the private sector and taking stakes in the projects it supports. The truth is that we need to accelerate the deployment of wind, solar, tidal, hydrogen, carbon capture and nuclear, and we need to face the reality that frontier technologies carry risk. That is why there is a particular role for the Government in helping to de-risk projects by investing in them in partnership with the private sector, and in doing so capturing value for Britain.

GB Energy will invest across a range of clean energy technologies, using its £8.3 billion capitalisation. The chair has been appointed by the Government, but the company will be able to move at pace with operational independence. I am delighted that Jürgen Maier, who has a great record of achievement and is a champion of UK manufacturing and good jobs, has been appointed as start-up chair.

Grahame Morris Portrait Grahame Morris (Easington) (Lab)
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I completely agree with the basis of my right hon. Friend’s argument for ending the offshoring of jobs, energy assets and employment opportunities. Almost all solar panels are currently sourced from China. Power Roll, a company in my constituency, has developed a lightweight, flexible and cost-effective solar module and is eager to establish its first gigafactory. Does he agree that, to secure our energy future, Great British Energy should be supporting and investing in innovative start-ups such as Power Roll in east Durham?

Ed Miliband Portrait Ed Miliband
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My hon. Friend is a brilliant champion of his constituency and these issues, and he is absolutely right that part of the challenge we face is to expand our supply chains in Britain. I am very interested in the example he gives.

Matt Rodda Portrait Matt Rodda (Reading Central) (Lab)
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The Secretary of State talks eloquently and powerfully about the physical investment coming from this new measure. Will he elaborate on some of the benefits to our workforce, particularly the training and development opportunities for younger people through a wider range of apprenticeships, and the amazing multiplier effect that will have for our economy?

Ed Miliband Portrait Ed Miliband
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My hon. Friend anticipates my point about how we build the supply chains, and about the lessons we have learned from what state-owned companies in other countries have done to help catalyse a supply chain of jobs and to work with the private sector.

Toby Perkins Portrait Mr Toby Perkins (Chesterfield) (Lab)
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Will my right hon. Friend give way?

Ed Miliband Portrait Ed Miliband
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I will give way one more time before making some more progress.

Toby Perkins Portrait Mr Perkins
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I am very grateful to my right hon. Friend. We heard the right hon. Member for Beverley and Holderness (Graham Stuart) suggest a few moments ago that things were going wonderfully under the Conservative Government, but does my right hon. Friend agree that the Climate Change Committee warned a few weeks ago that only a third of the emissions reductions that we need to achieve the 2030 target are currently backed by a credible plan? Is the reality not that we need a step change? Thank God we have a Labour Government to deliver it.

Ed Miliband Portrait Ed Miliband
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My hon. Friend is absolutely right, and it is part of what this Government have done. In less than two months, we have overturned the onshore wind ban, consented large amounts of solar power and, on Tuesday, had the most successful renewables auction in British history.

Graham Stuart Portrait Graham Stuart
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Will the right hon. Gentleman give way?

Ed Miliband Portrait Ed Miliband
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I will not give way to the right hon. Gentleman again. We have heard quite enough from him.

Secondly—I know this is a concern of the Liberal Democrats and of other Members on both sides of the House—Great British Energy will deliver our local power plan, working with local authorities, combined authorities and communities to deliver the biggest expansion of support for community-owned energy in history.

Clean energy is not just about large-scale infrastructure. If we look around the world, so many countries have a lot to teach us. In Denmark, around half of wind capacity is citizen-owned; and in Germany, almost half of solar capacity is citizen-owned. Our local power plan will learn from other countries.

Generating clean power, and embracing it as a way to generate a return for local people, to help tackle fuel poverty, to unleash the dynamism and resources of local communities and to win the consent of local people, thousands of projects across Britain are tapping into that energy and enthusiasm.

Tonia Antoniazzi Portrait Tonia Antoniazzi (Gower) (Lab)
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Will my right hon. Friend give way?

Ed Miliband Portrait Ed Miliband
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I will make a bit more progress.

I had the chance to visit the Lawrence Weston turbine in Bristol, which Members may know about. It is England’s tallest onshore wind turbine, and it is 100% owned by the local community, powering at least 3,000 local homes and reinvesting revenues into local projects.

Ed Miliband Portrait Ed Miliband
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I have caught the eye of an infrequent contributor to this House, so I will give way.

Jim Shannon Portrait Jim Shannon
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I thank the Secretary of State for what he is putting forward. It seems logical for the UK to manufacture this process, rather than others doing it for us. The question for my constituents, I say respectfully to the Secretary of State, is, what will the price of energy be at the end? A LucidTalk poll for National Energy Action evaluated the impact of rising energy prices on households in Northern Ireland. It found that 41% of households were spending more than 10% of their income on their home energy costs. How can we make sure that my constituents, and indeed all our constituents, can have energy they can pay for?

Ed Miliband Portrait Ed Miliband
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The hon. Member is absolutely right. This is a massive concern for all our constituents, and Great British Energy is a crucial tool to bring down prices for our constituents. The truth is that every Member in this House has to make a judgment on this. Do they believe that business as usual, staying on fossil fuels, will give us the energy security we need? We discussed this in the House on Tuesday. The truth is that we had the worst cost of living crisis in generations because of our exposure to fossil fuels. We are seeing prices rise again on 1 October, not because of Government decisions but because of our dependence on international gas markets. The argument for clean energy 15 years ago was a climate argument; it is now as much an energy security argument as a climate argument.

None Portrait Several hon. Members rose—
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Ed Miliband Portrait Ed Miliband
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I am going to make a bit more progress.

Thirdly, Great British Energy will work with industry to develop supply chains across the UK to boost energy independence and create good jobs. The reality is that the last Government spectacularly underdelivered on the promise of creating jobs in clean energy. It is true that British waters are home to one of the largest floating offshore wind farms in the world: Kincardine, just 15 km off the coast of Aberdeen—[Interruption.] The right hon. Member for East Surrey (Claire Coutinho) nods, but where was it made? Its foundations were made in Spain and its turbines were installed in the Netherlands, and it was then simply towed into British waters. How can that be right?

This Government are not neutral about where things are made. We want the future made in Britain. Clean energy is the economic and industrial opportunity of the 21st century, and the truth is that other countries are seizing this opportunity. Britain is being left behind. The facts are extraordinary: Germany has almost twice as many renewable jobs per capita as Britain; Sweden almost three times as many; and Denmark almost four times as many. That is the previous Government’s legacy.

What our friends and neighbours have realised is that a domestic national champion is a crucial tool to help deliver economic success. The success of the Danes, for example, cannot be divorced from the role of Ørsted in helping to make it happen. That is why Great British Energy will work alongside our national wealth fund and the British jobs bonus, partnering with industry, to build supply chains in every corner of the UK, delivering the next generation of good jobs, with strong trade unions, and reindustrialising Britain.

Bernard Jenkin Portrait Sir Bernard Jenkin (Harwich and North Essex) (Con)
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I congratulate the Secretary of State on his appointment. May I draw attention to the letter he wrote to Fintan Slye, the chair of National Grid ESO, in August, and the response he has given in his open letter to the industry, alongside a question about the cancellation of the offshore co-ordination support scheme, which was coming up with viable alternatives for better delivery of the Norwich to Tilbury project? Mr Slye says that the plan the ESO will develop will be

“a whole systems spatial view of what is required to deliver a clean, secure, operable electricity system by 2030.”

Does that include all the work that ESO has already done in its review of the Norwich to Tilbury project, which includes many viable options that could speed up the process and make it more viable for the long term?

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Ed Miliband Portrait Ed Miliband
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I looked carefully at that issue before we made that decision. I have great respect for the hon. Gentleman, but we cannot justify spending public money on a scheme that will not work and will not deliver for the British people, which is why we did not go ahead with the second phase. All the advice and all the evidence was that it just would not be value for money.

I am glad that the hon. Gentleman draws attention to 2030. For the first time in this country since the last Labour Government were in power, we are going to have a proper plan. We did not inherit a proper plan, and we need a proper plan to give certainty to industry.

Fourthly, Great British Energy will support project development, leading projects through their early stages to speed up delivery, while capturing more value for the British people, in particular through our partnership with the Crown Estate, announced just two weeks into our period in Government. The partnership will co-ordinate planning, grid and leasing for the seabed and, importantly, help speed up the roll-out of offshore wind and other technologies. It has the potential to help leverage up to £60 billion of private investment and deliver up to 30 GW of offshore wind leases.

The truth is we have huge potential as a country: the chance for offshore wind to drive investment in coastal areas from Cornwall to Grimsby, opportunities for ports from west Wales to north of Scotland to lead the world in the industries of the future, and opportunities for supply chain companies all over the world. That is what this Bill is about.

Ian Lavery Portrait Ian Lavery (Blyth and Ashington) (Lab)
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I am terribly excited about the ambition of the Labour Government for GB Energy. In my constituency, Blyth port is thriving. We have Energy Central on the Blyth estuary, Catapult UK, the offshore energy research centre, and Lynemouth power, a biomass power station. May I invite the Secretary of State to see the issues in my constituency for himself, and show businesses and residents how they can participate in the fantastic opportunity Government are offering?

Ed Miliband Portrait Ed Miliband
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My hon. Friend is a great champion for his area and he is right. I am sure he reflects the feelings of every right hon. and hon. Member, whatever side of the House they are on, that there are huge opportunities in this sector. We intend to exploit them. I look forward to seeing his constituency.

Ed Miliband Portrait Ed Miliband
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I will make a bit more progress. I have set out our case—a case that the British people overwhelmingly support. According to post-election polling by More in Common, Great British Energy was supported by an overwhelming 73% of voters and opposed by just 8%. It appears from the Conservative’s reasoned amendment—so-called—that Conservative Members will vote against the Bill today. If they do that, they will do something remarkable: they will go one step further than refusing to listen to the people who did not vote for them by refusing to listen to the people who did vote for them—quite a remarkable feat by an Opposition—because Great British Energy was supported not just by Labour voters, but by Conservative voters by a majority of four to one—56% to 14%.

Ed Miliband Portrait Ed Miliband
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I will make a bit more progress. [Interruption.] Conservative Members are still in the “the show was great but the audience was poor” stage of Opposition. Let me give them some advice—they will get out of that over time, but they are in the early stages now.

Because I get my kicks in strange ways, for a bit of light entertainment, I have been reading what the Conservative party leadership candidates have been saying. It is really interesting, honestly; it is quite fun reading. [Interruption.] Yes, somebody has got to do it. The right hon. Member for Tonbridge (Tom Tugendhat) said that people

“will never vote for a party that they have stopped taking seriously.”

Well, that is true. He said they should be

“given credit for seeing the errors that we may make and correcting them.”

Correct. The right hon. Member for North West Essex (Mrs Badenoch)—I believe the shadow Minister, the right hon. Member for East Surrey (Claire Coutinho), is the mastermind for her campaign—said it was no good

“having the same policy arguments from the last Parliament.”

The shadow Minister should take those words to heart.

I agree with those candidates that the Conservative party needs to move on. I am in a generous mood, Madam Deputy Speaker. I have been involved in leadership campaigns, so I have some advice. I have a free idea for the not very famous five still left in the Tory leadership competition: back an idea that the public support. Back an idea that Conservative voters support; back an idea that Labour voters support; back an idea that Reform voters support—Reform Members are not here. Back an idea that Liberal Democrat voters support. They should move on from the arguments of the last Parliament, show a bit of bravery—even break the Whip and stand out from the crowd. They should break from the past and back our Bill today.

Wera Hobhouse Portrait Wera Hobhouse
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The Secretary of State knows I share his passion and ambition to get to net zero. One big concern about GB Energy is that it will crowd out, rather than crowd in investment. Will he enlarge on how he intends to crowd in investment into green energy?

Ed Miliband Portrait Ed Miliband
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I am very surprised by the Liberal Democrats saying that. It is slightly “orange book” Liberal Democrats, if I may put it that way, for those old enough to remember. I say respectfully to the hon. Lady and all Members of the House: look around the world at what is happening before our eyes. There is catalytic public investment—public investment levering in private investment. The whole old fashioned, free market 1980s argument about crowding out turns out to be wrong. Just look at what is happening in America. Why is the money flowing to the United States? In part, because of the catalytic public investment. [Interruption.] I can see Opposition Members are going to be slow learners.

Great British Energy is at the heart of our long-term plan to accelerate the transition to clean energy and ensure we are never at the mercy of volatile fossil fuel markets again. It will speed up delivery, create good jobs and protect family finances, and we will reap the benefits for generations to come. I commend the Bill to the House.

Great British Energy Bill

Ed Miliband Excerpts
Ed Miliband Portrait The Secretary of State for Energy Security and Net Zero (Ed Miliband)
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I beg to move, That the Bill be now read the Third time.

It is a privilege to open the Third Reading debate—another milestone in setting up Great British Energy. In less than four months, this Government have incorporated GBE as a company, appointed Juergen Maier as its start-up chair, and launched its first partnership with the Crown Estate. Next will be the national wealth fund. Earlier this month, we announced GBE’s partnership with key public bodies in Scotland. We have also announced its headquarters in Aberdeen. We are acting on our mandate from the British people.

I want to thank everyone who has played a role in getting the Bill to this stage: the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), who has done an incredible job steering the Bill through Committee; Members across the House who have scrutinised the Bill in Committee; all the parliamentary staff who have worked on the Bill; and the fantastic officials in my Department who have moved at such speed over the last four months.

I also want to thank the witnesses who gave evidence to the Committee, all of whom were in support of establishing Great British Energy. I am sure that the House will be interested in the list. They include SSE, EDF, Energy UK, RenewableUK, Scottish Renewables, the Carbon Capture and Storage Association, Nesta, the Green Alliance, the Net Zero Technology Centre, the TUC, Prospect and the GMB. And they are not the only ones. I can inform the House that they join a growing list of supporters, including the CBI, the Aldersgate Group, Octopus Energy, E.ON, the Hydrogen Energy Association, the Scottish Chambers of Commerce, the Port of Aberdeen, the University of Aberdeen and, of course, the British people themselves, who overwhelmingly backed Great British Energy at the general election. Sadly, the only people you can find to oppose Great British Energy are the faction of a sect of a once-great party sitting on the Opposition Benches.

The reason for such support—this will be the argument behind politics for the next few years—is that this country recognises it is time to invest in Britain’s future and put an end to the decline of the last 14 years. That is the choice of this Bill and the choice of the coming years in British politics, and we should relish it: invest or decline.

Sarah Champion Portrait Sarah Champion
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I am fully supportive of GB Energy, but what assurances can my right hon. Friend give to the House that it will be a just transition, that it will be adopted across Government, and that the broadest sector will buy into it?

Ed Miliband Portrait Ed Miliband
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My hon. Friend has made really important interventions on this point. We have been clear that no company in the UK should have forced labour in its supply chain, and we will be working with colleagues across Government to tackle the issue of the Uyghur forced labour in supply chains that she has raised during the passage of the Bill. As part of that, we have relaunched the solar taskforce and we will work with industry, trade unions and others to take forward the actions needed to develop supply chains that are resilient, sustainable and free from forced labour.

Great British Energy is the national champion that our country needs, for three reasons. First, it is at the heart of our mission to make Britain a clean energy superpower. Every family and business has paid the price for our country’s exposure to volatile fossil fuel markets over the last two and a half years. A sprint to clean energy is the way to increase our energy independence and protect families and businesses. We need to invest in wind, solar, nuclear, tidal, hydrogen, carbon capture and more—geothermal too.

Secondly, Great British Energy will help to generate the jobs the UK needs, not just the power. Here’s the thing: our European neighbours recognise that a publicly owned national champion is a critical tool in industrial policy, and the good news is that after 14 years of industrial policy being a dirty, taboo phrase, it is back at the heart of policy making in this Government. Great British Energy is part of our plan to ensure that the future is made and built in Britain.

Thirdly, Great British Energy will ensure that the British people reap the benefits of our natural energy resources, generating profits that can be returned to bill payers, taxpayers and communities across the country. I know that many Members of the House are passionate about the issue of local power, so let me reassure them that the Government are committed to delivering the biggest expansion of support for community-owned energy in history.

Great British Energy is the right idea for our time and has in a short time won huge support. I am sorry that the Opposition have chosen to wallow in their minority status and stand out against it, but let me tell them: their vote tonight will have consequences. For every project that Great British Energy announces in constituencies around Britain, every job that it creates, every local solar project it initiates and every wind project it invests in, we will tell their constituents that they opposed it. They are the anti-jobs, pro-energy-insecurity party, and we will hang their opposition to GBE round their necks from here till the next general election. Invest or decline: that is the choice, and GBE is the right choice for energy security, bills and jobs. I commend the Bill to the House.

Nusrat Ghani Portrait Madam Deputy Speaker (Ms Nusrat Ghani)
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I call the shadow Secretary of State.