Oral Answers to Questions

Gareth Davies Excerpts

Tuesday 14th November 2023 Commons Chamber

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

5. What fiscal steps his Department is taking to support the growth of the energy sector.

[The Exchequer Secretary to the Treasury (Gareth Davies)]

Since March 2021, the Government have committed a total of £30 billion in public investment for the green industrial revolution. Since then, the Chancellor has announced £6 billion for clean heat and improving energy efficiency, and £20 billion for carbon capture, usage and storage. Alongside the launch of Great British Nuclear and the small modular reactor competition, the Government have also invested £1 billion in Sizewell C.

[David Duguid]

According to a recent survey, 90% of North sea oil and gas operators have reduced spending since the energy profits levy was introduced. I therefore welcome recent announcements on new North sea licences and the announcement before the summer of the energy security investment mechanism, by which the EPL will be removed when appropriate. Can my hon. Friend tell me when we can expect a response to the consultation on the ESIM and what plans this Government have to legislate for the mechanism? Will he meet me to discuss how investor confidence in our home-grown industry can be assured further?

[Gareth Davies]

Introducing the price floor for the oil and gas industry comes from the principle that, while it is right that oil and gas companies pay a higher share of tax during exceptional times, it is also right that when prices fall to normal levels, so do their tax rates. That is why we introduced the price floor in June and we have extensively engaged with the industry since then. I know that legislating will provide some certainty; we are looking carefully at that and will respond soon. I will always be happy to meet with my hon. Friend.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

The Labour party and the Co-operative party have set out a shared ambition for more community-owned energy. That is not new: in Denmark, 52% of wind energy is community owned, and in Germany half of all onshore wind is community owned. Will the Government do far more to join that ambition of community-owned energy here in Britain?

[Gareth Davies]

We have ambitious plans for energy generation and our energy security. We want to bring communities with us, and we look at all options as we do so.

[Rachael Maskell (York Central) (Lab/Co-op)]

6. What recent assessment he has made of the potential merits of introducing a wealth tax.

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[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

14. What fiscal steps he is taking with Cabinet colleagues to help support households in fuel poverty.

[The Exchequer Secretary to the Treasury (Gareth Davies)]

The Government have taken significant action to help households with rising energy prices and the costs of living by providing one of the largest packages of support in Europe, totalling £94 billion.

[Mr Carmichael]

Orkney and Shetland have the worst rates of fuel poverty of anywhere in the country. Provisional figures show that, for last winter, both Orkney and Shetland recorded record levels of winter mortality. In his new office, will the Minister bring his colleagues together from across Government to hear from agencies such as THAW—Tackling Household Affordable Warmth —in Orkney that are working to tackle fuel poverty, because if we can tackle fuel poverty in Orkney and Shetland, we can tackle fuel poverty?

[Gareth Davies]

We are incredibly sympathetic to the right hon. Gentleman’s constituents, who have suffered a very difficult time. That is why we introduced the energy price guarantee, which will remain in place until March 2024 as a safety net. We continue to engage with lots of stakeholders and we are very happy to include the ones he suggests.

[Nick Fletcher (Don Valley) (Con)]

16. What steps his Department is taking to support homeowners with their mortgages.

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[The Exchequer Secretary to the Treasury (Gareth Davies)]

The Government continue to stand by households with one of Europe’s largest support packages, amounting to some £3,300 a household on average across 2022-23 and 2023-24.

[Ben Lake]

The Minister will be aware that a big concern for rural constituencies is the cost of fuel. The RAC has found that the margin enjoyed by the big supermarkets on fuel sales in October was double the figure for the year to date at 14p per litre. That reflects concerns raised by the Competition and Markets Authority that although wholesale fuel prices fell in September and October, retail prices did not. What is the Treasury’s assessment of the impact that these higher margins will have on households in the coming winter?

[Gareth Davies]

Fuel duty is a major cost for households and businesses. We recognise that. That is why in the spring Budget 2023, the Chancellor extended the 5p temporary duty cut. That was a £5 billion saving for motorists, worth £100 for the average motorist, but we always keep these things under review.

[Priti Patel (Witham) (Con)]

23. What steps he is taking to support economic growth in Essex.

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[Julian Sturdy (York Outer) (Con)]

24. What fiscal steps he is taking to support the growth of the life sciences sector.

[The Exchequer Secretary to the Treasury (Gareth Davies)]

Life sciences are one of the Chancellor’s key growth priority areas. In May, he announced a significant new policy package, backed by more than £650 million of funding, reaffirming the Government’s commitment to supporting a thriving life sciences industry.

[Julian Sturdy]

I thank my hon. Friend for that answer. Life sciences are incredibly important, so will he focus investment on them in projects such as BioYorkshire on the edge of my constituency, which brings together private, public and academic institutions for huge benefits right across the board?

[Gareth Davies]

My hon. Friend is absolutely right to highlight the benefits and importance of life sciences to the country. We are genuinely a world leader: I was out in Boston in the United States seeing the other world-leading area for life sciences, and it is not a patch on ours. That is why, as an example, we are looking to support life sciences through the investment zone programme, but, as I said, they are a key priority for the Chancellor as part of his growth agenda.

[Marco Longhi (Dudley North) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

I know that the Chancellor is aware of just how important the whisky industry is to the economy of rural Scotland. It was very disappointing that the policy of a duty freeze was not continued in the Budget. Can he offer any reassurance that we will return to the policy of duty freeze in the autumn statement, and in next year’s Budget?

[The Exchequer Secretary to the Treasury (Gareth Davies)]

We are incredibly supportive of the Scotch whisky industry. In fact, the Scotch Whisky Association was my first meeting in post. In nine out of 10 previous fiscal events we either cut or froze duty on whisky, and we have acted to remove punitive tariffs on Scotch whisky in the US market. It will not be a surprise to my right hon. Friend that all taxes remain under review and he will not have long to wait until the next fiscal event.

[Richard Burgon (Leeds East) (Lab)]

T6. Banks are taking advantage of higher interest rates to make bumper profits. A new poll shows that people have had enough, with big support for a one-off windfall tax on bank profits, yet the Government have chosen to slash the surcharge on bank profits. Is it not time for a windfall tax on excess bank profits to help people who are hit hard by this crisis?

[Peter Gibson (Darlington) (Con)]

I thank the Exchequer Secretary to the Treasury, my hon. Friend the Member for Grantham and Stamford (Gareth Davies) for his recent visit to Darlington, where he opened a new branch of Darlington Building Society. He will know from that visit the impact that Treasury jobs are having locally, including an additional £80 million of spending in our local economy. Does he agree with me that Darlington Economic Campus is a fantastic levelling-up project, ensuring that people can stay local but go far?

[Gareth Davies]

It was a great pleasure to visit my hon. Friend and open the Darlington Building Society in his town, a very prominent business that is important for in-service banking facilities. The Darlington campus is an important part of our Treasury levelling-up agenda and long may that continue.

[Stephanie Peacock (Barnsley East) (Lab)]

T8. More than 3 million households in the UK owe an estimated £2.7 billion in the unregulated buy now, pay later sector. The Labour party has set out plans for urgent regulation of the sector. Can the Minister confirm when the Government will do the same?