Oral Answers to Questions

Grant Shapps Excerpts

Tuesday 29th November 2022 Commons Chamber

[Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)]

16. What recent assessment his Department has made of the potential impact of the increase in the energy price guarantee in April 2023 on households.

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

Future energy prices remain highly uncertain and are expected to remain elevated throughout next year. The energy price guarantee from April ’23 is currently expected to equate to £500 of support for households in 2023-24.

[Martin Docherty-Hughes]

As I hope the Secretary of State will know, recent analysis published by The Herald has shown that the typical dual fuel bill for people in Scotland will be £3,300—£800 more than the current £2,500 price cap. Given the Chancellor’s plans to increase the price cap further, what levels does the Secretary of State expect average energy bills to reach in Scotland next year?

[Grant Shapps]

As the hon. Gentleman will know, a comprehensive range of different support is in place, including the energy price guarantee, which on average looks to guarantee £2,500. It is not specific to each household, of course, and it depends on how much energy is actually used—it is a cap—but there is additional help including the £400 non-repayable support through the energy bills support scheme.

[Chris Law]

The support to which the Secretary of State refers offers scant consolation to those suffering, particularly the near-130,000 households in Scotland who rely on heating oil. The £200 of support from the UK Government covers less than half the price of the typical minimum order of heating oil, so will he finally commit to increasing the support available to these households?

[Grant Shapps]

Of course, everybody has had a £400 discount from their bill that is not repayable, and 8 million families also have additional support—those on income support and the like. The hon. Gentleman mentions the £200; we only just doubled that from £100 in the autumn statement the week before last.

[Chris Stephens]

Rising bills terrify most households. The End Fuel Poverty Coalition recently warned that

“predictions of ‘a humanitarian crisis’ for children stuck in cold homes are now a very real possibility”,

so does the Secretary of State accept that failure to provide additional support for vulnerable families in April will have dire consequences?

[Grant Shapps]

I just mentioned support for 8 million families that goes beyond just the £400 and the energy price guarantee. Those 8 million families will benefit from all manner of additional support—£1 billion for local authorities, additional money for people on various forms of universal credit, and money for pensioners—all of which is designed to help people through a crisis that the whole House should recognise has been brought on by Putin the dictator invading Ukraine.

[Angela Crawley]

Contrary to what the Secretary of State says, the consequences will be dire. The Institute of Health Equity indicates that the development of millions of children will be damaged, so will he commit to providing adequate support for vulnerable families so that no child suffers the diverse health impacts of fuel poverty this winter?

[Grant Shapps]

I have mentioned the 8 million homes, but perhaps it will help the hon. Lady if I point out the specific means-tested benefits which mean that those families will receive an extra payment of £650 on top of all the other assistance and help that I have outlined. This is an unprecedented situation. We have put billions of pounds of taxpayers’ money into supporting people. I hope the whole House will recognise that this Government have done everything within our power to assist.

[Steven Bonnar]

The reality is that it is a damning indictment of decades of failed UK Government energy policy that we are even discussing harm to children as a result of rising energy Bills, given the vast energy resources at Scotland’s fingertips. Given that context, does the Secretary of State agree that it is absurd that nearly 1 million households in Scotland will be experiencing fuel poverty?

[Grant Shapps]

I have mentioned the household support fund, which is also available for the most vulnerable. I do just have to say, to this line of questioning, that it is extraordinary that while this Government are spending so much energy and money trying to support consumers, we still have the SNP refusing to allow new renewables such as nuclear power.

[Sir Desmond Swayne (New Forest West) (Con)]

When will there be clarity for park home owners about exactly what they have to do to get what they have still to receive?

[Grant Shapps]

My right hon. Friend is absolutely right to point out the plight of park home owners, who are in a different position from others because of the lack of connection, sometimes, to the grid. We are working very hard to ensure that they get their payments as well, which will happen this winter. My right hon. Friend can be reassured that we are doing that, and currently working through local authorities to deliver it.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

Mr Speaker, I know you are a huge fan of making sure your pottery comes from the Potteries. Ceramic manufacturers, despite the energy price cap guarantee—it has been hugely helpful, with one manufacturer saying it will save it £4 million over the winter months—are still left in a dire situation. Will the Secretary of State agree to meet me, the other Members of Parliament for Stoke-on-Trent and Rob Flello, the chief executive of the British Ceramic Confederation, to discuss what further support can be given to this vital industry?

[Grant Shapps]

My hon. Friend is absolutely right about the pressure those manufacturers are under, and I absolutely recognise that. There is the energy-intensive industries discount of 85%, but I would certainly be very happy to meet him and colleagues to discuss the matter further.

[Mr Speaker]

I call the SNP spokesperson.

[Stephen Flynn (Aberdeen South) (SNP)]

To summarise, what we know is that, in Scotland, average household energy bills will exceed the energy price guarantee, but the Secretary of State is unwilling or unable to tell us by quite how much. Of course, we know that on top of that households in Scotland, and indeed children in Scotland, are going to suffer as a result, yet we see no new announcements of additional financial support forthcoming. All the while, Scotland produces its own energy far in excess of what would be required to meet its own demands. Can I therefore ask the Secretary of State whether it is little wonder that viewers watching this at this moment in time would be thinking that Westminster is failing Scotland?

[Grant Shapps]

I absolutely do not agree with the hon. Gentleman. I have already talked about the £400 that everybody has been able to receive back, with some additional measures coming through for people with unusual connection positions. We have the £650 cost of living payments for those on benefits, £300 for pensioners and £150 for disability costs of living. From what I can work out, the SNP does not like its oil and gas industry and does not want new nuclear power, so I have no idea what its plan actually is.

[Stephen Flynn]

It is a remarkable state of affairs that a nation that produces more energy than it requires faces child fuel poverty as a result of the actions of this Government here. The Secretary of State does not like those facts, but here are some more for him. To alleviate this crisis in the medium to long term, what we need from this UK Government is not investment in nuclear, but investment in clean, sustainable renewable industries. In that regard, can I welcome his U-turn on onshore wind, but also seek clarity about whether he will provide the same tax incentives for the renewables sector as he will for the fossil fuel industry?

[Grant Shapps]

This Government have a very proud record when it comes to renewables. When we came to power, barely 10% was from renewables; now the figure is 42%. In fact, on one day the week before last over half of this country’s energy was produced from offshore wind alone. The SNP does not like the answers I am giving because the amounts of money we are spending supporting people, including Scots, with energy bills this year means that, for example, the average single parent on means-tested benefit will be £1,050 better off because of the energy bills support scheme. Yes, we are doing our part, and perhaps it is time the SNP looked at its own policy to make sure it is encouraging energy production.

[Tom Hunt (Ipswich) (Con)]

2. What assessment the Government have made of the potential impact of Sizewell C on employment in the local area.

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

I visited the site yesterday and was delighted to confirm the nearly £700 million investment in Sizewell C pledged in the autumn statement.

[Tom Hunt]

There are clearly significant national benefits to Sizewell C in terms of national security, but as a Suffolk MP I am particularly interested in potential jobs creation. I understand that about 10,000 new jobs could be created. I previously worked closely with EDF and Suffolk New College to see how we can ensure that as many local people—and my constituents in Ipswich—benefit from Sizewell C as possible. Will the Secretary of State, in his own time—when he has a little availability—meet me, the principal of Suffolk New College, other education sector leaders and EDF to see how Ipswich people can benefit in a real, tangible way from Sizewell C?

[Grant Shapps]

My hon. Friend will be interested and happy to learn that I met two apprentices at Sizewell yesterday, who have two of what we expect to be 1,500 new apprentice jobs. He is right to mention 10,000 jobs in the immediate area—perhaps there will be 20,000 across the country—and we expect more than 70% of investment in the project to come to the UK. I will gladly meet him and his colleagues to discuss that further.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Cumbria’s energy coast, including nuclear, wind, wave and tidal, also has the capacity to create thousands of jobs in our county. When will the Secretary of State make an announcement in respect of his engagement with Cumbria’s energy coast to make best use—

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[Andrew Bridgen (North West Leicestershire) (Con)]

T2. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

With Sizewell C, we are securing a cheap, clean and reliable supply of energy to supercharge growth—I will provide more details in my oral statement. We have recommitted to increasing public investment in research and development to £20 billion each year by 2024-25, which will supercharge science and innovation, and we are supporting local enterprises and increasing the national living wage by almost 10%, the largest ever cash-terms increase.

[Andrew Bridgen]

As well as renewables, it is clear that we need to add more baseload capacity, and nuclear is the favourite for that. Hundreds of my constituents work at Rolls-Royce, and many of them work on the development of small modular nuclear reactors. Will my right hon. Friend outline what support the Government are giving to Rolls-Royce to develop this technology, which will not only add to the UK’s energy security but deliver a technology that we will be able to export successfully around the globe?

[Grant Shapps]

Like my hon. Friend, I am very keen on small nuclear reactors as part of the solution. We will be launching Great British Nuclear early next year to assist both Rolls-Royce and its competitors. There are other brands out there, all of which have interesting ideas about modular production of nuclear power, which will provide sustainable energy even when the wind is not blowing and the sun is not shining.

[Mr Speaker]

I call the shadow Secretary of State.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

I welcome the Business Secretary to his first oral questions. He is the third Business Secretary we have had this year, and I have to say that lack of stability is the No. 1 complaint from businesses, which genuinely cannot keep track of Government policy in any particular area. If they do know the policy, they feel it could change at any moment if the internal politics of the Conservative party shift one way or the other. Does he accept that political instability has very real consequences for economic stability?

[Grant Shapps]

I very much welcome the hon. Gentleman’s welcome, I hope to be in post for a long time, not to disappoint him in any way. His talk about the instability of policy is a bit rich, as many Labour Members sat on the Front Bench under their previous leader, who believed in a whole bunch of different things. Even the shadow Secretary of State for Climate Change and Net Zero, the right hon. Member for Doncaster North (Edward Miliband), once said it is impossible for this country to get to 40% renewable energy—he called it “pie in the sky.” Right now we are producing 43.1% of our energy from renewables. That is from a party that is consistent.

[Jonathan Reynolds]

Respectfully, I think the Business Secretary needs to focus a little bit more on his own side and the humility required to do that.

On a more positive note, this Saturday is small business Saturday. A future Labour Government will tackle the issue of late payments to small and medium-sized enterprises by making audit committees report on public companies’ payment practices. With more than £20 million waiting to be paid at any one time, this is a change that will make a real difference and one that is backed by the Federation of Small Businesses. We could, however, implement it sooner by amending the draft audit reform Bill when it comes forward. Would the Secretary of State support that change?

[Grant Shapps]

I agree that payment for small businesses is very important, particularly when it is not done by larger companies that have the resources. That is one of the reasons why the Government have led the way to make sure that, when small businesses deal with Government, payments are made quickly and efficiently. The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) is looking at a whole range of different things to ensure that we speed up the culture of late payments to small businesses, and he will be saying more about that very shortly.

[Elliot Colburn (Carshalton and Wallington) (Con)]

T4. Transport for London consultation data shows that 80% of outer London businesses said no to the Mayor of London expanding the ultra low emission zone, but they have been ignored and now many Carshalton and Wallington businesses are considering closing their doors. Will my right hon. Friend agree to meet me and other London Conservative MPs to discuss how we might be able to support businesses in outer London?

[Grant Shapps]

My hon. Friend is absolutely right. Labour Members talk about helping businesses, but that is what you get with a Labour Mayor in London, bashing businesses. I would be proud to meet my hon. Friend.

[Mr Speaker]

I call the shadow Minister.

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[Gareth Johnson (Dartford) (Con)]

T5. Will the Secretary of State join me in condemning the actions of the London Mayor in extending the ULEZ scheme out to the whole of London? This will have a significant impact on businesses both inside and outside London, creating a financial wall between London and the rest of the country, and hitting areas such as Dartford particularly hard, which, of course, have no say in who the Mayor of London is.

[Grant Shapps]

That is absolutely right. Voters will have their say. I say no taxation without representation.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

T3. I welcome the Business Secretary to his place. What assessment has he made of the number of European countries to exit the energy charter treaty on the basis that attempts to modernise the treaty have failed, and will the Government be considering the UK’s position?

[Greg Smith (Buckingham) (Con)]

T6. Does my right hon. Friend share my enthusiasm for synthetic fuels made from green hydrogen and atmospheric carbon capture as part of our route to decarbonisation? If so, what is his Department doing to support the UK pioneers in this sector, such as Zero Petroleum, to compete in what will surely be a multitrillion-pound global industry and huge export opportunity?

[Grant Shapps]

I do enthusiastically support our SAF—sustainable aviation fuel—industry. Actually, it is a little known fact that last year at COP26 we sent more than 500 aircraft home with sustainable aviation fuel in their tanks, and this country has set a more ambitious target for sustainable aviation fuel than elsewhere, with 10% by 2030.

[Sir Stephen Timms (East Ham) (Lab)]

The Groceries Code Adjudicator has done a good job over the past 10 years, leading to a big fall in the number of breaches of the fair purchasing code, but bad practice is still rife in the fashion industry, with UK fashion retailers among the worst offenders. The Environmental Audit Committee called for a garment trade adjudicator. Will Ministers bring that proposal forward?

[Virginia Crosbie (Ynys Môn) (Con)]

T7. May I say pob lwc, good luck, to the Wales football team tonight? Can the Secretary of State confirm that, beyond Sizewell C, Great British Nuclear will be empowered to commission and build at not only gigawatt-scale, but small modular reactor-scale, so that my constituents on Ynys Môn can benefit from those new jobs from new nuclear?

[Grant Shapps]

I can confirm that that is the intention with Great British Nuclear. I know that areas such as Wylfa Newydd—if I am pronouncing it correctly—in my hon. Friend’s constituency could well be in line to benefit. However, as she can tell from my Welsh pronunciation, I suspect that I will be on the English side tonight.

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

Yesterday, I hosted a roundtable meeting for businesses in my constituency. They were worried about late payments and a Government who are not helping them. Fifty thousand businesses close every year due to late payments, and small businesses account for two thirds of UK private sector employment. Will this Government act before the worst of the Tory-led recession bites to save millions of jobs?

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[Henry Smith (Crawley) (Con)]

T10. Sorry—I did not know I had a topical question, Mr Speaker. Can I get assurances from the Government that airports such as Gatwick will be supported as they recover strongly from the covid-19 pandemic?

[Grant Shapps]

My hon. Friend will be reassured to know that I did know that he would have a topical question, and the answer to it is yes.

[Feryal Clark (Enfield North) (Lab)]

Recently, a Premier Inn hotel in my constituency threw out one of their visually impaired guests, Ms Angharad Paget-Jones, and her guide dog Tudor in the middle of the night because they refused to believe, despite being shown identification, that Tudor was a guide dog. Can the Minister tell me what action his Department is taking not only to ensure that businesses are complying with the Equality Act 2010, but to go after those who show frank disregard for it in practice?

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[Alex Cunningham (Stockton North) (Lab)]

A few months ago, CF Fertilisers in Billingham ceased ammonia production there because of the high gas price. Now Mitsubishi, just a few hundred yards along the road, is consulting on the closure of one of its plants, with the loss of hundreds of direct and contractor jobs, for the same reason. Is the Minister aware of that latest blow to Teesside, and what is he doing to help firms such as Mitsubishi?

[Grant Shapps]

I was up in Teesside the week before last, and I have been keeping in close contact with what is happening there. The good news is that there are new jobs coming about in new industries, including new industries supplying electric battery manufacturing, which are available because this country is outside the European Union and able to produce new rules that will allow things such as green lithium to thrive here and provide up to 8% of Europe’s entire needs. New jobs are coming to Teesside.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

As my right hon. Friend will know, maths and higher maths is often the foundation skill upon which other innovative technologies are built. Can he therefore tell the House what steps his Department is taking both to fund higher maths and to give people the skills they need in maths to help us to reinforce our status as a global science power?