(4 days, 17 hours ago)
Commons Chamber
Harriet Cross (Gordon and Buchan) (Con)
I thank the Secretary of State for advanced sight of his statement. Events in the middle east this past week have shown why it is so vital that the Government do all they can to ensure that UK businesses and households have a secure, reliable supply of dispatchable energy—a supply we can rely on. Affordable energy is vital, but just as important is security of supply. There was nothing new in the Secretary of State’s statement—no actions, just notes of some meetings—but there were and are actions that he can take, and he could take them now for both supplies and for bills.
No matter how much the green lobby or the Secretary of State wish that the UK could end its reliance on oil and gas overnight, we cannot. Some 40% of the UK’s energy comes from gas, which is the UK’s single biggest energy source, and 24 million UK homes, and half a million businesses, are connected to the gas grid. Currently, 43% of gas used in the UK is produced in our North sea basin, which is a vital energy source. Every molecule of gas produced by the UK in the North sea is piped on to our shores and into our grid. The oil produced comes onshore either here or in Europe to be refined. It does not, and cannot, get caught in the strait of Hormuz or elsewhere. It is a secure supply of oil for the UK.
Our North sea oil and gas sector has been, is, and should remain vital for our national security and be a national security resource for many years, yet it is a resource that the Government, and this Secretary of State, are actively trying to shut down. The GMB Scotland secretary has called his plans “delusional”, and mean that we are facing
“the most destructive industrial calamity in our nation’s history—a disaster risking untold jobs, communities, even higher bills, and our energy security”.
The North sea oil and gas industry and its workforce must be protected. The Secretary of State knows that that workforce, and those supply chains will, if still here, deliver the roll-out of technologies such as wind and nuclear in the future. The Secretary of State must overturn his ban on new oil and gas licences—will he? He must immediately give confidence to the industry that it has a future in the North sea by finally granting Jackdaw and Rosebank. What is taking so long? To kick-start investment, stem the accelerating fall in production, and secure the skilled workforce and supply chains, he must, with the Treasury, end the energy profits levy now.
Nuclear is the UK’s route to energy security. Nuclear works in the winter, can run 24/7, and latest prices worldwide show that it can also be much cheaper. As the Secretary of State knows, our existing plants are nearing end of life, and the Government are stalling on actions to replace or renew new gigawatt-scale sites. They have ruled out large-scale nuclear at Wylfa, and dropped the previous Conservative Government’s 24 GW target. In light of current events, does the Secretary of State accept that not granting a new gigawatt-scale plant at Wylfa—arguably the best site in the country for a large-scale plant—was a huge missed opportunity? We are still waiting for the Government to accept recommendations in the Fingleton review, which will make nuclear cheaper and easier to build. When will the Secretary of State do so, and will he do so in full?
I will touch briefly on the luddite approach to energy from the Scottish National party in Scotland. SNP Members try to talk a good game and sound as if they support energy workers, energy generation and energy investment, but that is an illusion. They have a ban on new nuclear, and still a presumption against new oil and gas. They are happy to coat the countryside with pylons, turbines and batteries, but they have no plan whatsoever for when the wind does not blow.
Last year the Secretary of State signed a secret energy deal with China. He does not like it to be called a secret, but what other word can there be when he refused to publish details month after month, and only published them after sustained pressure from my right hon. Friend the shadow Secretary of State? It is no surprise that he wanted to keep it a secret. It is agreeing to co-operate with China—a known threat—on batteries, cables, inverters, and turbines, effectively giving a nation that is known to have interfered in numerous sovereign states, and that has placed kill switches in energy infrastructure that it has exported, access to our energy grid. That is at best foolish, and at worst reckless. Whatever we call it, it is another threat to our energy security.
Businesses are struggling with sky-high energy prices, and households are bracing themselves for energy bills that may rise significantly this year. The Conservatives’ clean power plan would reduce bills by 20%. The Secretary of State could take action today, so will he adopt our cheap power plan?
I will answer the hon. Lady’s questions in a moment, but first I say to her that the biggest question for this House and for the country is: do we learn the lessons of these crises? Half the recessions that have happened since the 1970s have been caused by fossil-fuel price spikes. We all face a choice: we can either learn the lessons of those crises and drive towards clean, home-grown power—to be fair, at some points, that used to be the policy of the last Conservative Government—or we can pretend that those lessons do not exist, and we can keep repeating the same mistake. I fear that since the general election, the Conservatives, having already moved halfway from learning that important lesson, have moved away from it fully.
That takes me to the answers to the hon. Lady’s questions. On nuclear, we are undertaking the biggest nuclear building programme for half a century. We are doing all the things the last Government promised and never delivered. Where were the Conservatives on Sizewell C? They said that they would have agreement on it in the last Parliament, but they did not; we are doing it. Where were they with small modular reactors? We are actually putting them in place. Yes, we will publish the details of the Fingleton review shortly, and it will be an important step forward in the regulation of our industry that the Conservatives never took.
The hon. Lady said that the North sea is an incredibly “important” resource, which is exactly what I said in my statement. We listened to the industry and took a pragmatic approach on tie-back to existing fields, which was welcomed by the industry, to keep our manifesto commitment of keeping existing oil and gas fields open for their lifetime. I want to pause on the point that she raised about new exploration licences. The truth is, as everybody knows, new exploration licences, particularly in the light of tie-backs, will make no difference to production. It is important to remember that on average it is 10 years from exploration to production.
Last year, an important report by the National Energy System Operator on the security of gas supply said that the biggest single thing that we could do for security of supply is drive towards a clean energy transition. The more we fail to do that, the more we are exposed, given that the North sea is a declining basin that has seen production fall by 75% in last 25 years, and that 70,000 jobs were lost under the Conservatives.
On the hon. Lady’s point about the windfall tax, the Chancellor says that she wants the windfall tax to end, but obviously she has to look at the current circumstances. I notice that the Conservatives have now disavowed their decision to introduce the windfall tax. The windfall tax has raised £12 billion since 2022 because of supernormal profits—the money that was going from our constituents into the pockets of oil and gas companies. It is all very easy to say, “We shouldn’t have done the windfall tax,” but the Conservatives did introduce it, and I think it was the right thing to do. My right hon. Friend the Chancellor listens closely to the industry, and was talking to representatives from the industry about these issues yesterday, but it is important to recognise those other issues.
On the environmental impact assessment process, we will follow the right process because we want to ensure that what we do is legally watertight and not subject to endless judicial review, and that is what the industry wants.
To return to my original point—
(1 month, 2 weeks ago)
Commons ChamberMy hon. Friend asks a really important question, and I congratulate Green Rose CIC on its work. We see organisations like that as central to this plan, and we are working with local authorities to give local people advice. I do not know whether this applies to Green Rose CIC, but we are also working on our local power plan, which will come out soon. It will provide opportunities for local community energy schemes, because community ownership is a big part of it. I see organisations like that, which really reflect the enthusiasm on the ground, as crucial to this plan.
Harriet Cross (Gordon and Buchan) (Con)
My hon. Friend the shadow Minister asked whether or not Chinese supply chains—slave labour supply chains—will be allowed in the procurement of any part of the solar panels involved in this scheme, but the Secretary of State did not manage to answer. Can he please confirm that not a single aspect of this project will come off the back of slave labour supply chains?
I have to say to the hon. Lady that we inherited from the Conservatives—
I will get to the question. We inherited the system from them, and we have raised the standards in the solar road map through the solar stewardship initiative with the solar industry, we have raised the standards through GB Energy, and my hon. Friend the Minister for Energy is working with colleagues across Government to ensure that slave labour is not used in the supply chain.
(1 month, 3 weeks ago)
Commons ChamberThat is why the clean industry bonus is so important. We will be announcing more about this tomorrow, because it is going to lever in massive amounts of private investment, including in supply chains.
Harriet Cross (Gordon and Buchan) (Con)
The Secretary of State mentioned the rollercoaster of prices. We obviously understand that gas prices go up and down, but they do come down. We are now stuck at the top of the rollercoaster he has talked about for 20 years. How is that going to reduce bills?
I just disagree with the hon. Lady. She is making a massive gamble on the future—she is gambling that gas prices will fall. We are giving this country the assurance that we can have clean, home-grown power and lower bills for good.
(3 months, 1 week ago)
Commons ChamberI will make a bit more progress.
The second policy I wish to focus on is the Chancellor’s decision to take £150 off the cost of energy bills—that will be important for families across the country. It has been possible only thanks to a principled decision that she made to shift the cost of some levies into public spending, which is itself possible only thanks to her Budget decisions, including raising taxes on the wealthiest, moving into public spending 75% of the cost to households of the renewables obligation, and abolishing the energy company obligation, with £1.5 billion extra allocated for the warm homes plan.
I notice that the Conservatives now seem to claim that that was their idea in the first place, but there is a crucial—
I will in a moment—let me develop my argument.
The Conservatives say that this was their idea in the first place, but there is a crucial difference: they proposed abolishing the renewables obligation—
“Yes”, says the hon. Gentleman—although, of course, he was an Energy Minister and he never did it. [Interruption.] He looks a bit sheepish now, doesn’t he? That is rare for him. Basically, I think the Conservatives’ argument is that they would just rip up all the contracts that the Government have signed—including lots of contracts that the Conservatives themselves signed—sending a message to every investor in Britain that the British Government will not honour the contracts that they sign. If it had been a remotely serious policy, they would have carried it out when in government, but it was not a remotely serious policy, because they are not a remotely serious party; that is the truth. In fact, it is all more Liz Truss. They will the ends; they want the cut in energy bills, which is good, but they do not have the foggiest idea of how to pay for it. Taken together, the choices made in the Budget, including on energy, will make life more affordable for people, and will begin to tackle the problems that I have outlined.
Harriet Cross
We are talking about £150 off energy bills that are already £200 higher than when the right hon. Gentleman came into government, and £300 was meant to come off those bills. Will bills be higher or lower than when he came into government last year?
If we look at the average of bills in 2025 versus 2024, they are lower. I hope that the hon. Lady will support our cuts to energy bills in April, when they come in.
Yes, the right hon. Lady says. The Conservatives are the people who lost it all in the fossil fuel casino, and now they say, “Let me just have one more go at the roulette wheel. This time it will be different. Cross your fingers and hope for the best.” Let us think about this. What are they betting on? In today’s world, at this moment of all moments, with the world at its most perilous for generations, their policy is to cross their fingers and hope for everlasting peace in the world and no geopolitical instability.
(7 months, 3 weeks ago)
Commons Chamber
Harriet Cross (Gordon and Buchan) (Con)
Those of us who advocate for the North sea oil and gas sector are not climate change deniers. We are realists who understand that we will need oil and gas for years to come; that we would be replacing our domestic supply with imports that have four times the carbon intensity; that China emits in 10 days what we emit in a year; and that we will not transition to cleaner energy if we make ourselves poorer. I recognise what today’s report says, but does the Secretary of State accept that increasing our use of imported gas will only make us more carbon intensive in the future?
We have to get our use of imported gas down, and that is why we have to build clean energy infrastructure. This is what the Conservatives just do not seem to understand. If they go around the country opposing our clean energy infrastructure, it keeps us stuck on fossil fuels for longer—and look where that took us: to the worst cost of living crisis in generations.
(1 year, 1 month ago)
Commons ChamberMy hon. Friend asks a really important question, which Members from right across this House will agree with. The situation we have inherited from the last Government is that Germany has almost twice as many renewables jobs per capita as Britain, Sweden almost three times as many, and Denmark almost four times as many. Through a combination of Great British Energy, the national wealth fund and a clean industry bonus, we are making sure that we do not just build offshore wind in this country, but reap the huge industrial opportunity from it.
Harriet Cross (Gordon and Buchan) (Con)
Will the Secretary of State confirm that the Court of Session’s judgment on Rosebank and Jackdaw was to do with their consents, not their licences? When he comes to consider his decisions on those consents, he should do so on the basis that these are existing, not new, licences.
That is an individual planning case, so I will be careful about what I say. What I will say to the hon. Lady is that the last Government made an unlawful decision, according to the court. We are going to follow due process.
(1 year, 5 months ago)
Commons ChamberMy hon Friend is absolutely right. The last Government cancelled the project twice, which tells us all we need to know about them. I had forgotten about the second cancellation; I actually had to check—I could not believe that they had cancelled it not just once but twice. That is going some. After three months, here is the reality: they talked, we acted.
Harriet Cross (Gordon and Buchan) (Con)
The Secretary of State will know that investment in these CCUS projects would not be possible without the private investment generated from our oil and gas companies. In the light of that, of him again confirming his policy on no new licences and of other policies that are set to close down the North sea, how will he ensure that that private investment continues so that more CCUS projects come forward in the future?
I listened to what oil and gas companies such as BP and Equinor said: they warmly welcomed this announcement. Frankly, there was a sigh of relief; after years of promises and delay, we finally had a Government getting this done.