Energy (oil and gas) profits levy

Jack Brereton Excerpts

Tuesday 22nd November 2022 Commons Chamber

[Jack Brereton (Stoke-on-Trent South) (Con)]

This has been a tough autumn statement—tougher than many of us would have liked—but it has protected the most vulnerable through the uprating of benefits; continued the welcome reforms needed, such as on business rates to support our high streets; shored up financial stability and sustainability; renewed the focus on growth, including through business capital investment; honoured the triple lock for pensioners; and protected those public services that matter most, such as our NHS and schools, all while dealing with the global economic challenges caused by the pandemic and Putin’s illegal invasion of Ukraine.

The triple lock is incredibly welcome. Pensioners need that support now, but it will be important to look at how it can be sustained and what it could mean for the future retirement age. We will also have to do more for working and younger generations. It is particularly welcome that we are increasing the national living wage by the largest amount ever. Younger people are crying out for the chance to own their own home, to earn a good wage and to get into a high-skilled job, particularly people in Stoke-on-Trent, and these issues should be the main focus of our levelling-up agenda.

We have been incredibly grateful in Stoke-on-Trent for the support from the Government, particularly the £56 million from the levelling-up fund, which is more than any other part of the country and is going into developing brownfield sites across Stoke-on-Trent that have been derelict for many decades in many cases, such as the Tams factory in Longton in my constituency, which will be developed and getting under way shortly. That money is also going into extra care facilities for elderly people, which are very much needed in the local area and will make a huge difference to that former pottery factory.

In particular, we need to unlock the ability to build more homes. There are plenty of brownfield sites in Stoke-on-Trent where they can be built alongside those cutting-edge technologies and advanced manufacturing jobs that we want to grow further, but we need Government support to push on with the planning reforms and investment in mitigating the costs of decontaminating those brownfield sites, including through an investment zone for Stoke-on-Trent. That could focus on ceramics or the advanced manufacturing industries, which we obviously excel at in Stoke-on-Trent. It could also focus on digital and games design, which has a growing cluster in north Staffordshire, and particularly in Stoke-on-Trent.

We have excellent universities in Keele University and Staffordshire University, which has the largest number of gaming students in the country. There is an excellent opportunity to develop that further, and we are installing gigabit broadband across Stoke-on-Trent. There is huge potential and huge opportunity to grow these fast-growing sectors. It is worth mentioning that the growth in gaming was more than all other media put together in the last year, which is phenomenal. We need to take more advantage of those sectors and that sort of economic growth across the UK.

We are incredibly proud in Stoke-on-Trent of making things, and our creative expertise in manufacturing ceramics is world-renowned. Indeed, the Potteries is one of the world’s first and leading industrial clusters and is ideal for refocused investment zones. Sadly, under the previous Labour Government, huge world-famous brands in the Potteries were swept aside by the credit bust and boom. Since 2010, the industry has revived significantly, and sector gross value added has doubled in real terms. The permanent investment allowance of £1 million is certainly incredibly welcome.

Ceramics, however, is a heavily energy-intensive industry, and necessarily so to fire products at extreme heat. That has made the industry one of the most vulnerable to the huge swings in world energy prices. It is worth remembering that our domestic ceramics industry has one of the lowest carbon footprints of anywhere in the world. If we lose it, production and our environmental responsibilities will be offshored, shutting down a key national industry. Therefore, for both economic and environmental reasons, I urge the Treasury to engage with the ceramics industry, which is 97% made up of SMEs and therefore, too often, falls through the gaps of support for wider industries.

Not a single British Ceramic Confederation member benefited from the energy security strategy, which focused only on the largest energy-intensive users. The industry is very willing to embrace and move towards net zero, but far more needs to be done to incentivise and support these sectors to invest in new energy-efficient technologies, particularly through R&D. There is a huge opportunity to focus the growth we are seeing in R&D on those energy-intensive sectors where it will be most difficult to achieve the transition towards net zero. We should be focusing R&D on those sectors and helping them to decarbonise. The review of the energy bill relief scheme needs to support and give energy-intensive sectors certainty through the short-term supply-side problems that have been caused by the covid legacy and Putin’s terrible, illegal war on Ukraine.

The further extension of Government support to help households with the cost of living and energy cost increases is particularly welcome. We need to work for greater energy independence and alternative sources of energy to address our energy security. As well as Sizewell, that must include an ongoing commitment to small modular reactors, and the consortium led by Rolls-Royce is an exciting development that could create 40,000 jobs and secure many more in the supply chain, including in Stoke-on-Trent at Goodwin International. There is much we can do over the medium term to cut energy bills without the necessary and welcome direct payments currently being made by the Government.

In conclusion, because of the global challenges we have faced, with covid lockdowns and Putin’s illegal war on Ukraine, we are far from where we would want to be, economically. The Government have taken steps to ensure that we are on a financially sustainable path towards growth, and I welcome the stability that financial consolidation has brought to markets, but we now must double down on unleashing the growth we need with planning reforms, deregulation, and investment and licensing in energy supply. The autumn statement takes a good number of steps forward, and I hope we will see many more in the weeks and months ahead.

[Jonathan Gullis]

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