UK Gas Market
Jack Brereton Excerpts(3 years, 2 months ago)
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Kwasi Kwarteng
My hon. Friend can rest assured that I will raise those precise points with the chief executive of Ofgem when I speak to him tomorrow.
Jack Brereton (Stoke-on-Trent South) (Con)
The fluctuations in commercial gas prices particularly affect energy-intensive sectors such as ceramics, and the high price of commercial electricity does not encourage the transition from gas. Will my right hon. Friend look into what more can be done to support energy-intensive sectors and to support jobs like those in the ceramics sector in my Stoke-on-Trent South constituency?
Kwasi Kwarteng
I was pleased over the summer to see the advanced ceramics manufacturers and the great work that is done in my hon. Friend’s constituency and neighbouring constituencies. Having worked with the steel industry, I am conscious that we need a plan to reduce electricity costs.
10-point Plan: Six Months On
Jack Brereton Excerpts(3 years, 6 months ago)
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Kwasi Kwarteng
The 50,000 jobs related to the green homes grant. The hon. Lady will know that there were three elements to the green homes grant. One related to the decarbonisation of public sector buildings. That was £1 billion deployed through Salix. That has gone extremely well. Of the remaining £2 billion, £500 million was to be disbursed by local authorities for council housing, social housing and people who are vulnerable. That programme is going very well. What has been rejigged has been the half that related to owner-occupied buildings. It was a short-term stimulus plan that was due to run out in March this year, and we are looking at a replacement scheme.
Jack Brereton (Stoke-on-Trent South) (Con)
I welcome the ambitious plans that my right hon. Friend has set out to clean up our energy system and support green British jobs as we work to end the UK’s contribution to climate change by 2050. However, can he confirm that he will prioritise keeping bills affordable, particularly for lower-income households in Stoke-on-Trent, as we transition towards net zero?
Kwasi Kwarteng
My hon. Friend will know that this is a critical point. There is always a balance between trying to decarbonise and making sure that energy bills are low to protect people. That is why we have a warm homes discount, which has worked very effectively. We have deployed money, and committed to that in the manifesto, with a home upgrade grant of about £2.5 billion. We are always looking at schemes not only to decarbonise, but to keep the costs low for those who are most vulnerable.
Budget Resolutions and Economic Situation
Jack Brereton Excerpts(3 years, 8 months ago)
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Jack Brereton (Stoke-on-Trent South) (Con)
I want to focus on the importance of our delivering on the Prime Minister’s ambition to build back better. If levelling up relates to anywhere, it is Stoke-on-Trent. For decades we were ignored, but no longer. We now have a Government who, through this Budget, are focused on investing in areas that have seen little.
Whitehall is starting to wake up to the huge potential in places like Stoke-on-Trent, just waiting to be unleashed. With my Stoke-on-Trent colleagues and our fantastic council leader, Councillor Abi Brown, I was pleased to launch our “Powering Up Stoke-on-Trent” prospectus just over a week ago. It outlines our ambition for Stoke- on-Trent, an area that before covid had had been one of the fastest growing economically. As the 12th most deprived local authority area in the country, we must focus on addressing our challenges, but they will not hold us back. We are determined to overcome them for the benefit of everybody.
Our prospectus identifies four key high-growth sectors: digital, advanced manufacturing, especially in ceramics, green energy and creatives—decent jobs, proper skills and rewarding pay. Our prospectus outlines a range of projects we hope to deliver based around four priority areas: transport, economic development, education and skills, and health and productivity.
The Prime Minister and the Government are refocusing attention on areas like Stoke-on-Trent. Changes to the Treasury Green Book are especially welcome and will be vital to ensure a good slice of the levelling-up fund announced alongside the Budget. I am delighted that Stoke-on-Trent is identified as a top priority and will receive capacity funding.
In my constituency, the top priority must be securing additional investment for our main town of Longton. The town centre was struggling before covid, with double the national average of empty retail space, but the town still has huge potential. The focus for further investment should be supporting the conversion of empty space, improving public spaces, better stitching together the town and redeveloping key sites such as the former Tams works.
Clearly, levelling up is more than just one fund—it is for the entirety of Government—but the fund can stimulate wider change. With three wards in my constituency alone identified as left behind by the local trust and the all-party parliamentary group for left behind neighbourhoods, there is much to do to improve skills and opportunities. The kickstart scheme and the lifetime skills guarantee are vital parts of that, empowering people to access skilled and better-paid work.
We must also improve local public transport. In some wards in my constituency, more than 40% of households do not own a car, which severely limits life chances. I am delighted that my campaigns on transport are bearing fruit. We secured £36.4 million to improve local bus and rail through the transforming cities fund. Meir station is progressing well as part of the Government’s fantastic Restoring your Railway programme. Alongside my north Staffordshire colleagues, I was delighted to resubmit our bid last week for the reopening of the Stoke to Leek line, including a station at Fenton Manor in my constituency. I thank the Chief Secretary for all the support he has been giving so far, and I hope he will back our exciting opportunities to power up Stoke-on-Trent.
Oral Answers to Questions
Jack Brereton Excerpts(4 years ago)
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Mrs Pauline Latham (Mid Derbyshire) (Con)
Jack Brereton (Stoke-on-Trent South) (Con)
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
I want to thank those in the manufacturing sector for the brilliant work they are doing to support the economy and keep it going. Despite the national restrictions, the manufacturing and construction sectors can continue to operate and are doing so. Thus far, the manufacturing sector has benefited from about £5 billion of furlough grants and £4 billion of government-backed loans.
Alok Sharma
My hon. Friend is a great champion of workers in her constituency, and she and I have met to discuss these issues. She will know that the Government are supporting the aerospace and aviation sectors to the tune of almost £9 billion through loans and grants. Of course, we want that support to create a positive business environment and ensure that Rolls-Royce and, indeed, other companies in the sector base their work in the UK, sustaining well-paid local jobs for decades to come. As my hon. Friend will know, Rolls-Royce proposes to consolidate the assembly and testing of its large aero-engines from Singapore to Derby.
Jack Brereton
Many manufacturers, especially those in Stoke-on-Trent, face high energy costs, and there is little incentive to switch to cleaner electricity because of the higher cost. Will my right hon. Friend look at what additional support can be offered to energy-intensive industries so that our manufacturers remain competitive and can invest in improved efficiency?
Alok Sharma
My hon. Friend is a great champion of manufacturers in his constituency. As he will know, the Government are committed to helping businesses to reduce their costs through resource and energy efficiency. We have established a package of compensation exemptions from electricity costs worth more than £470 million, which will of course benefit businesses in energy-intensive sectors such as ceramics, which is a particularly important industry for Stoke-on-Trent.
Oral Answers to Questions
Jack Brereton Excerpts(4 years, 8 months ago)
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Jonathan Gullis (Stoke-on-Trent North) (Con)
Jack Brereton (Stoke-on-Trent South) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Nadhim Zahawi)
We have schemes worth nearly £2 billion operating, or in development, to support our vital energy-intensive industries to decarbonise. We will also invest in building the UK’s first fully deployed carbon capture, usage and storage cluster, and we are progressing carbon capture and hydrogen business models, both of which are crucial technologies in decarbonising our industry.
Nadhim Zahawi
We must work together with industry to help our vital manufacturing regions benefit from clean growth opportunities. Stoke-on-Trent North is lucky to have such a Member championing its cause. We have a number of schemes in place, such as the transforming foundation industries challenge fund, the industrial heat recovery scheme and climate change agreements, to support industries like ceramics to cut bills and save carbon. In addition, we will be opening the industrial energy transformation fund to applications for phase 1 this spring.
Jack Brereton
Manufacturers in Stoke-on-Trent rely on energy-intensive processes to create their world-class products. What assistance can the Government give to help innovation in reducing the amount of carbon emissions generated in those processes?
Nadhim Zahawi
I am grateful to my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton) and, of course, the south is as lucky as the north to have such a fantastic champion in this House.
We have a number of schemes, as I have already mentioned, particularly the transforming foundation industries challenge fund, which will support energy-intensive industries to work with each other to innovate in reducing carbon emissions. This is a joint Government and industry fund. The first competition for projects closed at the beginning of February, and applicants are due to find out later this month whether they have been successful.
Oral Answers to Questions
Jack Brereton Excerpts(4 years, 10 months ago)
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Kelly Tolhurst
The hon. Lady is correct; on 11 December, Post Office Ltd reached a settlement in the group litigation claim brought by 555 postmasters or former postmasters. This has culminated in a successful mediation, and a settlement of £57.7 million was reached, funded by the Post Office. The Government welcome the agreement by the parties to settle this long-running litigation. It is true to say that many have suffered through litigation, and Post Office Ltd has apologised for that. One key point is that this mediation occurred under the new chief executive officer, who is making sure that the recommendations made by the judge, and culture change and changes within the Post Office, happen.
Jack Brereton (Stoke-on-Trent South) (Con)
Ceramic Valley enterprise zone has transformed a number of brownfield sites and created thousands of jobs in Stoke-on-Trent. Will my right hon. Friend the Secretary of State support our proposals to extend the zone, and its continuation in Stoke-on-Trent?
Nadhim Zahawi
Since it launched in April 2016, Ceramic Valley enterprise zone has been a fantastic success: it has attracted private sector investment and has already secured 1,000 new jobs in Stoke. The Government are prioritising levelling up, as the Prime Minister continuously reminds us. We will want to reflect on those things, such as Ceramic Valley enterprise zone, that have worked and see how we can support them further.
Oral Answers to Questions
Jack Brereton Excerpts(5 years, 4 months ago)
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Andrew Stephenson
I thank my hon. Friend for his question. He is right to say that the decisions by JLR and BMW about the electric Mini are votes of confidence in the workforce in the west midlands. However, we must prepare for all scenarios, and we are fully preparing for no deal and working with the industry to understand the potential impacts, including, as he says, the impact of rules of origin. We are determined to ensure that the UK continues to be a competitive location for automotive under any scenario. Alongside industry, we are investing almost £1.5 billion to ensure that we are at the forefront of new automotive technologies.
Jack Brereton (Stoke-on-Trent South) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jake Berry)
We are supporting the midlands engine through the £250 million midlands engine investment fund and £1.6 billion of local growth funding. I congratulate the west midlands, which recently published its local industrial strategy. I feel certain that this will ensure jobs and growth for many decades to come.
Jack Brereton
The ceramic valley enterprise zone in Stoke-on-Trent has been incredibly successful for our local economy by creating jobs. Will the Minister support continuing the ceramic valley enterprise zone and expanding it to include other sites in the city?
Jake Berry
Having had the privilege of visiting the ceramic valley enterprise zone during a recent visit to Stoke-on-Trent, I am delighted to confirm that, once completed, it will have created over 7,000 jobs and redeveloped 140 hectares of former brownfield land. I hope to continue to work with my hon. Friend, who is a redoubtable campaigner for his constituency, to see what more can be done to expand this hugely successful site.
British Steel
Jack Brereton Excerpts(5 years, 6 months ago)
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Greg Clark
It is important that we consider and act on the impact on the wider supply chain, and the group I propose to bring together to support British Steel will include representatives of the suppliers. I will set out further details of how we might do that in the days ahead.
Jack Brereton (Stoke-on-Trent South) (Con)
Energy-intensive industries like steel and other manufacturers in my constituency of Stoke-on-Trent South have come under increasing pressure from high energy costs. Will my right hon. Friend outline more of the measures that the Government are taking to address those high energy costs?
Greg Clark
My hon. Friend is absolutely right. The ceramics industry shares the concerns of the steel industry in needing relief from high energy costs. The industrial energy transformation fund is available to the ceramics industry, and I hope it will come forward with proposals that can reduce energy consumption and, in that way, reduce energy bills, so making industry more competitive—that applies to ceramics as it does to steel.
Small Modular Reactors
Jack Brereton Excerpts(5 years, 9 months ago)
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Trudy Harrison (Copeland) (Con)
I beg to move,
That this House has considered small modular reactors.
It is an honour and privilege to serve under your chairmanship, Mr Paisley. This debate is so important for my constituency, the nuclear industry, the country and—if we are going to slow down the rate of climate change—our planet. The three parts of the energy trilemma are reducing carbon emissions, securing the supply of power and ensuring affordability. The Inter- governmental Panel on Climate Change reports that, if we are to slow down the rise in global temperatures this century, nuclear will feature as a hearty part of the energy mix.
Government have recognised that. It is this Government who are investing in nuclear new build. It is this Government who have begun investing in the technology advances of small modular, advanced modular and nuclear fusion innovation, in partnership with industry. And it is this Government who have ensured, as we leave the European Union, that the necessary non-proliferation nuclear safeguard regimes are in place and that we will be able to operate internationally, under the roof of the Office for Nuclear Regulation, which also has responsibility for safety and security. The industrial strategy and the nuclear sector deal are great policy advances, but I ask my hon. Friend the Minister to tell us, in his response to the debate, what is being done to promote policy to progress.
More wind farms—on and offshore—and the abundance of solar panels mean that, in addition to much more, intermittent renewable energy, reliable low-carbon nuclear is needed to make the UK energy system secure and affordable. During the long dark hours without any sun, or when the wind is not blowing and the blades do not turn, we can all depend on fission—on the splitting of atoms—to heat water, to create steam, to turn the turbine that generates electricity, which is then transmitted on our national grid, and to provide baseload power and the potential for district heating—24 hours a day and 365 days a year, for up to 60 years.
There is a demonstrable need for clean, low-carbon electricity now and long into the future. The anticipated requirement for electric vehicles alone could reach additional capacity of 18 GW by 2040. And in Copeland we have an indisputable capability. Nowhere else in Europe could there be found such a concentration of knowledge and skills, yet we face an uncertain future. First it was Moorside, and then Wylfa: the headlines have not been positive for new nuclear, despite significant Government efforts and financial incentives.
Economies of scale, based on the size of a reactor, have been, at least until very recently, widely regarded as the most cost-effective method of development, but the “bigger is better” argument may well be contested by small modular reactors. Calder Hall, which began construction in 1953 in my constituency, generated electricity from 1956. It was officially opened by the Queen in 1957 and consisted of four 50 MW Magnox reactors, which transmitted electricity on to the national grid for 47 years, until 2003. Today, we are desperately fighting to get a whopping 3.4 GW power station over the line. Moorside—the proposed new generation III nuclear power station, which is to be built adjacent to the Sellafield site—has been beset by a range of ongoing problems over many years.
Following what happened at Fukushima, the increased cost of engineering means that nuclear is getting more expensive. The return on investment is becoming prohibitively difficult to predict, and the availability of companies capable of constructing large-scale gigawatt-plus reactors is limited. Sadly, there are no large-scale British civil nuclear companies operating today.
Let me be clear: the development of small modular reactors is not in competition with large gigawatt reactors. Small reactors have a complementary role in contributing to the energy mix. Because of the economies of scale that could be achieved by building multiple reactors, having many more small modular reactors could be the key to our energy future.
The Government’s nuclear sector deal aims for a 30% reduction in the cost of new build and advocates the merits of a fleet-build approach. The reduced-cost, repetitive-formula, standardised, modular method of construction has yet to be rolled out in the civil nuclear industry, but it has transformed the car and aerospace industries. As we look for ways to secure the necessary resurgence of nuclear power, I ask the Minister whether it is time to do what we have done in those industries in our energy sector.
Small modular reactors of up to 440 MW in size, with a diverse range of technologies, are currently being researched and developed across the UK, thanks, in part, to Government funding. Of course, small nuclear reactors are nothing new; for 50 years, our Royal Navy’s continuous at-sea deterrent has reliably been dependent on a mini light water reactor to keep it powered for years at a time without the need for refuelling—a fact that the hon. Member for Barrow and Furness (John Woodcock) celebrates well and often in this place.
Rolls-Royce has mastered the art of small-space engineering, and is now one of many companies developing its technology on a slightly larger scale.
Jack Brereton (Stoke-on-Trent South) (Con)
I congratulate my hon. Friend on securing this debate. Does she agree that companies such as Goodwin International, which the Minister has visited in my constituency, could help? It has already been working in the defence industry, which she touched on, and could really help to commercialise SMRs in this country.
Trudy Harrison
I absolutely agree. It will be no surprise that I commend Goodwin International for the work it does in the defence industry. This is all about ensuring that British companies can contribute and can benefit companies in the supply chain, which provide components and, most importantly, jobs and apprenticeships. I understand that 125 new apprenticeships are coming from Goodwin, and there will be many more in the future.
Budget Resolutions
Jack Brereton Excerpts(6 years ago)
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Jack Brereton (Stoke-on-Trent South) (Con)
As the subject of today’s debate indicates—business and the future economy—what is most striking about Monday’s Budget is how forward-looking it is. After eight years of hard work to get out of the mess that was left by Labour, Conservative Members can focus on measures that will take our economy forward—measures that will support working families in my constituency of Stoke-on-Trent South to have more money in their pockets, keeping more of what they earn and reducing the burdens of tax for businesses, especially on our high streets. Of course, predicting exactly what our future will look like is impossible, which is why the inflexible, restricted, centrally planned economies such as those of Corbynistas’ Venezuela completely fail, and responsive, dynamic, free enterprise economies are more resilient.
Investment in new technologies and innovation will build on the Government’s long-term commitment to R&D. The allocation of £1.6 billion in this Budget to strengthen the UK’s global leadership in science and innovation is hugely welcome. This ensures that we remain at the cutting edge to compete internationally, none more so than in the ceramics industry and, especially, in advanced high-tech ceramics products, where I am afraid that we are behind our competitors, including the US, Japan and other developed economies. We must invest in projects such as a UK research centre for ceramics to retain this international competitiveness and to help cities such as Stoke-on-Trent to embrace more of these new technologies.
Far from being industries of the past, modern advanced manufacturing is reviving so-called post-industrial localities. Since 2010, the ceramics industry’s economic contribution has increased in real terms by 44%, but this is not unique to ceramics. A whole range of industries in Stoke-on-Trent are doing exceptionally well. Whether in precision engineering, automotive supply or distribution, we are seeing companies succeeding and delivering for our communities. In a city where over 15% of employment is in manufacturing—nearly twice the national average—the success of these industries is critical to our future prosperity.
Investment must truly be investment, however, and not merely spending. It is certainly more important that public policy does not crowd out private investment or erect barriers to enterprise. It must help to catalyse further successes and strengthen the strong growth that we have seen in prosperity and jobs. Workers will share in the benefits of growth, whether through boosting the national living wage to £8.21 per hour or increasing the personal tax allowance to £12,500 a year early. This is about ensuring that families in cities such as Stoke-on-Trent have more money in their pockets.
In Stoke-on-Trent, the local partnership between public and private sectors has moved the city forward since the Conservatives took control of the local council, jointly with independents, in 2015. I was therefore pleased to see on page 66 of the Red Book an explicit reference to Stoke-on-Trent as a shortlisted city for the transforming cities fund, because fully realising the city’s ambition requires us to improve our transport infrastructure. This is a fundamental requirement for improving labour mobility in the city, increasing productivity and decreasing the time lost to and the misery of daily congestion. This funding will help to ensure that we are better connected as a city, making better use of our rail network and ensuring that our bus network improves significantly to connect all our communities. This comes alongside the £420 million pothole fund, which will build on the significant work the local council has already done.
On high streets, Stoke-on-Trent is unique in comprising six market towns and has a significant number of Victorian and Edwardian properties that are structurally sound but none the less in quite a poor state. Far too many are not suited to meet the demands of modern retail and the challenges of online and out-of-town shopping, so I have been pushing Ministers for a dedicated fund for regeneration, restoration and conversion, and I am delighted it has come about. As I have argued, measures to increase footfall in town centres such as Longton and Fenton in my constituency, including increasing the number of residents and new businesses, are critical. Some 25% of employment in Stoke-on-Trent South is in wholesale and retail, so the relief on business rates for small retailers and the fund for high streets will be especially welcome in Stoke-on-Trent.