Oral Answers to Questions

Debate between Jacob Rees-Mogg and Jonathan Reynolds

Tuesday 25th October 2022 Commons Chamber

[Mr Speaker]

I call the shadow Secretary of State.

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

The Government’s economic crisis is now being paid for by every household and business in this country, but the Government’s failure goes well beyond the pantomime of the last few weeks. Twelve years of Conservative Government have given us the lowest rate of business investment in the G7, and that is with the lowest headline rate of corporation tax. So why does the Business Secretary believe the Conservative party has been so consistently unable to provide a platform for the UK’s fantastic businesses to invest in throughout the last 12 years?

[Mr Rees-Mogg]

What we have seen is the lowest level of unemployment in this country since 1973. That is real people and real jobs, and employment is the best route out of poverty. We have seen the most enormous advance in clean energy, with more offshore wind than any other country in the world. We have ensured that, during this difficult winter, we were one of the first countries to come forward with a comprehensive package to protect both domestic and non-domestic users to ensure that the economy could thrive. The hon. Gentleman complains that everything that has gone wrong is the fault of the Government. He seems to have forgotten about Ukraine and covid. Perhaps he should read the newspapers occasionally.

[Mr Speaker]

I think you have forgotten that topicals have to be short and sweet.

[Jonathan Reynolds]

That was an interesting answer on the 12 years of failure—it was perhaps an answer to a question, but not the one I asked. Our wonderful businesses want to expand, invest and grow, but they cannot do that with so much uncertainty hanging over the country. The Conservative party cannot be the solution to that instability because it is the cause of it. Will the Business Secretary give us his honest view and tell us whether he still holds the view he has expressed before—that what we should have, following a change of Prime Minister, is a general election?

[Mr Rees-Mogg]

Pots and kettles, Mr Speaker—that was neither short nor sweet. The greatest uncertainty of all is having socialists in office because the socialists ruin economies wherever they go. They create desolation, chaos and high taxes. As I said before, every socialist Government have left office with higher unemployment, including the short-lived one of 1923.

Retained EU Law (Revocation and Reform) Bill

Debate between Jacob Rees-Mogg and Jonathan Reynolds

2nd reading
Tuesday 25th October 2022 Commons Chamber

[Mr Rees-Mogg]

I do not accept that construction of what is actually happening. The House will have the ability to focus on issues on which it thinks the Government are going in the wrong direction. Let me pick at random one of the retained EU laws that may be reformed or become redundant:

“a common methodology for the calculation of annual sales of portable batteries and accumulators to end-users”.

Does the hon. Lady really think that deserves primary legislation—a count of batteries? That is what is in the 2,400 statutory instruments on the dashboard, and, as has been pointed out, that is not necessarily the full list.

There are all sorts of minor and unimportant things that need to be dealt with. As for those that are of major significance, it was said clearly at the Dispatch Box that environmental protections would be maintained. That is fundamentally important. It is a commitment from His Majesty’s Government to this House. The Bill will allow those protections to become UK law—which I use as shorthand to cover the three different types of law in the United Kingdom—to ensure that they can be enforced logically and sensibly by our courts in accordance with our legal maxims. That must be a right and certain means of proceeding.

It is interesting that people, having been told this, are still opposing the Bill. I come back to the conclusion that those who are opposing it actually do not like Brexit altogether.

[Jonathan Reynolds]

I am grateful for the chance to put a question to the right hon. Gentleman. I was going to welcome him to his position, but I did not want to seem ironic. He says that we can take a guarantee from the Dispatch Box. Even the Conservative party’s manifesto commitments no longer hold: we have seen that. How can we take the word of Ministers when even manifesto commitments no longer bind this Government?

[Mr Rees-Mogg]

The hon. Gentleman knows that Dispatch Box commitments have a very high standing in our political system. As Leader of the House, I was concerned that we were not using legislative reform orders as comprehensively as the legislation seemed to imply. In fact, the reason for that was a Dispatch Box commitment given by Paul Goggins, in the last Labour Government, during the passage of the Bill that limited the application of LROs to non-controversial issues. Dispatch Box commitments are actually a fundamental part of the way in which our discussion works, as the hon. Gentleman knows only too well.

Energy Prices: Support for Business

Debate between Jacob Rees-Mogg and Jonathan Reynolds

Thursday 22nd September 2022 Commons Chamber

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

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on Government support for businesses facing rising energy prices.

[The Secretary of State for Business, Energy and Industrial Strategy (Mr Jacob Rees-Mogg)]

I am delighted to make a statement, Mr Speaker. As you know, I am a great believer that this House should be informed first. I was unaware of any precedent of a statement being made on a day set aside for taking the Oath, and therefore unaware that your generosity would have allowed such a statement to be made. I point out to the House that, in my membership of the House, a statement has not been made by the Government during the taking of the Oath days set aside, nor was any statement made in 1952 on the last occasion when the Oath was taken. I apologise to you, Mr Speaker.

[Mr Rees-Mogg]

That is why I am saying that I am very grateful, Mr Speaker. I always think it is important that this House gets to know, and your generosity in setting a precedent where statements can be made on the days set aside for taking the Oath is, I think, a good one.

It is vital that businesses have the support that they need to pay their energy bills this winter. His Majesty’s Government are determined to grow the economy. We cannot do that if business becomes insolvent thanks to what is tantamount to blackmail by a malevolent state actor. His Majesty’s Government announced yesterday that they will provide a discount on wholesale gas and electricity prices for all non-domestic customers, whose current gas and electricity prices have been significantly inflated by global energy prices. That includes all UK businesses and covers the voluntary sector, such as charities, and the public sector, such as schools and hospitals. The scheme will apply to fixed contracts that have been agreed on or after 1 April 2022, as well as to deemed variable and flexible tariffs and contracts. It will be applied to energy usage for six months from 1 October until 31 March next year.

As with the energy price guarantee for domestic customers, in order to benefit from the scheme, customers do not need to take action. The discount will automatically be applied to their energy bills from 1 October. In terms of real-world savings, non-domestic users will start to see the benefits of the scheme in their October energy bills, which are typically received in November. The level of price reduction for each business will vary depending on its contract type, the tariff and the volume used.

We will publish a review of the operation of the scheme in three months to inform decisions on future support after March 2023. The review will focus in particular on identifying the most vulnerable non-domestic customers and on how the Government will continue assisting them with energy costs beyond the initial six-month period.

A parallel scheme—based on the same criteria and offering comparable support, but recognising the different market fundamentals—will be established in Northern Ireland. For those who are not connected to the gas or electricity grid, equivalent support will be provided for non-domestic consumers who use heating oil or alternative fuels instead of gas. Further detail on this will be announced shortly.

[Jonathan Reynolds]

I welcome the new ministerial team to their posts.

The energy crisis poses a severe challenge to businesses of every size, many of which have been desperate for clarity and reassurance. While the Conservative party spent much of the summer distracted by its own internal drama, the Opposition spent that time arguing that the crisis demands a response commensurate with the scale of the challenge, paid for by a windfall tax on the excess profits that have accrued because of Russia’s illegal invasion of Ukraine.

While I welcome the Government’s damascene conversion to freezing energy prices, we must all acknowledge that for too many companies the news will have come too late to save them. Businesses cannot plan on speculation and briefings. It is regrettable that a Minister who respects the role of Parliament chose to avoid parliamentary scrutiny, instead opting for a sparse press release and a short media interview. That is why the Opposition have tabled this urgent question: to get the much-needed clarity on these plans that businesses desperately need.

May I ask the Secretary of State what, specifically, the review after three months will be looking at and what the criteria will be for determining whether to extend the support? Secondly, how will the taxpayer be protected from energy traders inflating prices, knowing that the Government will be picking up a substantial slice of the costs come what may? Thirdly, what support will the Secretary of State be offering to businesses in the long term to protect themselves from rising energy costs through efficiency measures and the transition to renewable energy?

I also ask the Secretary of State to address the elephant in the room: who is paying for this? The Government say that they cannot cost this package, but it is clearly expensive. This Government say that they can cut taxes, increase spending, increase borrowing and magically pay for it through the higher growth that, after 12 years in office, has completely eluded them. This is fantasy economics. It is a threat to British businesses and to the financial stability of the country. What can the Secretary of State say to reassure the country that these plans are robust, responsible and fair, as well as being sufficient to get us through the crisis and better protect businesses in the long term?

[Mr Rees-Mogg]

Although we have been away for a few months and had a leadership election, the socialist record does not change. Tax, tax, tax and tax again—it is always the answer to every problem.

Let me come to the specifics of the hon. Gentleman’s question. The three-month review is taking place to work out who will need support, to ensure that support is properly targeted. What is being done at the moment is an immediate response to an extreme crisis, to benefit everybody, but not everybody necessarily needs the same level of support. What we will do in the review is work out who needs the support. If I can give some early indications, it seems to me that places such as care homes are likely to need longer-term support. That will be covered by the review.

The hon. Gentleman raises the important question of how taxpayers will be protected. I have asked the Public Sector Fraud Authority to look at all our plans, to ensure that whatever we are doing and our mechanisms for paying are as robust as they can be against the speed with which we need to act. It is really important to safe- guard taxpayers’ money.

We are doing a number of things to help in the futures market. The Bank of England and the Treasury will provide some underlying capital for the futures market so that there is a more reliable futures price, rather than the one set on very low liquidity at the moment. We will legislate in an expedited fashion to ensure that we protect against anybody who commits fraud against this measure.

The hon. Gentleman raises the issue of transition. Gas is a transition fuel. The Government’s commitment to net zero remains, but we will need gas to heat people’s boilers for the immediate future, and we need to get it as cheaply as we possibly can, using all our domestic resources. Beyond that, there are exciting plans for carbon capture and storage and for hydrogen, which I think present a very attractive future for this country.

The hon. Gentleman asks that the scheme be responsible, robust and fair. It is all those things. It is responsible to protect business; it is robust to ensure that it can be rolled out quickly; and it is fair to our economy as a whole.

Business of the House

Debate between Jacob Rees-Mogg and Jonathan Reynolds

Thursday 30th January 2020 Commons Chamber

[Mr Rees-Mogg]

There is regular opportunity to question Ministers at departmental question times and in a succession of debates. There were indeed regional Select Committees, but as far as I am aware they were not very successful.

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

May we have a debate about ophthalmology and the contribution made by opticians to public health? My local opticians tell me that the fees they receive from the NHS have not risen, even by inflation, for nearly 20 years. Programmes such as diabetic eye screening have in my area been awarded exclusively to a single private provider. It is making their lives hard and, in some cases, threatening the viability of these valued local businesses.

[Mr Rees-Mogg]

The hon. Gentleman raises an important and interesting point. Opticians can, through eye tests, find out important things about people’s more general health. That is part of the very valued role they carry out. I am bound to point the hon. Gentleman in the direction of the Backbench Business Committee, because I think a debate on this issue may well have widespread support.