UK Steel Industry

Jacob Young Excerpts

Monday 14th September 2020 Commons Chamber

[Nadhim Zahawi]

The hon. Gentleman will know, because he is deeply involved with Tata Steel in his constituency, that that is absolutely right with regard to the strategic importance of Tata Steel. I hope he will forgive the fact that I will be unable to go any further at this stage because of the need to protect commercial confidentiality. Suffice to say that he is absolutely right that it ticks all those boxes.

As we transition from managing the immediate challenges presented by covid-19 to securing the long-term recovery of the UK economy, we will continue to work with representatives of the steel industry, the unions and the devolved Administrations to address the strategic challenges faced by the sector. We are committed to working collectively with those partners to shape a steel industry that is sustainable, productive and innovative. To that end, we are taking action in key areas. I want to outline a few of the priorities for UK steel companies, including on energy prices, procurement, research and innovation, and international trade.

[Jacob Young (Redcar) (Con)]

On energy pricing, it obviously still remains an inhibitor to our steel industry and to bringing steelmaking back to Teesside. What steps are the Government taking to improve innovation in the energy sector to bring about cleaner steelmaking?

[Nadhim Zahawi]

My hon. Friend’s timing is impeccable, because I am just about to come on to our focus on energy and the clean steel fund. As we set out our focus on the recovery, our objective is both to boost the sector’s short-term competitiveness and to support the longer-term transformational investment that colleagues have spoken about that will drive productivity and efficiency, and support our net zero goals.

On energy prices specifically, the ability of our steel industry to compete internationally is a priority for the Government. We remain committed to minimising energy costs for business. Since 2013, the Government have provided £480 million in compensation to the steel sector to make energy costs more competitive. Moreover, we are investing £315 million in the energy transformation fund to help energy-intensive businesses such as steel companies to cut their bills and transition to a low-carbon future.

On innovation, supporting our steel industry in the UK to decarbonise and make the most of clean growth opportunities is a key priority for us. This is part of our wider agenda to put the UK at the forefront of research and innovation in the coming years. Last year, we announced two important new research and innovation programmes, which will help the steel industry in its effort to reduce emissions and support the decarbonisation of the UK economy to achieve our ambitious 2050 net zero target.

Corporate Insolvency and Governance Bill

Jacob Young Excerpts

2nd reading & 2nd reading: House of Commons
Wednesday 3rd June 2020 Commons Chamber

[Alok Sharma]

As ever, the hon. Gentleman raises an incredibly important point. I will talk further about this, but that is precisely why we have ensured an opportunity to extend the temporary measures in the Bill, but by regulation, so statutory instruments will have to be laid before the House. However, I am sure that the sentiments he expresses are felt across the House. If we need to, I am sure that we will collectively look to extend some of the temporary measures to continue to help businesses.

The Bill will allow business owners time and space to explore rescue options. It will allow directors of companies that are technically insolvent, but simply because of a temporary drop in demand caused by the covid-19 crisis, to proceed with the business without the threat of personal liability. That has been incredibly warmly welcomed by businesses and business representative organisations.

[Jacob Young (Redcar) (Con)]

Does my right hon. Friend agree that this Bill will give businesses in Redcar and Cleveland and across the country the much needed breathing space to get through this crisis?

[Alok Sharma]

My hon. Friend is already making a huge impact in supporting businesses in his constituency, and he is absolutely right. The whole point of these measures, both permanent and temporary, is precisely as he says: to give businesses the breathing space to allow them to see whether they can recover and ultimately bounce back. That is what we all want to see.

Oral Answers to Questions

Jacob Young Excerpts

Tuesday 3rd March 2020 Commons Chamber

[Alok Sharma]

The hon. Gentleman may have missed yesterday’s announcement about the fourth contracts for difference allocation round, but if he reads that announcement, he will see the points that we have made. The proposals that we have presented are there to help the UK achieve its 2015 net zero ambition.

[Jacob Young (Redcar) (Con)]

I am grateful to my right hon. Friend for his support for the onshore wind sector. What support are the Government providing to advance the hydrogen economy, and to decarbonise the hard to abate sectors?

[Alok Sharma]

My hon. Friend makes an important point. Hydrogen can, of course, play a key role in net zero efforts, alongside electricity. My Department is investing in innovation, with up to £121 million supporting a range of projects to explore and develop the potential of low-carbon hydrogen.

Oral Answers to Questions

Jacob Young Excerpts

Tuesday 21st January 2020 Commons Chamber

[Andrea Leadsom]

I would just draw the attention of the hon. Gentleman and those on his Benches to the very recent Deloitte CFO confidence survey, which demonstrates the biggest ever jump in business confidence, as a result of the certainty that we now have about the way ahead. Business certainty is absolutely key, and if he wants to do something for businesses, he should stop trying to hammer their confidence and start looking to work with the Government on the opportunities that lie ahead.

[Jacob Young (Redcar) (Con)]

3. What progress her Department has made on tackling climate change.

[Harriett Baldwin (West Worcestershire) (Con)]

12. What progress her Department has made on tackling climate change.

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

I welcome and congratulate my hon. Friend the Member for Redcar (Jacob Young) on winning his seat—a great result. We have reduced carbon emissions by more than 40% since 1990, while growing our economy by more than two thirds. We are currently decarbonising our economy faster than any other G20 country, and more than half our electricity now comes from low-carbon sources. We have the largest offshore wind capacity in the world.

[Jacob Young]

Net Zero Teesside is potentially a world-leading carbon capture, utilisation and storage project in my constituency. Not only will it reduce emissions, but it will cut energy costs and help to secure our long-term industrial future. Will the Minister back Redcar’s industry and fully support that project?

[Kwasi Kwarteng]

Absolutely—I would be delighted to back Redcar’s big opportunities in CCUS. I was there last week when I had an instructive meeting with various stakeholders and industry professionals, and there is a huge economic opportunity.