Finance Bill

Debate between James Wild and Noah Law

Report stage
Monday 3rd March 2025 Commons Chamber

[James Wild]

My right hon. Friend makes the point that this measure may have been introduced by a Chancellor who did not actually understand the impact it was going to have. The Government should have stuck to the promise they made at the election not to increase national insurance at all.

New clause 2 concerns the Government’s plan to undermine our energy security by increasing the energy profits levy to 38%, bringing the headline rate on oil and gas activities to 78%, extending the tax by a year and removing investment allowances. The consequences are fairly predictable. Offshore Energies UK has said that the hike will choke off billions of pounds of investment in the North sea, putting 35,000 jobs at risk.

[Noah Law (St Austell and Newquay) (Lab)]

Does the hon. Member not agree that if such a rate is good enough for Norway, a clean energy superpower, it is good enough for the United Kingdom?

[James Wild]

In short, no, I do not, which is why we voted against that previously. We should be maximising our home-grown energy, not undermining domestic production and choosing to rely instead on importers with higher carbon emissions.

Crown Estate Bill [ Lords ] (First sitting)

Debate between James Wild and Noah Law

Committee stage
Thursday 6th February 2025 Public Bill Committees

[Noah Law]

Does the hon. Member not welcome the potential proceeds of great British energy projects that could be unlocked by this new entity?

[James Wild]

My point about the new clause is trying to get some transparency about what those proceeds might be. I do not whether the hon. Member can enlighten me as to from where they might be coming and which projects will be invested in, or how many jobs will be created. He might apply for the job of the chairman of GB Energy, because the current one does not seem to know the answer to any of those very important questions. We are being asked to legislate to support a partnership between the new entity of GB Energy and the Crown Estate, so I make no apology for seeking greater transparency.

When pushed on Second Reading, the Minister confirmed:

“Although the partnership agreement itself will not be published, given that it will be commercially sensitive”—

I think he said “very commercially sensitive” this afternoon, or “highly”—

“the Crown Estate has committed to publish information relating to the partnership as part of its existing annual report.” —[Official Report, 7 January 2025; Vol. 759, c. 806.]

But at all stages of the Bill’s passage and in the amendments that have been tabled, the Government have had to be pressured to be more transparent. Given that the Bill makes significant changes to the operation of the Crown Estate and reduces parliamentary oversight, I do not see why Parliament should not have sight of an agreement. It is simply not good enough to hide behind excuses of commercial confidentiality.

If the Minister is genuinely concerned about the conservative nature of this—[Laughter.] He probably is! I should have said: if the Minister is genuinely concerned about the commercially sensitive nature of the agreement, perhaps a redacted version could be laid before Parliament, for example, or the full version could be provided to the Public Accounts Committee. I had the pleasure to serve on that Committee for over two years, and it was not uncommon for similar agreements to be provided in confidence to the Chair and the Committee to give assurance, on behalf of other Members of the House, that this was a bona fide commitment that did not need to be drawn more widely to public attention, noting the strictures there may be about commercial confidentiality.

I have spoken to the current Chair of the Public Accounts Committee, my hon. Friend the Member for North Cotswolds (Sir Geoffrey Clifton-Brown), about this, and he would be very happy to receive a copy of the partnership agreement and continue to operate—as he has done over a decade or more as deputy Chair—by recognising and respecting confidentiality and the basis on which it is provided. It would provide assurance for all Members of the House that one of the pre-eminent Committees of the House has oversight of the agreement. If the Minister is not minded to agree to our new clause—I detect that he is not—perhaps he will look at the feasibility of a taking a redacted version of the agreement, or a similar approach, to the Public Accounts Committee.

In advance of this Bill Committee, I wrote to Dan Labbad, chief executive of the Crown Estate, to seek clarity on the partnership agreement. I am grateful that he took the time to respond. I asked whether the Crown Estate is planning to agree to invest a certain amount with GB Energy. His response was:

“Any arrangements the Crown Estate enter into with GBE will be expressly subsidiary to our statutory duty to maintain and enhance the value of the estate, but with due regard to the requirements of good management…We will ensure that the Crown Estate continues to deliver on our wider obligations”.

Can the Minister confirm that the Crown Estate’s statutory duty will always have primacy? Without the agreement being laid before Parliament, we will not have the transparency to see whether commitments have been given, and to judge and assess whether they meet the criteria.

I also asked Dan Labbad how the Crown Estate will decide between projects that GB Energy backs and other projects that may have a higher rate of return. I note the comments from the hon. Member for St Austell and Newquay, but it may be that the Crown Estate could identify non-GB Energy projects that may generate a greater return for the taxpayer and our constituents. In that case, it should be investing in those, not a political project under the Energy Secretary. Dan Labbad said:

“The Crown Estate will have a clear business plan in relation to the partnership… The consideration of which projects fulfil that business plan will take into account our statutory duty to maintain and enhance the value of the estate…and the obligation upon the Crown Estate to secure the best consideration, having regard to all the circumstances of the particular case at the time.”

“All the circumstances” is rather broad, and “take into account” could be seen as rather weak. Can the Minister confirm whether he has seen a copy of any such business plan? Would he expect to? I fear the answer will be no, but would he be prepared to lay a copy of it before the House so that Members can scrutinise it?

Finally, I asked Dan Labbad about the new division’s decision-making process, because the new clause is about trying to get underneath the bonnet of the agreement. He said:

“The Crown Estate’s agreement with GBE is such that activity undertaken through the partnership will not undermine the Crown Estate’s independence. The intention is that both parties will seek agreement on investment decisions whilst retaining their own independence. The Crown Estate will not be compelled to agree to anything which it does not wish to agree to in fulfilment of its statutory duty.”

“Compelled” is a very strong word to use in that context.

On one level, the responses could be seen as reassuring, but I think back to the exuberant press release I referred to earlier and the excitement in the announcement of what the partnership could deliver and what the Government thought it could do. Can the Minister clarify how much he expects the Crown Estate to invest in the Energy Secretary’s personal investment fund? Can he rule out Ministers pressuring the Crown Estate, whether that be through GB Energy and the chairman they have appointed or the chairman of the Crown Estate, who will shortly be going before the Treasury Committee? Can he rule out pressuring any of those people to invest more than the Crown Estate considers to be prudent?

I have raised my points briefly. I could go on for longer, though I am not sure the Committee would enjoy that. We are asking reasonable questions about this “groundbreaking partnership” agreement—I am looking at the exciting press release in front of me. It is incumbent on the Minister to provide some clarity and assurance on this—and I hope, having listened to the argument, accept that it is not unreasonable to place before Parliament a partnership agreement that can be redacted and before the Public Accounts Committee the full agreement. I look forward very much to the Minister’s response.

Ordered, That further consideration be now adjourned. —(Christian Wakeford.)

Finance Bill

Debate between James Wild and Noah Law

Committee of the whole House
Wednesday 11th December 2024 Commons Chamber

[James Wild]

We turn to the important issue of taxes on residential property, and another set of tax rises from this tax-raising Labour Government. I will speak to clauses 50 to 53, and new clauses 6 and 7. Over 14 years in government we delivered 2.5 million additional homes. Our manifesto pledge to build 1 million homes in the course of the last Parliament was met, and we delivered on our commitment to build the homes that people need for a more secure future. The Bill introduces measures that dampen the housing market, increase pressure on housing supply, and reduce labour mobility. The Government talk about helping renters, but experts warn that these measures could increase rents, and they do nothing for those who cannot afford to buy their own home.

[Noah Law]

Does the hon. Gentleman agree that reducing the prevalence of second homes is a crucial part of ensuring that people can afford to live and work in the communities they are from?

[James Wild]

Indeed, and representing an area with some of the most attractive coastline in the country, I certainly recognise and share those concerns. There has been warning that the measures could make that issue worse. People also need to be able to rent in those areas, and if local people who need to work where the jobs are have to move from long-term lets to short-term, that does nothing to help.