Sustainable Aviation Fuel Bill

Debate between Julian Lewis and Heidi Alexander

2nd reading
Wednesday 11th June 2025 Commons Chamber

[Heidi Alexander]

There is more detailed design work to do on all that, and we will work alongside industry to ensure that we have a workable proposition.

The mechanism boosts SAF production and gives investors confidence in the UK by addressing one of the biggest barriers to investment: the lack of a clear, predictable market price for SAF. That starts with a guaranteed strike price agreed between a Government-owned counterparty and the SAF producer. If SAF is sold for under that price, the counterparty will pay the difference to the producer. If SAF is sold for above that price, the producer will pay the difference to the counterparty.

The revenue certainty mechanism will be funded by industry, specifically through a levy on aviation fuel suppliers. That makes sense for two reasons. First, it is the industry that will benefit from more and cheaper SAF production, so it is only right that industry, and not the taxpayer, should fund it. Secondly, placing the levy higher up the supply chain spreads costs across the sector and is the least burdensome option. It is important to note that the revenue certainty mechanism will not be indefinite. It will be targeted and time-limited, helping to get first-of-a-kind UK projects off the ground. The Bill’s sunset clause means that we can offer contracts only for 10 years, unless it is extended via the affirmative procedure. We will have a firm grip on costs throughout. We will decide the number and duration of contracts, limit support to a predetermined volume of SAF and negotiate acceptable strike prices. There is no obligation on the Government to enter into a defined number of contracts or to agree contracts at any cost.

I know that some hon. Members may be concerned about the impact on passengers, so let me reassure them: none of this will limit people’s ability to fly. We expect minimal changes to fares, with an average ticket increasing or decreasing by up to £1.50 a year. I am pleased to say that this is a product of many months of consultation with the industry. Airlines are calling for it, airports are calling for it, SAF producers are calling for it, environmental organisations are calling for it, and the Government are therefore getting on with delivering it.

[Sir Julian Lewis (New Forest East) (Con)]

I am sure that we wish the Government well in what they are trying to do. I gather that the International Air Transport Association highlighted only last week that, at the moment, sustainable aviation fuels cost approximately five times as much as conventional jet fuel. Will she explain how the measures in the Bill will bridge that gap to make it economical?

[Heidi Alexander]

Supply is constrained at the moment; the UK has one commercial production facility, in Immingham. We need to build investor confidence to commercialise some of the sustainable aviation fuel demonstration projects around the country. More supply and lower prices are good for the aviation sector and, ultimately, good for those who wish to fly.

I think it is worth taking a moment to reiterate what is at stake. When UK production of low-carbon fuels is up and running, it could support up to 15,000 green jobs, contribute £5 billion a year to our economy, and deliver clean and secure energy. What is more, fulfilling the SAF mandate could save up to 2.7 megatonnes of carbon dioxide equivalent a year by 2030. Seizing those opportunities will ensure that we deliver on our bold plan for change and that the UK and our world-class aviation sector are leading the way in the race towards sustainable flight.

This country cannot be open for business, open to investment and open to growth yet have a closed mind when it comes to international connectivity. The Bill is a clear signal that we will not accept false trade-offs that pit aviation’s growth against our commitments to net zero. We can and must do both. We have the opportunity of a lifetime and, I believe, a moral mission to future-proof aviation. When the sector succeeds, it is not only a source of growth, through trade, business and tourism, but a source of joy, aspiration and opportunity. It is as vital today as it will be for future generations. Their need to fly, explore the world and do business requires us to act now. That is what the Bill does, and I commend it to the House.

Bus Services (No. 2) Bill [Lords]

Debate between Julian Lewis and Heidi Alexander

2nd reading
Monday 2nd June 2025 Commons Chamber

[Heidi Alexander]

The hon. Gentleman is right to highlight the innovative technology developed by Wrightbus. I know that the Under-Secretary of State for Transport, my hon. Friend the Member for Wakefield and Rothwell (Simon Lightwood), has not only met representatives of Wrightbus but visited its facility.

Let me now explain how we are going about fixing the broken franchising process.

It cannot be right that it took Mayor Andy Burnham years to bring just one bus under public control, after being frustrated at every turn. With bus services in Greater Manchester now part of the Bee Network, usage is up by 14%, and revenues and punctuality are also moving in the right direction. However, franchising remains too complex. Proposed schemes need to jump through myriad hoops, and they still require my consent to proceed—which is odd, to say the least. The idea that I understand what passengers in Leicestershire or Cornwall need better than their local leaders do is for the birds. In December, we opened up franchising to every local authority. Through this Bill, we will further streamline the process, making it simpler for franchise schemes to be granted and assessed.

[Sir Julian Lewis (New Forest East) (Con)]

The Secretary of State referred earlier to placing certain statutory duties on county councils. When she considers that, will she consider including in those duties the maintenance of companion bus passes for people with learning difficulties who cannot travel on their own? It is not much good for them to have a free bus pass if they cannot take a companion with them.

Will the Secretary of State join me in expressing our sadness and commiseration over the recent passing of Mr Andrew Wickham, who spent more than 40 years in the transport industry and over a decade as managing director of Go South Coast, which operates Bluestar buses in New Forest East? I always found him to be a marvellously attentive correspondent, and he was someone who worked until almost the very end.

[Heidi Alexander]

I am grateful to the right hon. Gentleman for his intervention, and he gives me the opportunity to place on record my thanks to Andrew Wickham. I have the privilege of representing the constituency of Swindon South, and he ran Swindon’s Bus Company. He was the epitome of professionalism and kindness to me—not only as a Member of a Parliament, but when I was a candidate—and I pass on my condolences to his family, his friends and his colleagues.

The right hon. Gentleman raises a fair point about the importance of companion travel for individuals with disabilities. He will know that the decision to add extras to the English national concessionary fare scheme is taken by local authorities.

I was talking about our desire to make the franchising system simpler. Of course, the model will not work everywhere, which is why this Bill also strengthens enhanced partnerships and removes the ideological ban on establishing new local authority bus companies. Furthermore, by giving local authorities the power to design and pay bus operator grants in their area, the Bill gives greater protections for socially necessary local services, securing the lifeline routes that keep communities connected.

Zero Emission Vehicle Mandate

Debate between Julian Lewis and Heidi Alexander

Monday 7th April 2025 Commons Chamber

[Heidi Alexander]

That is precisely what we have done. I reassure my hon. Friend that I have been in touch directly with Jaguar Land Rover over the last couple of days, and I am pleased that we have been able to provide the company and other car manufacturers with certainty at this very difficult time. We have been able to do that this week, and I hope it will provide some comfort to her constituents who are employed at that local facility.

[Sir Julian Lewis (New Forest East) (Con)]

As someone who has never bought a new motor vehicle, apart from a motorcycle, may I probe the Secretary of State further on what she said about the second-hand EV market? For families that will never be able to afford a new vehicle, does she anticipate a time when the second-hand EV market will be comparable in price to the second-hand market for conventional vehicles?

[Heidi Alexander]

I thank the right hon. Gentleman for that question. He is right to mention the second-hand market: 80% of car purchases in any given year are in the second-hand market. I am told that, at the moment, some of the most popular products on AutoTrader are second-hand EVs. They are selling very well, and he is completely right that these vehicles need to be affordable to everyone and an option for everyone, so I am made hopeful by the green shoots we are seeing in the second-hand market at the moment.

Road Maintenance

Debate between Julian Lewis and Heidi Alexander

Monday 7th April 2025 Commons Chamber

[Heidi Alexander]

Local authorities are free to use the money as they see fit, as long as they are using it in a way that represents value for money for the taxpayer. The money can be used for work on roads, pavements or structures. On the issue of responsibility raised by my hon. Friend’s constituent, that will be for the local highways authority.

[Sir Julian Lewis (New Forest East) (Con)]

I am grateful to the Secretary of State for giving way. I thought I would get in before she gets back into her stride. Can she throw some light on an issue that has puzzled me for some time in my New Forest East constituency? A stretch of road—Southampton Road—is often used as a short cut by very heavy goods vehicles, rather than using the appropriate section of the M27 motorway. These are often very large petrol bowsers, tankers—you name it—and surprise, surprise, the roadway is constantly getting broken up and potholes appear, with all the consequences she describes. Whenever we have raised this with any of the companies to which these heavy vehicles belong, they say, “Well, it’s a public highway, and we’re entitled to drive these vehicles where we want.” Is there any obligation on companies not to do that?