Business of the House

Kerry McCarthy Excerpts

Thursday 18th March 2021 Commons Chamber

[Mr Rees-Mogg]

The UK and Bangladesh share a close relationship based on strong historical and people-to-people links. We continue to work closely together on our shared interests, including security, development, climate, trade and the Rohingya crisis. We are working closely with the Government of Bangladesh to mark Bangladesh’s 50th anniversary and the 50th anniversary of Bangladesh-UK relations, including on 26 March 2021.

The UK was one of the first countries in the world to recognise an independent Bangladesh after Sheikh Mujibur Rahman was received by the former Prime Minister, Sir Edward Heath, in Downing Street on 8 January 1972. We look forward to the fourth UK-Bangladesh strategic dialogue, which is to take place in London later this year, but my hon. Friend is absolutely right: it is a good thing to celebrate, and to celebrate an independence day that is not independence from us, which is perhaps a rare treat.

[Kerry McCarthy (Bristol East) (Lab) [V]]

Today the Government announced that plug-in grants for the purchase of new electric vehicles will be slashed again from £3,000 to £2,500; this is after they were cut from £3,500 to £3,000 last year. I know that the Leader of the House is very fond of his old Bentley, but the Government are meant to be committed to a ban on the sale of new petrol and diesel cars by 2030. At the moment, new EVs are simply not affordable for many people. Can we have a statement, so that we can ask Ministers in the House why the Government’s policy on this seems to be going in completely the wrong direction?

[Mr Rees-Mogg]

The answer is that there is a limit to taxpayers’ money, and that as more electric vehicles are produced, so they become more efficient and so the price falls. This is the natural economic process, and it is one that will be mainly led by the private sector. This is how we have got the innovation so far, through the private sector producing these remarkable vehicles. We managed to switch from the horse and cart to the internal combustion engine without large Government subsidies. A little bit of Government help is right, but it cannot be excessive because the taxpayer cannot afford it.