Oral Answers to Questions

Kerry McCarthy Excerpts

Wednesday 22nd February 2023 Commons Chamber

[Mr Jack]

Yes. I have had legitimate concerns raised with me by businesses across Scotland and by stakeholder groups and I have urged the Scottish Government to pause the scheme. There is no doubt in my mind that the scheme is not just bad for businesses, but bad for stakeholders and consumers. Anecdotally, Aldi will sell 12 bottles of Scottish water for £1.59. Under this scheme, that will become £3.99. If that is not inflationary, if that is not adding to people’s cost of living, I do not know what is. Furthermore, we have not been asked for an exemption for this under the rules of the UK Internal Market Act 2020 by the Scottish Government—no request for an exemption has come. The exemption bar is very high indeed, otherwise what is the point of the UKIM?

[Kerry McCarthy (Bristol East) (Lab)]

8. What recent discussions he has had with Cabinet colleagues on support for renewable energy in Scotland.

[The Parliamentary Under-Secretary of State for Scotland (John Lamont)]

The UK Government are fully committed to supporting Scotland to realise its significant renewable energy potential. Scotland has benefited greatly from the contracts for difference scheme, the Government’s main mechanism for supporting new low-carbon electricity generation projects in Great Britain. Indeed, Scotland has received 27% of all contracted projects to date.

[Kerry McCarthy]

I thank the Minister for his response. Scotland has huge potential for green investment, but all that is being put at risk by an exodus of capital, given what Joe Biden is doing with the Inflation Reduction Act 2022 in the US. What is the UK Government’s response to the Inflation Reduction Act so that we can secure investment in Scotland and in the rest of the UK?

[John Lamont]

I agree with the hon. Lady’s comments about Scotland’s potential in the renewable sector. I will allow my colleagues in the Treasury to respond to the point that she made about the US policy. In relation to other opportunities for Scotland, I am very keen to work in my role in the Scotland Office to develop that. If the hon. Lady wants to join me in doing that, I would be very happy to engage with her further.