Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, whether his Department plans to align medicines spending growth with NHS budget growth in real terms.
Answered by Karin Smyth - Minister of State (Department of Health and Social Care)
The allowed rate of growth for branded medicines is established by the 2024 Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG).
The VPAG plays an important role in delivering improved health gains from medicines in the National Health Service across the United Kingdom, by securing rapid access to new medicines, supporting economic growth, and contributing to a financially sustainable health service.
We are taking decisive action to review the scheme to unlock innovation and drive investment in the UK's world-class pharmaceutical sector.
This review is ongoing, demonstrating our commitment to creating an environment where this innovative sector can thrive.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, whether he has made an assessment of the potential impact of the (a) voluntary scheme for branded medicines pricing, access and growth and (b) statutory scheme payment rates on attracting pharmaceutical companies to invest in (i) clinical trials, (ii) research and development and (iii) manufacturing.
Answered by Ashley Dalton - Parliamentary Under-Secretary (Department of Health and Social Care)
Life sciences is a key growth-driving sector and is a core part of our modern Industrial Strategy. The 2024 Voluntary Scheme for Branded Medicines Pricing and Access (VPAG) introduced, for the first time, an approximately £400 million industry-funded VPAG Investment Programme. Funding from the VPAG Investment Programme is used to accelerate work across the United Kingdom on clinical trials, manufacturing, and health technology assessments. This is encouraging the United Kingdom’s economic growth, collaboration, and innovation in the health and life sciences sector.
In recognition of the concerns raised by industry regarding the higher than expected headline payment percentage rates in the VPAG this year, the Department brought forward an expedited scheme review. The conclusion to this review will be communicated in due course.
Any company that chooses not to be part of the VPAG will automatically be subject to the statutory scheme, which was recently subject to amendments, which will come into force on 1 July 2025. The purpose of these amendments is to restore broad commercial equivalence with the VPAG, to ensure that the schemes can continue to work together to meet our objectives of acting in the best interests of industry, patients, the National Health Service, and the broader economy. An impact assessment was conducted and published alongside the amending statutory instrument for this most recent update, which included consideration of the impact on clinical trials and manufacturing.
Additionally, the Government is developing the Life Sciences Sector Plan and 10-Year Health Plan to make the UK the premier destination for life sciences investment, by fostering an environment where innovation thrives.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 12 March 2025 to Question 35323 on Alternative Fuels: Ammonia, whether he has considered using imported ammonia to expand the domestic production of hydrogen (a) through Hydrogen Allocation Round 3 and (b) more broadly in the development of the hydrogen market in the period to 2030.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
The Government’s immediate priority is supporting primary hydrogen production methods in the UK, which will help us to develop supply chains and bring down the costs of hydrogen production in the UK. Utilising ammonia cracking to import hydrogen does not meet these criteria and so ammonia cracking will not be eligible for HAR3. We will continue to consider the potential future role for ammonia cracking in the UK hydrogen economy as we recognise that, in the longer term, imported hydrogen could play a role as part of a diverse supply mix.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answers of 12 March 2025 to Questions (a) 35320, (b) 35322 and (c) 35324, what assessment he has made of the potential merits of working with UK-based manufacturers of ammonia cracking technologies.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
Ammonia cracking is a nascent technology that the Government has supported through the Net Zero Innovation Portfolio, which aims to accelerate the commercialisation of innovative, low-carbon technologies. As the sector develops, government will work with UK companies developing ammonia cracking technologies to understand its potential applications.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answers of 12 March 2025 Questions (a) 35320 and (b) 35322 on Alternative Fuels: Ammonia, whether he has considered domestic ammonia storage for on-demand ammonia cracking and deployment, in the context of (i) his Department’s assessment of the potential role of low carbon ammonia in a diversified energy mix and (ii) UK energy security.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
Ammonia cracking is a nascent technology that the Government has previously supported through the Net Zero Innovation Portfolio. As set out in the Market Engagement document, the early focus of the Hydrogen Storage Business Model will be geological storage. The use of ammonia as a form of chemical storage for cracking to hydrogen was assessed to have low technology readiness. Government continues to review technological developments and may make changes to HSBM eligibility when appropriate to do so.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answers of 12 March 2025 to Questions (a) 35320, (b) 35322 and (c) 35324, what was the date of the most recent official meeting between ministers from his Department and ministers from (a) the Department for Transport and (b) the Department for Business and Trade to discuss policies for developing the UK ammonia market.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
There is regular engagement between DESNZ, DfT and DBT to discuss a range of policy issues. Officials are working closely with other departments to understand the potential role of ammonia in the UK’s future low carbon economy and how it should be considered within our policy frameworks.
Ministers from DESNZ are in regular communication with ministers from DfT & DBT on all issues.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, pursuant to the Answer of 12 March 2025 to Question 35325 on Ammonia: Exports, which countries his Department has identified as the strongest markets for exports of ammonia cracking technologies; and what steps his Department is taking to help introduce UK companies to potential customers in these markets.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
Ammonia cracking is a nascent technology that the Government has supported through the Net Zero Innovation Portfolio, which aims to accelerate the commercialisation of innovative, low-carbon technologies. The government will soon publish the new Industrial Strategy, with Clean Energy Industries as a priority growth sector. As the sector develops, government will work with UK companies developing ammonia cracking technologies to understand the opportunities for growth through exports.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he plans to allow projects that use ammonia cracking technology to be eligible in future Hydrogen Allocation Rounds.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
In line with our current priorities, the Hydrogen Production Business Model is intended to support primary methods of hydrogen production, such as electrolytic and CCUS-enabled production, in the UK. Ammonia cracking would not create any new hydrogen (given the ammonia itself is produced from hydrogen) and so we do not consider it to meet these criteria.
We are currently developing our approach to future Hydrogen Allocation Rounds (HARs), including the third Hydrogen Allocation Round (HAR3), to ensure they deliver on the Government’s priorities. We will seek feedback on the proposed design and delivery of HAR3 through a market engagement exercise, similar to the approach taken for HAR2. Further details will be provided in due course.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment he has made of the international export potential of UK manufacturers of ammonia cracking technology.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
We are aware of various companies developing ammonia cracking technologies, who are also looking to export these technologies overseas. We are committed to ensuring that businesses in the UK hydrogen sector grow and thrive, including through exports of hydrogen goods and services, so they can benefit from the opportunities of the transition to clean energy, through strong international trade relationships and effective supply chains.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether he has made an assessment of the potential merits of including green ammonia technologies in (a) the advanced manufacturing or (b) clean energy industries sections of the Industrial Strategy.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
The Industrial Strategy Green Paper identified eight growth-driving sectors, including both advanced manufacturing and clean energy industries. Low carbon ammonia could play a role in reaching net zero as part of a diverse energy mix. All sectors can shape and benefit from policy reform through the Industrial Strategy’s cross-cutting policies alongside the broader Growth Mission.
The Industrial Strategy, alongside Sector Plans for the growth-driving sectors, will be published in spring 2025, aligned with the multi-year Spending Review.