Energy Prices: Support for Business

Lindsay Hoyle Excerpts

Thursday 22nd September 2022 Commons Chamber

[Mr Speaker]

Before I call the Secretary of State for Business, Energy and Industrial Strategy to answer the urgent question, I have to say how disappointed I am that the subject of an urgent question was extensively set out in the media yesterday before being presented to the House. I hope that, as a former Leader of the House who was very supportive of me in criticising Secretaries of State for not coming to the House, the right hon. Member will be especially aware—as I know he is—of Ministers’ duties to explain that important policies are first to be heard in this House.

I understand the importance of the matter and the need for our constituents to have the information as soon as possible and, for that reason, I would have been willing to allow a statement yesterday, if I had been asked. I am deeply concerned that I have to make another statement like this only a few sitting days into this new Administration’s existence. I ask the right hon. Member and all his colleagues to do their utmost to ensure that this is the last time I have to do so. I am not angry; I am so disappointed, and I hope that we will treat the House with the respect that it is due.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on Government support for businesses facing rising energy prices.

[The Secretary of State for Business, Energy and Industrial Strategy (Mr Jacob Rees-Mogg)]

I am delighted to make a statement, Mr Speaker. As you know, I am a great believer that this House should be informed first. I was unaware of any precedent of a statement being made on a day set aside for taking the Oath, and therefore unaware that your generosity would have allowed such a statement to be made. I point out to the House that, in my membership of the House, a statement has not been made by the Government during the taking of the Oath days set aside, nor was any statement made in 1952 on the last occasion when the Oath was taken. I apologise to you, Mr Speaker.

[Mr Speaker]

In fairness, conversations would help to overcome any of these difficulties.

[Mr Rees-Mogg]

That is why I am saying that I am very grateful, Mr Speaker. I always think it is important that this House gets to know, and your generosity in setting a precedent where statements can be made on the days set aside for taking the Oath is, I think, a good one.

It is vital that businesses have the support that they need to pay their energy bills this winter. His Majesty’s Government are determined to grow the economy. We cannot do that if business becomes insolvent thanks to what is tantamount to blackmail by a malevolent state actor. His Majesty’s Government announced yesterday that they will provide a discount on wholesale gas and electricity prices for all non-domestic customers, whose current gas and electricity prices have been significantly inflated by global energy prices. That includes all UK businesses and covers the voluntary sector, such as charities, and the public sector, such as schools and hospitals. The scheme will apply to fixed contracts that have been agreed on or after 1 April 2022, as well as to deemed variable and flexible tariffs and contracts. It will be applied to energy usage for six months from 1 October until 31 March next year.

As with the energy price guarantee for domestic customers, in order to benefit from the scheme, customers do not need to take action. The discount will automatically be applied to their energy bills from 1 October. In terms of real-world savings, non-domestic users will start to see the benefits of the scheme in their October energy bills, which are typically received in November. The level of price reduction for each business will vary depending on its contract type, the tariff and the volume used.

We will publish a review of the operation of the scheme in three months to inform decisions on future support after March 2023. The review will focus in particular on identifying the most vulnerable non-domestic customers and on how the Government will continue assisting them with energy costs beyond the initial six-month period.

A parallel scheme—based on the same criteria and offering comparable support, but recognising the different market fundamentals—will be established in Northern Ireland. For those who are not connected to the gas or electricity grid, equivalent support will be provided for non-domestic consumers who use heating oil or alternative fuels instead of gas. Further detail on this will be announced shortly.

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[Mr Rees-Mogg]

I am grateful to my right hon. Friend for his support, and I am glad that businesses in his constituency are already being helped. I also recognise the importance of support for those who are off grid and using fuel oil. That is a specific issue in Northern Ireland, of which my right hon. Friend, as a former Northern Ireland Secretary, has particular experience. We are looking at the comparables, because the heating oil price has not risen by as much as the gas price. We need to be fair to all users, and we are working on that currently.

[Mr Speaker]

I call the Scottish National party spokesman, Stephen Flynn.

[Stephen Flynn (Aberdeen South) (SNP)]

Is it not great to see the Secretary of State in this House, rather than standing in the street filming a statement to the public, surrounded by boarded-up shops and rubbish? What an unedifying spectacle of a man who believes in the pre-eminence of this Parliament—but I am glad he is here, because he has some questions to answer, and it is about time that he did so.

How much does the Secretary of State estimate that this scheme will ultimately cost, including, of course, possible interest payments? Can he confirm that the likes of Amazon will benefit from a scheme that will be built on the back of public sector borrowing? Perhaps most important, can he explain to energy users in Scotland—energy-rich Scotland, where we produce more oil and gas than we can possibly consume and gas accounts for just 14.4% of electricity generation—why Westminster has failed us so terribly badly?

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[Mr Speaker]

Order. The hon. Gentleman has to learn to ask a question, not make his own statement.

[Mr Rees-Mogg]

I wonder whether the hon. Gentleman might like to apply to the Backbench Business Committee for a debate on the subject.

The reason we are going for a cap on the wholesale price is so that the market should remain as open as possible, and therefore there should be opportunities for discussions with companies as to the right level of price at the retail level and all that goes between the wholesale and retail level for the non-domestic sector. I hope that is helpful to the hon. Gentleman.

Shale Gas Extraction

Lindsay Hoyle Excerpts

Thursday 22nd September 2022 Commons Chamber

[Mr Rees-Mogg]

Indeed, the hon. Lady is right to be saying that I need to find the right page because I am having some difficulty in finding the right page immediately, but do not worry. [Interruption.]

[Mr Speaker]

Order. Is there another copy we can give the Secretary of State? [Interruption.] He has got it.

[Mr Rees-Mogg]

I am very grateful to the right hon. Gentleman for asking his urgent question. I am glad to be able to announce that the moratorium on the extraction of shale gas is being lifted, and a statement about that has been laid before the House.

As I set out in the previous urgent question, it is important that we use all available sources of fuel within this country. It is more environmentally friendly to use our own sources of fuel than to extract them in other countries and transport them here at great cost, both financially and in terms of carbon. It is therefore something we need to revisit, and we need to revisit the seismic limits to ensure that shale gas extraction can be done in an effective and efficient way.

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[Mr Rees-Mogg]

We obviously want to work with local communities, and it is really important that companies that seek to extract shale gas come up with packages that make what they are proposing to do welcome to local communities. That is of fundamental importance and is what the Prime Minister has set out.

[Mr Speaker]

I call Stephen Flynn, SNP spokesperson.

[Stephen Flynn (Aberdeen South) (SNP)]

There can be no doubt that this particular political earthquake is absolutely bonkers. The UK faces two problems when it comes to energy: energy prices and energy security. Let us be clear that when it comes to energy prices, producing shale gas will make absolutely no difference whatsoever. On energy security, this Government could and should be turbocharging renewables, and creating a contract for difference for hydrogen, to ensure that we have hydrogen boilers in future and are not reliant on the gas boilers of the past. But luckily, in Scotland there will be no change. There will be no fracking whatsoever. We, unlike the Tories, stick to our word. It is great to know that that will not change, but the one thing that will change is that we will be long gone from the shackles of this place by the time shale gas is produced in England.

Net Zero Strategy: High Court Ruling

Lindsay Hoyle Excerpts

Thursday 21st July 2022 Commons Chamber

[Greg Hands]

I thank the hon. Lady for that set of questions. Let me first stress that the net zero strategy—I have it here—is a very comprehensive document with pages and pages of annexes as well. It would be well worth all Members re-reading it today. It is a comprehensive plan for meeting our climate targets, outlining measures to move to a green and sustainable future. The Court found that we had not complied with the Climate Change Act only in relation to specific procedural issues and the level of analysis published as part of the strategy. The judge agreed that it did not need to contain measures with quantifiable effects to enable the full 100% emissions reductions required. [Interruption.] We are talking here about a strategy for the next 28 years. Inevitably, there will be some evolution in the strategy, and inevitably there will need to be some flexibility in a strategy with a 28-year timeframe.

The hon. Lady asked about the Conservative leadership candidates. In all the hustings that I have been to—and I think I have been to almost all of them—all the candidates made strong commitments to meet net zero, including at the hustings chaired by her near neighbour, my right hon. Friend the Member for Kingswood (Chris Skidmore).

When it comes to net zero and climate change, I am not going to take any lessons from Labour, which is the party that said in 1997:

“We see no economic case for…new nuclear power stations.”

That has set us back decades. There is a reason why 11 of our 12 power stations are coming off-stream before the end of this decade: the decisions, or non-decisions, by the last Labour Government, who increased our dependence on gas from 32% to 46% of our electricity generation—which could only have cheered Vladimir Putin. On energy efficiency, we inherited a position where 14% of properties in this country were rated A to C. We have increased that to 46%. When we took office, renewables made up only 7% of our electricity generation mix. That is now at 43%. So I am going to take no lessons from Labour. It is this Government who are taking the tough decisions, including on Sizewell yesterday, and moving forward on renewable energy and nuclear—not any of the Opposition parties.

[Mr Speaker]

We now come to SNP spokesperson Deidre Brock. [Interruption.] I am sorry. I did not think anybody was standing. I call David Duguid.

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[Greg Hands]

My hon. Friend is correct. He is always a strong voice for all the industries in his constituency, whether they be traditional oil and gas or those making the transition to carbon capture, utilisation and storage, hydrogen and so on. All these technologies will be crucial. The Climate Change Committee itself has said that carbon capture, utilisation and storage is “essential” to the achievement of our net zero goals. We remain on course to reach net zero by 2050 as a world leader, particularly under the COP presidency of my right hon. Friend the Member for Reading West (Alok Sharma).

[Mr Speaker]

I call the Scottish National party spokes- person, Deidre Brock.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

The judge ruled that the Minister could not have “rationally” reached the conclusions he did or made the decisions he did as a consequence of his lack of information in making the policy. If, as the judge ruled, the Minister could not have “rationally” made his decisions, on what irrational basis did he make them?

What confidence has the Minister that his Government’s climate policy can be fixed when both candidates for his party's leadership are at best lukewarm on climate issues, and at worst willing to sacrifice net zero? The Foreign Secretary said this morning that she would scrap the green levies, for example.

It is estimated that Scotland is missing out on 2,500 green jobs owing to the languid pace at which the UK Government are developing the renewables sector. Does the Minister agree that the UK Government should devolve financial powers to Scotland so that the Scottish Government can push forward renewables and clean technologies where the UK Government have failed to do so?

In 2020, the Met Office conducted a hypothetical thought experiment to determine what the weather would be like in 2050 if climate change accelerated as expected. Several of those projections are coming true now, 28 years early. Does the Minister not agree that it is vital for our plans to fight climate change to be up to the job, and that the next Prime Minister must remain completely committed to that fight?

Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 12th July 2022 Commons Chamber

[Kwasi Kwarteng]

I am very pleased to tell my hon. Friend that we recognise the difficulty there. There was a loophole, but we are in the process of consultation about how to deal with that particular issue.

[Mr Speaker]

I call the SNP spokesperson.

[Stephen Flynn (Aberdeen South) (SNP)]

I am afraid the Secretary of State just does not get it. As we now know, by the end of the year fuel bills are going to increase by an amount greater than the financial support that has been put in place by his Government. One third of someone’s state pension is going to be required just to pay their electricity and gas bills, so I have a simple question, which I will repeat again: what are they going to do about it?

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[Greg Hands]

The answer is yes. We always welcome Mayors with a constructive attitude to working with the Government. If I am not mistaken, I have a meeting with the hon. Gentleman’s colleagues next week. A delegation is coming to see me, led by—I think—the hon. Member for Sheffield Central (Paul Blomfield). It might be a different part of Sheffield; the Chair of the Select Committee on Levelling Up, Housing and Communities, the hon. Member for Sheffield South East (Mr Betts), is the Member I am thinking of.

[Mr Speaker]

Can I suggest that the Minister reminds Ministers in the other place that they are responsible to MPs in this House as well, and that they should meet with them? I hope that will be a clear message to the Lords.

I call Chi Onwurah, the Labour spokesperson.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Despite being critical to our world-beating research and a Conservative manifesto commitment, Britain’s participation in the world’s biggest science funding programme, Horizon Europe, is in peril. Before resigning, the then science Minister, the hon. Member for Mid Norfolk (George Freeman), took to Twitter to lobby the new Chancellor for funding for his plan B, but the Chancellor was busy trying to get the Prime Minister he had just accepted a job from to leave his job. Now, although the former science Minister has asked for his job back, the still in place, though disgraced, Prime Minister is too busy nobbling those going for his job to fill the science job. It is total chaos. Science deserves better, doesn’t it?

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[Greg Hands]

I thank my hon. Friend for her question and her constant very good and strong engagement on behalf of her Ribble valley constituents. Renewable energy is, of course, part of the solution. That is why we announced the allocation round for the latest auction of renewable energy last week. It was the most successful ever, with 10.8 GW of renewable energy coming to this country through the contracts for difference mechanism. It has been a huge success, and I welcome my hon. Friend’s interest.

[Mr Speaker]

I call the shadow Minister.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

The Minister knows that, at present, all retail electricity supplies—whether they derive from more expensive gas or cheaper renewables—are charged as though they had all come from gas. He also knows how to decouple prices coming into the retail market, so that domestic and business customers can enjoy considerable reductions in their energy bills by getting the direct benefit of renewable prices. Why is he not legislating to do so?

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[Jane Hunt]

I commend my right hon. Friend—[Interruption.] Sorry, I commend my hon. Friend—it is only a matter of time—for working incredibly hard not only in Rushcliffe, but to promote the freeport for the whole of the east midlands. She is doing an incredible job. We are committed to deploying CCUS, including from energy from waste plants. We will announce the projects to proceed to the next stage of the track 1 CCUS process in due course.

[Mr Speaker]

I call Liz Saville Roberts.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Diolch yn fawr iawn, Llefarydd. I welcome the Minister to her place.

The lack of grid capacity in Wales is a chronic problem, stalling both onshore and offshore low-carbon developments. National Grid’s pathway to 2030 proposes a new connection between north and south Wales. Will the Minister commit to working with the Welsh Government to set a precondition for any development of sufficient capacity to ensure that local, small-scale energy projects can access the grid at low cost?

[Jane Hunt]

We always work to ensure adequate capacity. Perhaps the right hon. Member could meet National Grid to talk about that, but if she would like to come back to me on the point when she has done so, I will be happy to meet her.

[Mr Speaker]

I call the shadow Minister.

[Kerry McCarthy (Bristol East) (Lab)]

I welcome the Minister to her post. We all agree that supporting investment in new low-carbon technologies is an important part of reaching net zero—well, most of us do. In the past week, one of the candidates for Prime Minister has said that

“we need to suspend the all-consuming desire to achieve net zero by 2050.”

Another claims that it was

“wrong of us to set a target”

for net zero. The frontrunner spent two years at the Treasury blocking additional climate spend. It is all well and good for the Minister to talk about the need for investment, but how can we, and more importantly the investors out there, have any confidence that it will continue?

[Richard Graham (Gloucester) (Con)]

9. What recent progress his Department has made on increasing the number of (a) satellite launches and (b) space-related exports. [R]

[Mr Speaker]

Who wants to take Question 9?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jane Hunt)]

I will, Mr Speaker.

We have funded a range of industry projects to establish vertical launch services from Scotland and support horizontal launch from Cornwall, with the UK’s first launch on track for later this year. We are supporting the growth of UK space exports through targeted campaigns matching UK companies with new large customers globally; through our new Export Academy, which upskills first-time exporters; and through establishing new and innovative international partnerships.

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[Kwasi Kwarteng]

My hon. Friend is absolutely right to focus on that necessity. The Critical Minerals Intelligence Centre was launched only last week and is looking at precisely the question that he raises. In respect of Nissan and Britishvolt, he will know that we landed those investments only last year. We are looking very closely at how we can secure the supply chain here in the UK.

[Mr Speaker]

I call the shadow Minister, Bill Esterson.

[Bill Esterson (Sefton Central) (Lab)]

Rare earth minerals are essential to our economy, not least in low-carbon sectors and in defence. The Japanese Government developed their rare minerals plan as long ago as 2010, in response to a blockade by China. I know the UK Government say that they will publish a critical materials strategy in the autumn, but if other countries have been building resilience since 2010, what confidence can we have that this Government will develop an effective strategy for our economy and our national security when, as the Secretary of State has just admitted, they have only just woken up to the scale of the risks that we face?

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[Kwasi Kwarteng]

I should be happy to meet my hon. Friend, who did excellent work at the Department for Education.

[Mr Speaker]

Unlike Lord Callanan, who does not meet people.

Sir Edward Leigh is not here, so I call Gavin Newlands.

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[Richard Graham (Gloucester) (Con)]

rose—

[Mr Speaker]

Richard Graham, you have had a question.

[Richard Graham]

I’ve got another one.

[Mr Speaker]

You can’t have one! I hate to say it to you, but how long have you been here?

[Paul Blomfield (Sheffield Central) (Lab)]

21. What assessment he has made of the impact of the rise in energy prices on (a) households and (b) businesses.

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[Kwasi Kwarteng]

My hon. Friend has very successfully asked the same question twice, which is fair enough, and I will give him the same answer. We have had the consultation, and we will come up with a response that ensures his constituents get a fair deal on this issue.

[Mr Speaker]

I call the shadow Secretary of State, Jonathan Reynolds.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

In the last 12 years, this country has had a referendum on its membership of the European Union, a referendum on the continued existence of the UK and four general elections, and now we are about to have our fourth Prime Minister. In that time, business investment in the UK has fallen to the lowest level in the G7. Does the Secretary of State accept that one reason for that is the lack of political stability under the Conservative party?

Post Office: Compensation for Horizon Scandal

Lindsay Hoyle Excerpts

Thursday 30th June 2022 Commons Chamber

[Mr Speaker]

Before the statement, I wish to make a short statement about the sub judice resolution. I have been advised that there are relevant active legal proceedings in the Court of Appeal. I am exercising the discretion given to the Chair in respect of matters sub judice to allow reference to those proceedings, as they may concern issues of national importance. However, I urge Members to exercise caution in what they say and to avoid referring in detail to cases that remain before the Court of Appeal.

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[Paul Scully]

I thank my hon. Friend for all the work that she has done. Having set up the statutory inquiry, what I cannot do at this Dispatch Box, at this moment in time, is direct Sir Wyn towards any particular area of findings. That is for him to do and I want him to remain an independent chair. But we absolutely want to make sure that lessons are learned and that people are genuinely held accountable.

[Mr Speaker]

I call the SNP spokesperson, Marion Fellows.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

Thank you, Mr Speaker. I thank the Minister both for his statement and for prior sight of it. I also thank all members of the APPG, both former and current, because they have been the power behind this. I merely chair it. I came along quite a way into all of this, and I am grateful for the help I have had.

The Minister has been diligent in his work leading to today’s announcement on interim compensation. Though that is very welcome, it has taken a long time to get here. I thank him for the thought that has gone into the administration of the scheme, and welcome the proactive action to be taken in contacting those GLO members who are yet to receive compensation.

Will the Minister—I know this is a big ask—reopen the historical shortfall scheme without a cut-off date, as the NFSP called for? Lots of sub-postmasters have still not applied for the compensation to which they are entitled. Post Office failures go a long way back under Conservative, Labour and Lib Dem Ministers, and sub-postmasters still struggle to make a decent living. Will the Minister confirm that the Government will continue to support post offices and sub-postmasters so that they thrive and do not suffer for grievous past mistakes that are now rightly being dealt with?

Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 7th June 2022 Commons Chamber

[Kwasi Kwarteng]

I am sure that the hon. Lady paid attention to the Queen’s Speech and will have noted that it contained an energy Bill, which will precisely redefine Ofgem in order to attract the anticipatory investment to which she referred.

[Mr Speaker]

I call Laurence Robertson. He is not here. I call Stephen Flynn, the SNP spokesperson.

[Stephen Flynn (Aberdeen South) (SNP)]

Thank you, Mr Speaker. Of course when we are talking about renewables, it is important in this Chamber to reflect upon the fact that Scotland boasts 25% of Europe’s offshore wind capacity and of its tidal capacity. Now that the UK Treasury is going to be coining in some £13 billion from Scotland’s North sea oil and gas sector this year alone, will it give a little bit back and match fund the Scottish Government’s £500 million just transition fund?

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[Kwasi Kwarteng]

It is not my job to say when legislation will be coming into this House—[Interruption.] What I will say—[Interruption.] What I will say specifically in relation to decarbonisation is that we have a clear heat and buildings strategy. The manifesto commitment covered 10 years, so it was not over the term of the Parliament. There was a clear manifesto commitment over 10 years and more money clearly needs to be spent to honour that commitment over a 10-year spending period.

[Mr Speaker]

I call the shadow Minister, Dr Alan Whitehead.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

It would be really nice if the Secretary of State told us when the ECO4 legislation is coming, because ECO4 is not going to work unless that legislation comes forward.

The Secretary of State knows that the new price cap and the increase in customer bills will have a devastating impact on customers’ struggle with the cost of living, so why is his Department directly contributing to the sky-high price cap levels by putting into place new customer levies—such as the socialisation of the costs of failed energy companies, the green gas levy and the nuclear regulated asset base levy—that will add perhaps £100 to the upcoming and future price cap levels, and hence to customer bills? The Secretary of State talks of Government assistance to help customers to cope with their bills, but is it not very much about giving with one hand and taking back with the other? Should customers not be angry at this cynical policy?

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[Greg Hands]

I thank my hon. Friend for his continued interest in all matters relating to net zero. My door is always open to him, particularly in bringing innovative proposals on how we will get to net zero. He will know that the Government have invested more than £175 million in tidal energy projects in the past two decades and we have £20 million allocated in the current allocation round for the contracts for difference for tidal stream power.

[Mr Speaker]

I call the Chair of the Business, Energy and Industrial Strategy Committee.

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[Paul Scully]

I thank my hon. Friend for the impassioned work that he does on this issue—again, following his personal experience. He is right: we are not just standing still while waiting for parliamentary time. We are taking action to prepare for implementation once the legislation is there, including by having conversations with third sector stakeholders and business representatives. Officials have also spoken to HMRC about developing a system to implement the measures when we have the legislation.

[Mr Speaker]

I call the shadow Minister.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

The Minister says “when parliamentary time allows”, but the Government could have provided time by putting an employment Bill in the Queen’s Speech. On neonatal pay, flexible working and an enforcement body to protect workers’ rights, this Government promise a lot but deliver very little. Ministers have promised an employment Bill over 20 times, yet it still appears nowhere in the legislative programme. Is not the only job that this Government are interested in protecting the Prime Minister’s?

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[Greg Hands]

We are committed to that programme, and that is exactly why I have outlined the £6.6 billion of support in this Parliament. We have achievements as well: since 2010, the percentage of UK homes rated A to C for energy efficiency has gone from 13% to 46%. That is almost a fourfold increase under this Government in homes that are rated good for energy efficiency. We have put a lot of money into heat pumps and the heat and buildings strategy. I suggest that the hon. Member look at that strategy, which we launched only last October. He should study it and then come back with further questions.

[Mr Speaker]

I call Dame Maria Miller, and congratulate her on her damehood.

[Dame Maria Miller (Basingstoke) (Con)]

17. What steps he is taking to improve workers’ rights.

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[Kwasi Kwarteng]

My hon. Friend will know that the NSI Act, which came into scope at the beginning of this year, gives me as Secretary of State powers to call in transactions that I feel are detrimental to national security. After long consideration and weighing up all the evidence, Newport Wafer Fab was, I think rightly, deemed to be such a transaction.

[Mr Speaker]

I call the shadow Secretary of State.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

If a chair or chief executive of a FTSE 100 company presided over a culture of rule breaking, broke the law themselves and then said that they would do it again, would that person have the Business Secretary’s support, or would he demand better standards than that in public life?

Subsidy Control Bill

Lindsay Hoyle Excerpts

Consideration of Lords amendments
Wednesday 20th April 2022 Commons Chamber

[Relevant Document: Oral evidence taken before the Business, Energy and Industrial Strategy Committee on 30 November 2021 on State Aid and Post-Brexit Competition Policy, HC 742.]

[Mr Speaker]

Financial privilege is not engaged by any of the Lords amendments.

Clause 10

Subsidy schemes and streamlined subsidy schemes

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

I beg to move, That this House agrees with Lords amendment 1.

[Mr Speaker]

With this it will be convenient to discuss the following:

Lords amendments 2 to 12.

Lords amendment 13, and amendment (a) thereto.

Lords amendments 14 to 51.

[Paul Scully]

Let me begin by expressing my appreciation for the shared ambition, across both Houses, to create a domestic subsidy control regime that will work for people and communities throughout the United Kingdom. The rigorous debate in both Houses has resulted in the improved Bill that is before us today, and I hope that the Government amendments passed by the House of Lords will in turn be accepted by this House.

  I shall start with Lords amendments 13 to 38, 44 to 47 and 51, relating to the topic of transparency. This topic has been well championed in this House by my hon. Friend the Member for Weston-super-Mare (John Penrose), who is no longer in his place. First, in place of the higher transparency thresholds that applied to subsidies given under a published scheme, and given as minimal financial assistance or services of public economic interest assistance, we have introduced a single upload threshold of £100,000, which now applies to all subsidies that are subject to the transparency requirements. Of course, there has never been a threshold for regular stand-alone subsidies, which all need to be published. This represents a substantial 80% reduction from the original threshold of £500,000 for subsidies given under the schemes.

Secondly, we have significantly shortened the upload deadlines; for non-tax subsidy awards, we have halved them from six to three months, so that subsidies will be visible on the database far sooner. The third change is that we have introduced new obligations to upload certain permitted modifications of a subsidy or scheme to the database. Public authorities will now be subject to the same obligations to upload even minor changes, with the same upload deadlines as for the original subsidy. This will ensure that the database continues to provide up-to-date information about subsidies or schemes that are modified after they have been granted. Fourthly, we have placed a duty on the Secretary of State to review the transparency database at such intervals as they consider appropriate, thereby ensuring additional quality control.

Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 29th March 2022 Commons Chamber

[Kwasi Kwarteng]

As I said, the Chancellor announced a £9.1 billion package of support only a few weeks ago. That included the £150 council tax rebate for bands A to D and £144 million in discretionary funding added for local authorities—spending to help the most vulnerable. We announced a £500 million extension of the household support fund last week, but I would be happy to engage with my hon. Friend on what more we can do in the next few months to assuage the burden.

[Mr Speaker]

I call the shadow Minister, Dr Alan Whitehead.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

Well, we know what measures the Government have in place to assist customers to manage the sky-high energy price increases now due in April, and frankly pretty miserable they are. They will not remotely cover the bulk of the increases, and we still do not know how some of them are to be delivered—the “lend you your own money” scheme, for example, as it relates to the 7 million customers on prepaid meters.

I am concerned about how the Government will respond to what we now know will be an equally steep additional price rise in October under the price cap, with authoritative sources calculating that we are likely to see the average energy bill rise by a further £700 to £2,900 or £3,000. What serious additional measures is the Secretary of State planning to help customers to face that further enormous rise? Might he after all be interested in a windfall tax against those companies that continue to profit enormously from escalating gas prices, which could fund substantial assistance to cope with the next price hike?

[Kwasi Kwarteng]

I am very happy to answer the hon. Gentleman’s questions. He will know that the next price cap period will be set in August. Even he, with his gifts of prophecy, does not know what the price cap level will be in August. As the Chancellor of the Exchequer has said, we are continually reviewing actual spot markets and what is happening in the market.

The hon. Gentleman will know that nothing could be more damaging to the sector, to people employed in the sector and to the hundreds of thousands of jobs and families dependent on the sector than an arbitrary windfall tax, which would also impoverish many of the people exposed to those companies through their pensions. It is a regressive, retro measure that completely does not understand what business is all about.

[Mr Speaker]

I call the SNP spokesperson.

[Stephen Flynn (Aberdeen South) (SNP)]

Aside from saying that he drives an ageing VW Golf, the Secretary of State is using every excuse possible to try to defend the indefensible. In just a matter of days, the energy price cap will increase by some 700 quid; in just a matter of months, it is anticipated that it will increase by a further £1,000. The Government’s response is 150 quid off council tax and £200 that they say is not a loan, but that is indeed a loan. Energy bills are anticipated to increase 14 times faster than wage increases. How on earth are people supposed to get by?

--- Later in debate ---

[Paul Scully]

Evidence of the scale and severity of the human rights situation in Xinjiang paints a harrowing picture. The British Government will not stand for forced labour, wherever it takes place. We require businesses to report on how they are tackling modern slavery and forced labour in their operations and supply chains, and we plan to extend that to certain public bodies and to introduce financial penalties for organisations which do not comply. That will require legislative change, and legislation will be introduced when parliamentary time allows.

[Mr Speaker]

I call the shadow Minister.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

That was a pretty strong-sounding answer from the Minister, but let us see whether those fine words are put into practice. An audit undertaken two years ago found that 17% of organisations—more than 2,500—that should have published a modern slavery statement had failed to do so. Can the Minister tell us what action has been taken since then to ensure that they do?

--- Later in debate ---

[Lee Rowley]

My hon. Friend highlights an important point about getting the balance right between regulation, and ensuring that the output and productivity of these industries works. I would be happy to talk to him more if that is helpful.

[Mr Speaker]

I call the shadow Minister, Bill Esterson.

[Bill Esterson (Sefton Central) (Lab)]

The spring statement did not

“address the complex challenges facing the manufacturing sector”.

It just is not

“tenable for thousands of businesses”

and it is

“kicking the can down the road”.

Those are the words of three businesses that are asking for help. So how about this: first, cancel the 10% increase in national insurance payroll tax; secondly, cut energy bills by up to £600 per household; and, thirdly, set up a £600 million energy-intensive industries contingency fund? Our plan is following the evidence from the business community of what is needed. Why will this Government not help businesses that are crying out for support?

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[Several hon. Members rose—]

[Mr Speaker]

We are on topicals and we need to speed up.

[Jane Hunt (Loughborough) (Con)]

T3. What steps is my hon. Friend taking to support businesses with increased energy bills? Companies such as Rodale Commercials Ltd in Loughborough use high levels of gas in the painting process to repair vehicles.

--- Later in debate ---

[Several hon. Members rose—]

[Mr Speaker]

Order. That finishes questions, but before we come to the statement, I would like to point out that the British Sign Language interpretation of proceedings is available to watch on parliamentlive.tv.

Sub-Postmasters: Compensation

Lindsay Hoyle Excerpts

Tuesday 22nd March 2022 Commons Chamber

[Paul Scully]

I thank my hon. Friend for all the work he has done to expose this matter. That is why the independent statutory inquiry led by Sir Wyn Williams has been listening to testimony from those so badly affected. The next stage of his inquiry is exactly to get to the bottom of the questions my hon. Friend asks: who knew what and when in the Post Office, Fujitsu and Departments across Government. We will get to the bottom of that.

[Mr Speaker]

I call SNP spokesperson Marion Fellows.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

The Horizon scandal has spanned decades under Labour, Lib Dem and Tory Ministers. It is a stain on the Post Office and its single shareholder the Government. This response proves that the Government do the right thing in the end, once they have done everything else. I congratulate the Minister on his work. He has been true to his word; among all the Ministers who went before him, we never had that, so I do praise him.

The Justice For Subpostmasters Alliance took on the Post Office and shone a light on it. It should be commended and properly, fully compensated for everything it has done. Many parliamentarians have already mentioned some of this, including members of the all-party parliamentary group on post offices, of which I have the honour of being chair. We need to see a firm commitment in tomorrow’s spring statement to the full compensation that has been promised by the Minister, and reassurance that there will be no impact on the post office network as a result.

--- Later in debate ---

[Paul Scully]

I hope I can show by my actions that I will keep the House updated as we go along. On where we are with the compensation, I can announce that as of 11 March, 45% of people in the historical shortfall scheme had already received offers. That amounts to 1,067 individuals. The Post Office reports that it is firmly on track to make 95% of initial offers by the end of the year. The historical shortfall scheme started slowly, as it first worked through the cases and benchmarked those that would help inform future payments, so that we know so much more about the 555. Dovetailed with the HSS information that we have gained, I want to ensure that we can start delivering that compensation very quickly. I am still aiming for the end of the year for the HSS. We need to establish, once we know what the process is, an exact timescale agreed with the JFSA.

[Mr Speaker]

And we will hear it first in the Chamber, and we will make sure it is done via a statement, rather than by me granting urgent questions. Lovely, Minister.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I very much welcome what my hon. Friend has said today, and there is no doubt that he has been part of the resolution of this problem, but he will know that across the House for many, many months everyone has accepted that this is a huge miscarriage of justice and a disgrace. There is an independent inquiry, which he has rightly referred to today, but will he make sure that within Government there is a lessons learned process and lessons drawn for the future, so that the role of Government, too, is placed under the microscope, to ensure that nothing like this ever happens again?

Shale Gas Production

Lindsay Hoyle Excerpts

Tuesday 15th March 2022 Commons Chamber

[Greg Hands]

I am delighted to see the right hon. Gentleman at the Dispatch Box. He says he is confused, but I have been absolutely clear that Government policy is unchanged from the 2019 manifesto. I am not sure what he finds confusing about Government policy being unchanged.

We did not put our 2019 manifesto on an Ed stone, but it is available online for anybody to see the manifesto pledges on which all Conservative Members ran. Government policy is unchanged, with or without an Ed stone. The right hon. Gentleman says we are sowing uncertainty. No, we have given absolute certainty. Government policy is unchanged from the pause announced in December 2019. There is no review. This is a science-led policy, and support from local communities would be needed if there were to be a change.

Finally, we heard about the “green energy sprint”, which is extraordinary. Since the right hon. Gentleman was Secretary of State for Energy and Climate Change in 2010, we have increased the proportion of our electricity generation coming from renewables from 7% to 43%. In any normal terms, that would be a sprint, but it is also a marathon, in the sense that we have done that over 12 years. It has been almost a “sextupling” of the amount of energy coming from our renewables since he was in office. He talks about nuclear, but he will also remember the 1997 Labour manifesto, which said that Labour saw “no economic case” for new nuclear power stations. He has the cheek to come to the Dispatch Box today to urge that we get on with nuclear. The Government are getting on with nuclear and with renewables, doing exactly the green energy sprint that he has suggested.

[Mr Speaker]

I call the Member whose constituency has been mentioned, Mark Menzies.

--- Later in debate ---

[Greg Hands]

My hon. Friend illustrates well the point about the importance of keeping local community support if this were to happen. As stated in our manifesto, this was based on what local communities felt at that time. I do not think any local community felt it more strongly than my hon. Friend’s in Fylde. On the process, we have been clear that if Cuadrilla were to apply to the Oil and Gas Authority to extend that deadline, this would be considered by the OGA in the usual way. I repeat that the Secretary of State and I spoke to the OGA just this morning to confirm that.

[Mr Speaker]

I call the Scottish National party spokesperson, Alan Brown.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

It is a rare thing in the Chamber but I completely agree with the hon. Member for Fylde (Mark Menzies) and the Minister’s opening remarks: now is not the time for knee-jerk reactions. Given that we have this energy crisis, now is the time to stay strategic and not make daft decisions. Clearly, doing fracking would not do anything to change the west’s reliance on gas, even if, as the Minister’s says, the UK does not rely on Russian gas. He can reconfirm that fracking would not release enough gas to change the international market price, so we would still be paying the same wholesale prices. Is it not the case that there is not enough geological and scientific coring information, to the right depths, to understand the viability of extraction, let alone the risks of seismic tremors, which, as we have already heard, occurred at Preston New Road? Therefore, fracking should be ruled out, in the way the Scottish Government have done. Do we not need to invest heavily in renewables? We keep hearing about nuclear from those on the two Front Benches, but committing £63 billion of capital and financing costs to Sizewell C is madness. Our approach should be straightforward renewable energy. I keep going on about pumped storage hydro. Last week, the Secretary of State said that I had been going on about it for 18 months and that it is a good solution but he needs to assess value for money. When are we going to get that value for money? When are we going to get a change to the transmission grid charging system, which is blocking the deployment of Scottish renewables? We need to invest more in tidal stream, to increase the floating offshore target and to set an onshore wind target as well. Let us maximise investment in renewable energy.

--- Later in debate ---

[Liz Saville Roberts]

On a point of order, Mr Speaker. I asked the Minister very carefully about whether he would respect Wales’s policy of refusing further coal and gas. I am sure that most people in this House will appreciate that this aspect of energy is devolved to Wales, but he replied that energy is a reserved matter. Can you advise me, Mr Speaker, on how awareness could be established within this Government as to which powers are reserved and which powers are devolved to Wales?

[Mr Speaker]

Does the Minister want to answer?

[Greg Hands]

Well, Mr Speaker, I have nothing to change from my answer. What I can say is that we do have a very constructive relationship with the Welsh Government on areas of energy, as I always had on trade. They hold key levers in areas that are important on delivering energy, such as planning and skills, so of course it is in our interests, on behalf of the people of Wales, to work together as the UK Government and the Welsh Government.