Oral Answers to Questions
Lindsay Hoyle Excerpts(5 days, 16 hours ago)
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Michael Shanks
I will not be drawn on confirming whether the hon. Gentleman’s constituency is the most beautiful part of England—I will leave that to him. However, what he proposes sounds like a fantastic idea and I am happy to meet him to discuss it further. We see huge potential for a whole range of renewables. Those kinds of innovative projects—smaller scale as well—are what could deliver not just benefits for the system but real benefits for the communities that host them.
Bill Esterson (Sefton Central) (Lab)
Happy birthday, Mr Speaker. Moving from gas to electricity in home heating is an important part of reducing our reliance on fossil fuels. Yet at the Select Committee hearing last week, we heard real concerns that people in energy debt are unable to disconnect from gas and are therefore still stuck paying standing charges. Will the Minister say what the Government’s plans are to remove that problem and ensure that more people can take up the opportunities presented by electrifying home heat?
Sir Roger Gale (Herne Bay and Sandwich) (Con)
Mr Speaker, The Times has told the world how old you are today.
Sir Roger Gale
I do not propose to write it into the record, but I note that you are catching up on me. [Laughter.] Happy birthday.
Sir Roger Gale
Yesterday, a Minister said from the Dispatch Box that only 1% of farmland was being damaged by development, yet solar panels are smothering east Kent’s best farmland. It must stop. Given what the Secretary of State has said, what further steps will he take to protect our farmland and really do move solar panels on to rooftops, car parks and public buildings?
Michael Shanks
As so often, my hon. Friend is correct on these matters. He usually has a quote that shows that, just a few months ago, Opposition Front Benchers agreed with us on many of these matters, but have suddenly changed their position. As my hon. Friend says, our proposals are not only critical to delivering energy security in an increasingly uncertain world, but to tackling the climate crisis, which has such an impact on our lives now and in the future, and to the economic opportunities of the 21st century.
Joy Morrissey (Beaconsfield) (Con)
Happy birthday, Mr Speaker. We need to ensure that the technology that we import to increase grid capacity is secure. US officials recently found kill switches in Chinese-made components for solar farms. The Conservatives have been clear about the security risks that China poses in our energy supply chain, so will the Secretary of State confirm whether he discussed that issue in his recent meeting with Chinese officials? If not, why not?
Sarah Jones
When we hear the SNP opposing jobs, it seems sad for the people of Scotland. We are supporting jobs up and down Scotland. The hon. Gentleman does not have long to wait to hear about Acorn, because the spending review will be published later this week.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
Happy birthday, Mr Speaker, and very many happy returns. We obviously welcome new jobs when they are created, but will the Minister acknowledge the destructive impact of her Government’s policies on jobs in oil and gas in the North sea? On Friday evening in Westhill, in my constituency, I met many workers who are terrified for their future, their family and their community, because the skilled jobs in the supply chain that is maintained by oil and gas are not being replaced at the pace needed by renewables. That is due to a slowdown in offshore wind deployment and a steep decline in oil and gas activity. Will she not admit that the Government have got this dreadfully wrong?
Michael Shanks
I always agree with my hon. Friend, but on her initial point, I probably do not. I am not sure that we do all agree in this House that we should remove the volatility of fossil fuel prices. Some want us to remain linked to fossil fuels for longer and longer. We are determined to remove that vulnerability from people’s bills, so that we do not face the price spikes that many families still struggle with. She is right to point to targeted support as well. We are looking at social tariffs. Part of the challenge is that the phrase means different things to different people, but we are clear that bringing down bills for everyone is a top priority for this Government, and the clean power mission is how we will do it.
Nick Timothy (West Suffolk) (Con)
Happy birthday, Mr Speaker. The Energy Secretary has said that there is a “principled case” for removing green taxes from electricity bills, and the cost being met by increases in green taxes on gas bills. That would be a net tax rise for every household—80% of the country—that uses gas. This was not an argument that he made before the election, so can the Minister take this opportunity to rule out any increase in taxes, charges or levies on gas bills?
Ed Miliband
My hon. Friend raises an important point. I am working with the Minister for Energy Consumers and others across Government on this as part of the warm homes plan. We have to make sure that those who can least afford it can take advantage of the huge opportunities of insulation, solar panels and batteries.
Ed Miliband
The east of England will be a clean energy powerhouse for the country. My hon. Friend raises an important issue about workforce, and we will be publishing the workforce plan soon.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
In the dim and distant past, in 2023, the Secretary of State described the Rosebank oilfield as
“a colossal waste of taxpayer money and climate vandalism”.
Does he still agree with that?
Pippa Heylings (South Cambridgeshire) (LD)
The North sea’s future lies in clean energy, but despite the UK’s billing as a wind superpower, we still import most of our wind turbine components while communities around the North sea are losing jobs. Trade unions and industry are united in calling for £1.1 billion a year to build up domestic renewables manufacturing, but the Chancellor has committed barely half that. Will the Secretary of State work with his Cabinet colleagues to secure the investment that is needed to realise the job-creating potential of the green just transition?
Christine Jardine (Edinburgh West) (LD)
Happy birthday, Mr Speaker—I suspect you may be relieved that we cannot sing in the Chamber.
I was recently approached by a small business owner in my constituency of Edinburgh West who faces bill of almost £30,000 for the period of lockdown when her business was closed. She is getting no sense out of British Gas Lite about why she is facing this bill, and I am getting no response from it. Will the Minister meet me to discuss how we can find out what is happening?
Michael Shanks
The right hon. Gentleman is wrong on two fronts. First, we are not closing down oil and gas. It will continue to play a part for many years to come, but there is a transition under way, as there has been for many years. The truth of the matter is that, while we want to create the jobs that come next, he turns his face against all the investment in what those jobs will be, which means that, under his plan, the transition will not lead to a future for that incredibly skilled workforce. We are determined to do it differently, so that there are good, well-paid jobs in the future and a secure energy mix for decades to come.
Mr Speaker
I thank everybody who has wished me well for my birthday. I got the best birthday present, and that was the knighthood for Sir Billy Boston, who had to leave Wales to play rugby league. This is the first knighthood for rugby league, so it is the best present I could have had.
Nuclear Power: Investment
Lindsay Hoyle Excerpts(5 days, 16 hours ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
With permission, I would like to make a statement about Government plans for investment in new nuclear power.
Sixteen years ago, in 2009, as Energy Secretary I delivered a statement to this House identifying potential sites for new nuclear. I said:
“We need to use all available low-carbon sources… New nuclear is right for energy security and climate change, and it will be good for jobs too”.—[Official Report, 9 November 2009; Vol. 499, c. 31.]
That was true back then, and it is even more true today. Russia’s invasion of Ukraine and the cost of living crisis that followed showed how vulnerable we are as a country because of our dependence on fossil fuels, at the whim of markets controlled by petrostates and dictators. The imperative of energy security and the demands of the climate crisis mean that we must shift as fast as possible to clean, home-grown power. The demand for that power, as we shift away from gas, is expected to at least double by 2050, so we need all the low-carbon sources possible to meet the demands we face.
The advice from experts, including the Climate Change Committee, is clear: we need new nuclear to meet our climate obligations. This Government support new nuclear because of our belief that the climate crisis is the greatest long-term threat facing our country and our world, not in spite of it; because of the imperative of energy security; and because of the good, skilled jobs that nuclear provides. In Britain today, there are too few industries that offer the secure, well-paid jobs with strong trade unions that the British people desire and deserve. Time and again, I have heard from people up and down the country about the importance of nuclear jobs to their communities. For all these reasons, the Government are taking decisive steps today to usher in a new golden age of nuclear for Britain.
First, back in the late 2000s, when I was Energy Secretary, I identified Sizewell as a potential site for new nuclear. It has taken 16 years, but I am incredibly proud that today we are announcing £14.2 billion of public funding for this spending review period to build Sizewell C, the first Government-funded and owned nuclear power station in Britain since the 1980s—a strategic partnership with France, with EDF intending to invest alongside us.
I recognise the contribution of my hon. Friends the Members for Lowestoft (Jess Asato) and for Ipswich (Jack Abbott) in advocating for this project and my hon. Friend the Member for Warrington North (Charlotte Nichols) for her advocacy for nuclear as a whole. I also acknowledge the work of the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), who is not in his place, when he was Minister for nuclear.
Sizewell C will power the equivalent of around 6 million homes with clean, home-grown energy for 60 years, and will be a jobs and growth engine for Britain, supporting 10,000 jobs at peak construction and creating 1,500 apprenticeships—well-paid, highly skilled jobs in East Anglia and communities across the country. I thank the GMB, Unite, and Prospect trade unions, which are brilliant champions for the nuclear industry. Sizewell has already signed £4.2 billion-worth of contracts with 311 companies, and will eventually work with 3,500 suppliers in all four nations of the UK.
This project is good value for money for the taxpayer, because there will be a clear economic return on the investment, and for the bill payer, because all the due diligence we have done demonstrates that the cost of the clean power it will supply will be cheaper than the alternative. We expect the final investment decision on the project, including through the capital raise from the private sector, to be completed in the summer, when we will set out further detail. This is a new generation of nuclear power, promised for years and delivered by this Labour Government.
Secondly, small modular reactors offer a huge industrial opportunity for our country, and we are determined to harness Britain’s nuclear expertise to win the global race to lead in this new technology. I can inform the House that following a rigorous two-year competition, today Rolls-Royce SMR has been selected as the preferred bidder to develop the UK’s first SMRs, subject to final Government approvals and contract signature. This initial project could create up to 3,000 skilled jobs and power the equivalent of around 3 million homes.
In the spending review, we are committing to the public investment needed to get the SMR programme off the ground, with more than £2.5 billion in funding over the period. The project will be delivered by Great British Energy Nuclear, a publicly owned company headquartered in Warrington—an allied company to Great British Energy, which is headquartered in Aberdeen. Subject to Government approvals, the contracts will be signed later this year. Our aim is to deliver one of Europe’s first SMR fleets, leading the world in the nuclear technologies of the future, with more good jobs and energy security funded and made possible by this Labour Government.
Thirdly, beyond the immediate horizon, nuclear fusion offers the potential of an energy-abundant future. Britain already leads, thanks to the pioneering work of the UK Atomic Energy Authority, but unlike in the past, we are determined to make the investments to stay ahead as a country. Today, we are pledging to invest more than £2.5 billion in nuclear fusion, including in the STEP—spherical tokamak for energy production—programme, which will help to progress the new prototype fusion plant at West Burton. I congratulate the Mayor of the East Midlands, Claire Ward, on her tireless advocacy for this project, as well as my hon. Friends the Members for Bassetlaw (Jo White) and for Rushcliffe (James Naish) on their advocacy. This will be the first fusion plant of its kind in the world, and it will be on the site of a former coal-fired power station. Under a Labour Government, Britain will lead the clean energy transition and trailblaze the technologies of the future.
Fourthly, our nuclear ambitions do not stop there. As we move ahead on these projects, we see huge potential right across the country. That is why we are looking to provide a route for private sector-led advanced nuclear projects—advanced modular reactors and SMRs—to be deployed in the UK. And we will task Great British Energy Nuclear with a new role in assessing proposals, with the National Wealth Fund exploring potential investment opportunities. My message to the private sector is that if it wants to build new nuclear, Britain is open for business.
I can also tell the House that, following the incredible campaigning work of my hon. Friends the Members for Whitehaven and Workington (Josh MacAlister), for Carlisle (Ms Minns), for Penrith and Solway (Markus Campbell-Savours) and for Barrow and Furness (Michelle Scrogham), my Department has asked the Nuclear Decommissioning Authority and Cumberland council to consider the potential of privately led clean energy development in Moorside, delivering jobs and growth in Cumbria.
We also know that this is an industry that demands long-term thinking. Therefore, having announced these steps today, we will build on our 2030 clean power action plan and set out our plans for the energy system, including our ambitions and next steps on nuclear, into the 2030s and beyond.
Taken together, the steps that I have announced today will kick off the biggest nuclear building programme that Britain has seen in half a century, doubling down on our nuclear strength to take the latest step forward in our mission to make Britain a clean energy superpower. When people ask what clean energy and net zero means for our country, this is what it is all about. For too long, our country has not made the crucial investments in energy or infrastructure that we need. The British people have paid the price for this short-sighted failure to invest—in lower living standards, insecurity and declining public services. This week’s announcements signal a decisive change in approach—to invest in the future and make the right choice for energy security, the right choice for jobs, the right choice for climate, our children and grandchildren, the right choice for Britain, and the right choice of investment over decline. I commend this statement to the House.
Ed Miliband
I feel a bit sorry for the hon. Gentleman; it is hard on a day like this to be an Opposition Member. Nevertheless, I will try to answer his questions, such as they are. On the question about the final investment decision, he will be aware that we are currently doing the private sector capital raise. When that is complete, we will proceed to the final investment decision, which will take place this summer. That is obviously important.
On his fundamental question, I do slightly scratch my head, because he says that this is a downgrade—we have announced the largest nuclear building programme in 50 years! What he says might have looked good in the mirror this morning, but it does not bear much resemblance to reality. The question, which goes to the point I made at the end of my statement, is this: why did the Conservatives make all these promises on nuclear but fail to deliver them? There is a simple answer. It was not because of a lack of diligence from his colleague the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie). The simple reason is that they did not put up the money. They did not make the investment. The one thing that has bedevilled the nuclear programme is a failure to invest public money.
In this spending review we are putting in £14 billion for Sizewell, £2.5 billion for SMRs, and £2.5 billion for fusion. Those are significant sums of long-term capital investment. The Conservatives made all these promises, but they did not put in the money. I was the guy who identified Sizewell, and I am back here delivering Sizewell. This Government are willing to make the investment. We welcome the support from the hon. Member for West Suffolk (Nick Timothy), such as it is, but he needs to learn some lessons. Public investment, not decline, is the answer for Britain.
Bill Esterson (Sefton Central) (Lab)
I warmly congratulate my right hon. Friend on delivering on his promise from 2009 and confirming Sizewell C, along with the vast array of commitments to a bright nuclear future for this country. The Select Committee looks forward to our inquiry in the autumn into the future of nuclear; we will be taking evidence and making recommendations to support the work that the Secretary of State has set out. We visited Sizewell C, and I also visited the nuclear physics department at the University of Liverpool. I learned in both cases about the jobs that will be available across the country. Can the Secretary of State confirm that he sees this as the start of both gigawatt construction of new nuclear and a big expansion into SMRs and AMRs, which are still a nascent technology, to support a very good future for nuclear generation in this country?
Ed Miliband
My hon. Friend speaks very well on this subject. I agree with him about the huge jobs potential from new nuclear and the timelines. My priority when we came into office was to get these things over the line, because there had been so many promises made by the last Government. Long-term promises were made under Boris Johnson for 2050, but they did not deliver anything towards the 24 GW target. My priority was to get on and deliver these things and get them over the line, which we are doing. Then we can look at what the energy needs are going forward and how we meet them. I agree with my hon. Friend that nuclear has an essential part to play, alongside all the other clean energy technologies; electricity demand is going to double by 2050, so we need all of them.
Pippa Heylings (South Cambridgeshire) (LD)
We welcome the Government’s renewed focus on energy security through nuclear power as part of the energy mix. It is long overdue, after years of dither and delay from successive Conservative Governments. It has been 16 years since Sizewell C was first announced in 2009, and now, seven Prime Ministers later, we are finally seeing real movement. That is not a success story but a warning. Short-term thinking, poor delivery and exorbitant costs—
Mr Speaker
Order. I will decide when things are out of order. I do not need any help. I want you to get the question finished quickly, so come on.
Ed Miliband
To reassure you, Mr Speaker, you look much younger than the Calder Hall nuclear power station.
Ed Miliband
Absolutely right—there will be no decommissioning of you, Mr Speaker.
I congratulate my hon. Friend on showing incredible leadership for his constituents on this issue. It has been a pleasure to work with him and other colleagues on these questions. He is right about the potential; he is also right about the regulatory question. We have some of the highest standards of regulation in the world, but it is always right that we look at how we can improve standards of regulation and avoid changes in regulation during the course of projects, which is crucial for success. That is the work we are getting on with.
Ed Miliband
We are operating under the previous Government’s planning guidance when it comes to the best agricultural land. On the hon. Lady’s wider point, we need all the clean energy resources that are at our disposal—solar, onshore and offshore wind, and nuclear. I am for all of the above.
Mr Speaker
I inform the House that the Government will make a statement later today to give an update on the middle east.
Jonathan Davies (Mid Derbyshire) (Lab)
Today’s announcement that £2.5 billion will be invested in the small modular reactor programme is fantastic news for the country. It will help bring energy bills down, power homes and create jobs. It is amazing news for Derby, too, because the technology behind the SMRs has its roots in the technology developed at Rolls-Royce Submarines half a century ago. As the Government move forward with investment and delivery, and the Secretary of State approaches the contractual aspects, will he ensure that we build on what we have in Derby, such as the Nuclear Skills Academy, and the good jobs already there, so that we can grow opportunity for the wider region and the country as a whole?
Oral Answers to Questions
Lindsay Hoyle Excerpts(1 month, 2 weeks ago)
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Ed Miliband
My hon. Friend, who is also a really powerful advocate for his constituents, is absolutely right. Project Willow was left on the shelf by the previous Government. We put the money in to take Project Willow forward and we are now going to implement it. Absolutely crucial to that is ensuring the skills of oil and gas workers are properly used in the future, including with the skills passport which also lay dormant under the previous Government and which we are powering ahead with.
Claire Young (Thornbury and Yate) (LD)
Through my work on the Select Committee, I have heard repeated concerns from industry leaders that existing workers in their 50s and 60s see no point in retraining because they believe they will see out their careers supporting old technologies. That has a knock-on impact on young entrants to the workforce, who have traditionally learnt their skills from more experienced workers. Will the Secretary of State outline what steps he is taking to incentivise retraining to support growth in the renewable energy sector?
Kerry McCarthy
I would dispute that it is threatening the environment, but we will be looking at the wider issue the right hon. Gentleman raises through the solar industry taskforce.
Bill Esterson (Sefton Central) (Lab)
The overwhelming majority of those at the international energy summit last week said that the transition to low-carbon energy is crucial to energy security. Does my hon. Friend agree that those in this Chamber and beyond who do not support the transition to low-carbon energy are playing fast and loose with this country’s energy security?
Kerry McCarthy
I cannot pre-empt what is in the report. We will wait for it to come out, and then respond in due course. On local leadership, the hon. Lady and I share a local authority, and I would be very happy to discuss with it what more we can do to set an example—as Bristol has done so many times in the past—on how things can be done at a local level.
Joy Morrissey (Beaconsfield) (Con)
As we have seen in Portugal and Spain, renewable energy can sometimes be unreliable. Given the dominant role that China plays in our renewable energy infrastructure, will the Minister set out for the House the full details of the deal that the Secretary of State signed in secret with the Chinese Government?
Miatta Fahnbulleh
We are very clear that every part of the country must benefit from this transition, so whether it is through our warm home scheme or the work that we are doing locally through Great British Energy, we are making sure that there is a solution for every single part of the country. In my Department, I am doing a lot of work to make sure that we have a set of propositions for households in rural areas, so that they can upgrade their homes and have bills that are cheaper and homes that are warmer, which is the central plank of our warm home scheme.
Nick Timothy (West Suffolk) (Con)
Several times now, I have asked Ministers to rule out aligning the British carbon price with the European one and each time they have refused to do so. They have already abandoned their promise to cut energy bills by £300 a year, but alignment would increase wholesale costs and therefore increase bills for every family in the country. Can the Minister, at last, be straight with the public and tell us whether the Government plan to match the European carbon price—yes, or no?
Michael Shanks
I think the right hon. Gentleman gives the game away there. Although the Conservative party did not particularly care where the supply chains were, we in the Labour party are committed to delivering good, well-paid jobs in this country. If he was so concerned about investing in British supply chains, he might have bothered to vote for Great British Energy in the first place.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
When GB Energy was first proposed, we were told it would employ 1,000 people and create 650,000 jobs. Fast-forward to February this year and that number has been revised down to 200 to 300, with a vague commitment to 1,000 at some point in the next 20 years. As the general secretary of the GMB said yesterday,
“they are going to open a shiny new office…on a high street full of charity shops because they are closing”
the city of Aberdeen down. GB Energy is a white elephant. If the GMB can see it, why cannot the Minister? Surely he agrees that the way to deliver jobs, growth and energy security and to protect communities such as Aberdeen is to lift the ban on licences, replace the energy profits levy as soon as possible and declare the North sea open for business.
Ed Miliband
One hundred per cent—my hon. Friend is absolutely right about that. The Minister for Energy Consumers and I often discuss how we have to ensure that our warm homes plan takes account of the particular needs and challenges facing rural areas.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
Voters
“feel they’re being asked to make financial sacrifices…when they know that their impact on global emissions is minimal… Present policy solutions are inadequate and…therefore unworkable… The current approach isn’t working… Any strategy based on either ‘phasing out’ fossil fuels in the short term or limiting consumption is a strategy doomed to fail.”
Does the Secretary of State agree with his former boss Tony Blair?
Ed Miliband
The shadow Minister talks about the Tony Blair Institute report. I agree with a lot of what it says. It says that we should move ahead on carbon capture and storage, which the Government are doing. It says that we should move ahead on the role of artificial intelligence, which the Government are doing. It says that we should move ahead on nuclear, which the Government are doing. The shadow Minister said only three weeks ago, after his party dropped its net zero policy—this will surprise people, Mr Speaker—
Mr Speaker
Order. No, Secretary of State. This is topical questions; I do not need a full statement.
Andrew Bowie
To be honest, I was looking forward to hearing what I said a few weeks ago, Mr Speaker. It is okay for the Secretary of State to admit when he is wrong. As Tony Blair said yesterday, this strategy is “doomed to fail.” Why can the Secretary of State not see what the GMB and Tony Blair see, which is that clean power 2030 is doomed to fail and it is time for a change of approach?
The Minister for Industry (Sarah Jones)
The Office for Clean Energy Jobs is focused on developing a skilled workforce in core energy and net zero sectors that are critical to meeting our mission to make the UK a clean energy superpower. My right hon. Friend the Secretary of State and I are working with Skills England to assess skill needs and engaging with the Department for Education on apprenticeships and the wider growth and skills offer.
Claire Young (Thornbury and Yate) (LD)
Following the publication of the Severn estuary commission report on tidal power, will the Government produce a national policy statement to support tidal range energy, and will they publish a review of the available opportunities?
Ruth Cadbury (Brentford and Isleworth) (Lab)
Mr Speaker
Order. I have a lot of Members I need to get in. These are topical questions—they are meant to be short and punchy.
Michael Shanks
My hon. Friend is right to point out that public charging points are critical. That is why the regulator, Ofgem, allocated £22 billion over the next five years to maintain and upgrade the infrastructure. I have had a number of meetings with network operators about this question, and I work closely with my colleagues in the Department for Transport to ensure we are rolling out more points.
Mr Speaker
Order. Mr Moon, please. You will not get called again if you carry on like that. I am sure the Minister will know the answer.
Ed Miliband
I am delighted to remind the House that it was the Conservative party that left us with energy insecurity, and we are never going to leave this country vulnerable in the way that it did.
Oral Answers to Questions
Lindsay Hoyle Excerpts(2 months, 4 weeks ago)
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Michael Shanks
Once again, we hear from Conservative Members about all these grand plans that they wish they had done in the 14 years that they were in government. They could have moved forward on undergrounding if they were so keen on it, but of course they did not. The reality is that it is for individual companies, not us, to set forward the design of individual projects, and cost estimates for undergrounding are five or 10 times more expensive.
The bottom line on all of this is that the leader of the hon. Member’s party earlier today moved away from the commitments that she had made on net zero. Just a few years ago, she said that
“Russia’s invasion of Ukraine has made it clear that relying on authoritarian regimes”
can make it
“harder…to heat our homes”.
They recognised then the importance of this net zero transition; now they are running away from how we deliver on it.
Bill Esterson (Sefton Central) (Lab)
UK electricity bills are the highest in Europe compared to gas. Evidence given to the Select Committee suggests that the Government are absolutely right to reduce our reliance on fossil fuels, and it is a shame that some Opposition Members have abandoned an evidence-informed approach to policymaking. Can the Minister confirm whether the Government are considering rebalancing the infrastructure levies on our energy bills, as a way of reducing electricity bills in the immediate future and as a down payment towards 2030 and beyond?
Michael Shanks
My hon. Friend is absolutely right. It is important to recognise that where once there was consensus in this country on how we tackle the climate crisis and, crucially, how we deliver the economic and industrial advantage, that consensus seems to have been splintered by the Conservative party. It was only two years ago that the leader of that party made an important point, which I agree with strongly, when she said
“if we get our strategy wrong, we risk being left on the backfoot as other countries seize the advantage.”
The Conservative party now wishes us to be on the backfoot, but we are determined that we will drive forward because that is the best policy for consumers, economic growth and energy security.
Nick Timothy (West Suffolk) (Con)
The Government’s rush to decarbonise the grid means more hidden costs, more curtailment payments, more balancing payments, more subsidies and a higher carbon price. Will the Minister guarantee that our carbon price will remain lower than the European price for the remainder of this Parliament?
Miatta Fahnbulleh
I encourage the hon. Gentleman to check his facts. The price cap went up, which was disappointing for families, because of the spike in wholesale prices. That is because of our reliance on global fossil fuel markets. [Interruption.] I will say it incredibly slowly for him, so he can understand: it is because of our reliance on global fossil fuel markets. We must break that reliance. We have to wean ourselves off this rollercoaster of price spikes and price falls, which is harming consumers across the country. The sprint to clean power will achieve that. It is a shame that he cannot see that.
Joy Morrissey (Beaconsfield) (Con)
Consumers are concerned about the rising energy price cap. What will the Secretary of State do to strengthen existing energy schemes and initiate new schemes? Will it include delivering the £300 reduction in energy bills that Labour promised during the general election?
Ed Miliband
I join the hon. Lady in warmly congratulating the six students from her constituency whom she mentioned. I am sure that I speak for all Members of the House when I say that when we meet young people who are engaged in the potential of clean energy technology to transform our country and our world, it is an incredibly important reminder, both about its potential for jobs, and about our duties to future generations.
Edward Morello (West Dorset) (LD)
The Inter-governmental Panel on Climate Change has made it clear that by 2050, we need to be removing 10 billion tonnes of carbon from the atmosphere every year if we are to stand a chance of keeping below the 1.5° target. It is clear that carbon removal, and not just carbon capture and storage, will play a critical role in our avoiding a climate disaster. In the face of the Conservative party once again embracing climate denialism, what steps will the Government take to support the research, development and deployment of carbon removal technologies to ensure that British companies become leaders in this emerging sector?
Mr Snowden
Whether one agrees with the Government’s net zero targets or not, they will not be able to achieve them without nuclear energy playing a significant role, which is why I was delighted that the Prime Minister and the Secretary of State chose to launch their nuclear strategy in my constituency—I can only assume that my invite was lost in the post. A key part of the nuclear fuel strategy is the nuclear fuel industry in this country. From the aggressive actions of Russia and other countries that have pushed western commercial providers out and dominated elements of the nuclear fuel enrichment and manufacturing market, we see that it is ever more important for our national security that we develop whole-of-lifecycle nuclear fuel production. When will the Government announce the concrete steps that they will take, as part of the strategy, to improve the whole-of-lifecycle manufacturing of nuclear power?
Sarah Jones
The hon. Gentleman makes a good point. The Prime Minister, the Secretary of State and, indeed, the Minister for nuclear in the other place have visited the hon. Gentleman’s constituency and seen the good work that is happening there, and just shy of £20 million from Government grants has gone into that work to help develop nuclear fuels, which will be part of the future. The big nuclear developments at Sizewell and Hinkley, SMRs and advanced modular reactors all need to be in the mix, and he is absolutely right to make that point.
Peter Prinsley
Small modular reactors, as the Minister says, will play an important part in delivering clean, cheap and secure energy across this country. However, current rules require that any reactor must apply for regulatory justification, as if nuclear power was an entirely new practice instead of an existing one. That delays reactors getting online and lowering energy bills for people across the country, including in Bury St Edmunds and Stowmarket, by up to two years. Will the Secretary of State consider working with his Cabinet colleagues to simplify the system and recognise that nuclear energy technology is an existing practice, thereby accelerating the deployment of small modular reactors?
Sarah Jones
I am hoping that it will take less than the 14 years in which the previous Government failed to deliver anything. We will see the announcements on the first SMR in the spring. Our door is open to anyone who wants to suggest building new nuclear in this country.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
On 6 February, the Prime Minister announced that he would “take on the blockers” and build new small modular reactors, but do those blockers include his own Government? With essential work being delayed and paused at Sellafield, possible job losses at the Nuclear Decommissioning Authority and still no certainty for Sizewell C due to a general fear in the industry that the spending review will stymie the ambitions of Great British Nuclear, are the biggest blockers to new nuclear in the UK not in Labour’s Treasury?
Sarah Jones
I am not sure how many times the hon. Member promised he would get to the final investment decision on Sizewell under the last Government—I think he and his colleagues promised that at least five times in the House—and of course it did not happen. I gently repeat that the previous Government managed no new nuclear in 14 years, and he himself admitted that the Government had moved too slowly in getting nuclear projects off the ground. We are working at pace, and we will deliver the result of the competition in the spring. Sizewell C is also moving at pace, and we will have final answers in the spending review.
Mr Speaker
We are going to run on a bit because we are behind. We have hardly got through any questions.
Anneliese Midgley (Knowsley) (Lab)
Ed Miliband
My hon. Friend is a brilliant advocate for her constituency, and on this issue of manufacturing jobs. If we look at what this Government are doing—from GB Energy to the national wealth fund and the clean industry bonus—we see that this Government are determined to ensure that we manufacture in Britain. We care about where things are made, and we will make those good manufacturing jobs happen.
Sir Edward Leigh (Gainsborough) (Con)
Michael Shanks
Under even the most ambitious scenarios, less than 1% of agricultural land would be occupied by solar farms. On the right hon. Gentleman’s point about their being holistically planned, the strategic spatial energy planning that we have taken forward is important in having a coherent view of the entire energy system. That is work that we should have done many, many years ago. We are now moving at pace to do it, but individual planning applications are—
Luke Murphy (Basingstoke) (Lab)
Now that the Conservative party opposes large-scale solar, net zero and onshore wind, I am tempted to ask the Minister what he makes of that party’s new energy policy, which is to take us back to the past, rub two sticks together and hope for the best. Instead, will he update the House on the progress of Great British Energy in delivering our clean energy mission?
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)
My hon. Friend is absolutely right that we have moved forward on delivering our plan that people hosting important infrastructure in their constituencies should benefit from it. The Conservatives consulted on it, like so many policies that they talked and talked and talked about, but failed to deliver over 14 years—we are moving on with delivering it.
Edward Morello (West Dorset) (LD)
In the recent advice for its seventh carbon budget, the Climate Change Committee highlighted the urgency of ensuring cheaper electricity so that households can transition away from gas heating. When will the Government act to improve energy security and reduce costs for the households seeking to adopt low-carbon heating by reforming policy costs on energy bills?
Energy Infrastructure: Chinese Companies
Lindsay Hoyle Excerpts(4 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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Kerry McCarthy
The hon. Lady raises important concerns that we are very much alive to. As I said in my first answer, energy security is critical to the Department’s work and that is why we have the clean power mission to end our dependency on fossil fuels. International investment is a crucial part of that and helps to support growth and jobs across the country. As part of that, we have discussions with a wide range of international investors, but we absolutely recognise that this needs to be balanced against national security implications. We work on that constantly across Government with input from a number of Departments, and I am pleased to see my hon. Friend the Minister for Security from the Home Office here for the urgent question.
The Government have to consider both those aspects together: the need for investment and for greater capacity in our supply chains, and the security risk. While I cannot get into the details of the individual case, given the nature of the ongoing discussions, I reassure the hon. Lady that we are taking these factors into account. We do want to make sure that the most robust processes are followed as we look at the details of this particular issue.
Bill Esterson (Sefton Central) (Lab)
I was pleased to hear the Minister confirm the importance of our energy security, in contrast to what we saw under the previous Government. [Interruption.] Opposition Members can groan all they want, but that is the reality of what was inherited in July last year.
As we extend energy infrastructure in this country, can my hon. Friend the Minister confirm how this Government will ensure that we have control of the operation of that infrastructure? Does she agree it is vital that through the industrial strategy we see a renaissance in our manufacturing and greater resilience in our supply chain, all of which adds to the energy security of this country?
Kerry McCarthy
My hon. Friend is absolutely right that dealing with capacity issues in our supply chain is a crucial part of getting this investment into infrastructure. It is one of the reasons why, through the national wealth fund, we invested in lithium in Cornwall last week. Through the critical minerals strategy, we want to maximise the natural resources that we have, where we can. As I have said, we want to make absolutely sure that security concerns are addressed as well when we look at which investors invest in our new economy.
Kerry McCarthy
I thank my hon. Friend for her question. We have launched the clean industry bonus, which will be crucial in protecting our supply chain. We are investing through GB Energy and the national wealth fund—I have already mentioned lithium in Cornwall. Through the global clean power alliance, which we launched at the end of last year, we will bring together our counterparts from other countries, including at the International Energy Agency conference in April, to look at a supply chain mission to deal with these issues. These issues do not just affect us in this country. As other countries seek to decarbonise and increase the role of renewables, we will all need to co-operate and deal with the capacity issues across the supply chain.
Pippa Heylings (South Cambridgeshire) (LD)
I thank my hon. Friend the Member for Edinburgh West (Christine Jardine) for securing this important urgent question. Since the Russian invasion of Ukraine, as the Minister has rightly said, “energy security” has been a key term in this Chamber. There are two ways of looking at energy security. First, it is about generating our own renewable energy to avoid price volatility and exposure to authoritarian regimes, ensuring that we have the jobs here at home for design and construction. Secondly, it is about the national security issues around our energy infrastructure, which is also a form of energy security. A former MI6 chief has warned of the vulnerabilities, either deliberate or inadvertent, posed by foreign-controlled software embedded in our energy infrastructure. Given those serious concerns, can the Minister guarantee that any further investment in Scotland will increase both our energy and our national security?
Rosebank and Jackdaw Oilfields
Lindsay Hoyle Excerpts(4 months ago)
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Several hon. Members rose—
Mr Speaker
Order. Just for clarification, you do not have jurisdiction on the planning issue, and it is no longer in the court, so I am a little bit confused by your assertion that you will be involved going forward.
Michael Shanks
I am happy to provide clarification based on the advice that I have, which is that this is a matter for the applicants in the court case, who are entitled to appeal the judgment, should they wish to do so. If they wish to make a further application in this matter, my Department will be responsible for making that judgment, and I seek not to prejudice an application by giving an opinion one way or the other on these matters. I hope that that sits well with you, Mr Speaker.
Mr Speaker
Well, kind of, but obviously Members will want to ask you about this issue today, so I do not want to try to close it down too early.
Andrew Bowie
In August, this Government withdrew lawyers from the case defending the legal challenge to the issuing of licences for Rosebank and Jackdaw in the North sea. Given this Government’s decision to revoke any defence, the Court’s quashing of approval was all but inevitable. It is deeply disappointing and yet unsurprising that this Government, driven by their zealotry, are happy to put billions of pounds of investment, and thousands of jobs, at risk just because something does not align with Just Stop Oil’s vision of the future. It demonstrates that this Government are not willing to stand up for businesses or workers.
The Labour party seems to misunderstand this simple point: if we shut down our oil and gas industry, we will not use any less oil and gas—even the Climate Change Committee knows that. The Department seems to ignore the fact that we will simply rely on more imports instead. If those imports are liquified natural gas, they will come with four times the production emissions, and if we import from Norway, we will be shipping in gas from underneath the very same North sea. Sacrificing our domestic industry, only to rely on foreign imports and compound global carbon emissions, is utter madness for our economy and for the climate. It makes a mockery of our prospects for growth, and it will cost the Treasury £12 billion in lost revenue. To put that figure into perspective, it is equivalent to eight and a half years’ worth of winter fuel payments.
Last week the developer of Rosebank, Equinor, announced that it is slashing its offshore wind investment. Does the Minister appreciate that the self-harm inflicted on the North sea is damaging investment in other offshore renewables industries, too? That could be wrecking our path forward.
The Government are utterly confused. The Chancellor and the Secretary of State are completely out of touch with the public, obviously, but apparently also with each other. It is no surprise that the Secretary of State is prepared to sacrifice growth and investment in energy security for his ideological obsession, so may I ask the Minister for clarity? This is a very important point. Will the Department treat the applications, if they are resubmitted, as existing applications or new applications, given that it has a ban on all new licences moving forward? Will the Government back growth and back British workers when the decision reaches his Department, and who does he think will win this argument outright: the Secretary of State or the Chancellor of the Exchequer?
Michael Shanks
I will come to the hon. Gentleman’s question in a moment, but what he failed to mention was how we got to this position. The Court of Session clearly outlined in its judgment that the previous Secretary of State had made a decision that was unlawful, so once again this Labour Government are having to clear up a mess created by the previous Conservative Government. Unlike them, we will follow due process. As I outlined, we consulted on what the future of the consenting process would look like in light of the Supreme Court judgment. That is something he would have had to do if he were still in this job, because we had to respond to the Supreme Court judgment. If he is telling us now that, in government, he would have ignored the judgment of the Supreme Court, that is an interesting perspective to take.
On the hon. Gentleman’s specific point, we were clear during the election that our position is: no new licences to explore new fields. The two projects are in existing licensed fields. The question for the courts to decide was the consent for those individual new projects, and that is the process that we will now take forward if those companies should wish to resubmit their applications. The broader question about the future of the North sea will be about not one or two individual projects but the reality that it is a declining basin and that the long-term future does not rest in oil and gas, as important as they will continue to be for many years to come.
What we have sought to do as a Government is to kick-start what the economic future will look like beyond oil and gas, recognising that the North sea is a declining basin, recognising the importance of new technologies such as carbon capture and hydrogen and investing in measures such as the clean industry bonus that will deliver jobs in Aberdeen. There is only one party that is serious about working out what the transition looks like and what comes next to safeguard jobs in the hon. Gentleman’s constituency and across the north-east, and it is not the Conservative party.
Bill Esterson (Sefton Central) (Lab)
I thank my hon. Friend for confirming the Government’s commitment to supporting production in existing North sea oil and gas fields and for confirming the desire to partner closely with industry and workers on the transition away from fossil fuels. Does he agree that the workers and communities that rely on the North sea would be in a much stronger position if we had not witnessed over the last decade a chaotic mismanagement of the decline in the basin that he has just referred to, and the failure to plan for the loss of 70,000 jobs in that decade alone?
Michael Shanks
The Chair of the Select Committee makes an important point, which is that the failure to acknowledge that the transition is already under way is to bury your head in the sand and pretend that everything will carry on as it was. The reality is that in the past decade a third of the oil and gas workforce—70,000 workers, as my hon. Friend says—have already lost their jobs and the transition is under way. We are determined to ensure not only that the transition leads to a future in the North sea energy sector that, yes, involves oil and gas for many years to come, but that we build the industries of the future now so that there is no gap. The alternative is to do what the previous Government did, which was to pretend that the transition was not under way and then somehow deal with the shock that would come when North sea oil and gas inevitably declined to the point where workers’ jobs were not protected. We are determined to build what comes next and to protect good, well-paid jobs in the North sea for many decades to come.
Pippa Heylings (South Cambridgeshire) (LD)
The decisions that we make in the next decade on energy will make or break the planet, and this is also key for the Jackdaw and Rosebank oilfields. Should the proposed developers apply for a new development consent, the ruling gives the Government the opportunity to take a rational, science-based approach and make a decision on the future of the field based on what is best for the planet, the people of Britain and the UK’s international leadership.
Contrary to what has been said by the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), approving these oilfields this will not protect UK workers. Despite promises of jobs, not a single UK design or construction role has been created. Instead, that work has been outsourced to Dubai. Business leaders agree that a fair transition away from oil and gas will boost our economy, create jobs and attract investment. The Liberal Democrats oppose the oilfields at Jackdaw and Rosebank. Instead of pouring money into an energy source that is not consistent with our climate commitments, we should be calling on the Government to invest in renewables and an ambitious green energy strategy that lowers costs, creates jobs and secures our future. What assessment will the Minister make of our climate commitments?
Ms Polly Billington (East Thanet) (Lab)
I urge the Minister and Labour colleagues to take no lessons from the Conservative party on a fair and just transition away from fossil fuels, because our coalfield communities in this country were destroyed by Tory Governments over decades. In contrast, we need to look at the growth we are now providing by lifting the onshore wind ban, investing in carbon capture and storage, and establishing GB Energy.
Michael Shanks
I will find the question, Mr Speaker. My hon. Friend is right that historical transitions in key industries have left workers high and dry, instead of recognising that a transition is under way and supporting that workforce into what comes next. The coal industry devastated large parts of my constituency in Lanarkshire, and areas across England and Wales, which continues to have consequences for generations. We are determined that that will not happen with the North sea, but it requires us to plan the transition and to put it in place now, not to bury our heads in the sand and pretend everything is fine.
Oral Answers to Questions
Lindsay Hoyle Excerpts(4 months, 1 week ago)
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Miatta Fahnbulleh
Fuel poverty is devolved in Scotland. The Scottish Government have had the opportunity to make a dent in this problem for almost 20 years and they have not. Even now, as we are ramping up upgrades to help people with fuel poverty, the Scottish Government are raiding more than £200 million from retrofitting funds that could help families today. I will take no lectures from the hon. Gentleman on how we tackle this problem.
Gas Storage Levels
Lindsay Hoyle Excerpts(5 months ago)
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Michael Shanks
The shadow Minister’s point would be well made were it not for the fact that it is completely untrue. If we look at the facts, the capacity market notice that he mentions was cancelled—
Mr Speaker
Order. The Minister has made a direct hint that what the Member said was untrue. Is he sure of that, or does he want to rephrase it?
Michael Shanks
I apologise, Mr Speaker; I think the shadow Minister was confused in the facts that he gave to Parliament today. I am happy to set that right.
Let us look at the facts. The National Energy System Operator—the people who run the system—stated clearly:
“At no point were electricity supplies less than anticipated demand and our engineers were able to rebalance the system without the need to consider any emergency measures.”
If we listen to the experts—to National Gas and to NESO—they both confirmed over the weekend that there was resilience in the system. I reiterate the point that the system operated exactly as it was intended to do.
If the shadow Minister has complaints about how the system operates in the country and the gas storage situation, he may want to look at some of his colleagues who were in power over the past 14 years. He knows the truth about his party’s record. He is a very smart guy, and he knows they left us exposed. He knows they did not do enough to build the system that we need and he knows what caused the worst cost of living crisis in living memory. While his party is busy crowdsourcing policy advice on Twitter from net zero sceptics, it would be far better if they looked at their own record in government and, instead of criticising us, recognised that we are getting on with building a resilient energy system for the future.
Bill Esterson (Sefton Central) (Lab)
The shadow Minister missed from his story the role of Liz Truss. When she was the Chief Secretary to the Treasury in 2017, she made the decision to close our gas storage facility. Does the Minister agree that if we want energy security and lower prices, that all depends on reducing our reliance on the volatile nature of the international fossil fuel market? Does that not mean that his clean power action plan for 2030 is exactly the right policy to address the events of the past few days?
Michael Shanks
My hon. Friend is absolutely right. The decisions that the previous Government took on storage are for them to answer, and anyone who looks at their record will rightly raise questions about that. On the broader point, he is right. The only plan for how we can get off the volatile fossil fuel markets, to which the previous Government left us far too exposed, is the clean power action plan that we have announced. If the Tories oppose that, they need to come up with their alternative to deliver the resilience in the system that we are fighting for every single day.
Pippa Heylings (South Cambridgeshire) (LD)
The hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) is right to raise this important question about energy security. Gas supplies are running low because of the unexpected cold snap over the past two weeks. While those who can afford it have continued to use gas, the energy crisis has left energy prices skyrocketing and energy bills spiralling, with many having to make the decision between putting food on the table or staying warm. That is the case for too many families in my constituency of South Cambridgeshire.
The shadow Minister accused the Government of playing fast and loose, but it is due to the decisions of the last Conservative Government that we find ourselves in this mess, with their reckless dither and delay over insulation and decarbonising our homes and the irresponsible decision around our gas storage capacity. This is about overreliance on gas. For too long—
Pippa Heylings
I am. What steps are the Government taking to reduce overreliance on gas by bringing in an emergency home upgrade scheme that will enable people to insulate and to keep their homes warm with heat pumps this winter, rather than waiting until spring?
Michael Shanks
The hon. Lady is right; this is an incredibly important issue that gets to the heart of the fact we inherited from the previous Government not just an economic mess but a series of policy decisions not made, and an energy system that needed us to take serious decisions quickly to build resilience for the future.
On the broader point about consumers, she will know that my hon. Friend the Minister for consumers is doing a lot of work on exactly what the warmer homes scheme will look like, to ensure that people have as warm a home as possible. She is right that at times such as this, the people in the poorest households struggle the most. We are doing what we can to ensure that homes are insulated and, in the long term, to bring down bills. The only way to do that is to deliver clean power by 2030—faster than the previous Government would ever have managed.
Oral Answers to Questions
Lindsay Hoyle Excerpts(5 months, 4 weeks ago)
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Calum Miller (Bicester and Woodstock) (LD)
I was pleased to see the Secretary of State saying last week that those who host clean energy infrastructure should benefit from it. When landowners and developers in my constituency are cashing in on building new solar, my constituents in Bicester and Woodstock think that it is only fair that benefits are shared. Will the Secretary of State tell me whether he will follow the model of other Governments in setting a mandatory—
David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)
I should declare an interest in that many of my relatives across south Wales are former miners. In the autumn Budget, the Government quite rightly made the decision to end the pension injustice for miners who were part of the mineworkers’ pension scheme, but they did not do the same for the 40,000 miners who were part of the British coal staff superannuation scheme, including 151 former miners in my own constituency. Will the Government guarantee that these men and women get the pension they deserve and explain why they will have to wait longer for justice than many of their former colleagues?
Mr Speaker
I am not sure whether there are many coalmines in Strangford, but come on then—I call Jim Shannon.
Jim Shannon
May I welcome what the Government and the Minister are doing on this matter? This good scheme takes care of an injustice from some 30 years ago. There are those in Northern Ireland who worked in the mines, and their families are still concerned about this issue. Can we have a timescale for the completion of the work on the British coal staff superannuation scheme, which some of them would have qualified for?
Michael Shanks
As my hon. Friend knows, we have met Unite on a number of occasions over the past few months since Petroineos made the disappointing decision to follow through on its closure plans for the Grangemouth refinery. It is important that we look at every possible option, and we have done.
It is also important that the Government are clear that we want to see a long-term sustainable future for the refinery site. That is why we invested in Project Willow, which at the moment is coming up with credible investable propositions for the site. We want to protect the workers and do whatever we can to ensure a just transition at Grangemouth and for industry right across the country, but those options need to be long-term and sustainable so that we do not drive workers back into this process again a few years down the line. We are committed to ensuring that we invest in long-term sustainable propositions for the site, and of course we will meet anyone and discuss any propositions to help make that happen.
Pippa Heylings (South Cambridgeshire) (LD)
It is so good to hear the Minister affirm the need to bring the public onside, as well as private sector investment, to achieve the transformation towards green power and net zero. The Liberal Democrats support Great British Energy if community energy is at the centre of the Great British Energy Bill. Our colleagues in the Lords are debating amendments relating to direct participation in and benefit from community energy. Will the Minister agree to those proposals if they come to this House?
Michael Shanks
My hon. Friend asks an extremely important question. All communities should benefit from the transformation that we want to make to the energy system. Part of the answer is improving how we use smart systems right across the energy system, so that people have much more consumer-led flexibility in their options—we are moving forward with that. In the clean power action plan that we published last week, we committed to doing much more to give people the power to take advantage of some of the opportunities she mentions.
Joy Morrissey (Beaconsfield) (Con)
Community engagement and funding are important. With large-scale solar farms planned for agricultural land, does the Secretary of State think that there are any circumstances in which local communities might know better than him?
Miatta Fahnbulleh
My hon. Friend is completely right. Too many people cannot afford their energy bills—[Interruption.] That is your legacy. That is why we are running to deliver clean energy by 2030 and rolling out our warm homes plan, so that we can upgrade millions of homes to make them warmer and cheaper to run.
Harriet Cross (Gordon and Buchan) (Con)
The Secretary of State, the Minister for Energy and the Minister for Consumers have all said in this House that the National Energy System Operator’s report shows that the Government’s 2030 target will lower energy bills. However, the report itself explicitly says that it does not do so, and the chief executive officer of the NESO told the Energy Security and Net Zero Select Committee last week that it “did not set out” to determine “what bills are for consumers.” Will the Minister explain those inconsistencies and take the opportunity to correct the record?
Miatta Fahnbulleh
We know that the quality of too many of our homes in the private rented sector is not high enough. That is why we are moving forward to introduce minimum energy efficiency standards, so that we can raise those standards, lifting 1 million people out of fuel poverty. We are running in order to get that done.
Pippa Heylings (South Cambridgeshire) (LD)
After the Conservative Government’s failure to tackle insulation, fuel poverty is on the rise. In my constituency, almost 20% of households with young family members—those between five and 10 years—are fuel poor, living in cold, damp houses and choosing between eating and heating. While we await the warm homes plan that will deal with upgrading current housing stock, will the Minister meet the Minister for Housing and Planning to ensure that all future homes will come forward with an energy rating that is a minimum of C or higher, but not beyond 2025 for the future homes standard?
Ed Miliband
I have to say to the hon. Lady that I do not see it that way. The reality is that the country is totally vulnerable to the rollercoaster of the fossil fuel markets. We do not need to look into a crystal ball; we just need to look at the record: we saw the worst cost of living crisis in generations. So long as we are exposed in this way, people in Wales and across the country are vulnerable. That is why clean power is so important, and the Opposition should get on and support it.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
In the clean power 2030 document published last week, the Government state that they are
“progressing the post-2030 generation interventions, with final decisions on Sizewell C and the Great British Nuclear-led Small Modular Reactor programme”,
but no date is specified for the final investment decision on Sizewell, no date is specified for completion of the down-selection SMR process, there is no indication of a route to market for advanced modular or other technologies, and there is no mention of Wylfa at all. So is it any wonder that the nuclear industry holds a suspicion that this Government are not serious about nuclear, that the damascene conversion to nuclear power professed by the Secretary of State is a false one and that, for the Government, it is renewables at any cost and the exclusion of everything else?
Sarah Jones
My hon. Friend is absolutely right. Green hydrogen is vital, not just for the decarbonisation of heavy industry but for aviation and maritime. It has the potential to create thousands of very highly skilled jobs in every region of the country. We have already confirmed support for 11 green hydrogen projects from Cumbria to Cornwall, and from Scotland to Kent. I look forward to saying more on our hydrogen journey soon.
Claire Coutinho (East Surrey) (Con)
The Labour party promised 650,000 jobs through Great British Energy, but the Secretary of State has endorsed a carbon tax of £147 in 2030—double the Department’s current forecast. It would be the highest carbon tax in the world, and devastating for British industry. Can the hon. Lady confirm how many British jobs would be lost as a result?
The Minister of State, Department for Energy Security and Net Zero (Sarah Jones)
I would be very happy to meet my hon. Friend and members of the scheme. I met the trustees of the scheme yesterday, and I have committed to talking to the Treasury about their proposals.
Claire Coutinho (East Surrey) (Con)
Labour’s policy on the North sea will cost the country £12 billion in tax receipts, which would be enough to cover the winter fuel payment for many, many years. Pensioners will be in the cold this winter, and this is a policy that no other major economy is pursuing. How can the Government possibly justify it?
Bill Esterson (Sefton Central) (Lab)
Last year, the UK imported 43% of our energy. Does the Secretary of State agree that, as well as protecting bill payers from the volatility of international fossil fuel markets and giving us energy independence, we have the potential for economic benefits from exporting electricity and hydrogen through the clean power plan?
COP29
Lindsay Hoyle Excerpts(6 months, 2 weeks ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
With permission, Mr Speaker, I shall make a statement about COP29.
May I start by extending my sympathy to all those affected by Storm Bert? It has been a devastating event for people in different parts of our country, particularly in Wales, and my heart goes out to the families of those who have lost their lives and to all those whose lives have been disrupted.
With permission, Mr Speaker, I also want to take this opportunity to pay tribute to Lord Prescott. He was a fighter for social justice and a champion of the environment. He rightfully has global recognition for his role in negotiating the Kyoto protocol, and he showed how politics can change lives for the better. I send my deepest condolences to Pauline and his family.
The UK attended COP29 to fight for our national interest—speeding up the clean energy transition in the interests of jobs, energy security and economic growth, and tackling the climate crisis for today’s and future generations. In Baku, our message was clear: Britain is back in the business of global climate leadership.
We know that the impacts of the climate crisis know no borders. We have already seen the extreme impacts we can face here in Britain, and we know that if we do not act those impacts will get much worse. That is why, as the Prime Minister said at COP29, there is no national security without climate security. It is precisely because Britain represents only around 1% of annual global emissions that we have to work with others to ensure the remaining 99% of emissions are addressed to protect the British people.
The focus of this COP was on finance for developing countries, because the reality is that unless we persuade developing countries to go down the path of clean energy development, we cannot hope to reduce emissions and prevent climate disaster. Those countries face the triple challenges of needing to invest in the clean energy transition, coping with the costs of climate vulnerability and needing to develop to take their population out of poverty. At the same time, developed countries, including Britain, face extreme pressure on our public finances.
The COP talks are always complex, but those circumstances made this set of talks particularly so. I put on record my thanks to our outstanding team of civil servants who supported me at COP. I was repeatedly struck by the enormous respect they have from so many countries around the world. The UK’s negotiating team was led by Alison Campbell, who is leaving to work with the UN Secretary-General. I want to put on record my special thanks to her in helping us to reach an agreement.
The agreement reached is to provide and mobilise at least $300 billion of climate finance by 2035 for developing countries. Much of that will come from the multilateral development banks, such as the World Bank, which have stepped up to set a target to substantially increase the climate finance they provide. Importantly, for the first time, the agreement reflects a new global landscape, where traditional donors will be joined by big emitters such as China to help finance the transition. That is fair and right.
The UK will decide what our own contribution will be in the context of our spending review and fiscal situation, and that will come from within the UK aid budget. I can inform the House that, if delivered with the same impact as UK climate finance, the $300 billion deal could lead to emissions reductions equivalent to more than 15 times the UK’s annual emissions, as well as helping to protect up to 1 billion people in developing countries from the effects of floods, heatwaves and droughts. Crucially, the agreement will accelerate the global clean energy transition, which offers the prospect of export and economic opportunities here in Britain. Let nobody be in any doubt: this agreement is absolutely in our national interest.
In other respects, the talks were more disappointing. At COP28, the world made a historic agreement to transition away from fossil fuels. That agreement stands, but we did not reach agreement this year on how to take the commitment forward, not because the text put forward was too ambitious, but because it was not ambitious enough. In particular, many developing countries, including the small island states, felt that the text was inadequate given the scale of the climate emergency. Developed countries, including Britain, agreed with that view. That offers an important lesson. Under this Government, Britain is part of a global coalition for ambitious climate action that spans global north and global south—it is at the global centre ground of climate politics. We will seek to build on the agreement at COP30 next year, in Brazil.
At COP29, the UK also made important announcements on countering deforestation, scaling up private finance and nuclear co-operation as part of the clean energy transition. The Prime Minister also announced our nationally determined contribution to reducing emissions by at least 81% by 2035, compared with 1990 levels, following the advice that we received from the independent Climate Change Committee. Let me be clear: that target is right for Britain—for energy security, good jobs and growth.
On the same day as the announcement, ScottishPower and Siemens announced a £1 billion deal to invest in wind manufacturing in Hull. That will boost British manufacturing and support 1,300 good jobs in our industrial heartlands. It shows what the clean energy mission can do for Britain, and builds on the steps that the Government have already taken, which include: lifting the onshore wind ban; giving consent for nearly 2 GW of solar; setting up Great British Energy; delivering a record-breaking renewables auction; kick-starting our carbon capture and hydrogen industries; and driving towards cheaper, cleaner heating through our warm homes plan.
It is in our national interest to use the power of our example to work with others to speed up the clean energy transition globally, just as the Climate Change Act 2008, which was supported by Members from across this House, inspired others to follow our lead. That is why at the G20 in Brazil, the Prime Minister launched the global clean power alliance, along with a number of other countries, to drive forward the transition.
That is just the start of the work that we need to do in the run-up to COP30 to make next year’s talks a success, because the truth is that despite progress over the last two weeks, we are halfway through the decisive decade for limiting warming to 1.5°C, and the world is way off-track. Other countries, such as Brazil, have also announced ambitious NDCs, and in the months ahead, we will continue to push others to go further, faster, on raising ambition, scaling up finance, protecting nature and forests, and driving forward the clean energy transition.
The COP process is tortuous and progress is too slow. However, this Government believe that while multilateralism—in other words, co-operating with others—is hard, it is truly the only way to fight for Britain. Those who say that we should disengage from the negotiations and step off the stage would let down our country, deprive us of a voice and leave future generations paying the price. Despite all the difficulties, at COP29, one truth was overwhelmingly clear: the global transition away from fossil fuels and towards clean energy is happening, and it is unstoppable because clean energy is the route to energy security, unstoppable because it is the economic opportunity of our time, and unstoppable because people in Britain and around the world can see that the climate crisis is here, and that unless we act, things will only get worse.
In less than five months, this Government have shown that we will seize the opportunities of speeding up at home, and have demonstrated climate leadership abroad, in order to deliver energy independence, lower bills, good jobs, economic growth and the security of a stable climate. We are doing all we can to keep the British people safe, now and for generations to come. I commend the statement to the House.
Claire Coutinho (East Surrey) (Con)
I thank the Secretary of State for advance sight of his statement. I echo his comments on Storm Bert and thank the emergency services for all that they have done to help those in need. I start by passing on my personal condolences to the right hon. Gentleman on the passing of John Prescott. I know that he wanted him to lead the Paris accords in 2015, having admired his work in Kyoto, and I believe that, at the time, he described John as good at “bashing heads together”. I hope that, as the Secretary of State’s opposite number, I can achieve some of that head-bashing that he so clearly valued in John.
In that vein, the Secretary of State has talked a lot about regaining global leadership, but I fear that he is stuck in 2009. He may not want to acknowledge this, but for the past 14 years, we have been a global leader. We are the only major economy to have halved carbon emissions since 1990. In that same time, America’s emissions have stayed the same and China’s have tripled. However, we have seen that countries are not persuaded just by Britain going further, faster; they are persuaded by prosperity, and by living standards. We account for 1% of global emissions, and I fear that if he continues down the path that he has set out, our country will face hardship, and there will be no point in being world-leading because nobody will want to follow our lead. He would make us a warning, not an example to others.
Let us start with what the Secretary of State announced at the conference of the parties. He has set out a new target of cutting our greenhouse gas emissions by 81% by 2035. However, what we did not hear in his statement is how much this will cost the British people. The independent Climate Change Committee says that that target will require people to eat less meat and dairy, take fewer flights, and swap their boilers for heat pumps and their petrol cars for electric vehicles at a pace that will require taxes and mandation. Even the Chair of the Select Committee has acknowledged that people will be forced to change their lives. But the Secretary of State says not to worry, as he will deliver all the savings through energy policy, and those plans will lead to higher growth, a cut in bills, job creation and stronger national security, but when it comes to his plans, none of those things is true. The independent Institute for Fiscal Studies has already said that his climate plans will not lead to growth. The National Energy System Operator’s report shows that his rush for clean power in 2030 will add eye-watering costs to our energy system, and that despite those very expensive costs, it would still leave gas pricing the system around 50% of the time—or it would leave the equivalent of millions of homes in the dark waiting for the wind to blow. I do not think that that is anybody’s idea of energy or national security.
The Secretary of State does not have to take my word for it. The head of offshore wind development at RWE, one of the country’s largest wind developers, has warned that the Secretary of State’s rush to meet his 2030 target will lead to price spikes, with consumers losing out. The chief executive of Octopus has warned about the £6 billion in costs that consumers will have to pay, because the right hon. Gentleman wants to build renewables without reforming the grid. The former head of MI6 has warned the Secretary of State—[Interruption.] This is worth listening to. He said that from the point of view of national security, the Secretary of State is pursuing
“a completely crazy energy policy”.
The Secretary of State’s plans to make our energy expensive and unreliable will see jobs fleeing to more polluting countries, because it is cheap energy and innovation that matter in the race for jobs. We need only ask China, which dominates clean tech supply chains and is the world’s largest polluter. That is where billions of pounds of our taxpayers’ money will be going to pay for his rushed transition—from our country, with all the investment that it has made in clean power, to a country still 60% powered by coal. We are talking about low growth, high bills, jobs lost and even blackouts, for more carbon in the atmosphere. That is the opposite of what he has been promising.
In Baku, while the Secretary of State was signing us up to these targets without talking about what they will do to the lives of British people, he was also signing away billions of pounds of taxpayers’ money. He signed us up to a $300 billion annual climate finance target. I am afraid that it is not credible to say that taxpayers will not have to pay more. They will have to pay more, and they deserve to know how much more. Will he tell us today what that new target will mean for British taxpayers? Considering the increase in the target, the public will rightly question why countries such as Russia and particularly China, now the world’s largest polluter and second largest by historical standards, will not be obliged to pay a penny—I think he tried to insist that they would, but it is very clear that they will not be obliged at all to pay in—while Britain, which has invested billions in cutting its emissions and accounts for only 1% of global emissions, will have to pay more. Will the Secretary of State also set out an assessment of the impact of increased reliance on coal-powered Chinese imports for his 2030 zero carbon plans, and of what that means for global emissions?
The Secretary of State is not being honest with the British public. He promised them £300 off their energy bills by 2030, but just weeks ago, he whipped his Labour MPs to vote down that pledge. He took away the winter fuel payment, despite promising that the elderly would be looked after under his energy policy, and he now says that he can achieve stronger climate targets in a way that will require zero cost from the public. This is not a recipe for climate leadership, but a recipe for higher bills and lost jobs, and it will be a disaster for the British public.
Mr Speaker
I just remind those on the Front Benches that the reply to a statement should last no longer than five minutes.
Ed Miliband
Oh dear, oh dear! Let me deal with the shadow Secretary of State’s questions, such as they are. Let us start with our nationally determined contribution, announced at the conference of the parties. It is so interesting that she now opposes it, because the 2035 NDC announced by the Prime Minister is exactly the target that her Government legislated for in 2021, in the sixth carbon budget, which covers 2035. She is now opposing the very target that her Government put into law, and that she claimed, just a few months ago, that she was working towards as Secretary of State.
There is a pattern here, Mr Speaker. Every week, the right hon. Lady takes to Twitter to express her outrage about a policy, asking, “Who on earth could support this?” Every week, someone pops up in her replies and says politely, “You did, just a few months back.” It is not the only time that she has done this. Last week, she came out against the clean heat market mechanism—another policy that she proposed. [Interruption.] She says not, but I have a statement from her from only eight months ago, in which she said that the clean heat market mechanism would be introduced in April 2025, which is exactly what this Government are doing. The truth is that she will leap on any passing bandwagon, even if it means trashing her record.
Let me give the shadow Secretary of State a little lesson about opposition. The job of the Opposition is to oppose the Government, not to oppose themselves. This is where she has ended up: out the window goes any commitment to climate action. She is ignoring the fact that it is a route to energy security, good jobs and lower bills, ignoring the fact that it is backed by business, and ignoring the fact that this country has an honourable tradition of bipartisan consensus on the issue. I am happy to say that the previous Government proposed some ambitious targets, and that COP26 was an important milestone for the world. This is not just irresponsible, and not just crass opportunism; it has helped take the Conservative party down to its worst election defeat in 200 years, so this approach will not work for her.
Let me tell the shadow Secretary of State what the clean energy superpower mission means for Britain. It means cleaning up our power system, so that we do not leave the country exposed to fossil fuels, as the previous Government did. It means new jobs in carbon capture and storage as we decarbonise industry and re-industrialise. It means energy efficiency in homes, meaning lower bills, warmer homes and lower emissions. As for the NESO report that she talked about, I know that it is deeply disappointing to her, but we have an independent report that says that 2030 is achievable—she said that it was not. It also says that it will give us energy security—she says that it will not. It also says that it can lead to lower electricity, which she constantly denies.
The truth about the right hon. Lady is that she has nothing to say. The Conservative party is basically saying, “Stop the world—we want to get off.” That will do nothing for the British people. She has a lot to learn. I am afraid to say that she needs to start reflecting on where her Government went wrong. They went wrong in many different ways, and she does not seem to be learning any lessons.
Bill Esterson (Sefton Central) (Lab)
May I gently say to the shadow Secretary of State that she really should not believe dodgy headlines in The Daily Telegraph? In fact, I am not sure whether headlines in The Daily Telegraph are ever not dodgy, based on what she was quoting. More importantly, though, let me congratulate the Prime Minister on his leadership at the conference of the parties, and the Secretary of State on leading the negotiations, and not least on delivering the £300 billion of climate finance for developing countries. He set out this country’s achievement since the general election; to what extent will the combination of what this country showed at COP and what we have delivered at home since 4 July encourage countries around the world to play their part in addressing the climate crisis?
Ed Miliband
My hon. Friend asks an important question. Two truths came out of COP: first, the transition is unstoppable and, secondly, it is not going fast enough. There is such a difference from a decade ago—my hon. Friend, who was there with me, is nodding in agreement—because every country knows that the climate crisis is happening and is affecting them. The testimony I heard was like the testimony that we could provide about what people are seeing. Every country knows they have to act, and while they all face constraints in acting, they also know—this is the big change from a decade ago—that it is massively in their economic interests. There is a race on for the good jobs of the future, and the clean energy transition can provide them.
Dr Roz Savage (South Cotswolds) (LD)
COP29 concluded with a deal that, while welcome, leaves much to be desired. I must stress that we need bolder, more decisive action if we are to face the greatest challenge of our time: the climate crisis. I know that the right hon. Gentleman’s heart is in the right place and has been for many years. We first met in the run-up to COP15 in 2009, and I express my thanks to him for his staunch leadership in the intervening years. I express Lib Dem support for a brave programme of action going forward and our willingness to work with his Department to help the UK step up and seize this opportunity for climate leadership.
While we welcome the Prime Minister’s commitment to ambitious emissions targets for 2035, commitments alone are not enough. Immediate action is needed to insulate homes, reduce energy costs and ensure that no one has to choose between heating and eating. The delay to Labour’s warm homes plan until spring 2025 is unacceptable when millions of people, including 1.2 million pensioners, face a cold and unaffordable winter due to the cut in the winter fuel allowance.
In my South Cotswolds constituency and all across the UK, we have seen at first hand the devastating effects of climate change, and never more so than over the last few days, with floods and storms becoming more frequent and severe. Towns and villages in my constituency, such as Purton, Great Somerford and Cirencester, have been severely affected by flooding, and we need urgent action now to mitigate climate change and help our communities adapt to the likely impacts now and in the future.
I associate myself with the thanks already expressed to the brave men and women of our emergency services in the aftermath of Storm Bert. Climate leadership must prioritise solutions that protect communities and restore nature. Natural flood defences, such as wetlands—
Dr Savage
May I finish with a question? Will the Secretary of State commit to including natural flood defences as a central part of the £5.2 billion flood defence spending to ensure that communities like those in the South Cotswolds are better protected from the worsening impacts of climate change while addressing biodiversity loss?
Ed Miliband
I thank the hon. Lady for her question and support for ambitious action, which is important.
Let me pick out a couple of the points she made. First, the point about the devastating effects of the climate crisis already being apparent is important. Part of the danger is that those effects will end up being the new normal, and we will just think of them as part of life. They are part of life in a sense and, as she said, we need the right flood defences in place and so on, but we also need to realise that those effects will get significantly worse if we do not act. Future generations will, frankly, hold us in infamy, saying, “You knew about the scale of the devastation and had seen a preview of what was to come, and you decided you couldn’t act,” so she is absolutely right.
Secondly, let me gently correct the hon. Lady on the warm homes plan. We are getting on with the warm homes plan; indeed, announcements were made last week about actions that will help over 300,000 families benefit from homes upgrades next year. There were announcements about heat pumps and a whole range of actions to help families do better and lower their energy bills.
I will make one more point, which is part of what the hon. Lady was saying: this is a climate crisis and a nature crisis. It is a climate and biodiversity crisis. It was a bit disappointing that the nature part of the agenda at COP did not get the attention it deserved, and that will be important for COP30 in Brazil.
Mr Toby Perkins (Chesterfield) (Lab)
No one can doubt the leadership that the Prime Minister and the Secretary of State showed in Baku, and they deserve great credit for that. The Secretary of State is right that there is a danger of overselling the achievements of the COP. Developing nations have been critical about the financial agreement that was reached, and the commitments made in Paris on fossil fuels were not followed through, as he said. What are the main barriers right now to getting the action and pace of action that are needed? Does he have confidence that in Rio we will see the real breakthrough that the world is waiting for?
Sammy Wilson (East Antrim) (DUP)
Let me get this straight. The Secretary of State is welcoming a conference to deal with CO2 where the host country tried to use it to sell oil and gas deals; where the leaders of those countries that are the major producers of CO2 did not even bother turning up; where we sent 490 civil servants, flying them out to attend the conference; and where the main topic was how to extract money from countries that were guilty of the sin of industrialisation. The Secretary of State has shot out his chest today and said, “We are now leaders in global climate.” It is hard to be a leader when we have no followers, that is all I will say. How can the Secretary of State face the hard-pressed taxpayers of the United Kingdom, who are reeling under the impact of the latest Budget, and expect them to pay out billions to foreign countries—
Ed Miliband
The right hon. Gentleman and I have been debating these issues for 15 years, and I hazard a guess that we will not end up agreeing. The truth about the climate crisis is that it is the biggest potential cost that future generations can face. There will be trillions of costs across the world and tens and hundreds of billions of costs in the UK if we do not act. All the evidence is that the costs of acting on climate change are much lower than the costs of not acting.