Llinos Medi

I refer the Hon. Member for Ynys Môn to my response to Question 12968 on 12th November 2024.

As part of the Government's responsible approach to policy and decision-making, we have considered the merits of nationalising British Steel and made an estimate of the cost. That estimate is confidential for commercial reasons. However, the Government has no plans to nationalise British Steel.

We are developing a steel strategy, working in partnership with trade unions and industry to grow the steel sector in the UK. This government has identified up to £2.5bn (on top of the £500mn secured for Port Talbot) to support the steel industry.

As part of the Government's responsible approach to policy and decision-making, we have considered the merits of nationalising British Steel and made an estimate of the cost. That estimate is confidential for commercial reasons. However, the Government has no plans to nationalise British Steel.

We are developing a steel strategy, working in partnership with trade unions and industry to grow the steel sector in the UK. This government has identified up to £2.5bn (on top of the £500mn secured for Port Talbot) to support the steel industry.

Great British Nuclear (GBN) completed its purchase of the sites at Wylfa (in Ynys Mon / Anglesey) and Oldbury-on-Severn (Gloucestershire) in June 2024.

As a site which has previously hosted a nuclear power station, and is now owned by GBN , we want Wylfa to play an important role in new nuclear in the UK. The Government is examining the legacy left to us by the previous government and decisions have yet to be taken on projects and technologies to be deployed at specific sites. As GBN progress the Small Modular Reactor competition toward final decisions in the spring, we will set out our plans in due course.

As the independent regulator, Ofgem assesses network owners’ investment plans with regard to their duties, including to support net zero. Government supports Ofgem’s ambition for acceleration of network build and strategic investment in the next electricity transmission price control, covering the period 2026-31. Ofgem’s current consultation on the framework for the next electricity distribution price control (starting in 2028) identifies the need for significant investment ahead of need, strategic planning, and regulatory changes to prepare the GB distribution networks for net zero.

As the independent regulator, Ofgem assesses network owners’ investment plans with regard to their duties, including to support net zero. Government supports Ofgem’s ambition for acceleration of network build and strategic investment in the next electricity transmission price control, covering the period 2026-31. Ofgem’s current consultation on the framework for the next electricity distribution price control (starting in 2028) identifies the need for significant investment ahead of need, strategic planning, and regulatory changes to prepare the GB distribution networks for net zero.

The reinforcement of our electricity network is critical to deliver clean, secure power to homes and businesses across the country. This reinforcement includes both new infrastructure, on and offshore, and upgrades to existing lines which are always considered first. Transmission and distribution companies are carrying out significant upgrades to increase the capacity of existing lines on their networks. However, upgrading will not eliminate the need for new lines as it will not be sufficient to provide the necessary network capacity in all areas.

Batteries have a vital role to play in the energy sector, as set out in the National Energy System Operator’s recent advice on achieving clean power by 2030.

The Government is working closely with the National Energy System Operator, Ofgem and industry to facilitate the deployment of battery storage. The Clean Power 2030 Action Plan will provide details on the steps we are taking to increase battery storage capacity connected to the distribution and transmission networks.

DCMS recognises that the cruise sector makes a significant contribution to the UK economy, namely £9.4 billion and supporting 82,000 jobs pre-pandemic. As a new government we are reviewing the composition and terms of reference of the Tourism Industry Council with the aim of securing broad and diverse representation from a variety of industries and delivering clear outcomes for the sector.

No such discussions have taken place recently. Holyhead Station is managed by Transport for Wales who are answerable to Welsh Ministers. Regular discussions between the UK and Welsh Governments on rail improvements take place via the Wales Rail Board.

Affordability of rail travel is one of our key objectives. However, any concessions made to rail fares policy must balance benefits for certain groups against the impacts on taxpayers. Currently there are no plans for offering a discounted railcard for NHS and other key workers.

The Government reviews the rate of Statutory Sick Pay (SSP) annually as part of the uprating process. We are committed to building our understanding of how our plans to strengthen SSP, announced in our Plan to Make Work Pay, will impact employers and employees alike.

Through the Employment Rights Bill we are removing the Waiting Period so that SSP is payable from the first day of sickness absence, and we are also removing the Lower Earnings Limit which will widen eligibility to the up to 1.3 million employees who are currently not entitled to SSP.

Many employers choose to go further than paying the statutory minimum and provide more financial support to their employees during a sickness absence. Around 60% of all employees eligible to receive such contractual sick pay. Those who need additional financial support while off sick may be able to receive more help through the welfare system such as Universal Credit, depending on their individual circumstances.

The UK Government has had no discussions with the Welsh Government on devolving the Crown Estate.

The Crown Estate has played a significant role in attracting international investment into Wales to support the UK’s net zero target and will continue to do so through future leasing rounds for offshore wind developments, including floating wind projects in the Celtic Sea. They work closely with the Welsh Government and Natural Resources Wales in support of shared priorities, ensuring that these resources are sustainably managed for the long term.

Introducing a new entity would fragment the market, complicate existing processes, and likely delay further development offshore, undermining investment in Welsh waters.

This Government is committed to improving the quality and sustainability of our housing stock, through improvements such as low carbon heating, insulation, solar panels, and batteries. This will be vital to making the UK more energy resilient and meeting our 2050 Net Zero commitment.

Installations of qualifying energy-saving materials in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax forecast to raise £171 billion in 2024/25. Taxation is a vital source of revenue that helps to fund vital public services.

One of the key considerations when assessing a new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as savings will not always be passed on to consumers.

The Government has no current plans to formally review the VAT treatment of building works. However, all taxes are kept under review as part of the tax policymaking process. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.

Officials have been working with the Freeport and with the Welsh Government to take forward the Freeport’s business case and we will be in a position to provide further updates shortly.

The future of the Freeports Programme will be confirmed after the Spending Review has concluded. We will return to outstanding decisions on individual Freeports, including Anglesey Freeport, at that point.

The new administration’s priority is to fully understand the impacts of interventions in places before taking any major decisions. Officials will be in touch with local stakeholders as soon as Ministers have confirmed their future plans. Details of the agreed process for appraising Welsh Freeport business cases is published on gov.uk.