Energy Security

Michael Shanks Excerpts

Tuesday 19th May 2026 Commons Chamber

[The Minister for Energy (Michael Shanks)]

It is a privilege to close this debate on the Gracious Speech. It has been a pleasure to sit here all afternoon and listen to all the contributions in what turned out to be a far more wide-ranging debate than one just on energy policy, and I thank all Members for that.

I will respond to a few specific points raised in the debate in due course, although I will single out a few contributions from Members on the Labour Benches at the outset. My hon. Friend the Member for Chesterfield (Mr Perkins) was absolutely right in a number of areas of his speech, particularly in saying that we should be very cautious about taking any advice from the shadow Secretary of State lest she change her mind, as she has done so often in this policy area.

My hon. Friend the Member for Cramlington and Killingworth (Emma Foody) spoke quite rightly about her pride in Blyth and the workers there. I was really pleased to be there a few months ago to celebrate the 25th birthday of offshore wind, which of course was started in Blyth. My hon. Friends the Members for Luton South and South Bedfordshire (Rachel Hopkins), for Scarborough and Whitby (Alison Hume), for Bournemouth West (Jessica Toale), for East Thanet (Ms Billington) and for Heywood and Middleton North (Mrs Blundell) all made important contributions.

My hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton), who I had the great pleasure of joining in Stornoway recently, rightly congratulated Donald MacKinnon MSP. I also put on record my congratulations to Donald on his fantastic election as the Member of the Scottish Parliament for the Western Isles.

My hon. Friend the Member for Bournemouth West gave a fantastic sales pitch for her community and the role it is playing in the clean power transition. She also mentioned the Dorset clean energy super cluster, which I would be delighted to visit.

Contributions from hon. Members on all sides of the House were interesting. I particularly welcome the consensus on nuclear, which is hugely important. The right hon. Member for South Holland and The Deepings (Sir John Hayes) gave a wide-ranging lecture—an important contribution—on the economy. I completely agree with his points on skills. We need some balance in how we approach the future of skills development in the country, so that we have the skilled workforce we need to do all that we want to do.

The hon. Member for Isle of Wight East (Joe Robertson), who I think is no longer in his place, made a bizarre argument in which he said the last Government did a fantastic job and did everything right, but that we should now do none of the things that they did into the future. That was slightly odd.

The shadow Minister, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), stole my thunder with his remarks on the speech by the hon. Member for Honiton and Sidmouth (Richard Foord). I particularly enjoyed the intervention from the hon. Member for Tunbridge Wells (Mike Martin), who essentially said that nobody really likes any of us and it is all the fault of first past the post. That was a great contribution!

I want to single out the contribution of the hon. Member for Westmorland and Lonsdale (Tim Farron), who gave an excellent speech. He emphasised absolutely rightly that Britain is not broken but that we must be better. That was a really important charge for us all. This debate has shown that the whole House agrees on the need to strengthen our energy security as we respond to the second fossil fuel shock in less than five years.

[Graham Stuart]

Will the Minister give way?

[Michael Shanks]

I will make a bit of progress.

Where the House diverges is on how we respond to that shock. For Members on the Labour Benches, the overriding lesson from both Russia’s invasion of Ukraine and the present crisis in the middle east is that every day we spend exposed to fossil fuels, which we can never control, is another day of insecurity. It is another day of being buffeted by conflicts that we had no part in starting, and of working people opening their energy bills and finding the cost of someone else’s war. It is another day of Britain’s future being held back by a global market in which we are and will always be price takers.

The Opposition say that they too have learned a lesson from the second fossil fuel price shock. They have studied the evidence and weighed up the options, and their conclusion—their amendment to the Humble Address—is that the answer to a fossil fuel crisis lies in more fossil fuels. I like to give credit where I can, so I will give them this: it takes a particular kind of courage to stand up in this House at this time and make that argument with a straight face.

[Dave Doogan]

The Minister will know that Scotland has almost all the oil in the United Kingdom. We have the vast majority of the gas. We have the most onshore renewables and the most hydro. And yet, under his watch, his constituents and mine in Scotland pay the highest electricity bills anywhere on these islands. What does he say to our constituents?

[Michael Shanks]

I say that the Scottish National party’s plan for independence for energy was the flimsiest of flimsy documents. It had no plan for how independence would bring down bills, because the truth of the matter is that independence would tear apart any argument on energy security and drive up bills for people right across Scotland. That is why people rejected it in the referendum 10 years ago.

The Tories and their former friends and colleagues now sitting on the Reform Benches want to solve a dependence problem by becoming even more dependent. As my right hon. Friend the Secretary of State outlined earlier, we will not be taking that course. This is the moment to end our reliance on fossil fuels, to electrify the wider economy and to speed up our transition to clean, secure, home-grown energy, which does give us energy sovereignty. That is the road to national security. Along the way, we seize the economic opportunity of the 21st century, with 400,000 extra good energy jobs and billions of pounds in investment by 2030 alone.

[Graham Stuart]

I wonder whether the Minister will agree to meet me and my hon. Friend the Member for Bridlington and The Wolds (Charlie Dewhirst). The Atwick gas storage site in my hon. Friend’s constituency is a critical part of our energy infrastructure, but at 47 years old, it is nearing end of life. Does he have plans to ensure that our gas storage is maintained, and will he meet me and my colleague to discuss the issue?

[Michael Shanks]

We are consulting on the future of gas storage. I have made it my policy to meet every MP who wants to meet me, and I have always had—[Interruption.] The shadow Minister says, “Even him?” I have always had very good conversations with the right hon. Member for Beverley and Holderness (Graham Stuart). He is in the wrong party—they all hate him. [Laughter.]

Now is not the time to look away from the biggest long-term threat we face: climate change. It is a threat that we can no longer ignore, so we will build the energy system of the future. Since we came into power, we have had two record-breaking renewables auctions after the catastrophic failure of AR5 under the last Government. Despite the shadow Secretary of State’s advice to cancel AR7, we have secured clean, home-grown power for the equivalent of 23 million homes. That is power that, since the middle east crisis began, is saving the country millions of pounds every single day in gas that we no longer have to buy. But good is not enough; we are determined to go further and faster. That is why we are bringing forward the next auction round to July, and why the energy independence Bill will accelerate the build-out of grid infrastructure by reforming planning and getting clean power built at the speed that the moment demands.

We have the biggest nuclear building programme in half a century, not vague promises that never materialised for 14 years—or the endless rounds of consultation that the shadow Minister loves to tell us about so much—but actual nuclear being built. With a nuclear regulation Bill, which is genuinely pro-nuclear and pro-nature, we will cut costs and timeframes without cutting corners on safety. That is regulation reform that the Tories now claim they would have loved to have done, but just never found the time for during 14 years in government. Well, we are going to get it done. We have to be honest about what we inherited. The environmental impact assessment for Sizewell C ran to 44,000 pages and it still left nobody happy. That is not caution; it is paralysis dressed up as paperwork. This Government will end it, so that we can get Britain building again and deliver the energy independence that people have waited for.

As we build for the future, we also have to protect people right now. Six million families are receiving the expanded warm home discount. We also have the £15 billion warm homes plan—the largest upgrade programme in British history—and, as a result of actions that my right hon. Friend the Chancellor took in the Budget, the price cap fell by £117 in April.

[Kirsty Blackman]

On protecting people right now, my constituents are losing jobs. Thousands of jobs are being lost every few months in the north-east of Scotland because of the Government’s continuing to keep the energy profits levy: Labour’s tax on Scotland’s jobs. Will the Minister make a commitment to move from the EPL to the oil and gas price mechanism in order to protect jobs for my constituents?

[Michael Shanks]

I will come to jobs in the North sea in just a moment—a section of my speech is about that, given its importance. I have to say that I am absolutely incredulous: I can almost understand it from the Tories—thinking that a moment of windfall profits was the moment to cut taxes on oil and gas companies—but now we have a partnership of the SNP and the Tories who believe that now is the moment not to help people with their energy bills but to cut taxes for the biggest companies. That is an interesting lesson that we have learned.

The energy independence Bill is about how we go further. A number of hon. Members have raised fuel poverty. Fuel poverty in this country is not a misfortune; it is a scandal. More than a third of school pupils have told their teachers that they are cold at home. In one of the world’s largest economies, a third of children go to school to get warm. We must bring this to an end with new minimum energy efficiency standards for renters, a new warm homes agency to ensure that high home grades are not, as they have been for too long, the preserve of just the well off, and a strengthened Ofgem with the powers of a genuine consumer champion, not just a regulator in name. That is what fighting the corner of working people looks like.

Let me say something about the people who power this country. I speak at industry conferences regularly and I always talk about my pride in the North sea, not as a Minister reading from a brief, but as someone who has friends and family who work offshore and as a Scottish MP who knows more than many about what the sector means. It is about people right now doing skilled, dangerous and vital work—work that this country has depended on for decades, and which does not get taken for granted—[Interruption.] We are not taking it for granted, actually; that is just nonsense.

The question in front of us is how we secure those people’s long-term future. The answer is not, as some on the Opposition Benches have suggested, to pretend that the North sea is not a maturing basin in natural decline. It is not about nostalgia for some new age of discovery. We are neither a “turn off the taps” nor a “drill every last drop” party. Neither is a credible plan. We will introduce transitional energy certificates, as industry has called for, to enable tiebacks and manage existing fields for their lifespan; for the first time, we will give the North Sea Transition Authority a statutory responsibility to consider workers, communities and supply chains; and we will launch a new North sea jobs service to support people through every stage of the transition. This energy transition only works if we bring people with us on what we are building next, and that is already taking shape.

[Harriet Cross]

Will the Minister give way?

[Michael Shanks]

I do not have time; I am sorry.

That system is already taking shape, whether through nuclear engineers in Ynys Môn following in their parents’ footsteps, apprentices learning to weld in the Aberdeen energy transition zone or wind turbine blades being forged in Hull—tens of thousands of jobs, record investment, real communities, real wages and a real future. The North sea made Britain an energy nation; the Bill ensures that it will remain one.

Sometimes, in the noise of this place, we lose sight of what is actually at stake. Half of Britain’s recessions since the 1970s were caused by fossil fuel shocks—not bad luck, not acts of God, but the predictable, repeated consequence of building our future on an energy source that we can never have control over. What we have heard today is that Opposition parties have not only chosen to ignore what is going on all around us, but they actively want us to go even further, to risk even more and to gamble with the futures of every single one of our constituents. The warning signs were there in 1973, in 1979 and in 2022, and they were ignored. The warning signs are back now, and it is right that we learn the right lessons.

Just a few weeks ago, 98% of our electricity came from clean sources. It was for a small period of time—I recognise that—but 98% of our electricity came from low-carbon sources. This country, when it commits to something, is capable of achieving extraordinary things. This is not ideology; it is the most basic duty of Government to protect the people of this country from dangers that we can see coming. The energy Bills contained in the King’s Speech are the path to a stronger future for Britain: energy security that no blockade can threaten; warm homes for families who have gone cold for far too long; good jobs in communities that have faced deindustrialisation for decades because of Governments who just did not care about industrial strategy; and a climate that we can hand to our children without shame. I commend the King’s Speech to the House.

Question put, That the amendment be made.