Small Modular Nuclear Reactor Power Station: Wylfa

Debate between Michael Shanks and Tom Hayes

Monday 17th November 2025 Commons Chamber

[Michael Shanks]

That is a hugely important question. This is a significant moment for British innovation, because we are now moving forward quickly to ensure that we are at the forefront of this innovation, so that other countries that are already looking to the Rolls-Royce designs can benefit from them as well, but made in Britain. The aim of SMRs that is different from gigascale nuclear is to get to a point where their replicability means that we can produce the SMR technology for export market as well as for ourselves. That is important for our allies across the world who want nuclear to be part of their energy mix, and it is a hugely important economic opportunity for this country as well.

[Tom Hayes (Bournemouth East) (Lab)]

In the first nine years of the 14 years of Conservative Government, David Cameron sent Wylfa to the wall, George Osborne begged the Chinese to invest—we are still unpicking that mistake—and Theresa May nearly killed off Hinkley Point C, and with it Sizewell C, and after that things actually got worse. Under Labour, plants are getting off the ground to end our reliance on dictators like Putin, which is to be commended. Will the Minister set out how we will build our nuclear future in all parts of the UK? May I make a particular recommendation for Dorset, because we have Winfrith, which could be a really big part of our nuclear future?

[Michael Shanks]

I was expecting every question today to be, “Could an SMR be built in my constituency?” but my hon. Friend is the first to ask, so he wins the prize for that. I will not labour the point, but as he says, we had a lot of promises and a lot of big talk from the Conservative Government on nuclear, but very little actually delivered. The truth is that no money was put forward for any of those things. It is easy to sign and say, “We want to deliver something,” but without putting any money forward, nothing will happen. We have committed almost £20 billion in funding to make Britain’s new golden age of nuclear a reality, which will deliver jobs in my hon. Friend’s constituency and across the country. We are ambitious about the future of SMRs. They can be sited in a great many more places than traditional nuclear facilities. We have asked Great British Energy Nuclear to look at the range of sites across the United Kingdom that are possible, not just the sites that were traditionally designated for nuclear projects. That opens up huge opportunity for the energy mix of the future, and for jobs, investment and training throughout supply chains as well.

Rosebank and Jackdaw Oilfields

Debate between Michael Shanks and Tom Hayes

Monday 10th February 2025 Commons Chamber

[Madam Deputy Speaker (Judith Cummins)]

The final question is from Tom Hayes.

[Tom Hayes (Bournemouth East) (Lab)]

Thank you, Madam Deputy Speaker, and as this is the final question, may I commend the Minister on taking a measured and pragmatic approach at the Dispatch Box? That is in sharp contrast with the Conservative party, which seems to be continuing its journey from zombie Government to shambolic irrelevance. When I talk to investors and businesses in the energy sector, they stress the importance of a plan, whether it is that of the National Energy System Operator, or of mission control, led by Chris Stark. Will the Minister outline the importance of Great British Energy in the planned transition to the jobs of the future?

[Michael Shanks]

In terms of the tone of the debate, the Government and the Opposition will of course disagree on many things—by the sounds of it, we increasingly disagree on the importance of tackling climate change and net zero—but generally we all want to see a transition in the North sea that is fair and prosperous, particularly for the workers in that industry, to ensure that they have confidence that they will have well-paid jobs to go into. I spend every day in this job taking that incredibly seriously, and whatever disagreements we might have across the Dispatch Box, I hope that is understood. We want to build a transition that recognises that it is already under way, that thousands of jobs have been lost and that it is our duty and responsibility as a Government to ensure that we put in place the industry and jobs that come next. That is what I will spend every day doing while I am privileged to have this job.

Biomass Generation

Debate between Michael Shanks and Tom Hayes

Monday 10th February 2025 Commons Chamber

[Michael Shanks]

After an urgent question and a statement, I hope that I will not still be standing here in 15 years’ time, and I suspect the House will support that. Let me be really clear. I do not remember Drax being the poster child for the clean energy transition. I have outlined clearly why this decision is important in terms of energy security, but we wish that we as a Government had had more options. Unfortunately, those options were not there, so we have made the best of a difficult situation to get an incredibly good deal that delivers value for money, improves sustainability and delivers on energy security. In the 2030s, I want to see our clean power system delivering cheaper bills and industrial manufacturing jobs across the country. I hope that, in 15 years, the right hon. Member and I will have a conversation about how that is delivering for our constituents.

[Tom Hayes (Bournemouth East) (Lab)]

The shadow Secretary of State talked about being under new management, and I suspect that he will be saying the same thing in a few months after the inevitable bloody coup. I commend the statement, which will do some really important things, including: capping Drax’s output; a windfall tax on Drax; millions saved by halving subsidies paid for by my constituents; and the forcing up of sustainability. It is a pragmatic solution to a disastrous inheritance. Does the Minister agree that this will be a better deal for taxpayers and consumers for our energy security and our environment?

[Michael Shanks]

My hon. Friend summarises the importance of the deal clearly. We have limited the expected rate of return for Drax to a level below that of monopolies regulated by Ofgem. We have halved the subsidies provided to Drax that were in every single deal from the Conservative party, year after year, saving £170 million each year of the agreement. We have introduced a windfall tax with 30% and 60% rates to be clawed back should Drax have excess profits. We are delivering on energy security and on tougher sustainability requirements, but at the heart of the deal is better value for money for the hard-working people of this country.