Budget Resolutions and Economic Situation

Nia Griffith Excerpts

Monday 20th March 2023 Commons Chamber

[Dame Nia Griffith (Llanelli) (Lab)]

It is good to see you back, Madam Deputy Speaker.

Today, the United Nations Intergovernmental Panel on Climate Change climate science report reminds us that we are not doing enough to tackle climate change. While we continue to have a clear moral obligation to prioritise reaching net zero, we are now at a critical time for companies to invest in the technologies for the future. If the UK Government do not provide the appropriate conditions and incentives for multinational companies to choose to site their new production lines in the UK, they will go elsewhere. There will be not just one factory closure, but multiple factory closures. We will lose critical mass and a whole generation of investment. That would be a tragedy, when we think back to our role in the industrial revolution and about the world-class research and development that takes place in the UK’s great universities and leading manufacturers.

The US Inflation Reduction Act and the European Union green deal industrial plan pose real challenges for the UK. Sadly, this Chancellor’s Budget was an extremely disappointing response to what is going on elsewhere. It prompted the CEO of the Society of Motor Manufacturers and Traders to say of it:

“There is little, however, that enables the UK to compete with the massive packages of support to power a green transition that are available elsewhere.”

That is particularly galling as we do have the ideas to invest in innovation and research and development, and, at the same time, we have a desperate need for the Government to create growth. Just last week, the OECD report, “A Fragile Recovery”, repeated that Britain’s economy will have the worst performance of any advanced country this year. That is a disgrace this Tory Government should be ashamed of.

The investment needs to be comprehensive. For example, the automotive transformation fund needs not just to support the development of batteries and electrical components, but to be available to companies such as those in my constituency investing in the development of lighter bodywork parts, which are essential for improved electric vehicles.

That is why we need a bold investment programme, such as the one Labour proposes of some £28 billion a year, so we can lead the green revolution, and develop, manufacture and export goods from our proposed export hubs, rather than find ourselves left behind in the green technological race, with factory lines shutting down as the manufacture of current models is phased out and our manufacturing base disappearing, leaving us ever more dependent on imports and exposed to the vagaries of world markets.

Time and again, from way before the current energy crisis, we have raised the issue of uncompetitive energy costs in industry and business. If the UK had invested considerably more in renewables, we would have been much less reliant on imported gas and in a much better position to control our energy prices. Yet this Tory Government have wasted so many years, dragging their feet on investment in renewables, with their absurd ideological ban on onshore wind in England—a ban there was absolutely no need for. We have just had a begrudging, half-hearted reversal of that ban, with no real enthusiasm and no renewed drive to accelerate the roll-out of this, the cheapest and easiest form of renewable energy to produce. And what did we hear in the autumn? Measures to curtail solar panel expansion investment. What will the Government now do to give a real boost to the transition to renewables?

We recently witnessed the fiasco where wind energy was being generated in Scotland, but because of lack of grid capacity, it could not be transmitted to England, where consumers needed it. So there is work to be done for the national grid just to catch up with the present, never mind prepare for the future.

I know the Climate Change Minister in the Welsh Government, Julie James MS, is mindful of the likely quantities of energy that will be generated by offshore wind in the Celtic sea. She has raised with the UK Government the vital work that is needed to the national grid to ensure that energy can be transported from where it is generated to where it is needed. Yet when I have mentioned that here in this place, I have been met with looks of incredulity from some Members of the Government Front Bench. So I ask again: given the huge potential for increasing output from both onshore and offshore wind, please can the Minister responding to the debate set out in detail what talks Ministers have had with National Grid about ensuring grid capacity will be able to transmit power from where it is generated to where it is needed? How do the Government intend to accelerate the development of the national grid?

I turn to the Horizon programme, the EU programme that UK universities have particularly benefited from in the past, as they have been seen as attractive partners for other European countries. There was an abject failure by this Government in their Brexit negotiations not to come to a cordial agreement with the EU whereby we could, albeit from outside the EU, have collaborated on Horizon or similar programmes. Investors are now coming to the end of current programmes and unable to plan for the future.

The UK Government keep trying to blame the EU for the delays to the Horizon association, but they should be taking responsibility for their actions in breaking their manifesto promise to broker an association. In summing up, can the Minister update us on negotiations for the UK to have Horizon associate status, and ensure that our universities can benefit and compete with the best in the world?