(8 months ago)
Commons ChamberI call the chair of the all-party parliamentary group on state pension inequality for women.
I am most grateful to my right hon. Friend for his statement. The Parliamentary and Health Service Ombudsman is itself WASPI, having been conceived in the 1950s. Does my right hon. Friend agree that a failure by Government to comply with its recommendations would be almost completely unprecedented over the past 70 years, and would in effect drive a coach and horses through an integral part of our system of democratic checks and balances? With that in mind, will he confirm that his Department will work in full haste with Parliament to agree a mechanism for remedy? Will he outline the work he is carrying out to address further concerns that have been raised over systematic failure by the DWP over several decades to properly communicate future pension changes?
(1 year, 1 month ago)
Commons ChamberI call Peter Aldous to make the last Back-Bench contribution, so anybody who has contributed to the debate should start making their way to the Chamber. We are expecting a large number of votes.
I will speak to three amendments, to highlight some concerns about why the Government are opposing changes made in the other place that, at face value, appear to have some merit, and to seek further clarification as to what they are doing to address those concerns.
A number of my hon. and right hon. Friends have mentioned Lords amendment 22, which relates to local authorities holding virtual meetings. I am a vice-president of the Suffolk Association of Local Councils, and the feedback I have received from all tiers of local government in Suffolk is that they support the Lords amendment, which the Government oppose. I acknowledge the Government’s view that a core principle of local democracy is that citizens should be able to attend local council meetings to interact in person with their local representatives. However, instead of an absolute bar on virtual attendance, I would suggest that allowing local discretion, pursuing a common-sense approach, is more appropriate for the following reasons.
First, 90% to 95% of councils at all levels, based on their own individual experiences, support such an approach, which is endorsed by the Local Government Association, the National Association of Local Councils and the Society of Local Council Clerks.
Secondly, many town and parish councils have difficulties in retaining a full slate of councillors. They regularly have to co-opt new members, and contested elections are invariably the exception rather than the rule. Allowing some local discretion with regard to the holding of council meetings would remove barriers to becoming a councillor for such groups as the disabled, parents, carers and full-time workers. These groups all have a great deal to contribute to their local communities, but many of them are put off by the straitjacket of being expected to attend all council meetings in person.
(1 year, 5 months ago)
Commons ChamberI thank my hon. Friend for that intervention. A single hub-and-spoke model for the UK, I suggest, will not be to the benefit of the whole UK. What would be of benefit is hub-and-spoke models in individual regions. Mr Deputy Speaker, I will leave this issue for further discussion and debate. I welcome the fact that I have, hopefully, engendered a debate on this particular issue.
My final point is that the seas all around the UK are becoming increasingly crowded. I am referring to the spatial squeeze that many colleagues have mentioned this morning and that the National Federation of Fishermen’s Organisations, among others, has identified.
In many respects, this enormous amount of activity is good news, as it will create the business that will bring new and exciting jobs to coastal communities all around the UK, but we do need to be responsible guardians of our waters. There is a need for a more strategic approach to marine planning, with the needs of the fishing industry being properly represented.
I am a great supporter of the offshore wind industry, but it is important to recognise that adding physical structures in the sea at the scale that we are currently doing will change patterns of oceanographic processes and hence biological processes. Some of this change might actually be for the better, but much of it could well lead to degradation and it is vital that we ensure that does not happen.
In conclusion, the UK fishing industry is not yet in the last-chance saloon—though I did listen carefully to the speech of the hon. Member for Stockton North (Alex Cunningham)—but there is a very strong sense of missed opportunity. In the medium term, the Government need to prepare themselves for a tough renegotiation of the trade and co-operation agreement in 2026. In the short term, there is a need for streamlined administrative processes and strategic thinking to ensure that the industry can flourish not only in East Anglia, but all around the UK.
We are now coming to the wind-up speeches, which will last eight minutes, 10 minutes and 10 minutes, and two minutes for David Duguid at the end. I am anticipating that the second debate will start no later than around quarter to two. Anybody who wishes to take part in that debate should start making their way to the Chamber now.
(1 year, 12 months ago)
Commons ChamberFor a moment, I thought that you had forgotten me, Mr Deputy Speaker, but that is greatly appreciated.
The purpose of the Bill, as the Minister—my fellow Suffolk MP—said at the beginning, is to put on to the statute book many of the tax and spending decisions that the Chancellor announced in his autumn statement, with some others being deferred until the spring Finance Bill in 2023. The Chancellor was confronted with an incredibly difficult challenge on 17 November, so in many respects, he was between a rock and hard place. I genuinely believe that he struck the right balance and delivered the statement that the nation required in these very precarious times. He was right to protect the most vulnerable and to provide additional funding for health and social care and education, although on the latter, I think that he should also have included further education and colleges, which are so important in improving the UK’s productivity and providing the many, not the few, with the opportunity to participate in the proceeds of growth that we are so elusively seeking. That said, the Chancellor has appointed Sir Michael Barber to provide a skills reform programme, and he is to be commended for confirming support for Sizewell C, for providing Suffolk with a devolution deal, and for committing to a step change in the drive to improve the energy efficiency of our existing homes and businesses.
I feel that my right hon. Friend had no alternative other than to introduce levies on oil and gas producers and electricity generators. I will focus much of the remainder of my speech on that issue. There is a need to avoid any unintended consequences in the way that the levies operate, which could deter inward investment, which is so important to ensuring our energy security, meeting our net zero targets that enable us to tackle climate change, and regenerating the economies of many coastal communities, such as the Lowestoft and Waveney constituency that I represent.
Clauses 1 to 3 detail the changes proposed to the oil and gas profits levy: raising the rate of the levy to 35%; reducing the investment allowance from 80% to 29%, although it remains at 80% for investment on upstream decarbonisation; and extending the levy to 2028. That last provision appears somewhat random, because it takes no account of the fact that our current very high gas prices may have fallen by then. We should remember that, only a few years ago, gas prices were on the floor. I hope that, if we are in a different place before 2028, the Government will look at bringing forward the sunset clause.
I note that HMRC’s assessment concludes that the
“changes to the Energy Profits Levy are not expected to have a significant macroeconomic impact on the level of business investment”
and that the impact on business will extend only
“to around 200 companies operating in the UK or on the UK Continental Shelf.”
Those findings are very different from those of Offshore Energies UK, which is the trade representative of many of the businesses affected and which provides the secretariat for the British offshore oil and gas all-party parliamentary group, which I chair. It states that
“the tax changes would impact not just North Sea operators but the hundreds of other companies in their supply chains”,
which are so important to coastal communities such as Lowestoft and which extend right across the UK. It notes that such businesses
“provide specialised services such as marine engineering, deep sea diving or subsea communications”,
which are not just important to the oil and gas sector, but vital to the emerging industries of offshore wind, carbon capture and storage, and hydrogen production.
Offshore Energies UK points out that the industry—private business—
“is participating in plans to invest £200 billion by 2030 across all energies, including the lower-carbon ones needed to drive the energy transition.”
There is a real worry that disruption to the tax system could deter that vital investment. Although the Bill does not cover the electricity generator levy— I welcome the Minister’s commitment to engage with the industry before detailing the Government’s proposals— that levy’s provisions and implications should be considered alongside the energy oil and gas profits levy. That is because today’s renewables and oil and gas industries are inextricably interlinked and intertwined.
There is a real worry in the renewables sector that the electricity generator levy may deter the investment needed to end our reliance on fossil fuels. The companies that will be affected are those to which we are looking for investments of billions to accelerate the renewable energy transition. It is only by attracting such private sector investment that the UK can successfully grow its capacity in renewable energy. To meet our 2030 and 2050 targets, we need to attract more private investment, not deter it.
With that in mind, it is concerning that electricity generators are due to miss out on an investment allowance for new wind projects. If we are to be a global leader in offshore wind, including being a pioneer in floating offshore wind technology, there is a strong case for tax incentives to encourage new investment. That does not mean helping energy firms to avoid tax, but it does mean encouraging them to invest in the UK’s clean future for the benefit of the environment, of our future prosperity and of our energy security.
There needs to be a windfall tax, but it must be introduced in a form that is predictable, transparent and fair so as not to undermine investor confidence. I fully recognise that the enormous cost of shielding people and businesses from the worst impacts of the gas crisis requires a windfall tax, but there is a concern that the current and updated proposals for the oil and gas levy and the emerging plans for the electricity generator levy may, or might, have the unintended consequence of deterring investment at a time when we urgently need it, with a negative impact on the key policies of energy security, combating climate change, and levelling up.
It is good news that the Government have undertaken to carry out a long-term review of the tax treatment of UK oil and gas production. I also ask them to keep the oil and gas profits levy in place only while there is a windfall, rather than until 31 March 2028 if present conditions do not continue until then. There is much work to be done to create the stable, long-term fiscal environment required to maximise inward investment. Moving to net zero is a monumental challenge; the state of the public finances is such that we need more than ever to unlock private finance if we are to meet our targets.
Government and business must work together to put in place the long-term, stable tax regime that will ensure that companies make a full but fair contribution. Until recently, Government and business were working well together and a clear industrial strategy was in place, culminating in the 2019 offshore wind sector deal and the 2021 North sea transition deal. There is an urgent need for the Government and the energy industry to renew their marriage vows. I urge my right hon. Friend the Chancellor and his very good team on the Front Bench to set about the task immediately.
(2 years, 1 month ago)
Commons ChamberI am largely supportive of the Bill, as there is an urgent need for assistance to be delivered at speed to hard-pressed families and businesses, but it is important to avoid any unintended negative consequences for other key Government objectives, in particular energy security, the transition to net zero and the full deployment of renewables and low-carbon forms of energy production.
My constituents urgently need the support that the Bill will provide, but to regenerate the local economy and create long-term, well-paid jobs, we need investment in offshore wind, nuclear and hydrogen. There are exciting opportunities in the sector throughout east Anglia, and specifically Waveney and Lowestoft, although certain clauses in the Bill raise worries that such investment could be imperilled. I hope that the Minister will be able to allay that unease. The Government are not pursuing a windfall tax on renewables and nuclear generators because they are worried that it would deter investment. Some of the mechanisms proposed in the Bill could have a similar negative impact, and it is important that further clarification is provided quickly. I will briefly outline three specific concerns.
Clause 16, along with schedule 6, introduces the cost-plus revenue limit, which is a cap on the revenue of low-carbon energy generation. There is a worry that this mechanism could penalise investment in clean, cheap and low-carbon generation. To avoid that, there is a need for a reinvestment allowance to channel investment into low-carbon projects, which are needed to meet our net zero and energy security targets, and which will also provide the long-term route map out of the cost of living crisis.
Clause 21 enables the Secretary of State to modify the licences under which energy companies operate. Currently, the regulator Ofgem determines licence conditions. This is an arrangement that works well and has the confidence of investors. Further clarification is required as to the Government’s intentions, and consideration should be given to providing a definitive timeframe through a sunset clause for how long this provision will be in place.
Clause 19 sets out the arrangements for passing on the energy price support from generators to end users. There is a concern that the Bill as drafted does not properly take into account the fact that generators do not all operate in the same way and that they incur differing operational costs.
In conclusion, I hope the Minister can allay these concerns. I urge the Government to liaise and consult with all relevant stakeholders, including energy companies and civil society organisations, to avoid these unintended consequences, which could imperil energy security, decarbonisation and economic regeneration in coastal communities such as Waveney.
(3 years, 8 months ago)
Commons ChamberI do not know what it is about this statement, but I am absolutely hungry now.
In Lowestoft and Waveney, there are significant areas of poverty, and yet, as part of the wider East Suffolk Council area, we are in the priority 2 category. I would be most grateful if my hon. Friend could provide an assurance that applications from the Waveney area that support the creation of much-needed new jobs will be given full and fair consideration and will not be disadvantaged by our being in a lower category area.
Order. Two hon. Members are yet to speak. Perhaps they could divide the time left between themselves. The winding-up speeches will begin at 9.30 pm.