Oral Answers to Questions

Peter Gibson Excerpts

Tuesday 17th January 2023 Commons Chamber

The Secretary of State was asked—

[Peter Gibson (Darlington) (Con)]

1. What steps his Department is taking to support businesses with energy costs.

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

The energy bill relief scheme provides discounts on the wholesale element of gas and electricity bills to ensure that all eligible businesses are protected from high energy costs over the winter period. The support is applied automatically to bills.

[Peter Gibson]

I thank the Secretary of State for that answer. The Government have already awarded Cummins, the engine maker in Darlington, £14.6 million to develop a hydrogen combustion engine, which will help the road haulage industry to decarbonise and reduce business energy costs. Does my right hon. Friend agree with me that investment in alternatives such as that will benefit businesses into the future, will he look at the regulation to enable this technology to be exploited and will he visit Darlington to see Cummins?

[Grant Shapps]

I think the answer is three yeses. My hon. Friend is absolutely right to highlight the importance of that hydrogen technology; it is one of the reasons the UK has a global lead. I am looking very closely at how off-road hydrogen vehicles could also be a big part of our decarbonisation strategy.

Electricity and Gas Transmission (Compensation) Bill

Peter Gibson Excerpts

Friday 25th November 2022 Commons Chamber

[Peter Gibson (Darlington) (Con)]

I congratulate my right hon. Friend the Member for North Somerset (Dr Fox) on bringing forward this Bill, and for his incredible luck in the private Members’ ballot in two consecutive parliamentary sessions. I know only too well what a privilege it is to guide a Bill through its legislative journey to the statute book. As has been mentioned, my right hon. Friend’s Down Syndrome Act was a hugely important piece of legislation. I am pleased to see that in his Bill for this Session, he is taking the opportunity to raise another important issue that impacts his constituents.

Following the declaration of interest by my hon. Friend the Member for North Herefordshire (Sir Bill Wiggin) in respect of his wayleave agreement, I will mention that I was once lucky enough to receive a one-off payment from National Grid for a cable that crossed the end of my garden.

An unprecedented level of new power generation is planned over the next decade to meet the demand for electricity, and to meet our CO2 reduction targets. The national grid must therefore have sufficient capacity. As the cost of transmitting electricity ultimately passes to customers, it is important for National Grid to find the best way of connecting new sources of power generation consistent with its duty to maintain an efficient, co-ordinated and economical system of electricity transmission.

The national grid is a nationally significant piece of infrastructure, and as such, I know National Grid will seek to obtain from the outset, by negotiation, permanent land rights for all new electricity transmission assets. That is consistent with National Grid’s approach for new underground electricity cables and gas transmission pipelines, where permanent land rights are also sought and obtained. Once National Grid has identified a final route alignment for proposed new electricity transmission assets, it will seek to enter into an agreement to grant an easement with owners and tenants of the land across and within which the new electricity transmission assets may be constructed.

The agreement enables National Grid to take entry on to the land, with notice and following the grant of the development consent order, to construct the new electricity transmission assets. The agreements also provide for changes in the final route alignment within a specified corridor as a consequence of public consultation, and during construction as a consequence of engineering requirements, surveys, and other routing factors. One construction is completed, the agreements permit National Grid to call for an easement in respect of the new, as-built electricity transmission assets.

The payment schedule for new electricity transmission assets sets out the amounts that will be paid for an easement. In return for a signed agreement to grant an easement, National Grid will pay 50% of the easement consideration to the landowner. On entry for construction, a further 25% of the easement consideration is paid, and the final 25% will be paid if and when the easement is completed by National Grid. National Grid also offers incentive payments for the early return of signed agreements. Those incentives are set out in the payment schedule for new electricity transmission assets. They are available only during an 18-week period after a notified date, once agreements are issued by National Grid to landowners for their approval and signature.

After the agreement has been signed, up to either completion of the easement or expiry of the agreement itself, landowners, tenants and occupiers are restricted from doing anything that would adversely affect National Grid’s ability to take and benefit from the easement should it need to do so. If landowners transfer their interest in the affected land, they must oblige the incoming owners to enter into a new agreement with National Grid on exactly the same terms.

Where National Grid is unable to obtain a voluntary agreement from a third party following the grant of a development consent order for new electricity transmission assets, it will seek to acquire the relevant land, or land rights over the land, through the compulsory acquisition powers granted to it through the development consent order. A copy of the order and a compulsory acquisition notice will be served by National Grid on the relevant third party and the notice will be posted on, or near to, the relevant land. Compensation will then be calculated and, if due, payable to the relevant third party in accordance with the relevant provisions of the land compensation legislation.

[Dr Fox]

There is a dispute system in place, but where cases go to the Upper Tribunal, high legal costs are paid by not only our constituents but National Grid—costs that, as my hon. Friend has said, are ultimately passed on to electricity payers. Would it not therefore be in the interests of all parties to have a clear, efficient and affordable dispute resolution system, rather than cases going to the Upper Tribunal and ultimately costing those of us who pay our electricity bills, as with this system?

[Peter Gibson]

I am grateful for that intervention. My right hon. Friend makes an important point. My right hon. Friend’s Bill is born out of issues that his constituents have faced whereby they have been unable to get fair compensation for distributions to their property or business in cases where land will be, or has been, subject to the acquisition of rights or land, through compulsion or by agreement, for the purposes of electricity and gas transmission.

This is an important issue and I completely agree with my right hon. Friend that we need to see improvement in this area. The Bill seeks to establish an independent mechanism to determine claims for compensation in cases such as the ones that have been outlined, where people or businesses feel that they have been unfairly treated.

I know that the Minister will have listened closely to all of the contributions from Members across the House, and I look forward to hearing her response on the various points raised. I know, too, that my right hon. Friend the Member for North Somerset will be seeking members for his Bill Committee in due course, and I happily put my name forward.

Employment Relations (Flexible Working) Bill

Peter Gibson Excerpts

Friday 28th October 2022 Commons Chamber

[Peter Gibson (Darlington) (Con)]

I congratulate the hon. Member for Bolton South East (Yasmin Qureshi) on bringing forward this important Bill. Having had the privilege of guiding my own private Member’s Bill in this Parliament, I commend her on the efforts she has put in to bringing forward hers; it is a very rewarding process. I also wish to pay tribute to my good friend, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) for taking his place on the Front Bench—it is long overdue. However, following his leadership of the all-party group on fair business banking, I have serious concerns about who is going to take over the excellent role he played in that organisation. I would also like to praise the hon. Lady for the way that she has approached this process, engaging with Ministers on this Bill, which is gathering support right across the House.

Flexible working can mean a number of things, including hybrid working, part-time working, compressed weeks, self-rostering, or even job sharing. This is a timely Bill. As a result of the covid-19 pandemic, flexible working has become commonplace for people up and down the country. As we entered lockdown, many businesses that previously had never adopted flexible working were forced to adopt new arrangements. Those new arrangements included remote working, using new technology for work, or finding new ways of working. I know that many businesses have continued these flexible practices, which has generated a greater appetite for remote and/or hybrid working patterns from employees.

That said, individual employers and employees have different perspectives about remote and hybrid working patterns, and about returning to offices or places of work. There are differences of opinion between those advocating a return to the office and those pushing for a more employee-oriented flexible post-covid-19 future of work. Research shows that employees experience a mix of benefits and risks from remote or hybrid working patterns, depending on their circumstances. There are often mixed outcomes, such as greater autonomy and discretion over work patterns coinciding with work intensification and the potential blurring of boundaries between work and life, something to which we can all relate.

Personally, I strongly support flexible working and firmly believe that only by championing a flexible and dynamic labour market can we grow the economy, I am pleased that that view is shared by the Government. Indeed, in 2019 I stood on a manifesto that included a commitment to encourage flexible working and to consult on whether flexible working can be the default, unless employers have good reasons otherwise.

Having been an employer before I was elected to represent the people of Darlington, I know only too well the benefits that flexible working can bring. I moved to enable my staff to work flexibly long before the pandemic made it a necessity for so many businesses, and I still embrace flexible working for my team now that I am an MP, with members of my team working part of their time from home.

Almost 10 years ago, I was approached by a member of my staff who, following the birth of her child and her partner suffering from a debilitating condition, was unable to manage without having her extended family nearby, necessitating a move out of the area, which would have made commuting impossible. To resolve this dilemma, arrangements were made to supply broadband, a laptop and a phone to my employee, so she could work from home and have the benefits, comfort and convenience of having her family nearby. I have seen at first hand how flexible working can have huge benefits for a business by increasing morale, improving employee retention and productivity, and ensuring a more diverse and inclusive workforce by giving access to greater talent pools than would have previously been the case.

This Bill is not the first time that legislation relating to flexible working has been brought before Parliament. The statutory right to request flexible working is an employment right under part 8A of the Employment Rights Act 1996, with section 80F setting out the statutory right to request contract variation. The Children and Families Act 2014 also includes such a provision. It is welcome that Governments of all colours have brought in legislation on flexible working, and I am pleased to see that this Bill has cross-party support.

I know the Minister is well versed in business and experienced in dealing with employment-related matters, and he will have heard the sentiments of the House today. I thank the hon. Member for Bolton South East for giving us the opportunity to talk about these important issues and wish her every success as the Bill continues its passage.

Oral Answers to Questions

Peter Gibson Excerpts

Tuesday 25th October 2022 Commons Chamber

[Mr Rees-Mogg]

Pots and kettles, Mr Speaker—that was neither short nor sweet. The greatest uncertainty of all is having socialists in office because the socialists ruin economies wherever they go. They create desolation, chaos and high taxes. As I said before, every socialist Government have left office with higher unemployment, including the short-lived one of 1923.

[Peter Gibson (Darlington) (Con)]

I thank the BEIS ministerial team for the investment of £10.65 million in the Centre for Process Innovation at Darlington, which is leading the way in ribonucleic acid technology. May I invite the Minister to visit that fantastic facility in Darlington on our amazing mile of opportunity?

[The Minister of State, Department for Business, Energy and Industrial Strategy (Ms Nusrat Ghani)]

The vaccine taskforce did indeed grant £10.65 million to fund the launch of the CPI’s new centre of excellence in Darlington, and my hon. Friend did a great job advocating for that investment. That is on top of the £26.48 million that the vaccine taskforce previously put in place at the centre. If time allows, and if I continue to be the Minister, I will be more than happy to come and visit.

Home Energy Efficiency: North of England

Peter Gibson Excerpts

Wednesday 6th July 2022 Westminster Hall

[Mr Laurence Robertson (in the Chair)]

It feels somewhat hot in here to me. If hon. Members wish to remove their jackets, that is perfectly in order.

[Peter Gibson (Darlington) (Con)]

I beg to move,

That this House has considered energy efficiency of homes in the north of England.

It is a pleasure to serve under your chairmanship, Mr Robertson. I am delighted to bring this debate to Westminster Hall. At the outset, I declare my interest as a vice-chair of the all-party parliamentary group on housing and planning and of the all-party parliamentary group for housing market and housing delivery. I also place on the record my thanks to North Star Housing, the Conservative Environment Network, the Northern Housing Consortium and the National Housing Federation for their insightful and helpful engagement with me on this important issue in preparation for today’s debate.

Twenty-six per cent. of the north’s carbon emissions come from our homes—26%. If we are to tackle climate change and meet net zero, we have to do something about that 26%, in addition to all the other things that we are doing. Despite all the house building going on around the country, the UK’s housing stock is generally older than that across the rest of Europe. And in the north, we have a higher percentage of older properties than the rest of the country: 24% of all homes in the north were built before 1919, and 41% were built before 1944. These older homes are largely beautiful, characterful properties that provide us with the backdrop to much of our northern constituencies, but they pose serious issues when it comes to energy efficiency. Solid walls prevent the use of cavity insulation, and planning constraints require buildings to retain their character, making exterior work harder. That is alongside many other issues. Our Victorian terraces have proved particularly difficult to treat. However, we must find solutions to ensure that these homes are fit for the future. Future generations will thank us for our foresight in preserving these homes and doing our bit to save the planet.

The poor energy efficiency of homes in the north only serves to make our higher rates of fuel poverty even worse, compounding the problem. In my region, the north-east, we have the third highest levels of fuel poverty in England. Even before the price cap increased, 14% of households in Darlington and 15% in County Durham were classed as fuel-poor. Decarbonising homes and making them more energy efficient has the potential to offer part of the long-term solution to fuel poverty. Insulating homes better and reducing the reliance on fossil fuels to heat homes means less money spent on wasted energy, less money spent. It is a win-win for our homes, their residents and the environment.

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

I recognise the argument that the hon. Member is making about the north of England. I hope he will not mind my saying that my constituents in the north of London face similar problems and issues of fuel poverty. I am sure that all MPs here would say that emails on those issues are clogging our inbox. People up and down the country have been left uniquely exposed to the global gas crisis, because of the slashing of gas storage, the failure to regulate the market properly and the failure to invest in nuclear and renewables. Does the hon. Member think that we need a radically new approach to energy efficiency from the Government, and does he agree that they should seek to match Labour’s pledge to insulate 19 million homes over the next decade?

[Peter Gibson]

I thank the hon. Member for her intervention. If she is referring to homes in her constituency, I can well understand and imagine that they have the same issues as homes in the north of England. My objective in calling this debate was to have a constructive and non-partisan debate in order to raise the important issues that are relevant to my constituents and to concentrate on what the Government can do on top of what they are already doing. I am sure my right hon. Friend the Minister will do in his summing-up.

Energy efficiency also presents an opportunity to improve health outcomes in the north. Each winter, there are around 30,000 more deaths due to inadequate heating in homes. Retrofitting homes has the potential to seriously improve the health outcomes of those who currently live in poor housing. Health and wellbeing rightly have a prominent place in our levelling-up missions, and I want to impress on the Minister the real need to look closely at the benefits of retrofitting northern homes for that purpose. It is not cheap, but we all know that if you buy cheap, you buy twice.

Now, Darlington is a beautiful town, rich in heritage and filled with many traditional homes. We are, of course, the birthplace of the railways, and it is indeed the railway heritage and engineering industry that caused the expansion of our town. In Darlington, 65% of energy performance certificate ratings given to our homes are band D or below. That piles the extra cost of wasted energy on to the residents of those homes—at current energy prices. Merely upgrading homes from EPC band D to band C would cut heating demand by 20% for millions of households and would represent an estimated £2.9 billion bill saving per year in the north-east region.

However, with 62% of homes—around 4 million—in the north below EPC band C, that is a huge challenge. Currently, many stakeholders feel it is simply not financially viable to achieve. I want the Minister to know that I do not underestimate the scale of the challenge. The complexities of private ownership, private renting, and social housing in the mix make it a difficult puzzle to solve.

[Paul Blomfield (Sheffield Central) (Lab)]

In the spirit in which the hon. Member framed his earlier comments, I agree with everything he has said so far. He is right both to highlight the significance of domestic carbon emissions and to link it to fuel poverty. He may be interested to know that, in Sheffield, pretty much in line with the figures he has given, 60% of homes fail the EPC band C standard. The figure across Yorkshire and the Humber as a whole is worse, at 65%.

The hon. Member talked about a win-win. Does he agree that it would be a win-win-win-win-win if we did more on retro-insulation, because it cuts carbon emissions and fuel bills, tackles health issues, reduces our reliance on gas imports and creates jobs? Does he therefore share my desire for the Government to have greater ambition on retro-insulation?

--- Later in debate ---

[Peter Gibson]

It is as though the hon. Member has read a paragraph later in my speech. It would, indeed, be a win-win if we tackle this issue. Can we afford to not tackle the issue? Can we afford to not reap those health benefits, the energy cost savings, the wasted energy usage savings, and the preservation of our built environment?

I must acknowledge the work that the Government have done so far to tackle this issue. The heat and buildings strategy was published in October 2021, setting out the Government’s planned approach to reducing emissions from heating buildings. The social housing decarbonisation fund has awarded £179 million to 69 projects.

[Scott Benton (Blackpool South) (Con)]

My hon. Friend is articulating well the need for further measures to improve our housing stock. I am sure he will agree that now is an opportune moment to move ahead with this, given the pressure on household budgets. Blackpool received £1.4 million from the social housing decarbon-isation fund, and I am sure his constituency has benefited, too. Will he welcome those grants already given and support the need for further action to drive down those household bills?

[Peter Gibson]

Being familiar with my hon. Friend’s constituency, I well understand the situation and issues that his constituents face, as they are similar to those in my own. I was about to say that the Tees Valley Combined Authority has secured £2.6million from the social housing decarbonisation fund, from which homes in Darlington will benefit. I am grateful for that, and I welcome the contribution that my hon. Friend has secured for his constituency.

The local authority delivery scheme is also helping to improve energy efficiency: it is expected to save households across the country more than £2 million on energy bills every year. It is welcome that nearly 40% of the households that have been upgraded under the scheme are in the north. I also welcome the decision of the former Chancellor, my right hon. Friend the Member for Richmond (Yorks) (Rishi Sunak), to cut VAT on home upgrades in the spring statement, encouraging people to invest in wall and loft insulation. I know that the Minister will agree that we must continue this good work, and I ask what the Government can do to roll out the schemes more widely.

Although progress is under way on decarbonisation and retrofitting, we still have a long way to go, but I want to focus on the need to tackle the huge cost currently associated with making our homes more energy efficient. We cannot achieve decarbonisation while it remains financially unviable for homeowners, private landlords and housing associations to pay for the work. We also need to ensure that we bring communities with us as we embark on this challenge. Recent research by Onward found that people think that the invasion of Ukraine means we should be moving more quickly on net zero, but retrofitting a home is intrusive work, and many people do not see it as a priority for them. We need to be clear what the benefit of this work is to our communities, and the connection between home heating and reaching net zero must be emphasised. How can the Government make it clear to communities how they stand to benefit from more energy efficient homes? That is a challenge that I hope the Minister can respond to.

As part of my preparation for the debate, I have been in contact with Angela Lockwood and Emma Speight at North Star Housing to discuss the difficulties faced by housing associations when it comes to decarbonisation and retrofitting their properties. In short, they are fully supportive of moves to decarbonise homes, but the costs involved are prohibitive. To illustrate this, they made me aware of a pilot decarbonisation project that they are carrying out on a two-bedroom, late-Victorian terraced house in Middlesbrough that they are aiming to get to EPC level A, so that they can then monitor the performance of the building.

I have the figures in front of me. North Star Housing calculates that the cost of decarbonisation work will be £45,500, with £12,000 going on solid wall insulation alone. While the work is being carried out, the property must sit empty for around 20 weeks, resulting in a void period and a loss of rental income. Given that other houses on the same street are valued at around £70,000, North Star Housing is looking at spending well over half of the value of a property in order to decarbonise it. It is simply not viable for housing associations to be spending that much to decarbonise their stock without targeted support and assistance.

Equally, private owners of those properties will face similar costs. However, although the up-front costs may be high, investing in the region’s homes now is, as the hon. Member for Sheffield Central (Paul Blomfield) said, a win-win scenario for northern communities, because it will lead to warmer, healthier homes. Upgrading a home from EPC E to EPC C would reduce bills by an average of £595 a year, whereas upgrading from EPC F to EPC G would reduce bills by £1,339 a year. These are not short-term cuts to energy bills, but permanent reductions in household energy consumption, meaning that more of people’s money will be spent in our local economy.

The Government have seen that their retrofitting schemes can and do work. Data from the Department for Business, Energy and Industrial Strategy shows that the total estimated annual bill saving for the 12,143 households upgraded in phase 1 of the local authority delivery scheme is £1.2 million. I therefore ask my right hon. Friend the Minister to outline what more the Government can do to ensure that we continue to deliver these schemes.

Retrofitting homes in the north will also play a huge part in delivering on our levelling-up agenda, with the north having the best chance to reap the economic benefits of our transition to a low-carbon economy compared with other regions of the UK. The large-scale retrofitting of homes in the north has the potential to deliver new skilled jobs in the green industries of the future—again, as the hon. Member for Sheffield Central said, a win-win.

The Northern Housing Consortium’s “Northern Powerhomes” report showed that a large-scale programme of social housing retrofitting could lead to the creation of 77,000 jobs in the north by 2035, 15,000 of which could be in the north-east. However, we have only around 1,200 qualified heat pump installers across the UK, so we clearly have a skills gap. I urge the Minister to do all he can to plug that skills gap and attract new entrants to the good green jobs that a focus on northern housing can deliver.

I also ask the Minister when the new energy company obligation scheme will begin. In the north, a high proportion of homes are fitted with insulation measures through ECO, and the support the scheme gives to low-income households is highly valuable. I understood that ECO4 was expected to begin in April. I would welcome any clarity the Minister can provide on the potential expansion of the scheme and when we might expect it.

We are now free of the bounds of Europe, and we can be bold, imaginative, creative and entrepreneurial. If we can lead the way in the north-east with carbon capture technology or hydrogen production, with vision our region can lead the way in innovating the retrofitting our old homes.

The north-east already has some innovative solutions. The Coal Authority in Gateshead is using mine water to generate heat for local homes and businesses. Will the Minister look closely at that project to see how it can be exploited at scale? Many gas boilers can already be made hydrogen-ready. As we transition away from fossil fuels, will the Minister look at what steps he can take to make every new boiler installed hydrogen-ready as soon as possible, rather than waiting for some date way off in the future?

Millions of homes across the country are just like those in the north, so the Government need both the carrot and the stick to drive this forward. We have no time to lose. I am proud of our built environment and want it to be preserved and protected for future generations, but I want my constituents’ homes to be warm and efficient too. There should not be a binary choice between two ambitions. There is a range of imaginative policy solutions and ideas to accelerate this process, including changes to stamp duty, incentives for home buyers to carry out these works at the beginning of their ownership, and creative financing through green mortgages, whereby the lender provides an initial sum on the original drawdown to fund the works, with the necessary conditions in place to ensure that the funds are not diverted elsewhere. We can even use the taxation system, through salary sacrifice. If it is good enough to fund car hire, the purchase of a bike or childcare, it should be good enough to provide improvements to our homes.

It is clear that improving the energy efficiency of homes in the north is a huge challenge. However, it can bring huge benefits to communities such as mine in Darlington. We can permanently bring down heating costs for millions of households, improve health outcomes for some of the most vulnerable in our society and level up communities that have been left behind by getting behind new, innovative green industries and delivering highly skilled jobs for our constituencies. I hope the Minister will give serious thought to all the points I have raised, and I look forward to hearing the rest of the contributions from across the Chamber.

--- Later in debate ---

[Mike Amesbury (Weaver Vale) (Lab)]

It is a pleasure to serve under your chairmanship once again, Mr Robertson. I thank the hon. Member for Darlington (Peter Gibson) for giving us all the opportunity to be here to debate and ask questions of the Minister on this vital subject. Retrofitting homes, and ensuring that new homes are built to meet energy-efficient standards, is one of the most important things we can do to meet our net zero commitments by 2050. It was only in 2019 that Parliament declared a climate emergency. To reach net zero, we have to insulate Britain and if we do not, we will miss those targets by a mile.

The challenge we have before us is, of course, immense. The UK’s housing stock, as the hon. Member pointed out, is among the oldest in the world and the leakiest in western Europe. It is thanks to the Government’s inability to build the necessary number of houses of the right tenure and in the right places that things are going at a snail’s pace. There is considerable debate about the immediate challenges facing the Government around targets, but the consensus is around the 300,000 mark, which is highlighted in the Bill currently going through Parliament. As we speak, new homes are not, in the majority of cases, being built to the standard of energy efficiency we would expect. In fact, 1.5 million new homes have not met that standard over recent years. As hon. Members across the Chamber have rightly pointed out, that contributes to the dire situation on energy costs for every family in this country. There were reports in the media today—despite lots of other things we are focusing on, particularly the Government—that those bills are projected to rise to £3,000, so this is more important than ever. The failings on residential energy efficiency must be seen through the lens not only of the Government’s failure on climate policy, but of their failure to ensure that everyone in this country has a good, safe home.

Across the north, 19% of all homes are classed as non-decent and 12% fail to meet minimum standards, posing a category 1 health hazard to residents, which means potential death, permanent paralysis or serious injury. What kind of society lets 12% of its constituents live in those conditions? The energy efficiency of homes in much of the north is below the English average, which has been rightly pointed out as being shockingly low in itself. Across the country, nearly 60% of homes are not in the top three bands for energy efficiency. The north-west comes in just under the national average and the north-east just above, but Yorkshire is falling far behind and has the lowest proportion of any English region, with only one in three houses meeting efficiency standards.

Applying regional figures on energy certificates to the number of dwellings in the two local authorities covered by my constituency of Weaver Vale gives a rough idea of the scale of the challenge more locally. Some 35,000 homes in Halton alone need to be upgraded, alongside an incredible 96,000 in Cheshire West and Chester. As well as being a huge challenge, upgrading 19 million homes nationwide is an incredible opportunity. The economic case for making homes green is clear in the levelling-up White Paper, which has been referenced. In fact, the White Paper talks about an intervention in skills creating opportunities and 240,000 jobs by 2035 for the upgrading of homes. The hon. Member for Darlington referred to 77,000 jobs in the north. It is a strong case that has political consensus.

Can the Minister outline what the Government are doing to work with businesses, schools, universities, colleges and training providers to ensure that our localities have the skills that we need? I was at an event yesterday—just as other events were unfolding—at the Royal Society of Arts. Mayor Burnham was there, as well as Mayor Andy Street. Their asks of Government at the moment are to turbocharge devolution, particularly around the skills agenda, and ensure that the budget captured from Whitehall is put into the localities, whether that is Greater Manchester or the west midlands, to drive forward this agenda. Again, it is about common sense and political consensus.

Despite the hon. Member for Darlington referring to the non-partisan nature of the debate, we are of course politicians, and we do have different values and ideas, whether we are social democrats or conservatives. At times, political choices have consequences. Certainly in the past, the Conservative story of green homes has been one of short-term thinking and broken promises. To evidence that, back in 2013, the Conservative-led Government cut energy efficiency programmes. I will of course not let the Liberal Democrats off there, because, despite much denial, they were part of that Government at the time.

[Peter Gibson]

I beseech the hon. Gentleman to recognise that this is a failure of Governments of all colours over many decades to sufficiently and completely resolve this problem. It is a massive problem that every previous Government have failed to tackle. I welcome the steps the Government have taken, and I have urged the Minister to invest more. If we are going to be party political in this debate, I would love the hon. Gentleman to outline what his Government between 1997 and 2010 did to tackle this problem, because these constituencies that we are talking about were largely Labour-held constituencies at that time.

[Mike Amesbury]

The standards that were ditched would have come into play in 2015, which would have meant that hundreds of thousands of homes would be retrofitted and insulated and built to better standards. The new standards do not come into play until 2025—that is if the current Government exist over the next few months or even weeks.

There was also the green homes grant flagship scheme, which was scrapped just six months after its launch. There has been reference to the current social housing programme, which I welcome. Certainly, social housing providers in my constituency are trying to capture that investment, but again, it is insufficient, short term and bureaucratic. It could be better. That is feedback we will all get, regardless of our political persuasions.

I doff my cap slightly to the Welsh Labour Government, who have just announced £33 million in green funding for residential developers to help them deliver thermally efficient and lower-carbon homes, many of which will be available for social rent. The Government could do better on that—fewer than 6,000 homes for social rent were built last year. We need to be more ambitious.

Having spoken to developers, social housing organisations and councils, what they really need from the current or future Governments is leadership, clarity and a long-term strategy. If housing associations want to plan for the future, they need to do so in 10 or 20-year cycles. At the moment, with some schemes running for only six months, it is very difficult to plan or invest in some of the basics to do with upskilling our local communities.

In conclusion, I have three questions for the Minister. How will he respond and focus on the long term—despite the current challenges—rather than on the short term, in getting to net zero by 2050? What support will be given to the private rented sector and landlords on retrofitting? What investment is going into stimulating green hydrogen, beyond blue hydrogen, with our various projects, whether in the north-east or in the north-west, which are fantastic for energy-intensive industries? We need that investment, and we need it now.

--- Later in debate ---

[Dr Alan Whitehead (Southampton, Test) (Lab)]

We have had a good and important debate this afternoon. I congratulate the hon. Member for Darlington (Peter Gibson) on bringing forward the debate and on the exemplary way in which he put forward his case. I largely agree with what he said, particularly his emphasis on conditions in homes in the north of England and the work we need to do on retrofitting. He gave a number of instances of homes in the north of England and their circumstances, particularly the average age of properties, and the fact that it is rather colder up north than it is down south—I say that as the Member for Southampton, Test.

In the north of England, property stock is substantially older than the average for the UK and, as the hon. Member for Darlington mentioned, that older stock is substantially single-skinned properties, which need different forms of treatment from properties with cavity wall insulation. From energy efficiency surveys, it is interesting to see that pre-1930s properties have a median energy efficiency score of 56, according to the report I am looking at, whereas buildings built from 2012 onwards have a median energy efficiency score of over 80. So we have a huge block of properties in the north of England that have very low energy efficiency scores, and it is difficult to do anything about them other than provide whole-house treatment for the amelioration of their problems.

Bearing in mind that issue, we also have a huge gap between the emissions from new build properties and those from existing dwellings. Indeed, the north-east has one of the largest gaps between emissions from new and old properties. In the north-east, there are emissions of just over 1.5 tonnes of carbon dioxide per year from a new property, compared with over twice that amount—3.6 tonnes per year—for existing properties. So there is a huge job to be done, particularly in properties in the north of England, to help us get to our net zero targets and to retrofit properties throughout the country.

The call from the hon. Member for Darlington for much more work to be done on the energy retrofit of properties is important for climate change purposes and for future energy bills. It is estimated that £400 to £500 can be saved from energy bills in an uprated energy-efficient property. It is also important for the comfort and good living that we expect in any household in the country. The problem relating to damp and older properties is not just in his part of the world, but in the north generally. This debate is timely and important, and we must have the retrofit debate in the not too distant future.

I cannot be entirely non-political in this debate, as the hon. Member suggested we should be, although we all agree in this Chamber on what we want to do with retrofitted properties and on why it is important and relevant to climate change, fuel poverty and the welfare of citizens.

[Peter Gibson]

I am pleased to hear the tone of the hon. Gentleman’s speech up to this point. Although the debate is focused on the north and north-east, and on the types of housing stock in my constituency and other northern constituencies, I am sure that the type of housing stock in his own constituency—perhaps he will mention that—would benefit from some of the improvements, even though his constituency is on the south coast.

[Dr Whitehead]

I can assure the hon. Member that I am not approaching this debate as if all the retrofit problems are in the north of England and not in the south. It is a national scandal that homes across the UK have got some of the worst energy efficiency performances of any properties in Europe. On other occasions the Minister has said that it is not such a big problem because of the way in which energy efficiency has increased in our housing overall in the last few years.

However, if we look at all parts of the country, there is a big lag between the energy efficiency, albeit under slightly different circumstances, across the country and the energy efficiency of new properties, so the figures do not quite tell the truth as far as energy efficiency improvement is concerned. Most of that improvement is because newer housing, recently built properties, are so much more energy-efficient than older properties. In fact, as we can see from the collapse of energy efficiency retrofit arrangements after 2012, there has not been a great deal of movement in the energy efficiency of properties in all parts of the country. The north of England faces even worse problems in getting its property up to retrofit standards than other parts of the country.

[Peter Gibson]

All of us in this Chamber have alluded to the scale and size of the problem. Does the hon. Gentleman agree that this is also a really complex problem because of the types of ownership of some of our properties? We are not talking about just one type of ownership. There are private landlords, social housing providers, absentee landlords and private homeowners, which makes the problem particularly complex. As we have so much time remaining in the debate, I would be incredibly grateful to the hon. Gentleman if he could outline some of his suggestions and proposals to tackle the problem.

[Dr Whitehead]

The hon. Member invites me to make a lengthy speech about what my party has in mind for energy retrofit, but also about what my party has in mind for dealing with complex situations in different sectors of the housing market. He rightly says that the question of energy efficiency standards is very different in different tenures of property—social housing, private rented sector and owner-occupied housing—and the solutions that one needs to put forward have to be different for different kinds of tenure. Furthermore, as I am sure the hon. Member has noticed, those tenures are intermixed with each other in most areas, so there are very few parts of the country where there is just one kind of tenure.

In my constituency, one of the issues is that there is a very high level of houses in multiple occupation and properties that are rented out by private landlords. There is also a substantial student population in my city, so a number of the houses are rented out by private landlords on a quick turnover, and with very little regard for the energy efficiency of those properties in the long term. Although one might say that the general housing arrangements in my city are better for energy efficiency than in some other parts of the country, there are specific issues relating to how energy efficiency might be looked at. One issue is just how bad energy efficiency is in the private rented sector and what measures need to be undertaken to get those houses to a decent level of energy efficiency in order to make them marketable rental properties.

In the past, a specific part of the legislation was on minimum energy efficiency standards. We think that needs to go a lot further by addressing the marketability of homes and the requirement on landlords to get those properties up to a decent energy efficiency level in order to rent them out in the first place. As the hon. Member for Darlington will know, there is legislation in place that requires landlords to bring their properties up to the band E energy efficiency requirement, but that is grossly insufficient for the targets that we need to set on getting the private rented sector up to scratch with energy efficiency.

[Peter Gibson]

I am grateful for the hon. Gentleman’s indulgence in giving way a third time, and for him talking about putting the burden of meeting those property costs on some of our landlords. We have seen examples of landlords being forced to do some of the work that is required to bring their properties up to standard. As a result, they are exiting the market—some people might say that is a good thing—and then selling the properties, which is having a deflationary impact on the value of properties in specific localities. In turn, that compounds the problem of the ratio between the cost and value of the asset and the cost and value of the investment required, which can actually have the opposite effect to the one desired.

--- Later in debate ---

[Peter Gibson]

It is a pleasure to follow the Minister, and I thank him for his response to today’s debate. It has been a healthy debate. We heard some great speeches from my hon. Friend, neighbour and constituent the Member for Sedgefield (Paul Howell), the hon. Members for Stockport (Navendu Mishra), for Weaver Vale (Mike Amesbury) and for Wirral West (Margaret Greenwood), and the Opposition spokesman, the hon. Member for Southampton, Test (Dr Whitehead), although I was disappointed to not actually hear the meat and drink of Labour’s plans to tackle the problem.

We had interventions from my hon. Friend the Member for Blackpool South (Scott Benton) and the hon. Member for Sheffield Central (Paul Blomfield), who gave me the great line that tacking this problem is a “win-win-win-win-win” situation. We also had a deeply political intervention from the hon. Member for Hampstead and Kilburn (Tulip Siddiq), who is no longer in her place.

It is clear that the Minister understands the challenges of our housing stock—the energy, retrofitting, disruption and lost income costs and the energy wastage—but also sees the benefits of warm homes, less leakage, improved health, skills and jobs that tackling this problem will bring. It was wonderful to hear the progress that has been made over the last 10 years, taking us from 14% to 46% of homes having an energy performance certificate of C or better, but let us accelerate that and make sure this is a win for the environment, homes, bill payers, jobs and skills.

Question put and agreed to.

Resolved,

That this House has considered energy efficiency of homes in the north of England.

[Mr Laurence Robertson (in the Chair)]

Order. The mover of the motion for the next debate is not here. I will give him a couple of minutes, but I will otherwise have to suspend the sitting until 4.30 pm.

Oral Answers to Questions

Peter Gibson Excerpts

Tuesday 11th January 2022 Commons Chamber

[Simon Fell (Barrow and Furness) (Con)]

8. What support his Department is providing to life sciences clusters across the UK.

[Peter Gibson (Darlington) (Con)]

12. What steps he is taking to develop the UK’s life sciences sector.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (George Freeman)]

As a result of this Government’s long-term life science strategy, now a 10-year strategy, I am delighted to be able to share with the House that the life science sector has grown, in terms of private investment, by 1,000% in the last 10 years and is creating jobs all around the UK—in Northern Ireland, Scotland, Wales. At the heart of our strategy for the innovation nation, in our life science vision last summer we set out a plan, with £5 billion in the comprehensive spending review of funding for life science research, and we intend to support those clusters all around the UK.

[George Freeman]

I thank my hon. Friend and pay tribute to his tireless campaigning for Barrow and Furness and on this issue. I understand well the concerns following GSK’s movement from the Ulverston site. I would just make this point: quite often such moves of pharma from one site to another create an opportunity. As the Minister for Life Sciences, I launched the life science opportunity zones and we created thriving clusters at Alderley Park and Sandwich; it would be my ambition to do the same up at Ulverston. I very much look forward to coming up and visiting, and my officials are working closely on that as we speak.

[Peter Gibson]

Central Park in my constituency is furthering Darlington’s ingenious spirit as it drives forward UK life sciences, with firms on our golden mile creating and developing the medicines of the future, as the Secretary of State knows from his recent visit. Will my hon. Friend outline what steps his Department is taking to ensure that firms in Darlington use local talent in the pursuit of further scientific breakthroughs?

[George Freeman]

My hon. Friend makes an important point about talent and is right that a powerful cluster is taking shape in the north-east. Following my return to the Government two months ago, my first visit was to the north-east. From Darlington to North of Tyne, an incredible cluster is taking shape, with the National Biologics Manufacturing Centre, the Centre for Process Innovation and the National Horizons Centre all in that golden mile in Darlington. It is an incredibly exciting time and I look forward to going back up to see my hon. Friend’s constituency and how we can develop a skills plan so that the sector can grow in the next five to 10 years.

--- Later in debate ---

[Kwasi Kwarteng]

My understanding of the Labour proposal—I might have got it wrong—was that the windfall tax would not be directed to companies; it was, as I read it, directed to consumers. He will know that I, as Secretary of State, have always engaged with energy-intensive users and companies, and I am looking at the moment to try to get a solution to this problem with colleagues across Government.

[Peter Gibson (Darlington) (Con)]

T2. I commend BEIS Ministers for their enlightened decision to locate part of their team in Darlington. At the same time as we level up with more jobs in Darlington, LNER is planning to reduce services to Darlington, which will have a detrimental effect on connectivity. What steps is my hon. Friend, in collaboration with colleagues, taking to protect connectivity vital to businesses in Darlington and right across the country?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

As my hon. Friend knows, a decision has not yet been taken on the outcome of the timetable consultation. Transport connectivity is largely an issue for other Departments, none the less we appreciate the importance of connectivity and infrastructure. We know that my hon. Friend will be an absolute champion of that—he has done a huge amount in his short time in this location.

SMEs: Access to Finance

Peter Gibson Excerpts

Tuesday 9th November 2021 Westminster Hall

[Mark Pritchard (in the Chair)]

I remind hon. Members that they are expected to wear face coverings when not speaking in the debate. This is in line with current Government guidance and that of the House of Commons Commission. I also remind hon. Members that they are asked by the House to have a covid lateral flow test twice a week if coming on to the parliamentary estate. That can be done either at the testing centre in the House or at home. Please also give each other and members of staff space when seated and when entering and leaving the room, and make sure that mobile devices are turned off.

[Peter Gibson (Darlington) (Con)]

I beg to move,

That this House has considered access to finance for small and medium sized enterprises.

It is a pleasure to serve under your chairmanship, Mr Pritchard. I am grateful that this timely debate was granted. Following the UK’s departure from the European Union and our ongoing economic recovery following covid-19, the UK has a unique opportunity to shape a diverse financial services sector that serves a fair, robust and competitive economy with small and medium-sized enterprises at its heart. Research by the Industrial Strategy Council, economists at Sheffield University and the International Monetary Fund concluded that the UK is the most regionally imbalanced country in Europe when it comes to the productivity of its economies.

It is worrying that the job opportunities and livelihoods of most UK citizens depend on where they live. We know that skills and talents are spread throughout the country but opportunity is not, and so it is with SME finance. The Prime Minister has rightly made levelling up his key mission, examples of which I am already beginning to see in my constituency, with the establishment of the Darlington Economic Campus providing life-changing new opportunities for the Tees valley. I and my Conservative colleagues look forward to the levelling up White Paper and the opportunity that it will provide to right some of the imbalance in our country that has perpetuated under Governments of all colours for decades.

How does regional inequality relate to small businesses up and down the country? As Mark Carney said when Governor of the Bank of England in his speech at the Lord Mayor’s banquet for bankers and merchants in 2019, SMEs across the country face a £22 billion funding gap. A recent inquiry by the all-party parliamentary group on fair business banking, chaired by my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), my good friend, found that SMEs report significant problems in accessing finance.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

I congratulate the hon. Gentleman on securing the debate. I recently met representatives of the British Business Bank, who ran through their full range of offerings, including optional learning modules for entrepreneurs, which are an excellent way to mitigate lending risk and provide entrepreneurs with the knowledge they need to be successful. Does he agree that that is an excellent initiative and should continue to be funded and expanded?

--- Later in debate ---

[Peter Gibson]

There is a lot to be learned in this area. My hon. Friend the Member for Thirsk and Malton and his APPG have been championing much of that learning, and I am sure the Minister has his listening ears on today.

The Department for Business, Energy and Industrial Strategy’s 2019 paper, “Equity Finance and the UK Regions”, confirmed that finance is too concentrated in London and the south-east, further increasing regional disparities, with London and the south-east of England receiving 67% of all equity deals and 75% of all invested funds in the UK between 2011 and 2017. The UK’s current financial system, which has historically been dominated by four large, shareholder-driven banks, is not fit for purpose in helping to address this issue. While a Back Bencher, my neighbouring MP, the Chancellor, my right hon. Friend the Member for Richmond (Yorks) (Rishi Sunak), said in his report, “A New Era for Retail Bonds”, that

“limp competition is likely to result in less availability of credit, higher prices and poor service for SMEs.”

SMEs tend to take smaller loans, and by nature tend to be riskier borrowers. The profit-maximising big four banks will steer away from lending to this demographic, especially when they are able to lend to larger, more profitable and secure companies.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

My hon. Friend makes a good point about smaller loans. Last year, the Government—BEIS and the Treasury—did a fantastic job in rolling out SME finance schemes during the crisis. When those schemes were launched, the banks were initially only interested in lending amounts above £25,000—sometimes above £50,000. We were told there was no demand for smaller loans. Bounce back loans then came along and have been a huge success—£50 billion of lending. It is important we get money right to the bottom—to the smallest SMEs that are so critical.

[Peter Gibson]

I know how much work my hon. Friend put in last year to ensure that bounce back loans were available to small businesses, and I pay tribute to him for that effort.

Moreover, big banks tend to require large amounts of financial data from businesses when assessing their eligibility for loans. For a new or small company, this data simply does not always exist, but should that prevent them from being eligible for finance? SMEs need to be assessed on their business model and their economic potential in local areas and their wider potential contribution to society, not just on existing balance sheets—qualitative rather than quantitative. Yet this process is too time consuming for banks, preventing SMEs from crossing the first hurdle.

Due to the concentration of finance within large, shareholder-driven banks, SMEs are often not even aware of alternative lending providers and think that rejection from a big bank is a life sentence with a lack of finance. The current bank referral scheme, originally designed to help businesses access finance once rejected by a bank, fails to provide adequate information on a diverse range of borrowing options and fails to help SMEs understand why they got rejected, what financial products are best suited to them, and how they can optimise their application to get the best chance of success.

This environment discourages SMEs from continuing their search for finance, despite competitive, socially responsible and trustworthy alternative lenders being out there and wanting to lend to SMEs. In fact, as found by the Federation of Small Businesses in 2018, 73% of SMEs in the UK would rather grow more slowly than borrow. The Centre for Policy Studies also found that the UK is ranked 13th among the 14 OECD countries in the proportion of start-up businesses that grow to 10 people or more in three years.

I recall the huge leap of faith and risk I had to undertake when I began to grow my business. Moving from five to six employees was a big hurdle to overcome, as were the leaps to 15 and to 20 employees. The smaller you are, the bigger the hurdles. Moving from one employee to two is a doubling of the payroll, which will inevitably put a strain on small and fledgling businesses’ cash flow. Because that is so difficult, many businesses do not grow to their full potential.

The critical lack of diversity in the business lending market is detrimental to the resilience of the UK economy. As we continue to debate how the future regulation of the financial services sector should look, we must consider parts of the world where they are already doing well. Take one often-cited example from the critical post-recession period of 2008 to 2013: total bank lending to non-financial business in the UK dropped by about 25%. However, during the same period in Germany, where regional mutual banks and co-operatives are commonplace, lending increased by around 20%.

This critical lack of funding for SMEs is also detrimental to growth of the UK economy. The Department for Business, Energy and Industrial Strategy and the Office for National Statistics estimate that SMEs represent 99% of businesses. Their abundance means they have the potential to increase UK productivity. They are areas that the UK has struggled with for many years. More specifically, many SMEs contribute greatly to their local communities through increasing local employment, contributing to local economic growth and improving livelihoods. As the recent report of the APPG on social integration, which I chair, recently reported, SMEs were at the forefront of community volunteering during the pandemic.

I know the Minister is a good man. Although the Westminster Hall debate he is responding to today does not have the fireworks of yesterday’s, I can assure him that the solutions are within our grasp. It does not need years of planning and strategising; the solutions are out there. They just need support and political will.

First, we must deliver a strong local finance option for businesses in the UK. We cannot continue to deprive hungry and ambitious businesses of access to finance and scaling up, simply because they do not have access to the right financial product. We need to provide capital to community development financial institutions and regional mutual banks, to allow them to increase their offering.

Community development financial institutions are private finance institutions that are dedicated to providing responsible, affordable lending to disadvantaged communities and individuals. They do not prioritise profit, but prioritise allowing local-income areas to flourish. By providing finance as well as financial support and knowledge, CDFIs look at the wider benefits that each SME can provide to its local area, financing businesses that can make the biggest impact, even if they have been rejected by the big four.

Regional mutual banks have a more regional structure, prioritising relationship banking and making use of soft information to assess SME customers for credit.

[Kevin Hollinrake]

My hon. Friend makes a good point on regional mutual banks, and I congratulate him on bringing forward this important debate. It is also a pleasure to serve under your chairmanship. Mr Pritchard. Might my hon. Friend consider, in conjunction with his fellow MPs in the Tees Valley and the excellent Tees Valley Mayor, Ben Houchen, taking forward an initiative to set up a Tees Valley regional mutual bank?

[Peter Gibson]

That is an excellent idea, which I am sure my hon. Friend would be keen to help us spearhead. I am sure that Mr Houchen and the Tees Valley Combined Authority would relish the opportunity to bring more investment to the Tees Valley.

These finance providers tend not to have capital stock but are owned by their members, who have a say over the governance of the fund. Both regional mutual banks and CDFIs bring a refreshing approach to finance, prioritising local growth over profits—an approach that is much needed in today’s market. I know, too, from my own experience in business over 15 years before entering this place, that those relationships, with a dedicated relationship manager, are crucial.

Put simply, we need local solutions to local problems. Tees Valley Mayor Ben Houchen is leading the way in the north-east, having recently launched a new back to business fund worth £250,000, granting small and medium-sized businesses in the hospitality, tourism and events industry the help they need in their journey to recover from the pandemic. That is local leadership with local solutions.

Secondly, we need to turbocharge the challenger bank and non-bank lending sector. Such companies have provided a welcome challenge to the big four banks in recent years, yet they are currently hamstrung by disproportionate regulation. Reforming the minimum requirement for own funds and eligible liabilities—MREL rules—and providing access to the term funding scheme for non-bank lenders, will create a more level playing field for challenger banks in competing against the big four.

Thirdly, we need to continue Government initiatives to unlock patient capital from pension funds, by using social usefulness criteria, an idea currently used in France. We can unlock that money for investment in long-term, socially important companies.

Fourthly—last but certainly not least—we must ease the finance application process to encourage borrowing for growth. We need to ensure that business support services, such as local enterprise partnerships, the bank referral scheme and the British Business Bank—I am grateful to the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) for mentioning it—are properly funded.

Small businesses are the backbone of this country— 99% of businesses in the UK are classed as small. They play an essential role in strengthening our local economies, creating job opportunities and introducing innovation to their local communities. They are the businesses that support our local charities and volunteer groups. They are the people who sponsor the local football, cricket or rugby club, and they are the lifeblood of our towns across the land.

As we bounce back and build back better, we must take advantage of this opportune moment to reshape the financial services sector in a way that puts those hard-working businesses at its heart. Improving access to finance will provide SMEs with ample opportunity to scale up businesses and communities and improve employment chances across the country. In short, we need a financial services sector fit for everywhere, from Devon to Darlington—fit for the whole United Kingdom, not just the City of London.

--- Later in debate ---

[Peter Gibson]

I have thoroughly enjoyed this wide-ranging debate. Despite the small number of speakers, we have certainly covered a varied range of topics. As we have heard, access to finance is not an end in itself. We have covered issues such as the future recession preparation, helping to tackle carbon reduction, servicing of covid finance loans, regulation of the financial services sector, diversity in funding, the need for growth, regional inequalities, unlocking pension funds and the need for mutual banks.

I am incredibly grateful to my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), who has been an incredible support to me since I arrived in this place. I am grateful for all he does with the APPG on fairer business banking. He was right to highlight the need to tackle the issue of decarbonisation with the banks.

I am grateful to the hon. Member for Motherwell and Wishaw (Marion Fellows) for highlighting the work that the Federation of Small Businesses is doing and the need to tackle regional inequalities in this area. I thank the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) for her interventions during the debate and the right hon. Member for Wolverhampton South East (Mr McFadden), who highlighted the need for growth and his concerns about how banks are capitalised.

I turn now to the Minister’s speech. I know that he is a real champion of small businesses and that he understands business and listens. He knows, as do I, that small businesses are the backbone of what will drive the economy forward. I know that he is committed to the cause of our SMEs, and I am grateful for the role that he is fulfilling. I am delighted to hear that the Treasury is prepared to listen on the need for mutual banks.

Question put and agreed to.

Resolved,

That this House has considered access to finance for small and medium sized enterprises.

Fireworks: Sale and Use

Peter Gibson Excerpts

Monday 8th November 2021 Westminster Hall

[Peter Gibson (Darlington) (Con)]

It is a pleasure to serve under your chairmanship, Mr Twigg. I pay tribute to my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) for leading the debate. I place on record my thanks to my 524 constituents who took the time to sign this petition on the sale of fireworks.

We all know how special 5 November is for people across the country, as we celebrate the foiling of the gunpowder plot in 1605, merely yards from where we are today. Many people look forward to bonfires and dazzling firework shows, especially after the cancellation of scheduled events last year. I know the excitement and anticipation in Darlington about the return of the organised display in South Park in 2022, thanks to the leadership of the Conservative council.

However, many people are also afraid of the impacts of unscheduled, home-based displays on pets and loved ones with health conditions. From reports of events here in Westminster over the weekend, we also know that fireworks can be used as weapons and pose a threat to the safety of our hard-working police officers.

As a dog owner, I well understand the concerns of Darlington pet owners for their beloved pets. Similarly, the impact on family members suffering from conditions such as PTSD is a worry. I have been moved by the responses to my snap call for views over the past few days, as constituents have told me distressing stories of how their loved ones and animals suffer from overly loud, overly disruptive firework displays put on by residents in Darlington.

However, the overriding opinion is that a complete ban on fireworks is counterproductive. It is right that the Government focus on ensuring that an enforceable, comprehensive framework is in place to control availability and use. Under existing guidance, using fireworks outside curfew hours is a criminal offence, which can be enforced by the police and can lead to imprisonment and a substantial fine, but we rarely hear of it being enforced. We know that the antisocial use of fireworks continues around the country, and I look forward to the Minister outlining the progress his Department has made to clamp down on illegal fireworks, which continue to be bought online or on the black market.

Carbon Capture and Storage

Peter Gibson Excerpts

Wednesday 20th October 2021 Westminster Hall

[Peter Gibson (Darlington) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Miller. I congratulate my hon. Friend the Member for South Cambridgeshire (Anthony Browne) on securing and leading this important debate, shining a spotlight on the exciting prospects posed by carbon capture. This new technology will play a vital role in tackling climate change and reaching our net zero target by 2050.

The Government have already invested heavily in ensuring that carbon capture is used across the country. That is abundantly clear in Tees Valley, and I am grateful to the hon. Member for Stockton North (Alex Cunningham) for welcoming the Government’s steps there. Only yesterday, it was announced that the east coast cluster has been selected by Ministers to develop carbon capture facilities. I was delighted to learn that Net Zero Teesside, which will be based at Teesworks, will receive a share of the £1 billion carbon capture and storage infrastructure fund. That will enable the creation of the new common infrastructure needed to transport CO₂ from industrial plants across Teesside to secure offshore storage in the southern North sea.

Championed by our phenomenal local mayor, Ben Houchen, and spearheaded by local industry, the carbon capture cluster will remove 50% of the UK’s industrial cluster CO₂ emissions and support our national energy transition to achieve our net zero target. The project will capture 10 million tonnes of carbon—the equivalent of that produced by 3 million homes, while creating 25,000 skilled jobs by 2050 in a variety of sectors from construction to low-carbon technology. It is essential that the Government continue to invest in exciting technology to achieve their 2050 net zero target, and I welcome the steps already being taken in Teesside.

The support of the Government is immense and I am grateful for it. However, we cannot ignore the vital role that the private sector will play in assisting our energy transition. In Darlington, we have the excellent Cummins engine manufacturer, which will continue to build on Darlington’s proud engineering history as it develops a hydrogen engine. With £14.6 million of Government-backed funding through the Brunel project, the carbon-free engine will revolutionise our road haulage sector and stop 11 million tonnes of carbon going into the atmosphere.

[Alex Cunningham]

I am grateful to the hon. Gentleman for giving way. My father worked for the Cummins engine company for 40-odd years. That was almost next door to the Cleveland Bridge & Engineering Company, which has now gone to the wall. Does he agree that that was a great sadness, and that the Government let the company down?

[Peter Gibson]

I am grateful for that intervention. Having worked extensively with the administrators, local government and the unions in respect of Cleveland Bridge, I assure the hon. Gentleman that every step that could have been taken to save that business was taken.

In conclusion, Darlington and the wider Tees Valley were there at the beginning of the first industrial revolution. Once again, we are centre stage in the clean, green revolution as we stride towards net zero, which carbon capture is central to.

Oral Answers to Questions

Peter Gibson Excerpts

Tuesday 21st September 2021 Commons Chamber

[Andy Carter (Warrington South) (Con)]

11. What steps his Department is taking to support hydrogen production in the UK.

[Peter Gibson (Darlington) (Con)]

20. What steps his Department is taking to support hydrogen production in the UK.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

My hon. Friend the Member for Warrington South (Andy Carter) asks a timely question; he may be aware that the United Kingdom recently published a hydrogen strategy outlining the Government’s comprehensive package to incentivise low-carbon hydrogen, and a broader plan to help the wider hydrogen economy to develop.

--- Later in debate ---

[Peter Gibson]

I welcome my hon. Friend to his place. Teesside already produces more than 50% of the UK’s commercially viable hydrogen. What assessment has he made of the benefits of the recently signed deal between BP, the Abu Dhabi National Oil Company and Masdar for the Tees valley? Does he support the phenomenal work being done locally by Ben Houchen to revolutionise our green energy sector?

[Lee Rowley]

The benefits will be huge. This work is another example of the fantastic Conservative Tees valley team led by my hon. Friend, supporting Darlington, and the Mayor, and it demonstrates what we can do in an area to level up and improve it for the long term.