Net Zero: 2050 Target

Debate between Richard Foord and Kwasi Kwarteng

Tuesday 6th June 2023 Westminster Hall

[Kwasi Kwarteng]

I commend the hon. Gentleman for making that point, because he knows better than anybody how important Northern Ireland is to the transition. There are some great hydrogen businesses there, in particular. As Secretary of State for Business, Energy and Industrial Strategy I was privileged to visit Queen’s University Belfast, a world-leading academic institution in its focus on new technologies—not only energy technologies but cyber-security technologies and others. I am pleased that he has contributed so ably to this debate, as he always does.

I want to set out a few areas in which we have had successes, and then point out others where we have perhaps found the terrain heavier going and where there have been greater challenges. As I look at British energy policy, I see that some things are going very well and others could be improved.

First, as was mentioned in the previous debate, the biggest success in the net-zero space since I have been in the House has been power generation, including electricity and the grid. Even as late as 2012, 40% of electricity, such as the lights and everything we see around us, was derived essentially from burning coal, using a 19th century technology. Today, that figure is 1.5%. Across 11 years, we have essentially taken coal off the generating grid, which is a huge achievement. Many of us in this room will remember how important coal has been to the political and economic debate in this country. As we were growing up, there was never a day when we did not read about coal strikes, or industry-related issues around coal.

[Richard Foord (Tiverton and Honiton) (LD)]

Will the right hon. Gentleman give way?

[Kwasi Kwarteng]

I warn other Members that I will have to make progress, but I am happy to take this intervention.

[Richard Foord]

I am very grateful to the right hon. Member. On the point about comparing today with 2012, the UK’s draughty houses make up 14% of the UK’s carbon emissions. In 2012, we were insulating 2.3 million houses every year, whereas now we are insulating fewer than 100,000. Does the right hon. Member accept that the Government would have saved taxpayers millions of pounds on the energy price guarantee if they had only kept insulating homes at the rate they were in 2015?

[Kwasi Kwarteng]

Of course, that would have been at great cost, and it would have been brought forward. I do not know what the effect of Putin’s invasion of Ukraine or the sudden spike in gas prices at the end of 2021 would have been in that instance. The hon. Gentleman is right to notice that. If he permits me—I know Members are always enthusiastic to jump in—the insulation of homes and the decarbonisation of domestic heating are issues I will address squarely later in my speech.

Decarbonising power generation has been a relative success. Offshore wind installation has been hugely successful. The target of 50 GW by 2030 is hugely ambitious. The fact that we have already installed 13 GW or thereabouts is hugely significant. No other country, apart from China, has our capacity in offshore wind. As the hon. Member for Tiverton and Honiton (Richard Foord) observed, there are areas where we could do a lot better.

It has been very difficult to land a scheme than can effectively decarbonise domestic heating. Some 90% of the roughly 30 million homes in the United Kingdom rely on burning fossil fuels for heating: broadly 85% gas, and 5% oil. For that reason, it was always obvious to me that one of the quickest and easiest ways we can decarbonise domestic heating is through research and driving hydrogen. Hydrogen can be a substitute for natural gas. We obviously need to do that in a safe way—[Interruption.] I will give way one more time, but I need to finish the speech.

The Growth Plan

Debate between Richard Foord and Kwasi Kwarteng

Friday 23rd September 2022 Commons Chamber

[Kwasi Kwarteng]

This is not the Soviet Union’s Gosplan. I cannot predict what the average wage will be, but I know that one way to destroy the economic productivity of this country is to raise taxes in the way she campaigned for over many years during her Corbynista days, or whatever. That is not the way to grow this country’s economy.

[Richard Foord (Tiverton and Honiton) (LD)]

I remind the Chancellor that security is the first responsibility of Government. How will today’s changes to corporation tax serve to reverse the cut of 10,000 soldiers, making the Army the smallest it has been since the Crimean war?

[Kwasi Kwarteng]

Corporation tax has not been changed; it is being kept at its current level. On defence spending, the hon. Gentleman will know that my right hon. Friend the Prime Minister has committed to a defence target of 3% of GDP by 2030, recognising the changing nature of the threats and the real importance of our armed forces.