UK Energy Costs

Richard Graham Excerpts

Thursday 8th September 2022 Commons Chamber

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

rose—

[Richard Graham (Gloucester) (Con)]

rose—

[Mrs May]

I am going to make some progress. I am pleased that my right hon. Friend the Prime Minister has indicated that she will take action in relation to that particular matter, but getting full benefit from that does mean upgrading the UK’s power grid infrastructure. Alongside that, we need to improve the energy efficiency of homes, which would not only reduce demand for energy, saving people money, but is an element that would help to save the planet. We need to consider rolling out a significant home insulation programme.

[Mrs May]

I will give way first to my hon. Friend the Member for Gloucester (Richard Graham), and then to the hon. Member for Rhondda (Chris Bryant).

[Richard Graham]

My right hon. Friend’s Government did indeed look very closely at the prospect of a tidal lagoon off Swansea bay. It is quite correct, as she says, that at the time it was too expensive—although the price now looks relatively attractive. Does she agree that the real opportunity now, which the current Chancellor was very supportive of when he was at BEIS, is for marine energy to come from tidal stream? The new renewable auction is supporting that, but there is much more that can be done, especially if we can affect the planning regulations around the pipeline of opportunity. Does she agree that there is more this Government could do on that?

[Mrs May]

I absolutely agree with my hon. Friend. I welcome every opportunity to increase the diversity of our supply of energy, and looking at these new opportunities is absolutely a way to do that.

--- Later in debate ---

[Richard Graham (Gloucester) (Con)]

I join all colleagues, here and not here, and everyone in Gloucester in sending the warmest wishes of support to Her Majesty the Queen and to members of the royal family.

Today’s announcement, which was made within 48 hours of the new Government being formed—no small achievement—will bring huge certainty and reassurance to residents in my constituency and elsewhere, to those living in park homes, to charities and to those across the public sector, as well as to the small businesses in particular that are already suffering. It is critical, because it puts a cap on the maximum average energy bill. The crucial word is “maximum” because, as my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom) said, there are huge advantages in a programme of advice and best practice being led by the Government and helping us all to reduce our energy consumption. Schools, for example, could hugely benefit from solar panels that could sell all the energy generated during the long summer holidays into the grid, thereby bringing their annual bills down considerably.

There are lots of good things to welcome in today’s announcement, but there are a few things in particular that I would like to raise with Ministers. First, the green levies that will now be temporarily suspended have already been committed elsewhere. Who is going to pay for them now? Presumably it is the taxpayer in general.

Secondly, the national insurance contribution increase was predicted to raise £36 billion over three years for health and care budgets. How will that be delivered now? The task before our new Secretary of State for Health and Social Care is big on generating better outcomes, but reducing the inputs will surely make that harder.

Thirdly, there is the contribution of energy companies. We have heard a lot today, quite rightly, about how they are already paying some 66% tax in real terms. None the less, there is a huge difference between profits, which are good, and war profiteering, which is bad. The new Secretary of State for Business, Energy and Industrial Strategy could shed light on how the energy companies are to contribute to this national challenge.

The hon. Member for Vauxhall (Florence Eshalomi) said that the rules on fracking would be completely ripped up. I do not think that that is the case, because the crucial barrier is local support, which has been conspicuously absent so far. I doubt that we will see any real change in practice.

There is one last thing to add. A lot has been said about the welcome commitment from this Government to nuclear and renewables,

“to embrace diverse sources of energy.”

May I encourage the new Secretary of State to follow the great example of his predecessor in supporting marine energy?