Oral Answers to Questions Debate
Full Debate: Read Full DebateSarah Jones
Main Page: Sarah Jones (Labour - Croydon West)Department Debates - View all Sarah Jones's debates with the Department for Energy Security & Net Zero
(1 day, 17 hours ago)
Commons ChamberWe firmly believe that the clean energy transition is the economic opportunity of the 21st century. In recent weeks, we have secured thousands of new jobs in carbon capture, offshore wind and British supply chains. As we transform the way we power our country, we are determined to ensure that communities across our country benefit from good jobs and good wages. That is what our clean energy mission is all about.
I thank the Minister for her response, but could she go further in setting out the Government’s assessment of how in the clean energy transition new jobs can be created here in the UK in the manufacturing of components for offshore wind and other green energy projects?
I was delighted that last week the Government were able to announce an initial £300 million through Great British Energy to invest in supply chains for domestic offshore wind. The fund will boost domestic jobs, mobilise additional private investment and secure manufacturing facilities for critical clean energy supply chains. We are publishing our industrial strategy in the spring, which will set out our approach to the highest growth-driving sectors, including clean energy industries.
There was more good news last week for carbon capture, usage and storage workers in England, with £200 million in supply chain contracts for the Liverpool Bay HyNet project, which will even benefit north Wales now. That is on top of the £22 billion that benefits Teesside and Merseyside. I have checked, and those places were not the centre of the UK’s energy industry for the last five years. Why have the Government not allocated a single penny to the Acorn project in Scotland, where the clock is ticking and where investors are very concerned that this Government are not serious about it?
I welcome the hon. Gentleman’s support for Government policy and for our investment in CCUS. As he knows, Acorn is a matter for the spending review. I talk to many industries in Scotland, and everyone is supportive of the scheme. We support the scheme and are working closely with industry, but it is a matter for the spending review.
Industrial energy prices doubled under the previous Government and industry suffered, as did consumers, when wholesale prices rocketed at the start of the Ukraine war. The best way to secure bills for the long term—for industry, as well as for consumers—is to deliver clean power by 2030. The truth is that the Tories ran down our energy infrastructure, just as they ran down our road and rail infrastructure and our public services. We are rebuilding that infrastructure, making it more secure for the long term and less reliant on foreign dictators, thus giving us energy independence, good jobs and cheaper bills.
Growing the economy will need cheaper energy, but INEOS’s chief executive has warned that Labour’s crippling carbon taxes and other levies threaten UK manufacturing and make us more reliant on imports. When will Ministers start listening and realise that their dogma-driven energy policy is costing jobs and investment, and when will they actually act to make our electricity prices more competitive?
As UK Steel said recently, the main driver of the price disparity is the wholesale electricity cost, which is driven by the UK’s reliance on natural gas. The best way to secure bills for the long term is to deliver clean power by 2030, and that is what we are doing.
Green jobs are great jobs, and I welcome the £43 billion of private investment in clean energy since the election of this Labour Government. In order to bring down our industrial energy prices further, what steps will the Government take to get us on to clean energy that we control and off the fossil fuels that are in the control of dictators?
My hon. Friend is right to point out the huge amount of private sector investment that is coming in with clean energy. This is why, in the industrial strategy, clean energy is one of the growth-driving sectors where we have seen 10% growth in the economy. We are also seeing hundreds of thousands of jobs, which the Conservatives now seem determined to oppose. We will introduce the clean energy of the future, and that is why we are pushing for clean energy by 2030. That will bring down bills, give us energy security and create really good quality jobs.
The National Wealth Fund has a critical role to play alongside Great British Energy in driving investment and jobs into clean energy industries. The fund is already making great progress, including participating in the latest round by GeoPura, a UK-based green hydrogen pioneer, as well as supporting critical minerals in Cornwall, as part of our mission for clean power by 2030.
Our Labour Government are driving economic growth in Luton and Bedfordshire through our support for the sustainable expansion of Luton airport and the exciting new Universal Studios. Does the Minister agree that we need to match those positive developments with incentivising investment in renewable energy to ensure that the pursuit of growth contributes to meeting our climate commitments?
The Government welcome the plans to invest in and around Luton, including the expansion of Luton airport and the incredibly exciting Universal theme park, which is on the “perfect site”, as its president said. It also has perfect MPs. These projects, along with the mass clean power investments we are delivering, will grow the economy and deliver direct benefits to the communities that host this vital clean power infrastructure which will take all of us off the fossil fuel market rollercoaster.
The domestic user of electricity pays 24p per kilowatt; the domestic user of mains gas pays 6p. People who live in urban Britain buy their energy for a quarter of the price paid by people in rural Britain. This is a massive problem, and I wonder whether the Minister could explain how the Government will address it.
I thank the hon. Gentleman for that question, though it was not quite about the National Wealth Fund. He is right to highlight electricity prices. This is a challenge for industry and one we inherited from the previous Government. The best way to bring those bills down is to secure clean power by 2030, but he is right to highlight the challenges, and that is what we are trying to fix.
The Office for Clean Energy Jobs is focused on developing a skilled workforce in core energy and net zero sectors that are critical to meeting our mission to make the UK a clean energy superpower. My right hon. Friend the Secretary of State and I are working with Skills England to assess skill needs and engaging with the Department for Education on apprenticeships and the wider growth and skills offer.