Manufacturing and Engineering (Northern Ireland)
Sarah Jones Excerpts(2 weeks, 1 day ago)
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The Minister for Industry (Sarah Jones)
I thank the hon. Member for Strangford (Jim Shannon) for introducing today’s debate in his usual style of gentle persistence, and for the birthday message that he sent me back in December. I think he is the only Member of Parliament who sends birthday messages to every MP. The care with which he treats all of us is an example to us all.
I have a list here of all the good things about Northern Ireland manufacturing. The hon. Member has listed most of them already. For the benefit of the House, I will not repeat the case that he has made; I will just set out a few things about the Government’s approach. First, the Secretary of State for Northern Ireland and I, and others, were in Northern Ireland when we were able to announce a successful outcome on the Harland and Wolff deal. When we first came to power last July, it was one of the early industries in distress that came across our desks. We were faced with the possible collapse of Harland and Wolff, and there was absolutely no way we could allow that to happen. We all worked very hard to ensure that there was a deal that worked both for the Ministry of Defence, in terms of the fleet solid support contract for Navantia, and its commercial interests and what it could do, and for the workers of Harland and Wolff.
We did not do that because we are good people and we did not want to see job losses, although those things are true; we did it because the four Harland and Wolff sites are of incredible strategic importance to us. As it happens, I was in Methil yesterday, the Harland and Wolff site in Fife, where there is a huge future for offshore wind. The site can build part of that future. Sometimes we look through misty eyes at what has happened in the past in Belfast, and what Harland and Wolff used to be. The way we see it is: let us look at what it can be in the future, and how important it is. Of course it is important for people to have good well-paid jobs, but it is the talent and expertise they bring—which I see in spades in Northern Ireland every time I go; the enthusiasm, the talent, the training and the apprenticeship programmes—that mean we can build the future we want to see. They will be very important for our defence, but the whole ecosystem the hon. Gentleman talked about is very important for our future.
What support can the Government bring to ensure that people continue to flourish and thrive? First, we want to work collaboratively across the nations in a way that is productive and useful. I chair the business and industry inter-ministerial group in the Department for Business and Trade. At our first meeting, the hon. Gentleman’s colleagues in Northern Ireland, Wales and Scotland were there, too. What we can do collectively that helps all our nations is really important.
Secondly, the Government set the structure, through the industrial strategy, and a direction of travel that industry can understand. The hon. Gentleman will know that we are developing the industrial strategy. There are eight growth sectors where we think there is the biggest capacity for growth. We are working on honing down what the sub-sectors are within that. Advanced manufacturing, defence and green energy are all key areas that we have identified as opportunities for growth and Northern Ireland has such a role to play in that space. That architecture, which will provide the long-term stability over the next five to 10 years, will be really important and helpful.
The third bit of architecture is our universities, colleges, catapults, Innovate UK and all the other networks that help us to come up with new ideas and new businesses. I met Catapult Network chief executives this morning. They told me about—they were keen that I mention it in this debate, as I said I was coming here—some of the innovative work going on through the catapults in Northern Ireland. They are working with Invest Northern Ireland on hydrogen, which will accelerate supply chains for the hydrogen economy. They are working with Queen’s University Belfast to ensure that Northern Ireland’s manufacturing businesses can connect into national capabilities and help address future challenges. There is a lot of good work going on there.
The next bit of architecture is how we help all those businesses in Northern Ireland to export. I was in Saudi Arabia two weeks ago, alongside Invest Northern Ireland and Northern Ireland businesses, which were taking their huge talent and, I hope, doing some good deals. There was a business—I might get this wrong and have to tell Hansard to correct this—that makes kit that washes sand. It has washed 99% of the sand that needs to be washed—I am going to stop trying to go into detail!—in Qatar. It was a very small business in Northern Ireland that was, basically, providing a service to Qatar that nobody else could do. That was quite extraordinary, but that is the talent we have coming out of Northern Ireland and we want to work with Invest NI on that. We need to get the right architecture in place to ensure the future is bright.
I think what the hon. Gentleman also wants me to talk about is how we protect what we have. He made a very good case on Spirit and how it is not just the jobs, but the supply chain and all interactions. He used some very interesting statistics on the potential impact of closures. What I will say in this space is, first, that we all want the same thing. Secondly, just to correct the record, the Secretary of State for Northern Ireland, my right hon. Friend the Member for Leeds South (Hilary Benn) has met the trade unions to talk about that. I was at Spirit on 19 December and talked about the future. I have talked to all interested parties in this space. Collectively as a Government—the Secretary of State for Northern Ireland and the Secretary of State for Business and Trade, my right hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds)—we are trying to do what we can. It is a complex situation, as we know, and there are layers of complexity in terms of who does what. We are trying to do what we can. Government can only do what they can in trying to bring people together, come up with solutions and talk to those interested parties, but I think we are pushing in the right direction. Although I cannot click my finger and have the answer that the hon. Gentleman wants this evening, I can give him the commitment that we are doing what we can. If he has suggestions as to further meetings we could hold and things we could do, of course, I would be very happy to do that. I am having conversations regularly on Short Brothers and Spirit AeroSystems, as the hon. Gentleman would expect. I am talking to the aerospace industry, Boeing and all the interested parties.
Jim Shannon
I thank the Minister and the Secretary of State for Northern Ireland. I am happy that the meeting has taken place. Whenever I met them—it would have been three or even four weeks ago—they informed me that the meeting had not taken place. I am glad that it has, because that is better. When it comes to moving forward in Northern Ireland, things only ever happen when we all work together. That is important.
I also thank the Minister and the Secretary of State for what they have done in relation to Harland and Wolff. We appreciate that. I know it was complex and difficult, and that there were things they could not say when we asked in the past and things were happening behind the scenes. Could the Minister be involved in those contacts with Spirit and Unite and the GMB unions, again with the Secretary of State? That contact is important. I say to the Minister that she should bring people with her. If we bring people with us, we always win the case.
Sarah Jones
I am always happy to meet the trade unions. I think I spend more time with trade unions in government than I did in opposition. We are forever meeting, usually in very happy circumstances where we are all trying to push to the same end in terms of building industry and creating growth. I am therefore always happy to meet and to do that. Of course, it is not just Ministers who are in conversation; I should say that the officials are also talking to all the interested parties, just to see what can be done. But I will not deny that it is a challenge.
The two-pronged approach of trying to ensure we have the architecture to build our manufacturing and our industry in Northern Ireland, alongside trying to see if we can find a solution when it comes to Spirit, is the right thing to do. We should not ignore one or the other; we need to try with both and that is what we will do.
Encouraging new investment into Northern Ireland is also part of the picture. The Government’s investment summit and the work through the Office for Investment and the Minister for Investment really focuses on the strengths of a region and an area—the strength of a nation in this case—and the wonderful manufacturing ecosystem that we should be able to build on and which should be a very attractive proposition to investors who want to come in and expand.
I could talk more about some of the other examples of good practice and exciting things that are happening in Northern Ireland, but I do not want to keep the House longer than is necessary. The hon. Member has made the case very well, and I agree with everything that he has said.
Jim Shannon
I suppose the thrust of all the good things—we do not deny them but welcome them because they are good things—is to have the sale as one entity. On behalf of the workers, I especially ask the Minister to commit to looking at what more can be done for the Spirit workers. They are skilled, they are experienced and they are critical to Northern Ireland’s manufacturing base. That is my request to the Minister: to sell it as one entity and keep the workers.
Sarah Jones
I thank the hon. Member for that intervention. He is now looking at his phone. I do not whether the unions are messaging him during the debate, but if so, it is very effective.
Of course I will do whatever is useful in this regard. Commercial decisions are being made; we cannot influence all of them, but we can do what we can, and we are trying. We have a very skilled workforce that we do not want to lose, and I am happy to meet, work with and walk alongside our colleagues who are working in Northern Ireland.
I thank the hon. Member for initiating the debate. It is always a joy to talk about what is happening in Northern Ireland, and even more of a joy to be there and see it. I look forward to doing that again soon.
Question put and agreed to.
Oral Answers to Questions
Sarah Jones Excerpts(3 weeks, 1 day ago)
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Paul Waugh (Rochdale) (Lab/Co-op)
The Minister for Industry (Sarah Jones)
This Department and, indeed, Departments across Government are working extensively on developing our industrial strategy, which the Conservative party opposes, but which business and industry welcome. Last month, we launched the Industrial Strategy Advisory Council, comprising a very impressive group of the UK’s top business leaders, policy experts and trade union leaders. My right hon. Friends the Chancellor and the Secretary of State for Business and Trade attended the council’s inaugural meeting on 17 December. In addition, we are currently analysing more than 3,000 responses to the Industrial Strategy Green Paper from businesses, academics, think-tanks and unions, and their insights and feedback are incredibly valuable as we develop the strategy.
Alan Strickland
I strongly welcome the inclusion of defence in the draft industrial strategy and was pleased yesterday to host a roundtable in Sedgefield with the Minister for Defence Procurement and Industry. Many of the innovative small and medium-sized enterprises that we talked to spoke of the struggles that they have with red tape, bureaucracy and contracting with Departments across Whitehall. How will Ministers grab the opportunity of the industrial strategy to remove this red tape, which too often can thwart SME growth?
Sarah Jones
I am really pleased my hon. Friend held that roundtable. It is quite a turning point to have an industrial strategy with defence as one of the sectors; building new relationships across Departments with colleagues who work in defence is a really powerful and important thing to do. He speaks to a wider problem face by a lot of industry when it comes to dealing with Government agencies and Departments. We are working hard to make these things easier, because growth is our priority and we have to break down those barriers.
Tracy Gilbert
It is essential that the Government’s industrial strategy creates manufacturing jobs across the country, including in my constituency. The RenewableUK offshore wind industrial growth plan shows the UK can be a global technology leader in advanced turbine tech, foundations, electrical systems and cables. Will my hon. Friend commit to using our industrial strategy to ensure there is growth in these areas to put British manufacturing at the heart of the clean energy transition?
Sarah Jones
I thank my hon. Friend for her question, for her defence of her constituency and for her ambitions, which we share. I believe the report she refers to came out before this Labour Government came to power. With our new policies and the new drive and ambition from our Secretaries of State for Business and Trade and for Energy Security and Net Zero, we are powering forward with our renewable agenda, and we will make sure that all of our growth driving sectors speak to my hon. Friend’s area and everyone’s area of the country and drive growth across the board.
Sarah Coombes
Manufacturers in my constituency are really excited about the upcoming industrial strategy and all the growth that will bring. However, steel and aluminium businesses in particular are concerned about the upcoming carbon border adjustment mechanism, the gap with the EU, and whether the whole system will be ready for implementation. If we do not get it right, the CBAM will have a big impact on our ability to trade and on growth, so can the Minister assure me she is going to be working with the Treasury to ensure we get this right and that it supports manufacturers in the west midlands?
Sarah Jones
I know my hon. Friend will hold this Government to account on what we are doing and how we are going, and she will push, and already has done, to make sure we are doing everything we can for the industries in her area. The CBAM will be introduced in 2027, and she speaks to concerns that I have heard in conversations around steel in particular, which is very important to this country. That is why we are developing a steel strategy, which will set a future direction of travel for steel, but we are working with the EU and with industry here to make sure the CBAM works and does what it is supposed to do.
Paul Waugh
Andy Burnham’s Atom Valley mayoral development zone is creating a world-class supercluster for advanced manufacturing right across 70 million square feet in Rochdale, Oldham, Bury and Middleton. Rochdale’s Kingsway business park will be home to the SMMC—the sustainable materials and manufacturing centre—a world-class cutting-edge research centre. Will the Minister join me in supporting the SMMC, and perhaps arrange a visit either by herself or the Secretary of State to see what is happening with the jobs of the future in Rochdale?
Sarah Jones
I thank my hon. Friend for bringing to the House the work that is going on for the Atom Valley development zone, which is incredibly important and exactly what we want to see. The Mayor of Greater Manchester is to be congratulated for his leadership in this space as well. I am very interested in the work my hon. Friend refers to, not least because of the critical minerals strategy we are developing and the graphene work that I know will be under way in the manufacturing centre hub, so I very much look forward to talking further to him about what is happening and how we can help.
Sir Desmond Swayne (New Forest West) (Con)
Why is it that the Government’s energy policy is driving uncompetitive energy costs in absolutely the wrong direction? Sir Jim Ratcliffe has pointed out that the principal threat to any strategy is actually the uncompetitive costs for those enterprises that will have to populate it.
Sarah Jones
This Government inherited very high energy costs from the previous Government, who had taken no action to make our country more energy secure. We are powering through to have clean, green, home-grown energy that will bring costs down and make sure we are secure as a country and not reliant on the whims of global leaders and the price of oil and gas. We will bring those costs down and we will support our industry, which I am afraid the previous Government failed to do.
Chris Law (Dundee Central) (SNP)
Over the past week, the UK Government have committed to support a runway in London, a football stadium in Manchester and a science corridor for Oxford and Cambridge, yet for the past year, Conservative and Labour Governments have failed to act to secure the long-term future of Grangemouth, after INEOS announced the closure of the oil refinery. Despite general election promises to step in and save the plant, why are the Labour Government willing to jeopardise jobs at Grangemouth, the country’s energy security, which the Minister has just spoken passionately about the need to secure, and the wider industrial strategy through this inaction?
Sarah Jones
The hon. Member will be pleased to hear that we have re- established a working group with the Scottish First Minister and the Welsh and Northern Irish leaderships to make sure we are working collectively, because we do not want to take a party political approach to the growth of all our nations. We are collaborating well with the Scottish Government on Grangemouth, where we are working at pace and putting in investment and support. We are working to transition people from North sea oil and gas into the new energies of the future. There is the passport that we published, and we have set up Great British Energy, which will be headquartered in Aberdeen. A lot of work is going on, and we need the Scottish Government to support us in that work. We will work in partnership, because that is what will create good jobs.
Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)
The chemical industry is an important employer in my constituency, with the HEX Group and SI Group employing many people. As mentioned, Sir Jim Ratcliffe is already highlighting the extinction of the British chemical industry. My chemical manufacturers need to ensure that they are buying energy at the same price as manufacturers in Germany, the Netherlands and France. When will they be able to do that?
Sarah Jones
The chemical industry has been suffering for many years because of the previous Government’s economic policies, crashing the economy under Liz Truss and failing to deal with energy prices over multiple years. I have met the chemical industry. It is an important part of our economy, and we need to do what we can to protect it. I am having conversations, and we are building our energy policies. We are building our industrial strategy.
Sarah Jones
Word salad? Gosh. That abuse from the Opposition Front Bench has cut me to the core. The industrial strategy has set out eight sectors that will turbocharge the economy. Across all those sectors lie our foundational sectors, of which the chemical industry is one. We will support that industry in a way that his Government failed to do.
Dame Harriett Baldwin (West Worcestershire) (Con)
I will try to avoid a word salad. We have heard from various different industrial sectors how important it is to have stable and predictable energy costs. This month has seen little sun and only intermittent wind, so we have been heavily dependent on imported oil and gas. Are Ministers in the Department for Business and Trade challenging the Energy Secretary over his policies?
Sarah Jones
I am disappointed by the hon. Lady’s approach to this matter, and I am disappointed by the Conservative party’s overall abandonment of previously strongly held views about the need to balance climate change with our economy. It is a fact that we are moving faster towards renewable energy. Last year, 50% of our energy came from renewables for the first time. We are growing them at pace because they are cheaper. Onshore wind is the cheapest form of energy we have, solar is very cheap and floating offshore wind brings us huge opportunities. Renewables will bring our costs down and make sure we are energy secure, and they go hand in glove with growth, as the Chancellor set out in her speech yesterday.
Dame Harriett Baldwin
The Minister’s Government have changed policy to not issue any new licences for domestic oil and gas, so we will become more dependent on imports at times when solar and wind are not working, unless we can increase nuclear generation. It is Nuclear Week in Parliament, so what pressure is she putting on the Energy Secretary to make new nuclear an important part of our industrial strategy?
Sarah Jones
I sit jointly in the Department for Business and Trade and the Department for Energy Security and Net Zero, so the hon. Lady can be reassured that I talk to my colleagues and am working with them. Indeed, I am leading on hydrogen and carbon capture, which is an important part of the mix. We are clear that nuclear is an important part of our future and that the strongest approach to deliver energy security and bring prices down is to have all the opportunities available to us and to build at pace. That is why we are trebling our solar, doubling our wind and supporting big nuclear as well as small modular reactors. She can be reassured that we are putting a strategy in place, which the previous Government failed to do.
Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)
The Minister for Industry (Sarah Jones)
I delighted to tell my hon. Friend that we are working hard on our steel strategy. Immediately after we have finished these questions, I will be going to Sheffield to talk to the industry about future demand. Steel is an important industry for our future, to which we have made a £2.5 billion commitment. We will ensure that we turn around the decline we saw under the previous Government and deliver a steel industry fit for the future.
Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)
The steel industry is an important part of Wolverhampton North East’s heritage and must remain a part of our future. Will my hon. Friend outline how the £2.5 billion UK steel strategy and the new steel council will boost competitiveness and secure jobs at Tata’s Steelpark in Wednesfield, which is the UK’s largest processing and distribution centre?
Sarah Jones
I thank my hon. Friend for standing up for her community and protecting her industry. I would be happy to have a conversation with her about the changes she thinks we need to make.
Steel output in the UK fell by 49% in 2021, by 30% in 2022 and by 11% in 2023—what an awful thing to have happened to our industry. We need to turn that around. We do not underestimate how hard that will be, but we are putting in place the money, the policies and the Government dedication to ensure that we support a thriving steel industry.
Bradley Thomas (Bromsgrove) (Con)
Steve Race (Exeter) (Lab)
The Minister for Industry (Sarah Jones)
Through increased inward investment, we can innovate, create jobs and deliver on our growth mission to become the fastest-growing nation in the G7. We have wasted no time: on top of the £63 billion raised at our international investment summit, our new national wealth fund has already leveraged £1.6 billion of private sector investment, and we have outlined ambitious plans for planning reform alongside a modern industrial strategy to secure record levels of investment.
Mohammad Yasin
I am honoured to have been appointed as the UK trade envoy to Pakistan. Given the growing financial pressure on UK universities, with several leading institutions announcing job cuts amid the deepening funding crisis, what steps is the Department taking to foster stronger educational partnerships with Pakistan to help alleviate financial pressures in the sector in the UK, while supporting Pakistan’s educational goals?
Sarah Jones
I congratulate my hon. Friend on his appointment as the trade envoy to Pakistan. I can think of no one better, and I know he will make a big difference in that role. The Government took the decision to reappoint Professor Sir Steve Smith as our international education champion to ensure that the UK-Pakistan education partnership’s work continues as part of the international education strategy, which is now jointly led by the Foreign, Commonwealth and Development Office, the Department for Education and the Department for Business and Trade. Led by Sir Steve, the UK has worked closely with the Pakistan Higher Education Commission on revising Pakistan’s new transnational education policy. That work will continue, and I am sure my hon. Friend will bring great help to it.
Steve Race
The south-west is home to an incredibly important economy based on defence, food security, space, maritime, and, in Exeter, life sciences and climate tech and research. We are also home to huge green energy potential, utilising floating offshore wind. However, we currently need investment in our port facilities so that the new green jobs will be based in the south-west, not in France or elsewhere. Will the Minister meet me, along with colleagues and the sector, to discuss to the future of green energy generation in the south-west?
Sarah Jones
I thank my hon. Friend for his question. I saw the talent and potential for myself when I visited Exeter in September for Great South West’s annual conference. I am visiting the region again in a few weeks, because there is huge potential, huge excitement and huge opportunities to grow. As he knows, there is £1.8 billion from the national wealth fund to invest in our ports. I am very happy to meet him and others to see what potential we can discuss.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Clive Jones (Wokingham) (LD)
I declare an interest: a family member has shares in a medical company.
In the United States, President Trump created chaos by freezing funding for the National Institutes of Health, and his nominee for US Health Secretary is an anti-vaccine conspiracy theorist. The United Kingdom has the perfect opportunity to seize this moment and make ourselves a beacon for global research investment. Already, Wokingham has many pharmaceutical businesses, such as Becton Dickinson and Hollister. What steps is the Minister taking to ensure we attract global life sciences sectors to the UK?
Sarah Jones
I was in Davos last week meeting representatives from the life sciences industry and talking about the huge potential for growth that we have in the UK. One of the eight sectors we have identified as part of the industrial strategy, is life sciences, where we have huge talent and huge skills. We need to build on that and be really ambitious in what we can deliver. Through the industrial strategy and the work with the brilliant industries we have in this country, we can do just that.
Sir John Whittingdale (Maldon) (Con)
Rachel Taylor (North Warwickshire and Bedworth) (Lab)
The Minister for Industry (Sarah Jones)
As we have already discussed, the automotive sector is absolutely vital to the Government’s plans for green economic growth, and for growing the economy more widely. That is why, at the Budget, my right hon. Friend the Chancellor committed to ensuring over £2 billion of capital and research and development funding before 2030 for zero emission vehicle manufacturing and its supply chains. We are also consulting the industry to make sure that the zero emissions transition works for the UK’s car industry, and working with the automotive transformation fund and the Advanced Propulsion Centre to make sure that we carry on innovating and seeing the growth of the automotive sector in the UK.
Rachel Taylor
Around 3,000 of my constituents in North Warwickshire and Bedworth work in the automotive sector. I have met representatives of many small and medium-sized businesses that provide engineering and manufacturing services for the sector, as well as Jaguar Land Rover, which has a battery assembly centre in my constituency. A career in the automotive industry should be an attractive prospect to many young people in my constituency. What is the Minister doing to support the sector in upskilling its workforce and providing apprenticeship schemes, so that companies are not left relying on immigration to fill skills gaps?
Sarah Jones
My hon. Friend makes a really good point. There is a lot of work under way to look at skills across the board, because thus far no Government have had a proper strategy on the skills that we need, and on how we make sure that we train our own people, so that we do not have to rely on immigration. There are examples in the automotive sector of absolutely brilliant apprenticeship schemes that other industries can learn from, and we are working with Skills England. I have regular meetings with colleagues in the Department for Education, the Home Office and the Department for Work and Pensions to make sure that we crack this nut and encourage people to go into good, well-paid jobs.
Sally Jameson (Doncaster Central) (Lab/Co-op)
The Minister for Industry (Sarah Jones)
The Secretary of State and the Minister for Trade Policy and Economic Security are at the funeral of the late, great John Prescott. In this place, we remember him.
Yesterday, the Chancellor set out this Government’s plan for growth, our vision for the country and our path to putting more money in people’s pockets, reviving our high streets and supporting thriving businesses that create wealth, jobs and new opportunities. I was in Davos last week with the Chancellor and the Business Secretary, and there was enthusiasm about investing in a country that believes in open and free trade, that is resetting its relationship with the EU, that is forging new free trade agreements and that is creating stability here in the UK economy. It is little surprise that the UK has just been ranked by PwC as the second most attractive country in the world for investment.
We recognise that growth will not come without a fight, which is why we are pressing ahead with our industrial strategy, and channelling support for eight growth-driving sectors of our economy. It is why we are developing our small business strategy and working across all Government Departments to deliver the growth we need. We are supporting the Prime Minister’s plan for change, putting more money into people’s pockets and realising a new decade of national renewal.
Sally Jameson
Yesterday, the Chancellor announced that the Government will work with Mayor Ros Jones and the Mayor of South Yorkshire to reopen Doncaster airport, so will the Minister meet Doncaster MPs to discuss how the Department can meaningfully help? Will she also acknowledge that the growth agenda will be a success only if areas like Doncaster, South Yorkshire and the north are a critical part of it?
Sarah Jones
My hon. Friend makes a good point, and I would be happy to meet a group of MPs from her area. The ambition on airport expansion was very clear in the Chancellor’s speech yesterday. We are hungry for growth; we set that need alongside the need to decarbonise our airspace. Yesterday, I chaired a meeting of industry experts looking at how we can turbocharge our decarbonisation of aviation.
I would be pleased to meet my hon. Friend the Member for Doncaster Central (Sally Jameson), and I agree that we need to grow all parts of the UK to make this work.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the shadow Secretary of State.
Andrew Griffith (Arundel and South Downs) (Con)
Next week, members of the Public and Commercial Services Union in the Department for Business and Trade are once again out on strike. Does the Minister consider the union’s demands to be reasonable? Will Ministers cross picket lines to return to work?
Sarah Jones
The shadow Secretary of State shows a new-found respect for the trade unions, after the previous Government’s failure to engage with them caused multiple strikes and huge amounts of wasted money. The contract is not directly with the Department, but obviously we work with PCS and all our trade unions. I regularly meet our trade unions to make sure that we have good workers’ rights.
Several hon. Members rose—
Alison Hume (Scarborough and Whitby) (Lab)
Sarah Jones
I met Anglo American to talk about Woodsmith just a couple of weeks ago when I was in Saudi Arabia, and it is an important site. I promised to go and see it, so perhaps I can go with my hon. Friend. It is important that the critical minerals strategy we are developing marks a step change from the previous Government’s strategy, which just looked at a moment in time and said, “We need to do a bit more of this, that and the other.” We will have targets, will be driving forward, and will look at our future demand. We are going to look at the eight sectors that we want to grow, consider what critical minerals we need, and think about how to ensure that we have the supply chains to get it right.
Mr Joshua Reynolds (Maidenhead) (LD)
Luke Murphy (Basingstoke) (Lab)
Sarah Jones
My hon. Friend is right that there is a lot of expertise and a lot of tech companies in his patch, and we want to see them thrive. It is for the Government to support that growth, to listen to what the barriers to growth are and to tackle them. Our digital development strategy, the UK’s digital strategy and our AI strategy, which the Prime Minister launched, are all vehicles to support these brilliant industries that we want to encourage. I am always happy to talk to my hon. Friend about what more we can do to encourage more of them on to his patch.
Max Wilkinson (Cheltenham) (LD)
Sarah Owen (Luton North) (Lab)
Sarah Jones
I thank my hon. Friend for her work supporting workers at Stellantis. I met several of her colleagues and representatives from Stellantis this week, who I meet regularly. We stand ready to talk to them about whatever they need to remain. The consultation finished on 24 January and we await the final decision. She makes a good point about Luton airport, which I use very often because there are very good train links from Croydon to Luton. I should say that there are also good train links from Croydon to Gatwick. We know that the Secretary of State will be making a decision in due course, but the direction of travel on growth and breaking down barriers was clear in the Chancellor’s speech yesterday.
Sir John Whittingdale (Maldon) (Con)
Ian Lavery (Blyth and Ashington) (Lab)
Sarah Jones
My hon. Friend and I have previously talked about this great opportunity. The rapid development and breakthrough of new AI models such as DeepSeek tell us that we need to go further and faster to remove barriers to innovation and make Britain the most competitive market. We need to be developing the technology ourselves. That is why we have set out our new AI strategy and why we are scaling up our capacity, creating AI growth zones and putting in place every vehicle we can to support the growth of technology innovation in our country, because we will need it in future.
Solar Farms: Agricultural Land
Sarah Jones Excerpts(3 weeks, 3 days ago)
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The Minister of State, Department for Energy Security and Net Zero (Sarah Jones)
It is a pleasure to serve under your chairmanship, Sir Desmond. I congratulate the hon. Member for South Cotswolds (Dr Savage) on securing this important debate and the number of interventions she received in such a short period of time reflects the strength of feeling.
Before I set out the Government’s approach, I reassure the hon. Lady and her constituents that we agree on most things in this space. We agree that we should be using renewables—whatever they are, wherever they are—in the best way possible. We agree that we need to look at our responsibilities in terms of the climate, agriculture, the countryside and food production. The Government take all those responsibilities very seriously and look them at very carefully. We agree that if we are building solar panels, for example, we should build on brownfield sites first. If we cannot, we should build on areas of lower-quality land first. We agree that food security is enormously important for this country. In the global conditions we find ourselves in, where there is more uncertainty—as we saw with the war in Ukraine and what followed with our energy prices—we need to be mindful of those things. When it comes to the principles, we agree.
I will set out the Government’s overall approach to our clean power mission, which might help to put the debate in context. We, like the hon. Member for South Cotswolds, have been clear from the start that the only way to tackle climate change, secure our energy supply, bring down bills and drive economic growth is through clean energy. The rapid deployment of clean energy infrastructure is essential for our future security and economy.
Greg Smith
Is it not the case that the Government are just plumping for the technology that is available right now, in the form of thousands of acres of solar, when we need 2,000 acres of solar panels to produce enough electricity for just 50,000 homes on current usage? A small modular reactor needs just two football pitches for 1 million homes. As I have said many times, why on earth are the Government messing about with solar given its impacts on food security, which the hon. Member for South Cotswolds (Dr Savage) mentioned?
Sarah Jones
The previous Government messed around with solar quite a lot—we are building on what the previous Government did, up to a point. The answer is to look at all the technologies that are available to us. SMRs are enormously attractive in lots of different ways, and lots of colleagues have been talking to us about them. As the hon. Gentleman knows, there is a process for the development of SMRs. We need all the tools in our armoury and we need to make sure we are using the most modern technology available. He makes a fair point on that front.
Sustainable power generated here in Britain will reduce our contribution to the damaging effects of climate change and our dependence on the volatile global fossil fuel market. It is already creating thousands of highly skilled jobs and will continue to do so. Instead of delaying the inevitable, we have set ourselves a target to push to clean power by 2030. The clean power action plan, published last month, sets out how we will get there, including the likely technology mix required. It is clear that solar will play a major role.
Richard Fuller (North Bedfordshire) (Con)
On the Minister’s comments about the Government’s announcements in December and the subsequent announcement by the National Energy System Operator about moving forward rapidly with renewable energy, and in relation to East Park Energy, which is a proposal in my constituency whereby 74% of the land used would be best and most versatile land, in neither the December statement nor the January announcement by NESO was there any reference at all to the criterion on use of best and most versatile land. Can the Minister just affirm that that criterion is still used in the assessment of which projects the Government will move forward?
Sarah Jones
I thank the hon. Gentleman for his intervention. I cannot comment on the individual case in his constituency, of course. But of course when developers are applying for planning permission, they go through a series of criteria and have to adhere to a series of criteria, whether that is for the development of smaller solar plants, where it goes through local authorities, or whether it is through the nationally significant infrastructure project process. The solar taskforce is looking at all these issues as well. We are making sure we are mindful of all of the range of issues that we need to consider when we are looking at bringing infrastructure into communities. I will come to this later, but it is really important to say that we want to do this with local communities—with consultation of local communities and with consideration of what other options are available to us as well. That will continue.
Solar is one of the cheapest sources of power available to us, which is an important consideration when we are looking at the full range of options that we have between us. We are setting a target for around 45 GW to 47 GW of solar power by 2030. That is up from the 17 GW that we have today and it is a substantial increase.
I want to tackle the issue that a number of Members mentioned—the rooftop versus ground-mount issue. The hon. Member for South Cotswolds is right to talk about how we need to be going further to make sure we are putting solar panels on our roofs, and to ask what Government can do to encourage that. We are bringing in new building standards to ensure that all newly built houses and commercial buildings are fit for a net zero future. We expect those standards to encourage the installation of solar panels on new developments. We are issuing later this year a call for evidence on the construction of solar on outdoor car parks. The reconvened solar taskforce is focusing on rooftop solar, and further actions to increase deployment will be set out in the road map this spring.
I was talking to one of our big mayoral authorities yesterday about the power purchase agreements that people could potentially have in this space. If people look at public sector roofs and the collaboration they could have across some of our transport infrastructure and some of our public sector infrastructure, they could do more ambitious projects when it comes to solar, and of course we want to push that as much as we can. If we can put solar panels on rooftops, that is what we want to do. But we consider that we need a mix of both: we need ground-mounted and rooftop panels to get to the numbers that we want to see.
Let me turn to the planning system. All proposed solar projects are subject to a rigorous planning process, which considers the interests of local communities, as I said to the hon. Member for North Bedfordshire (Richard Fuller).
Ben Obese-Jecty (Huntingdon) (Con)
In my constituency of Huntingdon, a new solar farm of 1,900 acres is proposed. It spans from my constituency across into North Bedfordshire, which my hon. Friend the Member for North Bedfordshire (Richard Fuller) represents. The local population have spent a lot of time liaising with both me and my hon. Friend with regard to the impact that it will have and the lack of consultation that they have experienced. They have been told that realistically, they will receive no real benefit from the solar farm’s being there. They will certainly not receive directly cheaper energy bills for having it built right on their doorstep. What would the Minister say to those constituents, and the constituents of the other Members in this room, who are in effect having nationally significant infrastructure projects foisted on them and who do not feel that they have a say or any real ability to push back on that?
Sarah Jones
I thank the hon. Gentleman for his intervention. He expresses a concern that local Members of Parliament will always have when constituents come to them with issues. Look, we are balancing an issue when it comes to solar. At the moment, about 0.1% of all our land in the UK—and, it turns out, about 0.1% of all agricultural land as a proportion as well—has solar on it. Even if we were to reach our targets or go beyond them, it would still be less than 1% of land. We have to look at that statistic, but we also have to look at the local situation, which is where we absolutely accept that we are asking people to have infrastructure in their communities that will affect them. It could change their view, change their roles or change the jobs that are available; it has an impact. Through our clean power action plan, we are looking at the community benefit systems that we need to put in place. I cannot speak to the hon. Gentleman’s particular case because it is going through a process and it would not be right for me to do so, but I am mindful of what he says about the need for communities to feel like they will have some direct benefits and to understand why we need some of this infrastructure.
The reality is that we have not kept up to speed with infrastructure developments in this country over the past couple of decades, and we need to move faster. Whether it is our grid system, renewable energy or our transport systems, we need to build these things for our children and grandchildren to have the future that we want to see. Of course we need to be mindful of the impact and how local people feel. That is why, for the nationally significant infrastructure projects, there is still consultation and strong engagement with communities. That needs to get better, and we are looking at that through our clean power action plan.
I am mindful of the time. I want to move on to food security, which the hon. Member for South Cotswolds mentioned. Food security is national security, and it is very important for this Government. We need a resilient and healthy food system that works with nature and supports British farmers, fishers and food producers. That is why the Government will introduce a new deal for farmers to boost rural economic growth and strengthen Britain’s food security.
Tim Farron
The Minister is being very generous; I am grateful. The concern is that farmers are often pushed into things that they would not choose initially—such as giving over productive agricultural land for stuff that is not food production. Because of the perversity of Government funding changes, perhaps the most egregious thing in the Budget was the 76% cut in the basic payment for farmers this year, which will make many of them feel that their hand is forced to go down a direction that they do not want to go down. Might the Minister have a word with the Treasury to see whether that cut could be taken away?
Sarah Jones
I hear the hon. Gentleman’s point. The wider point about farmers being pushed according to EU or local subsidies over the years is of course right, and we need to get the balance right. I will speak to the numbers again: we are looking to go from 17 GW to around 45 GW, which is a trebling of the current land use of 0.1%. We are talking about small numbers, although I appreciate that in some constituencies, such as that of the hon. Member for South Cotswolds, it will feel much bigger because there are more of these products coming along.
Of course we need to get our system right for farmers. I am a Member of Parliament in Croydon, where we do not have many farmers, but I am incredibly grateful to them for their role and the work that they do, and we need to make sure that we support them. Where it is necessary to develop agricultural land—and we need to start with the basics of using other land first where we can—we do not think it will have any significant impact on food security because of the numbers: less than 1% of the UK’s agricultural land will be occupied by solar farms. We do not believe that will have an impact on our food security.
Sarah Jones
I will finish my point, because it is connected to the point made by the hon. Member for South Cotswolds. The biggest threat to British farmers in the countryside is not solar farms; it is the impact of climate change, and we are already seeing the effects in the floods and droughts that are threatening their livelihoods. We have to be mindful of that when we are trying to tackle climate change and increase the use of solar.
Adrian Ramsay
I appreciate the principles that the Minister is setting out, particularly on the impact of climate change on food security. Every model of net zero energy that I have seen includes a greater role for renewable energy on land, but is there not a risk that without a clear land use strategy that shows how we will achieve a resilient food supply while meeting net zero targets, decisions about where solar farms are located will end up getting made on a piecemeal basis, rather than the basis that the Minister is setting out?
Sarah Jones
The hon. Gentleman has predicted that I was about to talk about the land use framework. He is right. The Government recognise that England has limited land, and the use demands on it include our vital clean energy infrastructure. The Government will deliver our manifesto commitment by introducing a land use framework so that we can consider how to balance competing demands and transform how we use land. That will support economic growth and deliver on the plan for change that the Prime Minister outlined last month. The framework will work hand in hand with the strategic spatial energy plan, which we have commissioned the National Energy System Operator to devise. The hon. Gentleman is right that we have to understand the whole before we make piecemeal decisions, and our criticism of the previous Government is that those overarching plans were lacking.
Pippa Heylings
On that point, would it therefore be right to consider not overruling the Planning Inspectorate just now, in the build-up to receiving the land use framework and the strategic spatial energy plan from NESO, before making these big infrastructure decisions? We would take the public with us if they understood that we will decide where solar farms go once we have the land use framework and the strategic spatial energy plan.
Sarah Jones
I thank the hon. Lady for her comments. We already have a planning system that enables us to look at individual projects. The new Government will set those strategic frameworks, but we have to allow the legal processes to continue while we do that. We will see an increase in the push to 2030 and beyond that. We want to see, through good government, a proper national framework that puts these issues in place.
I want to touch again on the community benefits, which hon. Members have raised. I cannot stress enough that communities hosting clean energy infrastructure are doing a service to our country, and they need to benefit from that. It could be argued that we will all benefit in the long term as energy prices come down and we have more energy security, but there are many ways that communities can directly benefit, including through community funds, direct payments and community ownership. We are exploring all the options, and we will have more to say about that soon. In the meantime, Great British Energy will support community energy schemes, helping communities to unlock opportunities through the local power plan, which will support local authorities, community energy groups and others to deliver small and medium-scale renewable energy projects. It could develop up to 8 GW of clean power by 2030.
I thank the hon. Member for South Cotswolds for securing the debate, and other hon. Members for their very thoughtful interventions. The Government remain committed to balancing the urgent need for renewable electricity with considerations of land use, food production and community benefit. We want to take people with us on this journey, which will see us going into the future with a mix of renewable energy that delivers the lower prices that we all want to see.
Question put and agreed to.
Gas Shipper Obligation Consultation
Sarah Jones Excerpts(1 month ago)
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The Minister of State, Department for Energy Security and Net Zero (Sarah Jones)
Today the Department for Energy Security and Net Zero is publishing a consultation on the design of a gas shipper obligation. The Government intend for the gas shipper obligation to be the long-term funding mechanism for hydrogen production business model payments to initial hydrogen production projects and related costs. Decisions on funding for future hydrogen production business model projects will consider consumer affordability, value for money and fairness.
We are working to rapidly increase the roll-out of home-grown, clean energy. Publication of this consultation demonstrates this Government’s commitment to developing a thriving and world-leading UK hydrogen sector. Low-carbon hydrogen will play an important role in supporting the delivery of our clean energy superpower and growth missions, as a key enabler of a low-carbon and renewables-based energy system. It can make our energy system more flexible, resilient, and independent, and could lead to billions of pounds of savings by 2050. The Government are committed to leaving no community behind by investing in a new era for the clean energy industry and supporting good, skilled jobs as the sector matures. Low-carbon hydrogen provides opportunities for UK companies and workers, reigniting our industrial heartlands by investing in the industries of the future.
I will deposit a copy of “Funding mechanism for the Hydrogen Production Business Model” in the Libraries of both Houses.
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Steel Strategy: Next Steps
Sarah Jones Excerpts(1 month, 2 weeks ago)
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The Minister for Industry (Sarah Jones)
Today the Secretary of State for Business and Trade and I will convene the first meeting of the renewed Steel Council. This forum brings together leaders from across the sector to provide strategic guidance and external expertise in the development and implementation of our steel strategy.
Steel has for too long been a neglected industry in this country. Staggeringly, steel production has declined by more than 50% in the last 10 years. Internationally, unfair actions by some overseas nations have undermined free trade, meaning our steel companies are not able to compete on a level playing field.
I believe steel should and could become a positive story. We are not naive to the scale of the challenge, or the situation we inherited. We know these are tough circumstances and it will take time to make things better. This Government will not let the UK lose our steel industry.
In Victorian times, we were the country which invented the modern way of steel production. Now is the time to find our next approach which enables steel growth and innovation. We are the Government determined to make the hard-headed decisions to make that happen. This is why we have committed to publishing a steel strategy in spring 2025.
Such a strategy will need to set a strong vision for the future, combat those factors which undermine competitiveness, and highlight the opportunities and future demand for green steel made in the UK.
As part of this steel strategy, this Government will look seriously at options to improve steel capabilities across the supply chain, including in primary steelmaking. As such, I am also announcing today that the Materials Processing Institute, a not-for-profit research and innovation centre based in Teesside, will lead an independent review into the viability of technologies for primary steel production, including direct reduced iron. The MPI will produce a recommendation to the Government on the viability of iron making and primary steel production technologies in the UK with a view to the current and potential future market.
Our new Steel Council will help us develop the strategy together. It will put the expertise of its members at the heart of our policy making process. It will provide a vital link between the Government, industry, workers, and our innovative thinkers.
Following the publication of the primary steel review and the steel strategy, we will continue to convene the council throughout this Parliament so we can make sure we drive implementation of the strategy and we make great use of the up to £2.5 billion of funding that we have committed to help rebuild the sector.
The council will be chaired by the Secretary of State for Business and Trade and co-chaired by Jon Bolton, who has extensive experience of working in the sector both at home and aboard. Its membership includes representative from steel producers, the supply chain, research and development, trade unions and the devolved Governments.
We have published the full membership on gov.uk at the following link: https://www.gov.uk/government/news/government-sets-out-plan-to-secure-the-long-term-future-of-steelmaking-and-safeguard-steel-communities We will be uploading the terms of reference for the Steel Council and the primary production review to this page in due course.
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Oral Answers to Questions
Sarah Jones Excerpts(2 months, 1 week ago)
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Dr Marie Tidball (Penistone and Stocksbridge) (Lab)
The Minister for Industry (Sarah Jones)
The steel industry has been in decline, and we intend to turn this around. That is why we are developing a steel strategy, investing up to £2.5 billion and working at pace. The steel sector in South Yorkshire and across the UK has been neglected for too long, and we intend to change that.
Dr Tidball
Stocksbridge Speciality Steels in my constituency is a world-leading plant, with specialist capability to produce cleaner and stronger high-grade steel for our aerospace industry. The plant supports hundreds of jobs and has an exceptional on-site skills training centre, with links to local universities. Will the Secretary of State meet me to discuss the future strategic significance of Stocksbridge Speciality Steels and its fundamental importance to our national steel industry?
Sarah Jones
I thank my hon. Friend for her question, and for championing her constituency and its industries. She makes a very good point, and I recently met her to talk about this. This week, I met Community trade union representatives from the steel sector in her area as well. I am always happy to meet again to see what we can do.
Martin Vickers (Brigg and Immingham) (Con)
As the Minister knows, it is not just South Yorkshire that is facing difficult decisions about the steel industry. I thank her for our recent meeting about the future of Scunthorpe. Is she able to add anything on when we might expect an announcement? As she will appreciate, particularly at this time of year, there is growing anxiety among the workforce.
Sarah Jones
I thank the hon. Gentleman for his question, and for his interest in his constituents and their jobs in the steel industry. As he says, we have met to talk about this, and I have nothing new to add today, other than that we continue with our conversations with British Steel. We are working as fast as we can. Obviously, it is ultimately up to British Steel to decide what it wants to do and take forward, but we stand ready to support and work with it.
Alex Baker (Aldershot) (Lab)
Mr Luke Charters (York Outer) (Lab)
The Minister for Industry (Sarah Jones)
Growth is the Government’s No. 1 mission and, in her Mansion House speech, the Chancellor announced a package of reforms to drive growth and investment across the UK. I have lost count of the number of times I have had conversations with businesses where they talked about how our appetite for risk is not in the right place, and we are looking to reform that. Here in DBT, we are driving change through our new industrial strategy working across Departments, which we will publish in the spring.
Callum Anderson
High-growth companies across Buckingham and Bletchley rely on foreign direct investment for their growth and innovation. Will the Minister set out the steps her Department and the Minister for Investment are taking to ensure that the Office for Investment can attract more foreign private investment to help the high- potential industries in which Britain excels?
Sarah Jones
We have an expanded Office for Investment, which brings together the Department for Business and Trade, No. 10 and the Treasury. Our Investment Minister is working at pace travelling around the world to bring in investment. I met her and the Office for Investment this week, and we are in constant dialogue about how we can bring more foreign direct investment into the country, building on the £63 billion announced at the investment summit, and how we can kick-start the economy after 14 years of failure.
Mr Charters
The Chancellor of the Exchequer mentioned growth over 40 times in her superb Mansion House speech. York, Leeds and beyond will benefit from that. How will my hon. Friend ensure that the industrial strategy delivers for financial services so that we can achieve the growth this country desperately needs?
Sarah Jones
My hon. Friend is absolutely right to highlight the UK’s world-leading financial services sector. Through the Treasury, we are developing a 10-year financial services strategy and, of course, financial services is one of the pillars of our industry strategy, which we will publish in the spring. We cannot take the UK’s status as a global financial centre for granted. In a highly competitive world, we need to earn that status and work to keep it, and that is what we intend to do.
Tonia Antoniazzi (Gower) (Lab)
The Minister for Industry (Sarah Jones)
Businesses in Northern Ireland, like businesses across the UK, are crying out for stability, open trade and an environment in which we can break down barriers to growth and investment, and that is what the Government are working across the board to deliver. My Department has a team in Belfast to help stay close to businesses in Northern Ireland and to understand what they need. Of course, we also work closely with Invest Northern Ireland, the Department for the Economy and other key partners. I have spoken with Northern Ireland businesses during my short time in office, and I am encouraged by their passion and resilience.
Tonia Antoniazzi
Northern Ireland businesses, large and small, received just 0.6% of what the Government spent with UK defence companies between 2018 and 2023, compared with 25% in the south-east of England. As my Committee heard when we visited Northern Ireland last week, Spirit AeroSystems, which works on high-value defence and other aerospace contracts, faces an uncertain future, as half of its 3,600-strong workforce in Belfast wait to find out whether their jobs are safe following Boeing’s buy-out of the company and the subsequent takeover by Airbus of only 50% of the work at its site in the city. We all know what happens to supply chains, communities and individuals in these circumstances, so what discussions are Ministers having with Cabinet colleagues, with Airbus, and with other interested parties to safeguard those jobs at Spirit now and to increase Government spend with Northern Ireland defence companies in the future? [Interruption.] Thank you, Mr Speaker.
Sarah Jones
We love a long question, and it was a good one. My hon. Friend is absolutely right to raise this issue, one that we are all of course concerned about. My right hon. Friend the Secretary of State met the global chief executive officer of Airbus last week, and I have met representatives of Airbus, Boeing and Spirit AeroSystems and talked about this issue. We care about those jobs and about the future of our defence industry in the UK—it is incredibly important to us for many reasons—so we are doing what we can to make sure there is a good outcome.
Mr Speaker
This will be a good example of a short question. I call Jim Shannon.
Sarah Jones
The agrifood sector is incredibly important —I meet representatives of the sector, and I will do all I can. As always, I am very keen to talk to the hon. Gentleman about what more we as a Government can do to support the sector.
Ms Polly Billington (East Thanet) (Lab)
Draft Environmental Permitting (Electricity Generating Stations) (Amendment) Regulations 2024
Sarah Jones Excerpts(2 months, 1 week ago)
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The Minister of State, Department for Energy Security and Net Zero (Sarah Jones)
I beg to move,
That the Committee has considered the draft Environmental Permitting (Electricity Generating Stations) (Amendment) Regulations 2024.
As always, it is a pleasure to serve under your chairmanship, Mr Vickers.
The draft regulations were laid before the House on 30 October 2024. The Government believe that the answers to the challenges of energy security, affordability and sustainability point not in different directions but in the same direction: towards clean power. Investing in clean power at speed and scale can help to tackle the climate crisis and create good jobs. It is the only route to protect bill payers and ensure energy security. That is why making Britain a clean energy superpower by 2030 is one of this Government’s five central missions.
Although renewable energy is at the heart of our plan to deliver clean power, we also know that we must bring forward low-carbon generation sources, providing added security for when the sun does not shine and the wind does not blow. This includes flexible supply sources that can scale up or down instantaneously to meet peak demand. Some flexibility can be provided by short-duration technologies such as batteries, which can help to balance the system within each day, but we will also need long-duration technologies, which can run for extended periods of low renewable production.
To meet the challenge, the Government are investing in low-carbon flexible technologies such as carbon capture and storage at existing power stations, hydrogen, and long-duration electricity storage. This flexibility is critical to maintaining a constant supply of electricity in the UK, keeping the lights on for millions of homes and businesses. However, as new low-carbon technologies scale up, we will continue to need reliable, mature technologies, including gas, to provide energy security.
Gas is expected to be used less in our future energy system, taking a backseat, and only to maintain security of supply. Although gas will continue to play an important role in the system, it is only right that we should expect any new or substantially refurbished combustion plants to be built net zero-ready. This is why we are updating the existing regime and introducing the new decarbonisation readiness requirements.
Before I turn in detail to the decarbonisation requirements, let me set out the current regime. Since 2009, all new-build combustion power plants in Great Britain with capacity over 300 MW have been subject to the carbon capture readiness requirements. Those regulations require plant operators to demonstrate that it is technically and economically feasible to retrofit carbon capture and storage technology. Due to the 300 MW threshold, the policy has seen limited application since 2009. It has also contributed to a costly market distortion by incentivising the building of smaller, less efficient plants, and inadvertently creating an unacceptable loophole that has resulted in a significant number being built at 299 MW to avoid the carbon capture readiness requirements.
The policy landscape has changed significantly since the carbon capture readiness requirements were introduced. Plant operators now have an alternative pathway to decarbonise through hydrogen-fired generation, and there has been the introduction of the UK’s legal obligation to meet carbon budgets and to reach net zero by 2050.
In March 2023, the previous Government published a final consultation on the decarbonisation readiness proposals, alongside the publication of two technical studies for hydrogen and for carbon capture and storage. The consultation received positive feedback from industry and we published a response in mid-October, giving the go-ahead to proposals set out in the consultation.
Let me turn to the detail of the regulations. This statutory instrument will amend the Environmental Permitting (England and Wales) Regulations 2016 by inserting new schedule 25C. This will remove the 300 MW minimum capacity threshold, removing any existing market distortion and supporting rapid decarbonisation by setting out that nearly all new and substantially refurbished combustion power plants must have a credible plan to decarbonise.
The regulations will also move the requirements from the planning consent process, where they currently sit for carbon capture readiness, to environmental permitting. This will ensure that the responsibility for regulating the requirements falls to the Environment Agency rather than to local planning authorities and the Department for Energy Security and Net Zero. Unlike local planning authorities, the Environment Agency is already involved in the assessment of carbon capture readiness and has the technical expertise to assess the requirements. As I mentioned a moment ago, this will also include hydrogen readiness.
The new requirements will now enable combustion plants to demonstrate decarbonisation readiness through conversion to hydrogen firing as well as carbon capture. In doing so, the instrument introduces hydrogen conversion readiness and carbon capture readiness assessments, which are proportionate to the developing nature of hydrogen to power and of carbon capture and storage. It will also expand the generation technologies in scope of the requirements to include biomass, energy from waste, and combined heat and power plants, ensuring that a higher number of carbon-intensive plants are now captured.
The updated requirements are intended to strike a balance, ensuring that new-build plants are ready to take full advantage of future decarbonisation opportunities —and that the refurbishment of old sites is conducted to take advantage of those opportunities too—while acknowledging the emerging state of hydrogen and carbon capture technologies and their enabling infrastructure. We expect that the requirements will be strengthened over time as the generation technology improves and clarity on enabling infrastructure availability increases.
To ensure that we continually assess the impact of the policy and the case for strengthening the requirements, we have included a statutory requirement for the Government to carry out a review of the policy in periods of not exceeding five years.
In summary, the regulations will ensure that the gas capacity that we need for the security of supply is future-proofed and that there is a credible plan to transition to low-carbon operation. In doing so, they will help towards our aim to become a clean energy superpower and deliver net zero by 2050. I commend the draft regulations to the Committee.
Sarah Jones
I thank the Opposition spokesperson, the hon. Member for West Aberdeenshire and Kincardine, for his support. I think we are all on the same page on the regulations, but I will make a couple of comments in response to his questions.
The hon. Gentleman talked about the impact on businesses, particularly smaller ones; of course, we are all mindful of that. The regulations require four things, including that relevant businesses look at the kind of space they have and whether it is technically possible for the transition to be made. They also have to report whether they have considered hydrogen or carbon capture, and whether it is economically feasible. The latter two points are entirely self-reported, so the process should not be difficult.
The Environment Agency is looking at ways to roll up the different requirements and regulations to see whether businesses could fill in a single application rather than multiple ones. We can provide more information on that at a later point; I have had a meeting with officials to talk about the issue. The hon. Gentleman makes a good point and it is one of which we are certainly mindful.
The regulations only apply in England. The Scottish and Welsh authorities have different rules and policies, although of course we have been talking to the nations about the change.
I commend the regulations to the Committee.
Question put and agreed to.
Hydrogen to Power Business Model: Consultation Response
Sarah Jones Excerpts(2 months, 1 week ago)
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The Minister for Industry (Sarah Jones)
I am tabling this statement to inform Members of the publication of the hydrogen to power market intervention consultation response on 9 December 2024. This response commits to delivering a hydrogen to power business model to support the accelerated deployment of hydrogen to power as low-carbon long-duration flexible electricity generating capacity.
Making Britain a clean energy superpower by 2030 is one of the Prime Minister’s five missions. Unabated gas currently provides the majority of flexibility in Great Britain and so the deployment of hydrogen to power—the conversion of low-carbon hydrogen to produce low-carbon electricity—will play an important part in displacing unabated gas generation from the power system, to support the clean power mission, and the Government’s legally binding target to reduce greenhouse gas emissions to net zero by 2050.
Low-carbon hydrogen can make our energy system more flexible, resilient, and independent. When connected with large-scale storage, hydrogen to power can provide electricity to cover longer periods of lower renewable output, while also creating a decarbonisation pathway for unabated gas power plants. The hydrogen to power business model will de-risk investment in hydrogen to power by mitigating the deployment barriers we identified, through a dispatchable power agreement-style business model, helping to support the unlocking of investment in hydrogen to power and improving the pipeline of projects.
The response document commits to:
Delivering a Hydrogen to Power Business Model based on a Dispatchable Power Agreement-style mechanism to support the deployment of hydrogen to power.
Publishing a Hydrogen to Power Business Model market engagement document in 2025 outlining further detail on the proposed design of the Hydrogen to Power Business Model and plans for launching the first allocation round.
Establishing a hydrogen to power industry expert working group. This will provide a key forum for Hydrogen to Power Business Model design and strategic policy considerations.
Enabling hydrogen to power to participate in the Capacity Market as soon as practical.
This publication is an important step towards supporting the deployment of hydrogen to power, a key low-carbon flexible technology, and therefore facilitating a clean power system. It will build on the positive stakeholder feedback received through the consultation and provide industry with clarity on Government’s position on the technology and the next steps for implementing the market intervention.
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Critical Minerals: Domestic Production
Sarah Jones Excerpts(2 months, 2 weeks ago)
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The Minister for Industry (Sarah Jones)
It is an honour to serve under your chairship, Mrs Harris, and a pleasure to speak in such an important debate. I congratulate Parliament’s official tin champion, my hon. Friend the Member for Camborne and Redruth (Perran Moon), on securing this debate. I thank him for the conversations we have already had about tin in particular and critical minerals more broadly; it is a joy to have someone with such enthusiasm, passion and knowledge joining us in Parliament.
My hon. Friend has already done much in his time in Parliament to support critical minerals—tin, in particular —in his area, and he is an active member of the all-party parliamentary group, to which he brings genuine passion. I look forward to visiting his constituency in the spring or the early part of 2025 to talk more about what can be done in his area. His speech summed up the challenges and opportunities very well. He spoke about what more we can do, and how that will impact on economic deprivation and help our country’s security. He pointed to many interventions that he thinks the Government should be looking at, which I will come to later. We are developing a strategy that will cover a lot of the issues.
The hon. Member for Strangford (Jim Shannon) talked about Northern Ireland and the engagement that the UK Government should be having with colleagues there. He is right that a UK strategy could not be developed without engaging our partners—and I can absolutely give him that reassurance. He talked about mining in Northern Ireland, and about salt. I recommend that he reads a book called “Material World: A Substantial Story of Our Past and Future” by Ed Conway, if he has not already done so; it includes a whole chapter on salt and how important it is for the world, which is fascinating.
My hon. Friend the Member for Bournemouth East (Tom Hayes) talked sensibly about the south-west and the opportunities that can come from critical minerals. He talked about the Camborne School of Mines, and about what more we can do on skills. I will come to that later.
The spokesperson for the Lib Dems, the hon. Member for St Ives (Andrew George), made a thoughtful speech, a lot of which I agreed with. I think he will be pleased with what we have done. He referenced, as did the shadow Minister, the hon. Member for North West Norfolk (James Wild), the previous Government’s strategy. That strategy was brought in by Kwasi Kwarteng—remember him?—who a couple of months later became the ill-fated Chancellor of the Exchequer; he probably looks back on that strategy with some wistfulness about what he managed to achieve.
What I would say about the previous Government’s strategy is that it included a lot of, “We would like to do more of this”, “We want to do a little bit more of that”, and “We would like to encourage this”, but it did not set any particular targets, or have any deliverables or accountability. In fact, the Foreign Affairs Committee criticised it for its lack of ambition and progress; I think that speaks for itself.
The hon. Member for North West Norfolk made a slightly bizarre speech, in which he referenced the 18 critical minerals. There was an announcement last week, which has been referenced by several Members, that there are no longer 18 but 34 critical minerals. I know it is difficult being in opposition—there is a lot less support than there is in government—but I would expect the shadow Minister to be up to date on these things.
The shadow Minister also raised the electric vehicle mandates. To be clear, the previous Government pushed back the ultimate target from 2030 to 2035, but did not push back any of the stage posts by which car manufacturers had to reach that target. He said that this Government have tied themselves in knots, but the reality is that we have inherited those knots; they are the problems that we are now dealing with. We are having to consult on and look again at some of the issues, because the car manufacturers are crying out for support.
Everybody who has spoken talked about how important critical minerals are for the industries of tomorrow and how much more we will need them in the future. Whether it is in advanced manufacturing, clean energy, defence or digital technologies, we know that we will need more. Last week, the Critical Minerals Intelligence Centre published its latest list of critical minerals, increasing the number from 18 to 34 and adding the likes of nickel, aluminium and titanium to the UK’s criticality list. I know that my hon. Friend the Member for Camborne and Redruth was very pleased that tin is now on the list as well. I thank the British Geological Survey, which runs this process, for the task it undertook, and for its vital work looking at the volume and variety of materials and minerals needed for our economic growth and clean energy ambitions.
Economic growth is the absolute driving force of this Government, which is why we have published our industrial strategy Green Paper and will publish the final industrial strategy in the spring. It will bring stability and a long-term plan, and will break down all barriers to growth, including skills, technology and R&D. It will be the blueprint for growth in our most important sectors. If growth is the vehicle that gets us to a pro-innovation, pro-worker, pro-jobs economy, then critical minerals is the fuel at the heart of that strategy.
I am pleased to confirm that the Department for Business and Trade will publish a critical minerals strategy next year, which will support the industries of tomorrow, explicitly target UK strengths, articulate the impacts on people’s lives, deliver for businesses and create new jobs across the country. The strategy will be ambitious. I want it to set targets. It will cover domestic production, the circular economy, the UK’s future demand, international partnerships, and responsible and transparent supply chains. In partnership with our stakeholders, we will consider the best way to track progress to ensure that we can be held to account for delivering on our promises.
Starting with domestic production, I know that in Cornwall and Devon we have several promising lithium, tungsten and tin mines seeking to restart commercial production, which we have talked about at length. Since coming to power, we have seen progress made across multiple projects, including Imerys British Lithium, Tungsten West and Cornish Metals. Already we have seen interest from overseas, with like-minded allies partnering with UK projects, as represented by Rio Tinto’s strategic partnership with Green Lithium, the low-carbon lithium refinery in Teesside.
One key tool is the national wealth fund, which we announced within days of coming to office. The national wealth fund recognises the importance of a secure supply of critical minerals and has a clear mandate to support them, as evidenced by its £24 million investment in Cornish Lithium.
Andrew George
I am grateful to the Minister; it is enormously helpful to hear her respond to these matters. She will have picked up the question I raised earlier about the national wealth fund and the fact that smaller projects, particularly those at the critical exploration stage, feel that they cannot take advantage of it. Is the Minister prepared to investigate that further?
Sarah Jones
I thank the Liberal Democrat spokesperson for his intervention. Yes, I have been making a list of issues to look at as we go through the strategy; that is certainly one, and there are several more.
With our new strategy, we want to see more success stories right across the UK, from Cornwall to County Durham and beyond. Indeed, as I have said, the new strategy will represent all four nations of the UK. In Wales, the Royal Mint can now recycle electronic waste to recover critical minerals. In Northern Ireland, Ionic Technologies delivered a successful feasibility study for its rare earth oxides facility in Belfast. In Scotland, we have seen a resurgence in mineral exploration for nickel, lithium, manganese and more.
As has been said, the UK boasts some of the largest lithium reserves in Europe. Industry forecasts reveal that by 2030 the UK may be able to produce 50,000 tonnes of lithium every year for 20 years. To put that into perspective, that would meet over half of the UK’s demand for electric vehicle batteries. Beyond lithium, the UK possesses the world’s largest platinum group metal refinery in the form of Johnson Matthey in Royston, as well as the only western source of rare earth alloys in the form of Less Common Metals in Cheshire. I hope that paints the picture of the growth potential for critical minerals. Unlocking this potential will require policy support as well as private investment, which is why our strategy will seek to attract billions of pounds in international investment.
We all know that we cannot refine or mine our way into meeting the huge quantities of minerals that not only the UK, but the whole world, requires. That is why the strategy will place greater emphasis on making the most out of the minerals that surround us—in other words, recycling critical minerals for industrial batteries and wind turbines. Analysts say that EV battery recycling alone could provide almost half the required battery minerals by 2040. We have set up a critical minerals ministerial group, which is jointly chaired by me and the Secretary of State for Environment, Food and Rural Affairs. Our new critical minerals strategy will drive ambitious reform to promote recycling and the retention of critical minerals within the UK economy.
In the meantime, I am delighted that the recycling of battery minerals is now in scope of the automotive transformation fund. It is great to see innovative businesses like Altilium benefiting from that funding by working to bring critical minerals recovery from lithium-ion black mass to the UK. Beyond battery minerals, the UK is building on its world-leading R&D strengths. In September, Innovate UK awarded £3.5 million to nine UK projects, working to increase the security of supply of rare earth elements as part of the climates fund.
Our strategy will be underpinned by data, mapping out UK industry demand for critical minerals. DBT is partnering with the Critical Minerals Association, the Materials Processing Institute and Frazer-Nash Consultancy to evaluate the opportunity for increased recycling and midstream processes to take place on these shores. We will also make use of the Critical Minerals Intelligence Centre and its forthcoming foresight studies detailing demand in key technologies.
Even with increased domestic production in the UK, the reality is that we will still need diverse and resilient international supply chains to drive industrial growth, and we have debated this morning the impact of a small number of countries providing the vast majority of our supply. We will deepen our international collaboration through a more targeted approach, working with big trading partners, like-minded mining nations and producer countries. We also intend to work through multilateral initiatives, including the Minerals Security Partnership, to secure the critical minerals needed to realise our growth mission. In that context, I welcome the fact that UK Export Finance has had an expanded mandate since the Budget to finance overseas critical minerals projects that secure supply for the UK’s high-growth export industries. We must be mindful of the importance of responsible mining. Apart from anything else, a responsible supply chain is a much more resilient one, and that must be embedded into everything we do.
My hon. Friend the Member for Camborne and Redruth and I are both speaking today and tomorrow at Europe’s largest conference on critical minerals, which is taking place right here in London. That is no surprise, because the UK is the global hub for mining finance. The UK’s markets are some of the strongest and deepest globally, and the Government are committed to building on those strong foundations to ensure that they continue to deliver for firms and investors, supporting growth, including through our reforms to the UK listing rules. We will continue to work with our friends and partners in industry to ensure that the city plays a leading role in promoting investment into clean critical minerals projects at home.
I praise my hon. Friend the Member for St Austell and Newquay (Noah Law) for his speech. He chairs the all-party parliamentary group and brings a huge wealth of knowledge to this place. In particular, he focused on skills, and on the importance of Skills England and ensuring that all the strategies are joined up. The industrial strategy, Skills England and our critical minerals strategy all need to feed into the same outcome: to secure jobs and growth for our communities and our people.
In conclusion, the Government are serious about the opportunities that critical minerals will bring to our country; they will fuel the next 10 years of innovation, clean growth and economic renewal. I look forward to working closely with industry—which I am already engaging with and talking to—and academia, as we develop our strategy and make our ambitions a reality.
Carbon Capture, Usage and Storage
Sarah Jones Excerpts(3 months, 1 week ago)
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The Minister of State, Department for Energy Security and Net Zero (Sarah Jones)
Today, I am pleased to have laid a departmental minute setting out the details of a series of contingent liabilities associated with the carbon capture usage and storage track-1 clusters. Carbon capture usage and storage is a critical component of the UK meeting its 2050 net zero commitment particularly via ensuring energy and supply chain security and enabling hard-to-abate sectors to decarbonise. Contingent liability Maximum exposure (£m) across both track-1 clusters Reasonable worst-case (£m) across both track-1 clusters 1 The Supplementary Compensation Agreement 9,034 400 2 The Revenue Support Agreement 9,804 5,739 3 Stranded Asset (discontinuation) 9,715 5,739 4 Decommissioning Shortfall 590 100-333 5 The Discontinuation of Capture Project contracts 5,302 2,055
The taking of these liabilities directly will address issues which have hampered previous attempts at a carbon capture usage and storage programme, in particular investor confidence and the risk of CO2 store leakage. This support and the rapid launch of the programme fulfils the Government’s aim to make the UK a global leader in carbon capture usage and storage, and ultimately creating a self-sustaining sector which supports not only UK business but also provides international opportunities.
Treasury approval has been granted and subject to satisfaction of conditions, we anticipate arrangements will begin to be implemented by the end of this month.
Context and rationale
Carbon capture usage and storage is the only feasible method for decarbonising many hard-to-abate sectors such as cement production, and is currently the most cost-effective method of decarbonising others, such as dispatchable power. While there is growing interest worldwide, a programme of this nature is first of a kind and consequently there are multiple market barriers which inhibit the development of a carbon capture usage and storage market in the UK.
Government support is necessary to address these challenges and enable carbon capture usage and storage deployment at scale. HMG is reducing investor risk in these technologies by bearing some of the initial risk inherent in developing a carbon capture usage and storage market, as well as the cross-chain risk existing across the participants in the network.
While the liabilities are in principle for the entire project duration, it is expected that in practice Government exposure will decrease as users come on to the system, insurers become more comfortable with the “first-of-a-kind” risks, and the depth of the market increases.
Details of the contingent liabilities
There are five contingent liabilities associated with the various track 1 contracts related to the following arrangements:
1. The supplemental compensation agreement is a long-term mechanism within the Government support package, which enables the management of leakage risks at the geological store during operations and the post closure period.
2. The revenue support agreement addresses demand-risks by providing for payments to CO2 transport and storage companies if their allowed revenue is not covered by user fees.
3. The discontinuation agreement provides a right for the SoS to discontinue support to the transport and storage companies and entitles investors to be compensated for their investment.
4. The decommissioning shortfall agreement covers potential decommissioning fund shortfall which might arise if decommissioning is required before the fund has been fully built-up.
5. The discontinuation of capture project contracts allows for payment of compensation to capture projects for any losses due to a qualifying change in law or prolonged CO2 transport and storage unavailability.
Exposure
The table below sets out the HMG’s maximum exposure for each of the programme-associated contingent liabilities. These concern the five projects that were part of the October announcement: two transport and storage networks, Net Zero Teesside, Protos, and EET Hydrogen. We will notify Parliament of additional contingent liabilities when other projects reach financial close. It is important to note that while the table represents the maximum possible exposure, the probabilised exposures and likely crystallisations are far lower. There are robust risk management frameworks in place. Our assessments indicate that there no liabilities that are likely to be realised and the vast majority are very remote.
The contingent liabilities are necessary as it provides confidence in this first of a kind sector. Carbon capture, usage and storage will enable us to accelerate to net zero while maintaining energy security and delivering growth to our industrial heartlands.
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