Ministers from the Department for Business, Energy and Industrial
Strategy were answering questions in the Commons. Subjects covered
included...
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Low-Carbon Industries
(Feltham and Heston)
(Lab/Co-op)
1. What steps he is taking to support UK-based low-carbon
industries. [901041]
The Secretary of State for Business, Energy and Industrial
Strategy ()
Supporting low-carbon industries is central to my Department’s
mission to deliver our net zero target. We are backing our
ambition with action. Since 2012, coal use on the grid has fallen
from 40% to less than 3% in 2019, and renewable electricity
generation has quadrupled since 2010, with low-carbon electricity
providing more than 50% of our total energy needs.
In 2018, investment in acquisitions in the UK’s solar dropped to
just £0.3 billion, from £1.6 billion in 2015. Should the
Government not be doing more to support renewable power, in the
light of the net zero target—which the Secretary of State
mentioned—and the closure of the feed-in tariff, especially given
that German, Italian and Spanish companies are now investing over
six times more than UK companies in low-carbon technologies?
I am delighted that the hon. Lady has raised the issue of solar
power, because, as she will know, solar photovoltaics is a UK
success story. There has been rapid deployment over the past
eight years, and more than 99% of the UK’s solar PV capacity has
been deployed since May 2010. The latest figures indicate that we
now have more than 1 million solar installations, or 13.4 GW, of
capacity installed.
(Truro and
Falmouth) (Con)
In Cornwall we have some exciting new emerging industries such as
geothermal energy and lithium extraction. How is my right hon.
Friend encouraging those industries to produce green energy in
the future?
We are putting significant funds behind the renewables sector,
and, as my hon. Friend will know, we are committed to increasing
our research and development spending to 2.4% of GDP by 2027. I
want the UK to be a science and R&D superpower, and that is
what we are engaged in.
(Warwick and Leamington)
(Lab)
Why are the Government so opposed to onshore wind energy
generation?
The hon. Gentleman may have missed yesterday’s announcement about
the fourth contracts for difference allocation round, but if he
reads that announcement, he will see the points that we have
made. The proposals that we have presented are there to help the
UK achieve its 2015 net zero ambition.
(Redcar) (Con)
I am grateful to my right hon. Friend for his support for the
onshore wind sector. What support are the Government providing to
advance the hydrogen economy, and to decarbonise the hard to
abate sectors?
My hon. Friend makes an important point. Hydrogen can, of course,
play a key role in net zero efforts, alongside electricity. My
Department is investing in innovation, with up to £121 million
supporting a range of projects to explore and develop the
potential of low-carbon hydrogen.
Mr (Wolverhampton South East)
(Lab)
One of the UK’s great industrial success stories in recent
decades has been the automotive industry. What discussions does
the Secretary of State plan to have with the industry to help
ensure that the UK is best placed to make the transition from
internal combustion engines to electric vehicles?
Within days of taking office I spoke to our major automotive
manufacturers, and I have had meetings with a number of them.
However, the right hon. Gentleman is absolutely right. We want to
encourage electric vehicles, and we are also committed to
securing investment for a UK gigafactory. Last year we announced
up to £1 billion of new money to support R&D and supply
chains for electric vehicles.
Research and Development Investment
(York Outer) (Con)
2. What steps he is taking to increase investment in research and
development. [901042]
(Hitchin and Harpenden)
(Con)
11. What steps he is taking to increase investment in research
and development. [901051]
(Meon Valley) (Con)
13. What steps he is taking to increase investment in research
and development. [901053]
The Secretary of State for Business, Energy and Industrial
Strategy ()
The Government are already increasing public spending on research
and development by £7 billion over five years, the biggest
increase in public funding for R&D on record. Every pound of
public expenditure on R&D leverages a further £1.40 of
additional private investment, generating even greater returns
for the UK.
Given that nearly 50% of the core science budget currently goes
to just three cities in southern England, can the Secretary of
State assure me that the increase in R&D funding will do more
to favour the regions outside the south, so that in future both
my city of York and other regional hubs across Yorkshire, such as
Leeds and Hull, will receive their fair share for the purposes of
research and innovation?
I know that my hon. Friend is hugely supportive of R&D, and
that last month he opened the Institute of Technology at York
College. I absolutely agree that that is part of our levelling-up
agenda. We want to support centres of excellence across the
country. In December last year UK Research and Innovation awarded
£24 million to the University of York for a quantum
communications hub, and we will set out our ambitious play
strategy for R&D in the second half of this year.
Rothamsted Research in my constituency is a world-leading
agricultural research centre, and we have made huge strides in
commercialising that scientific knowledge, working with agritech
start-ups. I am working with Rothamsted to build a new venture
capital fund for agritech, working with those start-ups to
incubate and develop them so that we can improve this facility,
not just for Rothamsted and the region but for the whole country.
Will the Secretary of State provide Government support for this
work and come to see the work that we are doing at Rothamsted?
I am delighted that my hon. Friend is showing his characteristic
commitment to innovation by supporting an agritech venture
capital fund. As he notes, Rothamsted has a world-renowned
reputation for agricultural research, and that is why UKRI has
awarded £3.4 million to determine protein abundance in plants at
that research institute. Either I or the Science Minister—the
Under-Secretary of State for Business, Energy and Industrial
Strategy, my hon. Friend the Member for Derby North ()—would be happy to meet him to discuss how the
Government can support his proposals.
Mrs Drummond
I also welcome the emphasis that the Government are placing on
research and development. Will my right hon. Friend tell me what
further action is being taken on the proposal for a UK advanced
research projects agency, following the departmental meeting last
year?
My hon. Friend raises an important point. The UK is ranked fifth
in the global innovation index, and our strengths in R&D mean
that we are well placed to develop a new funding body to
specialise in high-risk, high-reward projects. As I have said, I
am absolutely determined that the UK should be a global science
superpower, and my Department is making good progress on a UK
advanced research projects agency. We are engaging with a wide
range of researchers and innovators, and we will set out further
plans in due course.
(Newcastle upon Tyne Central)
(Lab)
I welcome the Secretary of State and the Science Minister to
their places. Science is critical to our national prosperity, and
it is important that it should be led by them, rather than by the
misfit master of Downing Street, so can the Secretary of State
clarify the confusing statement from No. 10 on the European
research programme? International collaboration is the heartbeat
of research and development. For every £1 we put into the
European Union programme, we got £1.30 back, and such funding is
essential if we are to retain our place as a global science
superpower, so will the Secretary of State boost UK science by
confirming that we will be going for full associate membership?
Of course I want the UK to be a science superpower, and we have
set out our views on expanding the R&D budget. On Europe, our
EU negotiating objectives are very clear: the UK will consider
participation in Horizon Europe and Euratom, but this will be
part of the wider negotiations.
(Swansea West)
(Lab/Co-op)
The Royal College of Physicians has found that something like
64,000 people a year die prematurely as a result of unclean air
at a cost of some £20 billion. In addition to continuing the
research and development into electric cars, will the Secretary
of State lobby the Chancellor and the Environment Secretary to
continue the grant of £3,500 for clean cars, so that we can have
an enforceable regime for air quality and a platform for research
and development and for exports in the green industries,
particularly in relation to sustainable transport?
The hon. Gentleman raises an important point. We currently have
460,000 green jobs in this country, and we want to push that to 2
million. I would be happy to meet him to discuss the specific
point that he has raised.
(Strangford) (DUP)
Across the whole of the United Kingdom of Great Britain and
Northern Ireland, universities have played a critical role in
research and development. What help will the Secretary of State
give to Queen’s University and Ulster University in Belfast, as
well as to the Greenmount Agricultural College, so that they can
apply for funding to help research and development across the
whole of the United Kingdom?
Of course, UKRI provides funding for a whole range of
universities. Again, if the hon. Gentleman has specific ideas for
projects, perhaps he would come forward with them.
(South Norfolk)
(Con)
It is possible to build a house that costs nothing to heat, but
that is not happening at scale at the moment. Does my right hon.
Friend consider it part of his Department’s responsibilities to
support research into making this more widespread, which would be
hugely beneficial for the planet?
I know that my hon. Friend is an authority on the house building
sector, and I had an opportunity to work with him on these issues
when I was the Housing and Planning Minister. He raises an
important point. We know that 15% of emissions are from housing,
and we are looking to see how we can bring that down as part of
the net zero target.
Aerospace Sector: Innovation
(City of Chester)
(Lab)
3. What plans he has to support innovation in the aerospace
sector. [901043]
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
The hon. Gentleman, as chair of the all-party parliamentary group
on aerospace, will know that aerospace is a high-value growth
sector driven by innovation, which is why the Government and the
industry are co-investing £3.9 billion up to 2026 in aerospace
research and development, and a further £300 million in the
future flight challenge.
I am grateful to the Minister for that answer. The UK leads the
world in aerospace technology, but it faces the same pressures as
other sectors with regard to environmental sustainability, so may
I urge him to increase long-term funding for the industry so that
we can retain our global lead while meeting the challenge of net
zero?
The hon. Gentleman raises an important question. The Prince of
Wales and I co-chaired a deep dive at the Whittle laboratory,
with the whole industry around the table, to consider how we can
deliver on net zero for the industry. We were targeting a fully
electric aircraft that, at 500 miles, could cover most of Europe
and take 180 passengers, and of course we are looking at other
technologies for longer haul flights. We are also creating the
innovators of the future with 500 additional master’s level
postgraduate places for aerospace.
Clean Growth Industries: New Jobs
(Barrow and Furness)
(Con)
4. What steps he is taking to increase the number of new jobs in
clean growth industries. [901044]
(Stockton South)
(Con)
7. What steps he is taking to increase the number of new jobs in
clean growth industries. [901047]
Mr Speaker
I call the Minister—and welcome.
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
Thank you, Mr Speaker.
The Government are committed to making the UK a world leader in
clean growth, building on existing strengths in sectors such as
nuclear and offshore wind. We are taking action to deliver that,
including by investing £3 billion in low-carbon innovation to
2021 and £170 million from the industrial strategy challenge fund
to support our industrial decarbonisation mission to create at
least one low-carbon industrial cluster by 2030.
Tidal energy could be a game changer for my constituency of
Barrow and Furness, for Morecambe bay and for the wider United
Kingdom, through clean energy production and the ability to lead
the world in this technology. Does my hon. Friend agree that,
when considering the viability of these schemes, we have to
rewrite the Treasury’s Green Book to take into account not only
the unit cost of energy produced, but the value to the UK of
leading in this technology and the social impact of bringing the
schemes to constituencies such as mine?
I thank my hon. Friend for that question; I know how passionately
he cares about the issue. I agree that the seas around the UK
offer huge opportunities for cutting emissions and growing our
economy. The offshore wind projects near his constituency offer
an excellent example of UK leadership in renewable power. We are
determined to drive growth in all parts of the UK and ensure that
our assessment of projects takes full account not just of carbon
savings, but of the growth and opportunities that they can
provide for people across the country.
The Net Zero Teesside project aims to decarbonise the Teesside
industrial cluster by as early as 2030, capturing up to 6 million
tonnes of carbon dioxide annually. The project could support up
to 5,500 direct jobs, and it could help to safeguard as many as
16,000 existing jobs in the Tees valley. The UK has a unique
chance to lead global development of a new carbon capture,
utilisation and storage industry. Will the Government prioritise
this technology?
My hon. Friend, who I know cares passionately about this issue,
makes a really good point; CCUS will be vital to meeting our net
zero target and revitalising the UK’s industrial areas. The
Government have invested over £50 million in CCUS innovation, and
recently we consulted on potential business models to help
progress deployment. The CCUS action plan aims to enable the
commissioning of the first facility in the UK in the mid-2020s.
We committed in our manifesto to investing £800 million towards
that, and £500 million to help energy-intensive industries move
to low-carbon techniques.
(Sefton Central) (Lab)
If the Government want to help clean growth, they can invest in
the Mersey tidal power project. It is clean, entirely
predictable, and could power 1 million homes. It offers
high-quality jobs and has massive domestic and export potential.
and the Liverpool City Region Combined Authority
have just committed a further £3.5 million to the project, so
will the Government back the people of the north-west by
supporting investment in this exciting new project? It is a
chance to demonstrate that they are interested in and serious
about tackling the climate crisis.
Yes, absolutely. We need to do that for research and development
in all technologies, and I will welcome the opportunity to meet
the hon. Gentleman in the future.
(Kilmarnock and Loudoun)
(SNP)
The Minister says the UK is a world leader in offshore wind, but
the reality is that too many manufacturing and supply chain jobs
go abroad following the award of contracts for difference. Will
she look seriously at including a quality assessment mechanism in
the bid process to incentivise companies to use UK firms such as
CSWind and BiFab?
We are making sure that we get to 60% UK employment in
manufacturing by investing in R&D. We are committed to doing
that.
(Havant)
(Con)
Nuclear fusion and cleantech are key drivers of the fourth
industrial revolution that will help to create hundreds of
thousands of jobs across the whole country this decade. Will my
hon. Friend ensure that the COP26 summit is used to showcase our
country’s green entrepreneurs?
Very simply, yes.
(Newport East) (Lab)
As the Government rejected the opportunity to create new clean
jobs when they scrapped the Swansea bay tidal lagoon, which had
huge potential for communities along the Severn to kick-start
further lagoons, may I, along with other hon. Members, urge them
to look again at the huge potential of tidal power?
I can confirm that we have a commitment to net zero, and we are
doing everything we can to look at carbon neutral.
Energy-Intensive Industries: Decarbonisation
(Stoke-on-Trent North)
(Con)
5. What support his Department is providing to help
energy-intensive industries decarbonise. [901045]
(Stoke-on-Trent South)
(Con)
19. What support his Department is providing to help
energy-intensive industries decarbonise. [901060]
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
We have schemes worth nearly £2 billion operating, or in
development, to support our vital energy-intensive industries to
decarbonise. We will also invest in building the UK’s first fully
deployed carbon capture, usage and storage cluster, and we are
progressing carbon capture and hydrogen business models, both of
which are crucial technologies in decarbonising our industry.
Achieving net zero is a considerable challenge for
energy-intensive industries like ceramics, given the twin
requirements of decarbonising without reducing international
competitiveness. However, it is a challenge the sector can and
will rise to, provided the UK puts supportive policies in place.
Are the Government prepared to work actively with the ceramics
industry, like Churchill China and Steelite, to help incentivise
decarbonisation without, critically, undermining its
international competitiveness?
We must work together with industry to help our vital
manufacturing regions benefit from clean growth opportunities.
Stoke-on-Trent North is lucky to have such a Member championing
its cause. We have a number of schemes in place, such as the
transforming foundation industries challenge fund, the industrial
heat recovery scheme and climate change agreements, to support
industries like ceramics to cut bills and save carbon. In
addition, we will be opening the industrial energy transformation
fund to applications for phase 1 this spring.
Manufacturers in Stoke-on-Trent rely on energy-intensive
processes to create their world-class products. What assistance
can the Government give to help innovation in reducing the amount
of carbon emissions generated in those processes?
I am grateful to my hon. Friend the Member for Stoke-on-Trent
South () and, of course, the
south is as lucky as the north to have such a fantastic champion
in this House.
We have a number of schemes, as I have already mentioned,
particularly the transforming foundation industries challenge
fund, which will support energy-intensive industries to work with
each other to innovate in reducing carbon emissions. This is a
joint Government and industry fund. The first competition for
projects closed at the beginning of February, and applicants are
due to find out later this month whether they have been
successful.
(Stockton North) (Lab)
Teesside is a major centre for high-carbon, energy-intensive
industries, which are nervous about high energy costs, the future
of the REACH regulations and carbon costs. It is good to have my
near neighbour, the hon. Member for Stockton South (), also supporting the
CCUS campaign, but how can the Minister reassure the industry
that the Government will address the high cost issues and, in
particular, the REACH regulations that he is about to ditch?
I am grateful to the hon. Gentleman for his question. We engaged
with industry constantly throughout this process: when I took
this job on last year, we engaged with industry over REACH, and
we are looking at a UK REACH. Most importantly, we are looking at
the energy-intensive industries and how we can innovate, for
example, in steel and in the steel cluster. We have had good news
today for British Steel, and we can use the investment that the
Minister for Business, Energy and Clean Growth is making in
carbon capture, usage and storage to turn the industry into the
greenest steel industry in Europe.
(Rhondda) (Lab)
Will the Government help to decarbonise the Rhondda? I ask
because following the flooding we have seen significant
landslides on former coal sites. I do not want to overstate this,
but there is some anxiety about what that might mean for the
future and stability of some of these tips. Will the Minister
make sure that the Secretary of State meets me and other MPs in
affected areas to make sure that the Coal Authority is doing
everything in its power to make sure everybody is safe?
I am grateful to the hon. Gentleman for his question. The
Secretary of State will certainly meet him and other concerned
MPs, and make sure that the Coal Authority is doing everything it
can. I would also like to visit to see for myself what is
happening, so that we can work together on this. Getting to net
zero by 2050 is a joint effort by the whole of this House, not
just this Government.
Support for Small Businesses
(Keighley) (Con)
6. What recent steps he has taken to support small businesses.
[901046]
(Milton Keynes North)
(Con)
12. What recent steps he has taken to support small businesses.
[901052]
(Aylesbury) (Con)
22. What recent steps he has taken to support small businesses.
[901063]
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
Last month we launched businesssupport.gov.uk, our new website
bringing together all Government information available to help
businesses start, grow and scale. In my first week, I was
delighted to chair the Rose review board, which works with
industry leaders to break down the barriers that female
entrepreneurs face.
I thank the Minister for his response. Last week my constituents
Martin and Deanne Brook proudly opened a brand new post office on
Halifax Road in Cross Roads, which they operate in conjunction
with their already successful small family business, SMS Workshop
Supplies Ltd. What steps are the Government taking to help
incentivise small business owners like them to explore the
possibility of providing Post Office services as a means of
safeguarding the post office network?
This is about working with Members such as my hon. Friend and
coming up with imaginative ways of opening up post offices,
including Martin and Deanne’s in their hardware store. It is also
important that we take the Post Office’s relationship with
postmasters seriously and closely monitor the situation during
the legal proceedings that many people are going through and have
been through recently. The Post Office, under its new chief
executive officer, has since accepted that it got things wrong.
He has apologised and said that it aims to re-establish a
positive relationship with postmasters. The Department for
Business, Energy and Industrial Strategy is working actively with
the Post Office on this matter and will hold it to account on its
progress. We are also looking into what more needs to be done.
In Milton Keynes, we can get our groceries delivered by robot,
and I was fortunate last week to meet some of the humans from
Starship Technologies who wrangle these robots. What support is
my hon. Friend giving to small businesses and start-ups such as
Starship Technologies, which are at the forefront of innovative
new technology?
Fortunately, questions are not answered by robot yet, so I am
still here. [Interruption.] Well, there is a bit of character and
it is less robotic. I believe that 50,000 deliveries have been
done by Starship Technologies in Milton Keynes, so that is an
excellent example. We need to make sure that small businesses can
innovate, scale and grow, and we are supporting them to do so
through such schemes as Innovate UK smart grants, tax credits and
the annual investment allowances, and through programmes
supported by the British Business Bank. Research and development
tax credits are the single biggest Government support for
business investment in R&D. So far, just over £4.3 billion
has been claimed through those tax credits in 2017-18, £2.3
billion of which was claimed through the small and medium-sized
enterprise scheme.
Small businesses in my constituency, including in the village of
Stokenchurch, frequently tell me that they find it particularly
hard to make a profit on the traditional high street. What can
the Minister do to help traditional town centres to thrive, and
become commercial and community hubs?
We want our town centres and high streets, including in
Stokenchurch in Aylesbury, to be vibrant community hubs where
people can live, shop and use services. To support that, we are
delivering a £1 billion future high streets fund, as part of a
£3.6 billion towns fund to level up our regions. We are committed
to a fundamental review of business rates, which the Treasury
will announce in due course.
(Salford and Eccles)
(Lab)
I welcome the Minister and the Secretary of State and his new
team to their places. I look forward to our future exchanges.
Last week I visited a café in Calder Valley that, despite having
just started trading, has been ruined by relentless flooding. The
owners, like the owners of so many small businesses, have
received no support from the Government and have been left to
repair the damage on their own, at their own cost, with the help
of local people. Will the Minister outline to the House what
meaningful financial support has been made available to
businesses affected by flooding? Will the Government protect such
businesses in future by outlining in the Budget an increase in
the UK’s capital spend on flood defences to approximately £1
billion a year, as advised by the Environment Agency and the
National Infrastructure Commission?
We have spent £2.6 billion on flooding so far and announced £4
billion in our manifesto. The business recovery grant provides
local authorities with funding of £2,500 for severely affected
businesses like the café the hon. Lady described. It is important
that we support small and medium-sized businesses to recover and
help to support local economies.
The Minister must acknowledge that that is a paltry amount of
support. According to the Federation of Small Businesses,
flooding will cost small businesses hundreds of millions of
pounds, and thousands cannot find affordable flood insurance.
Furthermore, on flood defence the Government have pledged less
than half the capital advised—only £450 million a year for the
next six years. The Prime Minister refused to hold a Cobra
meeting following the floods and he could not even be bothered to
visit the flood-affected areas. Is it not the case that the
Government’s response to this disaster is yet another example of
a part-time Prime Minister failing to provide the leadership that
our country needs in a time of crisis?
The Prime Minister is leading on this situation from the front.
He is getting money out the door. As a former small-business
owner, I would welcome any visit from the Prime Minister, but
what I would welcome more is the money that we are getting out
the door on day one to help these businesses.
(Inverness, Nairn, Badenoch
and Strathspey) (SNP)
I too welcome the Secretary of State and his new ministerial team
to their places.
The UK’s proposals on EU trade negotiations could reduce Scottish
GDP by 6.1%, or £1,600 per person. Small businesses, including
many in the food sector, simply cannot afford to cope with the
prospect of such Mad Max economics. They need help now, so will
the Minister join me in calling for a cut to employers’ national
insurance, to help them and to help to protect jobs?
We will see what happens in the Budget. Employment allowance has
benefited businesses—including my former business—up and down the
country. Businesses want meaningful things in the Budget, rather
than platitudes from the Opposition.
That response comes as absolutely no surprise, given the email
from a key adviser to the Chancellor leaked at the weekend that
said that the food sector “isn’t critically important”. We all
remember the Prime Minister’s shocking attitude and use of the
F-word in relation to business concerns when he said “F***
business”. It now seems that the Government are doubling down on
that and it is “F*** farming” and “F*** fishing.” With the
Minister refusing to support businesses in their hour of need, it
is clear to all that this Government deserve an F for their
economic incompetence.
To date, the UK Government have committed up to £3.08 billion for
city region and growth deals throughout Scotland, Wales and
Northern Ireland. Since 2012, the British Business Bank has
issued more than 4,200 start-up loans in Scotland, worth more
than £32 million in total. That is actual action for businesses.
(St Ives) (Con)
I thank the Minister for his commitment to small business. Small
businesses in Cornwall, and especially on the Isles of Scilly,
face an unprecedented challenge on 1 January as a result of the
proposed immigration Bill. Will the Minister work with the Home
Office to make sure that small businesses that do not have a
workforce in the local area sitting around looking to and able to
fill posts are able to carry on doing business next year?
I happily confirm to my hon. Friend that our new immigration
system is flexible, so, yes, we will work with businesses all
around the country to ensure that we have the skills that we need
to allow businesses to thrive.
(Ogmore) (Lab)
For the past two weekends, properties and businesses in the
Rhondda Cynon Taff area—I am one of the MPs for that authority
area—have seen devastating flooding. Just this week, I was out
helping businesses in my constituency find sandbags and pumps
from my local authority. The Welsh Government, the Rhondda Cynon
Taff council and council leader Andrew Morgan are offering
support to small businesses, so if the Minister is to announce
additional funding for those businesses that have been impacted,
I plead with him not to forget about Welsh small businesses.
I have already talked about the £2,500 that we have been getting
out through that business recovery grant, but we will always look
to continue to work with businesses in Wales, Scotland and
Northern Ireland as well as in England. It is important, as the
hon. Gentleman said, that communities come together, which is why
there is support for community economies, ensuring that they can
continue to survive and thrive.
(North East
Bedfordshire) (Con)
My hon. Friend will be a great supporter of small businesses, so
will he get off to a fast start by urging the Treasury to scrap
its misguided changes to IR35? Those changes are punishing small
businesses, with large companies already implementing blanket
bans that the Treasury had said in a statement would not yet be
implemented, and with the HMRC’s own assessment tool creating
confusion, not clarity, for entrepreneurs.
I am sure the Chancellor will hear that question. As my hon.
Friend well knows, that is a matter for the Budget, which is
still under review.
COP26
(Nottingham East)
(Lab)
8. What steps he has taken to prepare for COP26. [901048]
The Secretary of State for Business, Energy and Industrial
Strategy ()
I am delighted to have been appointed COP President. I have
already held discussions with former COP Presidents, including
Paris COP President Laurent Fabius. I met, among others, the UN
Deputy Secretary General Amina Mohammed and Patricia Espinosa at
the United Nations Framework Convention on Climate Change. Last
week, together with the Prime Minister’s COP26 climate finance
adviser, Mark Carney, I launched the COP26 finance strategy. My
officials and I are working at pace to deliver a successful
summit.
COP26 will be the most critical talks since Paris, yet
preparations so far have been beset by chaos. What response can
the Minister provide to the former COP President who says that
this Government are presiding over “a huge lack of leadership” on
the issue. The Prime Minister has admitted to her that he does
not even understand climate change. Does the Minister acknowledge
the embarrassing lack of credibility and competence that the
Prime Minister has shown on COP26 preparations?
I thank the former COP President for her work. The hon. Lady
talks about the Prime Minister’s leadership. I can assure Members
that when we were at the UN General Assembly in September, there
was a huge amount of positivity around his leadership in doubling
our International Climate Finance commitment. She will also know
that last month the Prime Minister launched the Year of Climate
Action. He is absolutely leading on this issue from the front,
and the rest of us are supporting him. Let me tell her that we
are absolutely determined to make sure that COP26 is a success,
not just for the UK but because it matters to the whole world.
(Southampton, Test)
(Lab)
Every country has to submit its contribution to climate action
before COP26 meets. Why is the Secretary of State preparing the
UK’s contribution statement on the basis of the fifth carbon
budget, which works towards a target of only 80% reduction in
greenhouse gas emissions by 2050, when this House has determined
that the target to be met should be net zero by 2050?
We met the first two carbon budgets, and we are on track to meet
the third. Of course, I recognise the need for further action:
2020 will be a year of climate action, as I have said, and we
have new plans to decarbonise key sectors in industry.
(Gloucester) (Con)
I congratulate the Department on its far-sighted announcement
yesterday that sets the tone for COP26 by allowing onshore wind
and solar projects, which have local support, to bid for funding.
The announcement also floated a further pot for less developed
technologies, such as tidal stream and wave, some of which the
Energy Minister and I met last week. Does my right hon. Friend
agree that we should pursue this opportunity to develop diverse
sources of green energy and look closely at the innovative tax
credit proposal, innovation power purchase agreement, to help
some of these technologies get off the ground?
I make the general point that innovation is vital in all sectors
of industry, but particularly in the renewables sector. As my
hon. Friend will know, the proposal that we set out will help the
UK to achieve its 2050 net zero ambition. Ultimately, this is
about achieving value for money by driving further cost
reductions in renewable electricity.
(Leeds West) (Lab)
I welcome the Secretary of State and his new ministerial team to
their places. The Business, Energy and Industrial Strategy
Committee looks forward to taking evidence from them, and I am
sure that they look forward to that as well.
May I follow up on the question from my hon. Friend the Member
for Southampton, Test (Dr Whitehead) about our fourth and fifth
carbon budgets? Those carbon budgets are premised on achieving an
80% reduction in carbon emissions, yet this House has unanimously
passed legislation to achieve net zero. It is neither coherent,
nor showing leadership, for our fourth and fifth carbon budgets
to be based on an outdated objective that this House has
rejected. Can the Secretary of State confirm that we will be
updating our fourth and fifth carbon budgets—and, crucially, that
we will meet them?
I thank the hon. Lady for welcoming my ministerial team and me.
Of course I look forward to coming before her Select Committee.
Let me be absolutely clear: we are one of the first countries in
the world to have legislated for a net zero target, and we have
demonstrated our global leadership. We have met the first two
carbon budgets and are on track to meet the third, but I take her
point.
(Rother Valley)
(Con)
I agree that one of the best ways of preparing for COP26 is
bringing forward the new contracts for difference auctions for
onshore wind and solar, which will help us to achieve net zero.
Could we also take this opportunity to demonstrate to the
hard-working taxpayers of Rother Valley and across the country
that we can reduce their bills by going green. Can we make it a
key part of COP26 to show that going green is better value for
those hard-working people?
My hon. Friend makes a very important point. Offshore wind prices
have dropped by over two thirds between 2015 and 2019 because of
the CfD auctions. Going green is positive for the economy: GDP
has grown by 75% since 1990, yet we have also managed to reduce
emissions by 43%.
Renewable Energy: Scotland
(Cumbernauld, Kilsyth
and Kirkintilloch East) (SNP)
9. What recent discussions he has had with the Secretary of State
for Scotland on renewable energy. [901049]
The Minister for Business, Energy and Clean Growth ()
The hon. Gentleman will know that we have many conversations
across Government. I have spoken with the Secretary of State for
Scotland, as well as the Energy Minister in the devolved
Administration. In fact, I spoke to colleagues just yesterday.
I for one would like to say how delighted I am that the
Government have finally listened to the common-sense advice of
Scottish National party Members on the issue of onshore renewable
energy and contracts for difference, even if the delay has cost
us five wasted years. Looking ahead, will the Minister ensure
that the contracts for difference process is reformed to maximise
growth and opportunities for the Scottish and UK supply chains,
and how exactly will he go about doing that?
As the hon. Gentleman will know, we have been particularly
successful in the offshore wind auctions, and we came to our
conclusion not because of SNP lobbying, but because we felt that
having a pot 1 auction was the best way to reach the net zero
carbon target in a timely way by 2050.
(Dumfriesshire, Clydesdale
and Tweeddale) (Con)
It is important to put it on the record that not everyone in
Scotland will welcome yesterday’s announcement, not least my
constituents, who have more wind turbines—in sight or
planned—than any other constituency in the United Kingdom. Given
the ineffective planning system operated by the Scottish
Government and their willingness to override local decision
making, what reassurance can the Minister give my constituents
that they are not going to be overwhelmed by continuing wind
farms?
I am grateful to my right hon. Friend for his question. We are
very mindful of community consent and engagement with the
planning process through consultation periods. We are also
ensuring that the planning regime is robust. On balance, it was
felt that we needed to make a move on this pot 1 auction in order
to reach the target.
UK Export Finance: Coal
(East Ham) (Lab)
10. What discussions he has had with the Secretary of State for
International Trade on ending UK export finance for (a)
coal-mining and (b) coal-fired power station projects; and if he
will make a statement. [901050]
The Minister for Business, Energy and Clean Growth ()
The right hon. Gentleman will know that we have announced, with
the Department for International Trade, that we will no longer
provide any new export finance or new export credit for thermal
coalmining or coal-powered plants overseas.
I am grateful to the Minister for that confirmation. Following
the Prime Minister’s announcement at the UK-Africa investment
summit, will the Minister set out whether there is going to be a
transition period prior to the welcome situation that he has
described? Does he agree that UK Export Finance should be
promoting the transition away from all fossil fuels in developing
countries as soon as possible?
The right hon. Gentleman is absolutely right. Any form of
financing should absolutely take into account our net zero
commitment, and it is in the process of doing so. On the question
of coal, I take the opportunity to reiterate the fact that the
Prime Minister, only last month, announced the intention to
consult on bringing forward the coal closure to 1 October 2024.
Even last month, only about 3% of our power generation was coming
from coal. So this is a very achievable target, and we are very
hopeful that we can take coal entirely off the grid by October
2024.
(Rugby) (Con)
The move to generate electricity from sources other than coal is
very welcome, but some manufacturing processes will still require
a supply of coal. Does the Minister agree that it is better for
that coal to be supplied from domestic sources rather than being
shipped halfway around the world?
My hon. Friend is right. Obviously, from a coal and carbon
emissions reduction point of view, it makes sense to have a
locally based coal source rather than shipping it in a very
costly way halfway around the world. That is a fair point. On the
point about coal, the 2024 target is absolutely achievable. It is
something we are absolutely committed to doing. In the long run,
coal will be taken completely off the power generation grid, and
that is something to be celebrated across the whole House.
Topical Questions
John Mc Nally (Falkirk) (SNP)
T1. If he will make a statement on his departmental
responsibilities. [901066]
The Secretary of State for Business, Energy and Industrial
Strategy ()
My Department is leading the green revolution, working towards a
target of net zero emissions by 2050. We are unleashing
innovation and making the UK the best place in the world to start
and grow a business. We are creating better corporate governance,
improving employment protections and working practices, and
contributing to the UK’s labour market strategy. Our preparations
for COP26 are gathering pace, ramping up momentum towards a
global zero carbon economy.
John Mc Nally
The recent BEIS Committee report was clear that the UK could not
credibly adopt a net zero emissions target unless it invests in
carbon capture and undersea storage. Does the Secretary of State
plan to extend the Tory manifesto’s proposals on CCUS plants to
Scotland so that we can create and deliver a clean growth
structure?
I certainly agree that CCUS is going to be essential to
successfully tackling climate change. The hon. Gentleman talks
about innovation funding for Scotland. I can tell him that £4.8
million is supporting the development of Project Acorn, which is
a CCUS project based in north-east Scotland.
(Cheadle) (Con)
For over 40 years, Jim Hall Sports has been at the heart of
Bramhall village. However, the future of the shop is in doubt
after Nike’s decision to terminate its supply agreements with
smaller independent shops. This follows years of annual rises in
the amounts that independent retailers have needed to sell to
hold on to their merchandise account. It is a move that is a
harbinger of the end of many independent stores in an already
pressurised high street market. What discussions has my hon.
Friend had with sports giants such as Nike to ensure that Jim
Hall’s and other independent sports shops continue to have a
future on our high streets?
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
I thank my hon. Friend for sticking up for small businesses in
her constituency. Large suppliers of consumer products,
especially those who are leaders in their field, have a
responsibility to treat retailers fairly and transparently,
regardless of their size. If they think they are being unfairly
treated, they could go to the Competition and Markets Authority.
Contractual arrangements are between two private companies.
However, we will support our high streets through the towns fund
and the establishment of the high street taskforce.
(York Central)
(Lab/Co-op)
Coronavirus is impacting on every aspect of work, from the cost
to employers to the cost to workers. The Health Secretary has
said that employers should view isolation as sick leave, but the
law does not state that. Even if that was so, those on zero-hours
contracts and in insecure work are unlikely to have sickness
cover, and statutory sick pay does not pay for the first three
days, meaning that those with little means have to choose between
health and hardship—an issue I raised with the Health Minister a
month ago. So what discussions has the Business Secretary had
with Cabinet colleagues to ensure that workers are financially
protected to stop the risk of spreading coronavirus?
The hon. Lady is right: this is a very serious issue, which
affects individuals and challenges businesses. Those who do not
qualify for statutory sick pay, including those who are
self-employed, may be able to claim universal credit or new-style
employment and support allowance.
(St Austell and Newquay)
(Con)
T5. Lithium is set to become one of the most sought after
minerals in the world. Recent confirmation of significant
deposits means that Cornwall is well placed to enable the UK to
have its own secure domestic and sustainable supply of this vital
mineral. Not only will that help to level up the Cornish economy,
but it will put the UK at a global competitive advantage. Will
the Minister ensure that the Government do everything possible to
enable us to make the most of this opportunity, and would he like
to come to Cornwall to see the work that is going on? [901071]
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
I had the pleasure, with my hon. Friend, of meeting Cornish
Lithium recently, and it was made clear that lithium extraction
provides an excellent opportunity to contribute to our efforts to
level up Cornwall, as well as securing our net zero objectives. I
thank him for the invitation. I would be delighted to visit
Cornwall.
(North Ayrshire and Arran)
(SNP)
T2. In Scotland, 204 free cash machines closed last year.
Alongside access to local banks and post office services being
cut, that is having a hugely detrimental impact on high streets
and small businesses in our towns, which are already struggling.
Will the Secretary of State ensure that the Government act now
and introduce legislation to protect access to cash, local
banking and post office services on our high streets, so that our
small businesses and high streets can survive and thrive?
[901067]
We are committed to supporting the retail sector, and we are
working closely with the industry through the Retail Sector
Council. As the Under-Secretary of State for Business, Energy and
Industrial Strategy, my hon. Friend the Member for Sutton and
Cheam (), noted in reply to a question
earlier, we are supporting high streets with the £1 billion
future high streets fund.
(Stourbridge) (Con)
T6. Both I and are campaigning for a
gigafactory to be located in the urban west midlands, close to
the heart of car manufacturing. The factory would make the region
a world leader in green vehicle technology. Will the Minister
support that vision, and what steps can we take to ensure there
is further investment in green technology in the west midlands?
[901072]
We are committed to securing investment for a UK gigafactory to
support electrical vehicle manufacturing. Indeed, last week, I
met and Ralf Speth, who is the
chief executive officer of Jaguar Land Rover, to discuss their
thoughts on this matter. We recognise the strength of the west
midlands, where £138 million has already been invested in the UK
Battery Industrialisation Centre scheduled to open near Coventry
this summer.
(East Kilbride, Strathaven
and Lesmahagow) (SNP)
T4. [R] As chair of the all-party parliamentary group for
disability, I have been receiving representations from
entrepreneurs with disabilities who state that they face many
more challenges in accessing business loans. Will the Secretary
of State speak with colleagues in the Treasury and make sure that
there is a strategy to address that, so that a truly inclusive
economy can be achieved? [901069]
The hon. Lady talks about support for business. We provide that
through small start-up loans and the British Business Bank, but I
or one of my colleagues would be happy to have a discussion with
her on the specific issue she raises.
(Gainsborough) (Con)
T7. Are the current bunch of Ministers crusading Conservatives?
With 73% of small businesses reporting that they are
over-regulated, do Ministers wake up every day thinking about how
they can reduce taxation and regulation on business—particularly
small businesses? In other words, do they accept that it is only
with entrepreneurs that we can create wealth in this society?
[901073]
My right hon. Friend speaks from experience, having been a
business Minister in the past. We are absolutely committed to
making sure that we reduce burdensome regulation and red tape,
but we need to make sure that we stick with the protections that
are there for employees.
(Washington and Sunderland
West) (Lab)
T9. Following the conviction of two ticket touts in Leeds last
week for fraud, what discussions has the Minister had with his
colleagues in the Department for Digital, Culture, Media and
Sport about including financial harm in the online harms White
Paper? [901075]
I will make sure that my colleagues and I have the discussion.
Perhaps the hon. Lady would like to share with my office the
details of that case.
(Stafford) (Con)
T8. As a former small business owner, may I ask the Minister what
steps he is taking to enable more women to start and grow their
own businesses, to help generate more local jobs in my
constituency and across the country? [901074]
I thank my hon. Friend for that question. Last week, I co-chaired
the Rose review board, which is overseeing the progress made in
delivering on the initiatives from that review. The Treasury has
launched the investing in women code, which to date has 22
signatories from across the financial services industry. I look
forward to working with my colleagues in government and business
to drive forward this important agenda.
(Islwyn) (Lab/Co-op)
Tidal’s Store in my constituency is paying a high amount of
business rates—proportionately more than the local retail park
down the road—which it says is putting it at a disadvantage. Will
the Minister have a word with his Treasury colleagues about
reforming business rates for small businesses such as Tidal’s?
I thank the hon. Gentleman for that question. I know that that is
something that exercises high streets up and down the country.
The Treasury is looking at this and reviewing business rates as a
whole.
(Lichfield) (Con)
When I was in business years ago, it came to something when
Ríkisútvarpið in Iceland and Nederlandse Omroep Stichting in
Holland paid quicker than the BBC. What can my hon. Friend do to
ensure that large businesses pay smaller businesses quickly and
on time?
I thank my hon. Friend for that question. We will be
strengthening the Small Business Commissioner’s powers. We
already have a tough approach to large companies that do not
comply with the payment practices and reporting duty. We are
strengthening and reforming the prompt payment code and moving
administration to the Small Business Commissioner. The business
basics fund competition encourages SMEs to utilise payment
technology and boost productivity, and the winners will be
announced in April.
(Caithness, Sutherland and
Easter Ross) (LD)
Local crofters in Melness support the proposal to establish a
vertical space launch facility in Sutherland, and they have
written to the Prime Minister to tell him that. Does the
Secretary of State agree that that would be good for the local
economy and that the UK has a huge opportunity in terms of
launching satellites for other countries that do not have launch
facilities?
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
I thank the hon. Member for that question. We have united
Departments across Government to develop a UK space strategy,
which will help the UK lead the way in this fast-growing area and
create thousands of jobs across the country. Our space strategy
will support cutting-edge space science and technologies and
foster world-leading British innovation.
(Harborough) (Con)
Nearly half the core research and development budget is spent in
just three cities—Oxford, Cambridge and London—and yet for every
pound of private investment that such spending leverages in
London, we get £3 in the east midlands and £5 in the west
midlands. Does the Minister agree that, if we are going to level
up, we need a fairer division of spending on R&D?
As I said in answer to an earlier question, I absolutely want to
see levelling up, and I want to see money put into centres of
excellence around the country.
(Huddersfield)
(Lab/Co-op)
I welcome the Secretary of State to his role. I enjoyed working
with him in his previous job, and I am sure he will do a very
good job in this Department. Is he aware of the dire situation of
businesses in my constituency because the workshop of the
world—China—has closed for business? There is no supply chain,
and manufacturing companies up and down the country are in a dire
situation. This is a crisis caused by coronavirus, and we have
not stepped up to the plate yet to face the measure of this
terrible disaster.
I thank the hon. Member for his question, but he is wrong. We
have stood up a very important group within the Department that
is working with the automotive sector, the retail sector and
others that are impacted by China’s supply chain problems. We
continue to monitor the situation closely, as well as the
critical infrastructure that keeps the UK’s lights on and the UK
economy powering ahead.
(West Worcestershire) (Con)
Does the Minister agree that one of the best ways to level up the
great British high street with the internet would be to allow our
high street shops to choose when they open?
I know that my hon. Friend has looked at extending the hours of
the Malvern tourist information centre. The Government have
reviewed this issue several times. There are strongly held views
on both sides. We believe that the current rules represent a fair
compromise between those seeking reduced opening hours and those
seeking greater liberalisation.
(East Antrim) (DUP)
At the same time as the Government have re-announced subsidies
for onshore wind, Scottish Forestry has revealed that 13.9
million trees have been cut down for wind farms on its land. Does
the Minister share my concern at those acts of economic
vandalism? Does he believe that it is in the economic and
environmental interests of this country to tear down trees, cut
up peatland and erect steel structures on pristine landscapes in
the vain hope that we can change the climate?
The Minister for Business, Energy and Clean Growth ()
I am always very interested in the right hon. Gentleman’s
contributions on this subject. We should look at the details of
actual deforestation, but he must not allow himself to get
distracted from the big picture. The deployment of offshore wind
has been a huge success for the UK. As the Secretary of State
said, the price per megawatt hour has come down by two thirds and
renewable energy is absolutely at the centre of our strategy to
reach net zero carbon.
(The Wrekin) (Con)
In 2016, the United States became a net exporter of liquefied
natural gas. In 2019, the United States became a net exporter of
all oil products: both crude and refined. In order to diversify
the UK’s energy risk, is it not time that the Government started
to interact with the United States, perhaps as part of a trade
deal, to import both gas and oil from the United States?
I thank my hon. Friend for his question. I met the newly
appointed US Energy Secretary a couple of weeks ago and we work
very closely with the United States. Of course, this week we
published our terms for our negotiation for a free trade
agreement with that great country.
