Business, Energy and Industrial Strategy The Secretary of State was
asked— Renewable Energy Wera Hobhouse (Bath) (LD) 1. What plans he
has to support the development of the renewable energy
sector.(900382) Mr Laurence Robertson (Tewkesbury) (Con) 20. What
steps he is taking to increase investment in renewable energy
projects. (900403) The Secretary of State for Business, Energy and
Industrial Strategy (Kwasi Kwarteng) In April, the
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Business, Energy and
Industrial Strategy
The Secretary of State was asked—
Renewable Energy
(Bath) (LD)
1. What plans he has to support the development of the renewable
energy sector.(900382)
(Tewkesbury) (Con)
20. What steps he is taking to increase investment in renewable
energy projects. (900403)
The Secretary of State for Business, Energy and Industrial
Strategy ()
In April, the Government published plans for accelerating
renewable energy deployment in our British energy security
strategy. Of course, that is very much at the centre of our
strategy to ensure sustainability, affordability and security in
the long term in our energy.
(Bath) (LD)
I wish Alex a happy retirement; where would we be without
Hansard?
Ofgem’s remit is a real barrier to increasing grid capacity, as
it is currently impossible to make anticipatory grid
infrastructure investment. That is slowing the growth of
renewables and pushing up household energy bills. If we had the
new wind and solar farms that the Government are seeking to
procure in this summer’s contacts for difference auction already
on the grid, every UK household would save £100 on their energy
bill this winter. So why have the Government still not reformed
Ofgem’s remit?
I am sure that the hon. Lady paid attention to the Queen’s Speech
and will have noted that it contained an energy Bill, which will
precisely redefine Ofgem in order to attract the anticipatory
investment to which she referred.
Mr Speaker
I call . He is not here. I call
, the SNP spokesperson.
(Aberdeen South) (SNP)
Thank you, Mr Speaker. Of course when we are talking about
renewables, it is important in this Chamber to reflect upon the
fact that Scotland boasts 25% of Europe’s offshore wind capacity
and of its tidal capacity. Now that the UK Treasury is going to
be coining in some £13 billion from Scotland’s North sea oil and
gas sector this year alone, will it give a little bit back and
match fund the Scottish Government’s £500 million just transition
fund?
I am delighted to see the hon. Gentleman so enthusiastic about
energy in Scotland. I wish he would extend his support to nuclear
power and other forms of decarbonised baseload. On his question,
the Treasury has announced a strong investment incentive in
relation to the energy profits levy.
The Government have £13 billion in their back hipper, yet they
will not even give £500 million back. But we should not be
surprised, because this UK Government are failing to fast-track
the Acorn carbon capture and underground storage project;
continue to preside over Scottish renewables projects paying the
highest level of grid charging in the entirety of Europe; and
confirmed just yesterday that big oil incentives will not be
carried over to big renewables either. So may I ask the Secretary
of State: is it not the case that, as ever, Scotland has the
energy but we do not have the power?
Scotland has the energy, and in the form of the UK Government it
has a strong supporter of renewables and energy in Scotland. The
Minister for Energy, Clean Growth and Climate Change, my right
hon. Friend the Member for Chelsea and Fulham () and I negotiated the North sea
transition deal, and we are also pleased to have announced the
energy transition zone in the hon. Gentleman’s constituency,
powered and funded by my right hon. Friend the Chancellor of the
Exchequer.
Energy Price Cap
(East Renfrewshire)
(SNP)
2. What recent assessment he has made of the potential effect of
raising the energy price cap on standards of living. (900383)
(Lanark and Hamilton East)
(SNP)
21. What recent assessment he has made of the potential effect of
raising the energy price cap on standards of living. (900404)
The Secretary of State for Business, Energy and Industrial
Strategy ()
The Government are well aware of the difficulties households are
facing, which is exactly why we have provided a further £15
billion of support, on top of the £22 billion announced earlier
this year, to support people with the cost of living.
The energy price cap affects consumers and has major implications
for business. The price of energy is recognised as one of the key
drivers of inflation, because of rising prices at all levels.
That is confounded by the Chancellor’s post-covid rises to VAT on
hospitality and tourism. So does the right hon. Gentleman regret
not doing more to get the Chancellor to provide more support to
small businesses and small business owners, to help them and to
help keep prices and inflation down?
The hon. Lady will remember that throughout the covid period my
right hon. Friend the Chancellor of the Exchequer supported
businesses to the tune of something like £400 billion. A lot of
that support, in the form of loans and the future fund, is
ongoing. I do not think we can take any lectures from the hon.
Lady on supporting business through what has been a very
difficult period.
This week, the citizens advice bureaux in Scotland revealed that
62% of the inquiries they receive relate to energy issues. As
Ofgem has warned that people can expect a staggering 42% rise in
energy prices, does the Secretary of State regret the time he has
spent defending the Prime Minister against confidence votes
instead of providing much-needed support for businesses and
energy consumers to tackle the cost of living crisis?
As I have said once and am sure I will repeat, my right hon.
Friend the Chancellor of the Exchequer has dedicated £37 billion
precisely to help people through what is a very difficult time in
relation to the cost of living.
Dame (South Northamptonshire)
(Con)
I congratulate my right hon. Friend on the excellent package of
support for consumers and businesses, but I am sure he will agree
with me—unlike the Opposition parties—that it is not just about
what the Chancellor can do to step in: there are lots of steps
that consumers and businesses can take for themselves to reduce
their own energy costs before the energy price cap is changed
again this autumn. Will my right hon. Friend update the House on
what more can be done to help consumers and businesses to cut
their own energy costs?
I am delighted that my right hon. Friend has raised that issue.
As a keen follower of these matters, she will know what we have
done in relation to the heat and buildings strategy, which sets
out clearly the kinds of steps that we want people to see in
respect of insulation and the possibility of selling energy back
to the grid. We are doing lots of exciting things in this policy
area. I am sure that my right hon. Friend will be pleased to hear
that I am always interested in her ideas and I am delighted that
she is heading our Back-Bench policy committee in this area.
(Brighton, Pavilion)
(Green)
One of the fastest and most effective ways to protect people from
the impact of rising energy costs would be an ambitious retrofit
and insulation programme, which should have been at the heart of
the Government’s approach but has been conspicuous by its
absence. The Government support pledged so far for energy
efficiency falls £1.4 billion short of their manifesto
commitment, so will the Secretary of State tell us what more he
plans to do on the issue? In particular, will he tell us with
absolute certainty that legislation for ECO4—the energy company
obligation—which was due in April, will not face any further
delays and will definitely be laid before Parliament before the
summer recess?
It is not my job to say when legislation will be coming into this
House—[Interruption.] What I will say—[Interruption.] What I will
say specifically in relation to decarbonisation is that we have a
clear heat and buildings strategy. The manifesto commitment
covered 10 years, so it was not over the term of the Parliament.
There was a clear manifesto commitment over 10 years and more
money clearly needs to be spent to honour that commitment over a
10-year spending period.
Mr Speaker
I call the shadow Minister, .
(Southampton, Test)
(Lab)
It would be really nice if the Secretary of State told us when
the ECO4 legislation is coming, because ECO4 is not going to work
unless that legislation comes forward.
The Secretary of State knows that the new price cap and the
increase in customer bills will have a devastating impact on
customers’ struggle with the cost of living, so why is his
Department directly contributing to the sky-high price cap levels
by putting into place new customer levies—such as the
socialisation of the costs of failed energy companies, the green
gas levy and the nuclear regulated asset base levy—that will add
perhaps £100 to the upcoming and future price cap levels, and
hence to customer bills? The Secretary of State talks of
Government assistance to help customers to cope with their bills,
but is it not very much about giving with one hand and taking
back with the other? Should customers not be angry at this
cynical policy?
There is no reason to be angry about the support, because the £37
billion of support is very real. On the supplier of last resort,
the hon. Gentleman will know that 26 firms had to leave the
market as a consequence of sky-high wholesale prices, and all the
SOLR levy does is socialise those costs within the industry. It
was a necessary device to make sure that customers can ease on to
other providers without interruption.
New Low-Carbon Technologies
(Wantage) (Con)
3. What steps he is taking to support new low-carbon
technologies.(900384)
(Heywood and Middleton)
(Con)
9. What steps he is taking to support new low-carbon
technologies.(900391)
(Wycombe) (Con)
10. What steps he is taking to support new low-carbon
technologies.(900392)
The Minister for Energy, Clean Growth and Climate Change ()
Clean energy technologies are fundamental in both securing our
energy supply and meeting net zero. This Conservative Government
have set out their ambition to invest up to £22 billion in
research and development by 2024. Meanwhile, we are moving to
annual options for renewable energy and investing big in our
nuclear future.
In recent months, I have had a number of emails from constituents
who have taken the Government’s encouragement to look at getting
a heat pump, but have found the cost just too high for them. What
steps is my right hon. Friend taking to help bring down the cost
of heat pumps so that they are more affordable for more
people?
My hon. Friend makes an important point. We want to go with the
grain of human nature, which means that, when it is time to
replace a gas boiler, the heat pump is a competitive option in
terms of price. That is why we think the cost of heat pumps can
reduce by 25% to 50% by 2025. We have our £450 million boiler
upgrade scheme to provide capital grants of up to £6,000, and
that is in addition to the zero per cent rate of VAT on
installation.
As we transition away from gas, hydrogen—in particular green
hydrogen generated by renewable sources such as that at Scout
Moor wind farm in my Heywood and Middleton constituency—gives the
UK the unique opportunity to become an exporter of energy. Does
my right hon. Friend agree that that is good not just for our
economy and energy security, but for communities such as Heywood
and Middleton where it will create new and exciting jobs?
My hon. Friend is a doughty champion for his constituency and for
the hydrogen sector. I was at the global hydrogen summit about
three weeks ago where exactly the possibility of hydrogen exports
was very much the topic of the day. That is why we have doubled
the ambition in our British energy security strategy to go to 10
GW of low-carbon hydrogen production by 2030, which will provide
fantastic opportunities right the way across the country, notably
in his constituency as well.
Mr Baker
I am very keen to help the Government find viable paths to net
zero, which is why I took a meeting with a firm that has
developed a route to continuous power from tidal basins. Can I
bring those people to meet my right hon. Friend to discuss how
that solution, remarkable as it is, produces continuous, not
intermittent, net zero power, so that he can learn more about
what could be done?
I thank my hon. Friend for his continued interest in all matters
relating to net zero. My door is always open to him, particularly
in bringing innovative proposals on how we will get to net zero.
He will know that the Government have invested more than £175
million in tidal energy projects in the past two decades and we
have £20 million allocated in the current allocation round for
the contracts for difference for tidal stream power.
Mr Speaker
I call the Chair of the Business, Energy and Industrial Strategy
Committee.
(Bristol North West) (Lab)
Yesterday, a Treasury Minister was unable to confirm whether the
climate compatibility checkpoint would be applied to the recent
tax cut for the oil and gas industry investing in further
drilling. Can the Minister today confirm whether that climate
checkpoint will apply to existing investment decisions and not
just future investment decisions after the checkpoint has been
introduced?
As the Financial Secretary to the Treasury said yesterday, that
consultation on the climate compatibility checkpoint has closed
and the Government will be responding to that consultation in due
course.
Dame (Hackney South and Shoreditch) (Lab/Co-op)
A recent Public Accounts Committee report on net zero highlighted
the real challenge of getting consumers onboard. Going net zero
and embracing low- carbon technologies cannot be a preserve of
the wealthiest and there needs to be much more work by
Government. What are the Government doing to ensure that
consumers are supported to make green choices?
The hon. Lady raises some very good points. I am looking forward
to appearing before the House of Lords Committee on this very
topic on Thursday. I am sure that her Committee has done
important work on this. We want to make this process as
affordable as possible for people. That is why we have introduced
the boiler upgrade scheme. That is why we are spending £6.6
billion of public money in this Parliament on energy efficiency,
making sure that those options are there and are affordable. That
is one of our key aims, particularly if we are to get to 600,000
heat pumps per annum by 2028.
(Swansea West)
(Lab/Co-op)
The Minister may know that our gas pipes are capable of taking
40% hydrogen, as they did with coal gas. Will he meet me and also
Professor Andrew Barron who works at Swansea University, which is
pushing forward technology to take the hydrogen produced by
renewable wind farms off peak, converting it and putting it into
the gas grid and therefore reducing the carbon footprint of
boiling an egg by 40%. Surely that is the best way forward in the
short term to reduce our carbon footprint.
The hon. Gentleman raises a good point. Late last year when I
visited the Whitelee wind farm just south of Glasgow, the UK’s
largest onshore wind farm and the second largest in Europe, I saw
for myself the potential there for renewable energy to convert to
hydrogen. The UK Government announced a facility to assist with
that. Blending is also an important aspect that we will actively
be looking at. Of course we will have a number of other important
uses of hydrogen, notably in maritime, transportation and the
decarbonisation of industry, and those are all in the frame for
consideration for what will undoubtedly be our big need for
hydrogen in the future.
Apprenticeship Levy
(Bosworth) (Con)
4. What recent discussions he has had with representatives of
businesses on the rules in respect of the Apprenticeship Levy.
(900386)
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
The Secretary of State and the ministerial team regularly meet
business representative organisations to discuss how Government
can continue to support businesses and help them to grow. We
regularly discuss the apprenticeship levy and are working closely
with colleagues in the Department for Education to feed back the
views of the business community.
Dr Evans
I was lucky enough to visit Forterra in my constituency near
Desford, where it is building a £95 million brick factory.
Forterra raised the apprenticeship levy because it is finding
difficulties trying to get more people to come and work in the
likes of the heavy goods vehicle sector. Part of the difficulty
is the constraints around how the levy can be used. Will the
Minister meet me to discuss how we can get rid of some of the red
tape and be creative for those industries that are particularly
struggling with the legislation and the restraints around the
apprenticeship levy?
I congratulate my hon. Friend on speaking up for businesses in
his area and on Forterra, which I understand from reading will be
one of the largest brick factories in Europe. I would be very
happy to meet him and I am grateful for any comments that he or
other colleagues have about the apprenticeship levy.
(Huddersfield)
(Lab/Co-op)
We are trying to find out this morning what the Secretary of
State’s job is. It says “Industrial Strategy”, but how can we
have an industrial strategy without skills? The Minister knows
that something is seriously wrong with the apprenticeship
levy—and what about kickstart? That has quietly died the death.
It was the flagship training policy of this country. What the
hell is going on on the Government Benches if they do not know
what their job is?
We always welcome all contributions, particularly constructive
ones such as that one. The apprenticeship levy has been in place
since 2015: among the most recent statistics, more than 100,000
people have begun apprenticeships and under-25s make up a
substantial proportion of the number of people taking up
apprenticeships. While we will always look at how we can improve
things, a substantial amount of progress has been made in recent
years.
Fusion Energy
(Stroud) (Con)
5. What steps his Department is taking to promote fusion energy
in the UK. (900387)
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
The widely reported breakthroughs in fusion energy by the United
Kingdom Atomic Energy Authority team at Harwell this year signal
UK leadership in a new era of industrial-scale fusion energy. I
am sure the whole House takes pride in that achievement and will
want to pass our best wishes on to the team at Harwell. That is
why we are investing £700 million in the next phase of fusion
facilities and research. We are announcing the location of the
spherical tokamak, our first industrial power plant, and this
month we will launch our paper on the regulation of fusion energy
for industrial roll-out.
I have written to the Secretary of State recently about our
Severn Edge fusion bid in Berkeley and Oldbury, because we
provide the ideal location for the spherical tokamak for energy
production fusion programme. We can deliver the project and we
have cross-party support spanning the south-west and Wales. I
believe this is a good opportunity for Government to prove that
we are not just levelling up the north. Does my hon. Friend agree
that the decision on where to locate the STEP prototype is
crucial to the UK’s fusion ambitions, and will he say a little
bit more about the timetable he is working to?
I congratulate my hon. Friend on being such an advocate for her
patch. I completely agree that the location of the spherical
tokamak plant is critical to our future fusion industry
ambitions. Some 15 sites across the UK have applied to host STEP,
and the UKAEA has shortlisted five: Ardeer in Ayrshire, Goole in
the East Riding of Yorkshire, Moorside in Cumbria, Severn Edge in
Gloucestershire and West Burton in Nottinghamshire. The UKAEA has
now completed a detailed analysis of those sites and has
submitted its recommendation to the Secretary of State, who will
make a final decision and announcement by the end of the
year.
(Caithness, Sutherland and
Easter Ross) (LD)
Dounreay in Caithness in my constituency was in the 1950s the
site of the UK’s first nuclear reactor. The nuclear industry did
a very great deal to provide local employment and to halt the
curse of the highlands, namely depopulation. Today, we have a
licensed site, we have a willing and skilled workforce and we
have a local population who support the nuclear industry. Will
the Secretary of State or the Minister talk to the Scottish
Government, who have not ruled out nuclear fusion, about the
potential for developing nuclear fusion at a site such as
Dounreay?
The hon. Gentleman makes an important point. I congratulate him
on his enlightened stance: he is supportive of the UK and the
Scottish nuclear industry—a position we all rather wish the
Scottish nationalists would take more widely. I have regular
meetings with the Scottish Ministers for science, technology and
innovation. This Government are very supportive of that cluster;
if only the Scottish nationalists were.
Leaving the EU: Benefit for Businesses
(Hertford and Stortford)
(Con)
6. What steps he is taking to ensure that UK businesses benefit
from the UK leaving the EU. (900388)
(North Warwickshire)
(Con)
22. What steps he is taking to ensure that UK businesses benefit
from the UK leaving the EU. (900405)
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
Leaving the European Union gives us a fantastic opportunity, over
the long term, to chart a new course to bring further prosperity
to the UK. The Government are committed to growing the UK’s
economy by making the most of our Brexit freedoms, signing new
trade deals, and, over time, lightening the regulatory
burden.
I have previously compared the role of Government to that of a
cricket groundsman preparing the best possible wicket on which
our players—our businesses, including mine in Hertford and
Stortford—can play to their strengths. Will my hon. Friend
outline the steps that we are taking to drop unnecessary
regulation following our departure from the EU, so that our
brilliant businesses can compete and win?
I am grateful to my hon. Friend for her important point. Unlike
her, I am not able to make any comparisons with cricket, but we
know that unnecessary regulation, where it exists, is a real
burden for businesses, and we are committed to reducing it. There
is also work under way on data laws, alcohol duty and imperial
markings. There is the forthcoming Brexit freedoms Bill, and
cross-Government work to look at reducing burdens. All of that
should mean positive movement in this important area of
policy.
Our insurance and financial services sector is a great British
success story, and it helps to fund our local public services.
The majority of employment in the sector is outside London and
spread across many of our constituencies. Does the Minister agree
that it is vital that we continue to support the growth of this
industry, and that there must be a strong competitiveness duty on
the regulator, so that we can make the most of opportunities now
that we have left the EU?
I know that my hon. Friend does a huge amount of work in this
area as chair of the all-party parliamentary group on insurance
and financial services, and he has a background in the sector.
Although he is tempting me to make policy that is dealt with by
another Department, I know that his point will have been heard by
my colleagues in the Treasury.
(Strangford) (DUP)
Under the Northern Ireland protocol, Northern Ireland businesses
pay mainland suppliers a fee to ship to them. Will the Minister
consider refunding businesses this fee, which they must accept
because the list of suppliers who will take on the hassle of the
web of red-tape confusion is ever-dwindling, leaving very little
choice when it comes to supplying goods to Northern Ireland?
The hon. Member is hugely committed to finding ways through the
challenges around Northern Ireland, and I congratulate him on the
work that he does. I will certainly pass back his comments, and I
am happy to discuss them with him separately, if that is
helpful.
(Glenrothes) (SNP)
Following on from the cricket analogy, one of the golden rules in
that great game is that when your time is up, you walk; you do
not wait until you are told.
The Minister is talking about the benefits to businesses of
leaving the EU. When will businesses in my constituency start to
feel those benefits? All they are seeing now is businesses
closing because they cannot get the staff, because of
interruption to their supply chain, or because their exports are
getting held up on their way across the channel. When will things
turn around after the disaster of Brexit, so that we are at least
back to where we were before 2016?
That was a nice try from the SNP at linking those things. As the
SNP and the hon. Gentleman know, there are substantial global
issues at the moment that all Governments are grappling with, and
the Government here in the United Kingdom have been very clear
about their desire to support businesses and to help people
through these difficult times.
(Newcastle upon Tyne Central) (Lab)
British business depends on British science for long-term
national growth, and the No. 1 issue facing British scientists
right now is our participation in the world’s largest science
funding programme—the European Union’s £95 billion Horizon
programme. Since 2007, British scientists have won over £14
billion from Horizon—more than we put in—but this is about more
than money; it concerns international prestige. Horizon is a
collaborative network of over 30 countries. Let us face it: this
Government will never be able to replicate that. The Prime
Minister said that he had an oven-ready Brexit deal; why is
British science being left on the shelf?
I am not going to refight Brexit and revisit the positions we all
went through in the last Parliament. Horizon is important. The UK
Government have been very clear about our desire to continue with
Horizon. The Under-Secretary of State for Business, Energy and
Industrial Strategy, my hon. Friend the Member for Mid Norfolk
(), who is the Minister for
science, continues extensive work to ensure that that happens.
The EU has a choice to make, and my hon. Friend will be in
Brussels tomorrow to continue that conversation.
Business Investment
(Runnymede and Weybridge)
(Con)
7. What recent progress his Department has made on securing
business investment in the UK. (900389)
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
In recent months, the UK has had a strong track record of
attracting inward investment, including in cars—in Nissan,
Stellantis and Ford —and in batteries, through Envision AESC; and
Airbus announced a further ramping up of its A320 line in
Broughton a few weeks ago. In April, the Department launched the
new global Britain investment fund, which will build on our track
record and encourage internationally mobile companies to invest
in the UK.
Dr Spencer
I thank the Minister for his response. I draw the House’s
attention to my entry in the register of interests, my
chairmanship of the all-party parliamentary group on Finland, and
my vice-chairmanship of the all-party parliamentary group on
Sweden. Our relationship with Finland and Sweden has never been
stronger; there is the mutual defence treaty, our support for
their application for NATO, and the recent Sweden-UK life science
agreement. Does my hon. Friend agree that Runnymede and
Weybridge, with its connectivity, academic institutions and
strong tech and life science sector, is a fantastic place to
build on that investment and that relationship, and to bring in
further investment from northern Europe?
I absolutely agree with my hon. Friend that his constituency has
a very important role to play in the future of life sciences, and
I commend his work on that strategically important sector. He
mentioned the life sciences memorandum of understanding that we
signed with Sweden last week. Our relationship with Sweden goes
back more than three centuries and is worth £20 billion, and
there are 100 Swedish life science companies in the UK. That is
another example of close working across the globe on progress for
everyone’s benefit.
(Feltham and Heston)
(Lab/Co-op)
The Centre for Policy Studies is not alone in having just
published damning research from business leaders. It states that
Britain is becoming a less attractive place to invest; the UK is
slipping behind other countries because of red tape, rising taxes
and ministerial complacency. Could it be because we have a
chaotic, rudderless, high-tax Conservative Government, with no
industrial strategy and no plan for growth? Is it not time that
the Secretary of State listened to businesses, tackled rising
business costs and backed calls to spike the national insurance
hike? He should know that it is the wrong tax at the wrong
time.
That is a curious line of questioning from the Opposition
Front-Bench team, given that Nissan has made £1 billion of
investment in recent months in Sunderland, Stellantis has made an
investment of more than £100 million in Vauxhall at Ellesmere
Port, and there is additional investment in green technology and
life sciences—the list goes on and on. Of course there is more to
do, and of course as a listening Government we will always look
at what more we can do to make us the most attractive place to
invest in the G7 and across the world. We have a good track
record that we will continue to build on.
Affordable Energy: Winter 2022-23
(Bradford South) (Lab)
8. What steps his Department is taking to help ensure affordable
energy provision during winter 2022-23. (900390)
The Minister for Energy, Clean Growth and Climate Change ()
The Government have announced a package of support measures
totalling over £37 billion this year. It includes a £400 grant to
households to help them with their energy bills when that is
needed most.
Two weeks ago, we found out that we have a huge surplus of
national gas but nowhere to store it. That was swiftly followed
by the announcement that as many as 6 million households face
power cuts this winter because of gas shortages. Will the
Minister give a guarantee today that this Government can keep the
lights on for both households and industry this winter? A
business in my constituency told me that its energy bills have
soared from £7 million to £35 million. What support are the
Government giving to those energy-intensive industries?
There is a lot in that question, but the scenario the hon. Lady
paints is very extreme. She will know that we are looking
actively at what we can do on the storage side. On producing
energy, I find it a bit rich of the Labour party to criticise us.
This is the party that said, in 1997, that there was no economic
case for new nuclear power stations; the party that increased,
rather than cut, our dependence on gas, which went from
accounting for 32% of our electricity generation to 46% of it;
and the party that failed to invest in renewables, which, over 10
years, have gone from accounting for 7% of our electricity
generation to 43% of it. We will take no lessons from the
Opposition on helping people with energy generation and with
their bills.
Incubator and Accelerator Hubs
(York Central)
(Lab/Co-op)
11. What steps he is taking to support business and social
business incubator and accelerator hubs. (900393)
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
Incubators and accelerators across the country play a vital role
in helping our high-growth start-ups and scale- ups. That is why
we continue to fund the strength in places fund, and are
investing £100 million to pilot new innovation accelerators. That
is also why, on my various tours around clusters, I recently went
to the Leicester space and satellite hub, the Leeds digital
health and medtech hub in the hon. Lady’s county, the Northumbria
University and Ashington further education hub, and the
BioYorkshire hub in her area.
York’s economic future depends on releasing the talent of our
entrepreneurs and social enterprises. To do that, we need to
ensure that they have space to innovate and grow. In each of the
last four quarters, however, we have seen the loss of 100,000
entrepreneurs, so what investment will be made to ensure that we
have the infrastructure in place for the acceleration and
incubation of the future business industry?
The hon. Lady makes an important point about social enterprises
being mainstreamed in the business community. She may have seen
the recent report by the all-party parliamentary group for social
enterprise, of which I have long been a supporter, that argued
that we should mainstream social enterprise in the BEIS policy
framework, which is an interesting proposal. We have just
announced the biggest increase in research and development and
innovation funding—an increase of £25 billion over the next three
years. I have asked UK Research and Innovation to focus on that
incubation hub infrastructure around the country, so that we can
continue to support the university and small business networks
that create the opportunities for tomorrow.
Support for Manufacturers
(Scunthorpe) (Con)
13. What steps he is taking to support manufacturers.
(900395)
(Burton) (Con)
16. What steps he is taking to support the manufacturing sector.
(900398)
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
Manufacturing —from the heaviest of our industries to our most
modern fourth industrial revolution factory—is the bedrock of our
country’s resilience, and we are committed to supporting it. This
year, we will launch a new manufacturing investment prospectus to
promote the UK as the destination of choice for investment, and
to signpost the support available to businesses.
Decarbonisation and the production of green steel represent a
huge opportunity for steelmakers such as British Steel in
Scunthorpe. Steelmakers are raring to go, but they need further
policy guidance before they invest. Can my hon. Friend reassure
me that he will continue to work closely, in the excellent way
that he has done, with steelmakers to ensure that they have the
guidance they need to reach those goals?
I can absolutely reassure my hon. Friend that we want to continue
to work with British Steel, and with her—she is a champion for
Scunthorpe and the surrounding communities—to ensure that it has
a strong future, and to plot a pathway to treading more lightly
on the earth.
The recent report by Midlands Connect outlined that upgrading the
A50/A500 corridor that runs through my constituency of Burton and
Uttoxeter will unlock £12 billion for the economy and create more
than 12,000 jobs. Will my hon. Friend meet me and other
colleagues who represent the north midlands manufacturing
corridor to see how his Department can support these upgrades and
unlock enterprise opportunities across the region?
As a fellow midlands MP, I very much welcome the report from
Midlands Connect about the opportunities that our region can take
together for the long term. I know how hard my hon. Friend and
her colleagues in Staffordshire work on this, and I would be
happy to meet her to discuss the matter further.
Neonatal Leave and Pay
(Glasgow East) (SNP)
14. What plans his Department has to bring forward legislative
proposals on neonatal leave and pay. (900396)
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
We recognise that parents of babies receiving neonatal care need
extra support during some of the most difficult days of their
lives. We are committed to introducing neonatal leave and pay to
meet this need as soon as parliamentary time allows.
We are all disappointed that there is no employment Bill, but
there is cross-party agreement in the House on neonatal leave and
pay. Leaving to one side the more controversial aspects of the
employment Bill, what would stop the Government supporting a
stand-alone Bill to enact policies on neonatal leave and pay?
We absolutely welcome and recognise the interest in this issue,
especially from the hon. Gentleman, who has personal experience
of the subject and has raised it a number of times in the House.
I remain committed to the legislation. We can work on it in
different ways. I believe that we have a meeting scheduled, and I
am looking forward to discussing how we can deliver these
policies in good time.
(Thornbury and Yate) (Con)
I was pleased to meet Ministers and the Prime Minister recently
to talk about the importance of delivering the vital Government
commitment to bring in neonatal leave and pay by the 2023 target
that they set in their Budget two years ago. Work continues on
finding a timeslot in which to take the measures through
Parliament. Meanwhile, it is vital that Ministers in the
Department continue to work on the required background measures,
such as the guidance for businesses and for Her Majesty’s Revenue
and Customs, so that they are ready for introduction as soon as
possible when we get parliamentary time. Can the Minister update
me on the work that he has been doing to ensure that we are
ready?
I thank my hon. Friend for the impassioned work that he does on
this issue—again, following his personal experience. He is right:
we are not just standing still while waiting for parliamentary
time. We are taking action to prepare for implementation once the
legislation is there, including by having conversations with
third sector stakeholders and business representatives. Officials
have also spoken to HMRC about developing a system to implement
the measures when we have the legislation.
Mr Speaker
I call the shadow Minister.
(Ellesmere Port and Neston)
(Lab)
The Minister says “when parliamentary time allows”, but the
Government could have provided time by putting an employment Bill
in the Queen’s Speech. On neonatal pay, flexible working and an
enforcement body to protect workers’ rights, this Government
promise a lot but deliver very little. Ministers have promised an
employment Bill over 20 times, yet it still appears nowhere in
the legislative programme. Is not the only job that this
Government are interested in protecting the Prime Minister’s?
Absolutely not. What we are interested in is jobs right across
the UK—quality, highly productive, high-skilled, high-wage jobs.
We will introduce all the employment measures to which we are
committed in good time, when parliamentary time allows.
Energy Efficiency: Domestic Buildings
(Sheffield Central)
(Lab)
15. Whether he plans to take further steps to improve the energy
efficiency of domestic buildings.(900397)
The Minister for Energy, Clean Growth and Climate Change ()
The Government have announced a package of measures designed to
support the most vulnerable in these unprecedented times. It
includes support for the local authority delivery scheme, the
home upgrade grant, the social housing decarbonisation fund and
the boiler upgrade scheme, and takes our total funding across
this Parliament to £6.6 billion.
The Minister knows that reducing consumption is vital to
households and to the country, but back in 2013 the
Conservative-led Government cut energy efficiency programmes,
which led to a 92% fall in home insulation; and the flagship
green homes grant scheme was scrapped as a failure just six
months after its launch. When will the Government commit to the
ambitious programme of retro-insulation that we need if we are to
cut emissions, slash family bills, reduce gas imports and create
thousands of jobs?
We are committed to that programme, and that is exactly why I
have outlined the £6.6 billion of support in this Parliament. We
have achievements as well: since 2010, the percentage of UK homes
rated A to C for energy efficiency has gone from 13% to 46%. That
is almost a fourfold increase under this Government in homes that
are rated good for energy efficiency. We have put a lot of money
into heat pumps and the heat and buildings strategy. I suggest
that the hon. Member look at that strategy, which we launched
only last October. He should study it and then come back with
further questions.
Mr Speaker
I call Dame , and congratulate her on her
damehood.
Workers’ Rights
Dame (Basingstoke) (Con)
17. What steps he is taking to improve workers’
rights.(900399)
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
Through unprecedented increases to the national living wage and a
range of legislative measures introduced since 2019, we are
building a high-skilled, high-productivity, high-wage economy
that delivers on our ambition to make the UK the best place in
the world to work.
Dame
I thank my hon. Friend for his answer, but a great deal of his
really good work could be for naught if we still allow employers
to use confidentiality clauses to cover up mismanagement and
discrimination in the workplace. Ministers have acknowledged this
as a problem, and the Solicitors Regulation Authority’s warning
notice, issued four years ago, is not universally understood.
When will the Minister act, and put into law measures to outlaw
the use of these dreadful clauses?
I add my congratulations to my right hon. Friend on being
honoured as a Dame Commander of the Order of the British
Empire—it is well deserved. The Government consulted on the
misuse of confidentiality clauses between workers and their
employees back in 2019. In response, we committed to legislating
to ensure that employers are not able to intimidate victims into
silence. We remain committed to doing so, and I will continue to
work with my right hon. Friend the Secretary of State on ensuring
that we introduce this necessary legislation as soon as
parliamentary time allows.
Fire and Rehire
(West Lancashire) (Lab)
18. Whether he plans to bring forward legislative proposals to
prohibit fire and rehire practices.(900401)
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
The Government will bring forward a new statutory code on the
practice of fire and rehire. We will publish a draft for
consultation in due course, and bring the code into force when
parliamentary time allows.
Last year, when British Gas threatened thousands of its staff
with fire and rehire, one of my constituents wrote and told me
that the “human cost” had been the saddest part, and that
“the mental health strain on me and my colleagues has been so
very difficult to watch.”
Since 2020, almost 3 million workers have been told to reapply
for their jobs, with worse conditions. I heard the Minister’s
response to my initial question, but the question that is
rebounding round the Chamber, to almost every answer I have heard
so far, is not about the intention, but about when. Will the
Minister commit today to bringing forward a no ifs, no buts ban
on the abhorrent practice of fire and rehire?
What we are not going to do is ban a situation that allows
flexibility for employers that are in trouble. We are,
however—[Interruption.] Well, it is all seen as black and white
by the Opposition, but they are very anti-business in that. The
hon. Lady cites an example, and there are human costs involved in
the most egregious cases of fire and rehire. That is what we will
be tackling through the statutory code that we will announce in
due course.
New and Advanced Nuclear Power
(Filton and Bradley Stoke)
(Con)
19. What steps his Department is taking to deliver new and
advanced nuclear power in the UK. (900402)
The Secretary of State for Business, Energy and Industrial
Strategy ()
As my hon. Friend knows, for the first time in 20 years we are
committed to much more nuclear capacity than we have ever seen,
and the target of 24 GW by 2050 is ambitious but perfectly
achievable.
Does my right hon. Friend agree that an early decision to
announce the commissioning of the first small modular reactors,
built by Rolls-Royce, will provide additional investment in our
national infrastructure, more jobs and, crucially, help to secure
our sovereign energy independence of supply?
Earlier this year I was delighted to announce investment—£210
million as I remember—in Rolls-Royce, and the SMRs, as well as
advanced nuclear reactors, represent an exciting development in
new nuclear. Looking at Labour Members, I must say that it is
gratifying to see nuclear power being defended, as under their
watch nuclear power was denuded and derided.
(Kilmarnock and Loudoun)
(SNP)
Hinkley Point C is 50% over budget and running years late. The
Government cannot get investment for Sizewell C, and their impact
assessment states that a new nuclear power station could cost £63
billion. Is the former Energy Minister, the right hon. Member for
Hereford and South Herefordshire (), correct to say that it is
utter fantasy to pretend that this Government can deliver a new
nuclear reactor each year?
The strategy is committed to 24 GW, and it is about large-scale
nuclear and SMRs, which my hon. Friend the Member for Filton and
Bradley Stoke () referred to. It will be a
balance, and we feel that we can reach that. It is rich of
Scottish National party Members to deride our nuclear programme
when they do not even agree with it. They think the whole thing
is a complete waste of time. Where else would we find
decarbonised baseload? They do not have the answer to that.
Topical Questions
(East Surrey) (Con)
T1. If he will make a statement on his departmental
responsibilities.(900406)
The Secretary of State for Business, Energy and Industrial
Strategy ()
I am pleased to announce that since I last addressed the House we
have committed £37 billion, along with our friends in the
Treasury, to support the most vulnerable households with the cost
of living. We have managed to attract substantial new investments
across the piece in new technologies, and we continue to focus on
energy, to ensure that it is sustainable, affordable and, above
all, secure in the coming months.
Semiconductors are an unbelievably important strategic asset to
this country, and I commend the Secretary of State for calling in
the acquisition of Newport Wafer Fab, which is our largest
producer of semiconductors and an important innovator of compound
semiconductors. That is exactly what the National Security and
Investment Act 2021 was designed to do. Will he update the House
on his next steps?
My hon. Friend will know that the NSI Act, which came into scope
at the beginning of this year, gives me as Secretary of State
powers to call in transactions that I feel are detrimental to
national security. After long consideration and weighing up all
the evidence, Newport Wafer Fab was, I think rightly, deemed to
be such a transaction.
Mr Speaker
I call the shadow Secretary of State.
(Stalybridge and Hyde)
(Lab/Co-op)
If a chair or chief executive of a FTSE 100 company presided over
a culture of rule breaking, broke the law themselves and then
said that they would do it again, would that person have the
Business Secretary’s support, or would he demand better standards
than that in public life?
I think that we deserve and are all well placed and right to
demand the highest standards in any profession across any
position and in any institution.
I agree, but if the Business Secretary believes that integrity
and honesty are important in all walks of life, he should have
voted against the Prime Minister last night.
I welcome the Government’s U-turn on a windfall tax, but yet
again they say one thing and do another. There is uncertainty
about who the tax will apply to, and there is worry that the
chaotic nature of the announcement could perversely incentivise
investment in fossil fuels over renewables. Uncertainty and
botched announcements are a feature of the Government, which is
one reason why business investment has been so poor under the
Conservatives. When will the Business Secretary offer certainty
to businesses on who exactly the Government intend to apply the
tax to?
The hon. Member will know that issues relating to taxation are a
matter for my right hon. Friend the Chancellor of the Exchequer.
As far as the hon. Member’s windfall tax is concerned, I have
always been opposed to such taxes on principle, and I continue to
be opposed. I hope that this energy profits levy does not
discourage investment; actually, it has features that do attract
greater investment.
(Tewkesbury) (Con)
T2. I am sure that Ministers will join me in congratulating a
Royal Mail depot in my constituency that has moved its fleet to
electric vehicles. However, that does place a lot of demand on
the system, so will Ministers ensure that, when formulating
policy, industrial estates, for example, have sufficient
electricity to enable even more of them to change to electric
vehicles?(900407)
The Minister for Energy, Clean Growth and Climate Change ()
I know of my hon. Friend’s ongoing interest in all matters in
relation to energy, and he makes an important point about big
energy users such as the Royal Mail planning and ensuring that
they are efficient and robust for the future. I will ensure that
his point on industrial estates is reflected back to our
Department, to the Department for Levelling Up, Housing and
Communities and to other relevant Departments.
(Liverpool, West Derby)
(Lab)
T3. I have heard from constituents in West Derby how the use of
fire and rehire tactics by employers such as British Gas and
British Airways put them in unbearable situations during the
pandemic. Shamefully, in the middle of a cost of living crisis,
we see many rogue employees across all sectors utilising those
immoral practices on a daily basis to drive people into poverty.
As my hon. Friend the Member for West Lancashire () made clear, we need
employment legislation now and the outright outlawing of the
despicable practice of fire and rehire. Can the Minister justify
why workers should accept anything less from the
Government?(900409)
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
Later this year, the hon. Gentleman will see an effective code
that will penalise the most egregious cases of fire and rehire
and hit those companies in the pocket. That is an effective way
of banning those egregious situations without disallowing the
flexibility that some employers need in times of trouble.
(Milton Keynes North)
(Con)
T6. Mr Speaker, you will know as well as I do that Milton Keynes
has a rich history of science and innovation that goes well
beyond me banging on about robots in this place. I was pleased to
see the historic settlement for the UK Research and Innovation
fund last month. Does my hon. Friend agree that places such as
Milton Keynes with such a history of innovation should get a fair
share of that funding?(900412)
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
Milton Keynes has been slowly becoming a globally recognised
innovation hub on the Oxford-Cambridge arc, particularly on
autonomous vehicles and with the connected places catapult. May I
take this opportunity to congratulate my hon. Friend and Milton
Keynes on achieving city status as part of the jubilee
celebrations? I assure him that our funding allocation mechanism
is designed to support emerging clusters such as Milton
Keynes.
(North Tyneside) (Lab)
T4. What is the Department doing, working with the Department of
Health and Social Care, to improve the recovery of cancer trials
and clinical research more broadly? Will the Minister meet me and
Cancer Research UK to discuss how the rate of recovery can catch
up with comparable countries post pandemic?(900410)
I would be delighted to meet the hon. Lady. We have allocated £8
billion over the next three years for life science and medical
research across the Medical Research Council, the National
Institute for Health and Care Research, and all relevant
agencies. We will launch a cancer mission shortly and I would be
delighted to talk to her about it.
Simon Baynes (Clwyd South) (Con)
T7. I declare an interest as the chairman of the all-party
parliamentary markets group. The “Love Your Local Market”
campaign, supported by many Members across the House, has just
come to an end. Does my hon. Friend agree that local markets and
traders are a vital part of the local business community and make
a huge economic contribution to the health of our high streets
and the regeneration of our city and town centres?(900413)
I congratulate my hon. Friend on his work and interest. We
absolutely recognise the contribution that markets make to the
vibrancy and diversity of our high streets up and down the
country, and indeed of our town centres. We believe that local
markets should stay at the heart of community life, and we want
them to flourish all over the country.
(Midlothian) (SNP)
T5. Insect protein is likely to play a significant part in
meeting the needs of the agri-food industry and it can certainly
address some of the sector’s climate impacts, but it needs the
right support. Brexit and supply chain issues have caused major
chaos for the industry. Will the Minister meet me to discuss how
to support the industry and, more importantly, how to protect the
really highly skilled jobs it supports?(900411)
The insect protein industry is becoming increasingly important,
given the need to nearly double global food supply in the next 20
or 30 years. I would be delighted to meet the hon. Gentleman. It
is one of the sectors we are looking at, as part of our £25
billion three- year allocation, that needs development and
support.
(Newbury) (Con)
T8. In a rural constituency like Newbury, fuel prices are a key
driver of spiralling living costs. As such, it is a source of
frustration that petrol stations are still failing to pass on the
Treasury fuel duty cut. I know my right hon. Friend and his team
have been working closely with the Competition and Markets
Authority, but could he tell me what progress has been made to
ensure that consumers are getting a fair deal at the
pumps?(900414)
We are engaging constantly to make sure that consumers are
getting a fair deal. You would expect us to do so, Mr Speaker,
after our 5p fuel reduction following 12 years of freezes and £5
billion of relief. It is vital that we see that saving being
passed on to consumers. That is why my right hon. Friend the
Business Secretary and I meet regularly with the sector and will
continue to work closely with the CMA to analyse the workings of
the market and make sure our constituents get those
reductions.
(Edinburgh West) (LD)
Exactly what steps is the Department taking to reduce the
prohibitive bureaucracy facing scientists trying to access the
very welcome £50 million funding for research into motor neurone
disease, a horrifying disease that affects more than 5,000 people
in this country? The research was announced in November last
year, but they have faced those problems.
The hon. Lady makes an important point. We made a major
announcement on MND research and will shortly be setting out our
fully funded broader dementia and mental health missions. On
research bureaucracy, we are looking, through the Professor Adam
Tickell review, at how we can reduce administrative bureaucracy
in the system so we are able to get those grants out much more
quickly. I will happily talk her through that.
(Bolton North East) (Con)
T9. Mr Speaker, would you believe it? Where I live in Westminster
there is a lift that was made by the Bolton Gate Company 100
years ago and is still operating at the back end. Bolton Gate
leads the door industry on the latest standards, but will the
Minister outline what support we can provide to companies like
Bolton Gate to navigate the new UK Conformity Assessed marking
regulations, and to ensure that both Bolton Gate Company and its
MP will be operating for another 100 years?(900415)
As well as the Minister for product safety and standards, I am
also the Minister for the hair and beauty sector, so can I thank
my hon. Friend for supporting the sector with his new haircut? In
all seriousness, we are taking a pragmatic approach to
implementing the UKCA regime. We know the challenges that
businesses have and we are committed to supporting businesses to
adapt. We continue to work closely with industry to understand
and resolve implementation challenges. We are also engaging
extensively with the industry in the UK and around the world to
explain our new requirements.
(Glasgow Central)
(SNP)
It was really interesting to hear the Secretary of State palm off
the detail of the tax on electricity generators to the
Chancellor, because the Chancellor could not answer many
questions on that at the Treasury Committee yesterday, such as
defining excess profits or saying exactly when it will start or
what the impact would be on renewables generators in Scotland.
Will he publish a full impact assessment on this policy and
investment in the renewables sector in Scotland, which is a key
sector in getting to net zero?
I am very happy to speak to the hon. Lady about the details of
that fiscal change. The energy profits levy was announced by the
Chancellor and the details will be worked out in consultation
with us, but they are ultimately a responsibility for the
Treasury. However, I am very happy to talk to her about those
details.
(North Shropshire) (LD)
Diesel and petrol prices have hit a record average high this
morning, with diesel costing more than £1.85 a litre. Along with
labour shortages, that is having a devastating impact on haulage
businesses in North Shropshire and across the rest of the
country, as well as driving inflation in the economy. What steps
is the Secretary of State taking to support this critical
industry through these dual crises?
As I said to my hon. Friend the Member for Newbury (), we are engaging constantly
with the sector and the CMA to make sure that the tax cut is
passed on. However, I find it a bit rich for the Liberal
Democrats, who, if I am not mistaken, voted against all the fuel
freezes and this year’s Budget, to then claim that the reduction
in fuel duty, which they opposed, is now not being passed on to
their constituents. If they had voted for the reduction in the
first place, I would have a lot more sympathy with their
position.
(Huddersfield)
(Lab/Co-op)
We have been trying to find out today exactly what the Secretary
of State’s job is, because he kept saying “That is not my job”.
May I remind him that he is responsible for energy and that, in
the recent energy strategy, energy from waste was hardly
mentioned? It could produce 20% of our energy needs. Why is he
ignoring that?
I am always very pleased to hear the hon. Gentleman’s
contributions, given that he was born in my constituency—I am
always pleased to see constituents doing extremely well in life.
On my role, he is absolutely right that I am responsible for
energy—I was Energy Minister and am now the Secretary of
State—and that is why we have brought through the net zero
strategy, which has plenty on energy from waste, including in
relation to our energy needs.
(Glenrothes) (SNP)
The recently published preliminary report by the administrators
of the failed Safe Hands funeral plans company suggest that this
is yet another instance in which company directors have made
false promises to innocent people, taken their money, played fast
and loose with it and are likely to have lost it all. Will the
Minister give us a timetable for the various bits of legislation
in the Queen’s Speech so that dodgy company directors can be held
to account immediately and not 10 or 15 years later?
On corporate governance, we will see, in the economic crime Bill,
the reviews relating to Companies House, and we have also had the
Rating (Coronavirus) and Directors Disqualification (Dissolved
Companies) Act 2021. However, the hon. Gentleman cites a
particularly egregious example and I will make sure that my
colleague , the Minister responsible
for corporate governance, responds accordingly.
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