Business, Energy and Industrial Strategy The Secretary of State was
asked— Photonics Industry Anthony Mangnall (Totnes) (Con) 1. What
recent steps his Department has taken to help support the photonics
industry. [R] (901015) The Secretary of State for Business, Energy
and Industrial Strategy (Kwasi Kwarteng) My hon. Friend will be
aware that photonics is one of the seven technology families
highlighted in the innovation strategy with the absolute...Request free trial
Business, Energy and
Industrial Strategy
The Secretary of State was asked—
Photonics Industry
(Totnes) (Con)
1. What recent steps his Department has taken to help support the
photonics industry. [R] (901015)
The Secretary of State for Business, Energy and Industrial
Strategy ()
My hon. Friend will be aware that photonics is one of the seven
technology families highlighted in the innovation strategy with
the absolute intention of showing and developing its domestic
potential and the exports possibilities.
I thank the Secretary of State for his response, but he will know
that photonics is completely undervalued across the United
Kingdom and that south Devon is home to a large contingent of the
photonics sector. With that in mind, can I invite him or
presumably his successor, if I am allowed to say that, to the
iMAPS—International Microelectronics Assembly and Packaging
Society—conference on 18 October to safeguard and flag up the
photonics sector?
My hon. Friend will appreciate that in the current circumstances
18 October is a very long time away, but of course I will do my
best to attend that conference.
(Glasgow North West)
(SNP)
As chairman of the all-party parliamentary group on photonics and
quantum, I am well aware of the huge success of the UK photonics
sector, but its future depends on a thriving semiconductor
industry based here in the UK. The UK has that capability, but we
need the semiconductor strategy. Could the Secretary of State
update the House on when we can expect to see that strategy?
By a curious anomaly, the semiconductor strategy is fully owned
by the Department for Digital, Culture, Media and Sport, so that
question could be directed to it, but I am grateful that the hon.
Member has acknowledged the booming sector here in the UK.
Energy Price Cap: Living Standards
(Linlithgow and East Falkirk)
(SNP)
2. What recent discussions he has had with Cabinet colleagues on
the potential impact of increases in the energy price cap on
living standards.(901016)
The Secretary of State for Business, Energy and Industrial
Strategy ()
We talk in Cabinet about the cost of living and the price cap all
the time. The hon. Member will know that decisions on the level
of the price cap are for Ofgem, but it is something we are
constantly talking about in Cabinet.
MoneySavingExpert’s has asked a great question
over social media:
“The energy price cap’s predicted to rise 64% in Oct taking a
typical bill to £3,244/yr; & rise again in Jan to £500/yr
more than when May’s help package was announced. What’ll u do to
avoid this & when?”
How would the Secretary of State answer that question?
The hon. Member will know that the various parts are moving in
the Government, but I am sure there will be the customary
statement or Budget in November from my right hon. Friend the
Chancellor of the Exchequer, and I am sure there will be some
interesting measures there to deal with that particular
question.
(Christchurch) (Con)
Will my right hon. Friend explain how people who live in park
homes are going to be able to benefit from the £400 donation from
the energy price cap?
I am very pleased to tell my hon. Friend that we recognise the
difficulty there. There was a loophole, but we are in the process
of consultation about how to deal with that particular issue.
Mr Speaker
I call the SNP spokesperson.
(Aberdeen South) (SNP)
I am afraid the Secretary of State just does not get it. As we
now know, by the end of the year fuel bills are going to increase
by an amount greater than the financial support that has been put
in place by his Government. One third of someone’s state pension
is going to be required just to pay their electricity and gas
bills, so I have a simple question, which I will repeat again:
what are they going to do about it?
We have already announced, in the course of the past few months,
£37 billion-worth of cost of living support measures this year. I
have also mentioned that there will be a Budget in November, when
I am sure there will be an update on this very issue.
So nothing new, but let us face the reality as outlined by the
abrdn Financial Fairness Trust just in the last couple of days:
one in six households in the UK are now in “serious financial
difficulties”—a number higher than throughout the entire
pandemic—while inflation is sky-high, energy bills are sky-high,
fuel bills are sky-high, clothing bills are sky-high, food bills
are sky-high, wages are stagnating and we have the lowest growth
in the entire G20, bar Russia. Britain is broken, isn’t it?
I am not going to take any lectures from the hon. Gentleman about
economic management when his core policy is to separate from the
UK, which will have a devastating economic impact on people in
Scotland. I am not going to take any lessons from him, thank you
very much.
Oil and Gas Sector
(Brecon and Radnorshire)
(Con)
3. What recent steps his Department has taken to help support the
oil and gas sector. (901017)
The Minister for Energy, Clean Growth and Climate Change ()
The North sea transition deal sets out how the Government are
working in partnership with the offshore oil and gas industry to
achieve a managed energy transition that leaves nobody
behind.
I thank my right hon. Friend for that answer, but 66% of my
constituents live off the gas grid and rely on heating oil
deliveries to heat their home—obviously not in these temperatures
today—and I am extremely worried about oil deliveries in the
winter. Has my right hon. Friend got his eye on these
constituents, who comprise a huge part of rural Britain?
My hon. Friend is absolutely right. Wales is the part of the UK
with the highest percentage of those off the gas grid, and I know
that her rural part of Wales is therefore likely to be among the
areas most affected by the rise in the price of heating oil. We
have made sure that those off the gas grid but on the electricity
grid will benefit from the £400 energy bill rebate. We have also
put £1.1 billion into the home upgrade grant to provide energy
efficiency and clean heating upgrades to support lower-income
households living off the main gas grid. Obviously, we are
continuing to monitor the situation extremely closely,
particularly for the most vulnerable, most rural constituents
such as my hon. Friend’s.
(Brighton, Pavilion)
(Green)
The UK already has the lowest tax take anywhere in the world from
an offshore oil and gas regime, so it is perverse that the
Government’s new investment allowance will essentially
incentivise yet more oil and gas exploration at a time when we
know that we absolutely need to leave fossil fuels in the ground.
Given that the Secretary of State himself has said that it will
take up to a decade to extract sufficient volumes from fracking,
will he undertake to speak to his Treasury colleagues and make
sure that fracking at the very least is excluded from this
perverse investment allowance?
I must say I find the Green party’s attitude to these issues
bizarre: it seems to be resolutely against any oil and gas
extraction in this country, which could only mean it would be in
favour of imports, and those imports would be higher priced, more
volatile, likely to be from more dangerous parts of the world,
and come with higher embedded emissions. The embedded emissions
of liquified natural gas are about 2.5 times higher than the
emissions from the gas we get from the UK continental shelf. The
hon. Lady describes herself as a Green party politician, but I
find her approach distinctly ungreen compared to that of this
Conservative Government.
Research and Development Spending
(Crawley) (Con)
4. What recent steps his Department has taken to help increase
the level of research and development spending. (901018)
(Heywood and Middleton)
(Con)
19. What recent steps his Department has taken to help increase
the level of research and development spending. (901036)
The Minister for Energy, Clean Growth and Climate Change ()
We are providing the fastest ever sustained uplift in R&D
funding, reaching £20 billion per annum by 2024-25. If
association to Horizon Europe is not possible in good time to
make the most of that programme, we will take forward a bold and
ambitious package of UK alternatives.
This country has been world-leading in its covid-19 vaccination
programme and so much more in our pharmaceutical industries as
well as the health sector. Can the Minister say a little more
about what specific research and development investment will go
into pharmaceuticals and the health sector? I would particularly
like to mention cancer services and Alector oncology in my
constituency which is expanding.
My hon. Friend has always been a passionate advocate and defender
of business in the Crawley constituency, specifically R&D
projects and innovation, and I am glad he mentioned Alector and
others, as they are important companies in his constituency. We
continue to support investment in R&D through a vibrant
research and innovation system that attracts private sector
investment and drives up productivity across the UK, including in
Crawley.
We are on the cusp of a green energy revolution with hydrogen,
modular nuclear and now fusion in the mix. What steps is the
Department taking to ensure British innovation is in the vanguard
of that revolution, thus ensuring our long-term energy
security?
My hon. Friend is always on the front foot on low-carbon energy
and innovation in Heywood and Middleton. He will know that the
Government’s flagship £1 billion net zero innovation portfolio is
making those important investments in hydrogen, advanced nuclear
technologies and so on. On fusion, we are investing £700 million
in research facilities and programmes over the next three years.
My hon. Friend will also know that the energy security Bill we
published last week includes launch pads for both hydrogen and
nuclear fusion.
(Huddersfield)
(Lab/Co-op)
That was the very first mention of hydrogen this morning. Does
the Minister agree that there is such potential in hydrogen
energy? We can already buy heavy goods vehicles and trucks that
are hydrogen driven, and a network of hydrogen filling stations
is being opened at the moment across our country. If he does
agree, why does he not put more research money into hydrogen for
every kind of energy use?
We are 14 minutes into Question Time; I do not think that is too
bad for the first mention of hydrogen. I realise that on the
periodic table, it is No. 1—right at the top left—but that does
not mean that it always has to be the first thing mentioned at
Question Time.
The amount of money and resources going into hydrogen remains
extremely strong. It is a really important part of the net zero
innovation portfolio. Just over the past few months, I have been
to the Whitelee wind farm just south of Glasgow to see the new
hydrogen production facility there. That facility is going to do
exactly what the hon. Gentleman wants us to do: provide hydrogen
for vehicles, particularly buses. The whole of the Glasgow bus
fleet and, indeed, the whole of the Glasgow dustcart fleet will
be fuelled by hydrogen from that wind farm.
(Barnsley Central) (Lab)
We need to increase investment in R&D; we also need to think
carefully about where we spend it. In South Yorkshire we have
some outstanding translational research institutions—the Advanced
Manufacturing Research Centre and the Advanced Wellbeing Research
Centre—in two outstanding universities. I know that the Secretary
of State is supportive, but will the Minister pledge to work
carefully with the Mayor and partners in our region so that we
can unlock the huge potential in South Yorkshire?
The answer is yes. We always welcome Mayors with a constructive
attitude to working with the Government. If I am not mistaken, I
have a meeting with the hon. Gentleman’s colleagues next week. A
delegation is coming to see me, led by—I think—the hon. Member
for Sheffield Central (). It might be a different
part of Sheffield; the Chair of the Select Committee on Levelling
Up, Housing and Communities, the hon. Member for Sheffield South
East (Mr Betts), is the Member I am thinking of.
Mr Speaker
Can I suggest that the Minister reminds Ministers in the other
place that they are responsible to MPs in this House as well, and
that they should meet with them? I hope that will be a clear
message to the Lords.
I call , the Labour spokesperson.
(Newcastle upon Tyne Central) (Lab)
Despite being critical to our world-beating research and a
Conservative manifesto commitment, Britain’s participation in the
world’s biggest science funding programme, Horizon Europe, is in
peril. Before resigning, the then science Minister, the hon.
Member for Mid Norfolk (), took to Twitter to lobby
the new Chancellor for funding for his plan B, but the Chancellor
was busy trying to get the Prime Minister he had just accepted a
job from to leave his job. Now, although the former science
Minister has asked for his job back, the still in place, though
disgraced, Prime Minister is too busy nobbling those going for
his job to fill the science job. It is total chaos. Science
deserves better, doesn’t it?
I thought that was a rather convoluted question, if you do not
mind my saying so, Mr Speaker.
We in the UK Government are absolutely committed to getting a
good deal for UK science, whether through association with
Horizon Europe or through our plan B Horizon plan, which is also
a fully funded approach to making sure that UK science does not
lose out. Perhaps the hon. Lady might welcome the big boost in
R&D spending in this country, with the most sustained uplift,
from £15 billion today to £20 billion in two years’ time—a 33%
increase in just two years.
Fuel Market: Review
(Newbury) (Con)
5. What recent discussions his Department has had with the
Competition and Markets Authority on its review of the fuel
market. (901020)
The Minister for Energy, Clean Growth and Climate Change ()
On 11 June, my right hon. Friend the Business Secretary asked the
Competition and Markets Authority to conduct an urgent review of
the market for petrol and diesel. The CMA published its response
on 8 July and has opened a market study into the fuel market, as
my right hon. Friend requested.
I thank my right hon. Friend for that answer. I know he has been
working with the CMA on this issue, and I have read with interest
its report on the discrepancy between the price of crude oil and
wholesale prices. However, prices at the pumps in West Berkshire
are still very high. My constituency is a rural one where people
are completely reliant on their cars, so could my right hon.
Friend provide an update as to when my constituents can expect to
see better value at the petrol pumps?
I pay tribute to my hon. Friend and other colleagues for leading
the campaign and for pointing out some of the discrepancies in
the market. I am delighted that the CMA is now carrying out a
study. It found that rural fuel prices were consistently higher
than those in urban areas, which is definitely worth a further
market probe, so I urge her as a campaign leader and other
colleagues to submit views and evidence to the CMA as it carries
out its market study. One thing that was clear is that in the
view of the CMA the duty cut put forward by the Government
earlier this year was passed on to retailers.
(Na h-Eileanan an
Iar) (SNP)
The CMA would be greatly helped in the energy and fuel market,
and especially in the production of hydrogen, by fairness in the
TNUoS—Transmission Network Use of System—charges for transmission
costs in the electricity networks. When will Scottish renewables
producers stop paying £7.36 per MWh for transmission, when
producers in independent EU countries pay about 46p per MWh—a
difference of 16 times affecting the production of hydrogen, an
important fuel?
It is good to be back on hydrogen again. The hon. Gentleman will
reflect, I am sure, on the answers I gave earlier on the success
of hydrogen, particularly in Scotland. I will say two things in
answer to his question on transmission charges. First, as he
knows, transmission charges are a matter for Ofgem. Secondly,
Scottish consumers benefit from transmission charges compared to
consumers in the rest of the United Kingdom. He may wish to
reflect on all the pros and cons of the policy he appears to be
proposing.
Energy Price Rises
(Luton South) (Lab)
6. What assessment he has made of the impact of the rise in
energy prices on (a) households and (b) businesses. (901021)
The Minister for Energy, Clean Growth and Climate Change ()
The Government recognise the impact that increasing energy prices
are having on households, which is why we are providing £37
billion in support for consumers this year alone. The Government
are in regular contact with business groups and suppliers to
explore ways to protect businesses.
Citizens Advice Luton has seen a 119% increase in local people
saying they cannot afford their energy bills after April’s price
increase, even after cutting back on other essential spending. I
heard the Secretary of State say that the issue is talked about
constantly in Cabinet, but does the Minister recognise that the
energy price cap increase later this year will push even more
families into poverty and hardship?
I completely agree with the hon. Lady in her analysis of the
underlying issue: the big rise in global energy prices over the
past 12 months. That is exactly why we are taking the action we
are taking: £37 billion-worth of support for consumers and bill
payers over the course of this year. That is a massive amount of
Government support going into ensuring that people get the
support they need to be able to pay those bills in the coming
months.
(Waveney) (Con)
I am grateful to my right hon. Friend for outlining those
measures. I sense it will be a very bleak winter; the energy
price cap will play a role, but it would help if it were
augmented by a social tariff. Will he advise on whether there
have been any discussions in Government about the introduction of
such a tariff?
I thank my hon. Friend for that thoughtful question. Obviously,
all these things are under review, but I remind him that we
replaced the social tariff with other support schemes for bill
payers under the coalition. That remains our position, but
we—both the Department and the Treasury, and indeed, the whole
Government—study these positions and issues very closely
indeed.
(Westmorland and Lonsdale) (LD)
It is very clear that the rising price of heating people’s homes
will be devastating and go well beyond anything the Government
have done to help households so far. For people living off-mains
who are reliant on heating oil, for example—19,000 households in
Cumbria alone—there is no cap whatever. They have seen their
prices more than double over the past 12 months. What will the
Minister do to ensure people in rural communities like mine are
not hit even harder than the majority?
As the hon. Gentleman knows, we reflected on this issue in an
earlier question. The Government are providing support for those
who are off the gas grid. For example, those who pay an
electricity bill will qualify for the £400 reduction this year.
We have also put £1.1 billion into the home upgrade grant, on top
of the £2.5 billion already deployed, to make sure vulnerable
households, which could well include some of his constituents,
are able to profit from the energy measures being put forward by
the Government. His question on the price cap is a reasonable
question to put. The information I have directly from the trade
body UKIFDA—the UK and Ireland Fuel Distributors Association—is
that a price cap would be extremely difficult for its members,
the people in the retail market for heating oil, because it
becomes very difficult for a small business to hedge. However, it
is something I discuss with MPs, the industry and the trade body
regularly to see what more can be done, and the situation is
under constant review.
One thing we can do to bring energy prices down is have an
absolutely massive expansion of renewable offshore energy,
whether that is tidal or wind. Last week, I met National Grid,
which will use Penwortham on the Ribble estuary coast as the
point to onshore a lot of the electricity that helps to get our
fuel bills down. Does the Minister welcome the fact that National
Grid has seen the opportunity of Penwortham, and does he agree
that we just need to make sure that the environment and the
natural Ribble estuary are protected as the cables and the energy
come forward?
I thank my hon. Friend for her question and her constant very
good and strong engagement on behalf of her Ribble valley
constituents. Renewable energy is, of course, part of the
solution. That is why we announced the allocation round for the
latest auction of renewable energy last week. It was the most
successful ever, with 10.8 GW of renewable energy coming to this
country through the contracts for difference mechanism. It has
been a huge success, and I welcome my hon. Friend’s interest.
Mr Speaker
I call the shadow Minister.
(Southampton, Test)
(Lab)
The Minister knows that, at present, all retail electricity
supplies—whether they derive from more expensive gas or cheaper
renewables—are charged as though they had all come from gas. He
also knows how to decouple prices coming into the retail market,
so that domestic and business customers can enjoy considerable
reductions in their energy bills by getting the direct benefit of
renewable prices. Why is he not legislating to do so?
The shadow Minister raises an interesting and good point about
how the UK electricity market is structured. That is one reason
why we have launched the REMA—review of electricity market
arrangements—process and why we are taking action in the Energy
Bill on aspects of the domestic energy system that will yield
real gains for consumers, such as the onshore distribution and
transmission network, so that there will be more competition in
the network. There will be other measures in the Bill, which I
very much hope that he and the other Opposition Front Benchers
will support in due course.
Low-carbon Technologies
(Rushcliffe) (Con)
7. What steps his Department is taking to help support the
creation of new low-carbon technologies. (901022)
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
Low-carbon technologies are fundamental to meeting our net zero
target and securing our energy supply. The Government have set
out their ambition to invest up to £22 billion in research and
development by 2026-27. Our £1 billion net zero innovation
portfolio is accelerating the commercialisation of innovative
low-carbon technologies, systems and processes in the power,
buildings and industrial sectors.
I thank the Minister for her answer and welcome her to her place.
May I bring to her attention the excellent bid from Uniper for
carbon capture and storage technology to be built into its new
energy from waste plant at Ratcliffe-on-Soar, which sits in the
heart of the east midlands freeport? Does my hon. Friend agree
that the UK’s first inland CCS facility, creating a
carbon-negative and fully sustainable waste treatment solution,
is worthy of investment through phase 2 of the carbon capture,
utilisation and storage fund?
I commend my right hon. Friend—[Interruption.] Sorry, I commend
my hon. Friend—it is only a matter of time—for working incredibly
hard not only in Rushcliffe, but to promote the freeport for the
whole of the east midlands. She is doing an incredible job. We
are committed to deploying CCUS, including from energy from waste
plants. We will announce the projects to proceed to the next
stage of the track 1 CCUS process in due course.
Mr Speaker
I call .
(Dwyfor Meirionnydd)
(PC)
Diolch yn fawr iawn, Llefarydd. I welcome the Minister to her
place.
The lack of grid capacity in Wales is a chronic problem, stalling
both onshore and offshore low-carbon developments. National
Grid’s pathway to 2030 proposes a new connection between north
and south Wales. Will the Minister commit to working with the
Welsh Government to set a precondition for any development of
sufficient capacity to ensure that local, small-scale energy
projects can access the grid at low cost?
We always work to ensure adequate capacity. Perhaps the right
hon. Member could meet National Grid to talk about that, but if
she would like to come back to me on the point when she has done
so, I will be happy to meet her.
Mr Speaker
I call the shadow Minister.
(Bristol East) (Lab)
I welcome the Minister to her post. We all agree that supporting
investment in new low-carbon technologies is an important part of
reaching net zero—well, most of us do. In the past week, one of
the candidates for Prime Minister has said that
“we need to suspend the all-consuming desire to achieve net zero
by 2050.”
Another claims that it was
“wrong of us to set a target”
for net zero. The frontrunner spent two years at the Treasury
blocking additional climate spend. It is all well and good for
the Minister to talk about the need for investment, but how can
we, and more importantly the investors out there, have any
confidence that it will continue?
It is clearly in our manifesto that we are completely committed
to net zero. I will not be commenting further on any leadership
elections.
Satellites and Space Exports
(Gloucester) (Con)
9. What recent progress his Department has made on increasing the
number of (a) satellite launches and (b) space-related exports.
[R] (901025)
Mr Speaker
Who wants to take Question 9?
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
I will, Mr Speaker.
We have funded a range of industry projects to establish vertical
launch services from Scotland and support horizontal launch from
Cornwall, with the UK’s first launch on track for later this
year. We are supporting the growth of UK space exports through
targeted campaigns matching UK companies with new large customers
globally; through our new Export Academy, which upskills
first-time exporters; and through establishing new and innovative
international partnerships.
I congratulate the Minister on her appointment, and on taking
this question on an exciting growth sector for UK tech. Although
our satellite capabilities are well known, the ability to launch
satellites is something new indeed. There is considerable demand
for satellites from countries in south-east Asia that wish to
take advantage of the ability to map and plan their agriculture
better and to research and better protect against severe weather
issues, as well as getting valuable marine and fishing
information. Can my hon. Friend confirm how we will know how much
capacity is available for our partners in south-east Asia and
elsewhere abroad? When will it be available?
It is indeed an exciting opportunity. Delivering our planned
launches from Cornwall and Scotland will allow the UK to
establish itself as a leader in the growing global launch market.
It will ensure that the UK is attractive to companies around the
world that seek to launch satellites that meet our regulatory
standards. UK Space Agency-led international partnership
programmes in 2018 explored how UK satellite technology could be
used in the Philippines, Indonesia, Malaysia and Vietnam; I am
pleased to say that a number of opportunities were
identified.
Rare Earth Metals
(North West Durham)
(Con)
11. What recent steps his Department has taken to increase the
supply of rare earth metals while maintaining high environmental
standards.(901027)
The Secretary of State for Business, Energy and Industrial
Strategy ()
We are absolutely focused on critical minerals. I am delighted to
say that we will publish a critical minerals strategy, which I
personally commissioned and have a personal interest in as
Secretary of State.
Mr Holden
China has been hoovering up rare earth metals around the world,
and obviously other parts of the world have far worse
environmental standards for extraction than the UK, but rare
earth metals are vital to Nissan in Sunderland, where many of my
constituents work, and to Britishvolt, which is just up the road.
I thank the Department for the extra money that has been provided
recently, with £1 million for Northern Lithium and Weardale
Lithium in my constituency to look at this, but what more can the
Government do to really help deliver the UK production of vital
rare earth metals?
My hon. Friend is absolutely right to focus on that necessity.
The Critical Minerals Intelligence Centre was launched only last
week and is looking at precisely the question that he raises. In
respect of Nissan and Britishvolt, he will know that we landed
those investments only last year. We are looking very closely at
how we can secure the supply chain here in the UK.
Mr Speaker
I call the shadow Minister, .
(Sefton Central) (Lab)
Rare earth minerals are essential to our economy, not least in
low-carbon sectors and in defence. The Japanese Government
developed their rare minerals plan as long ago as 2010, in
response to a blockade by China. I know the UK Government say
that they will publish a critical materials strategy in the
autumn, but if other countries have been building resilience
since 2010, what confidence can we have that this Government will
develop an effective strategy for our economy and our national
security when, as the Secretary of State has just admitted, they
have only just woken up to the scale of the risks that we
face?
I think the hon. Gentleman does the Government a disservice.
Obviously Japan was focused on security of supply, given its
immediate exposure to China. Where we have come in is in bringing
together, for instance, the United States and Canada: officials
in Canada whom I speak to are looking at our critical minerals
strategy with great interest, and we are very much leading the
way in the Five Eyes.
Community-owned Energy Projects
(Swansea West)
(Lab/Co-op)
13. What recent steps his Department has taken to help support
the growth of community-owned energy projects. (901029)
The Minister for Energy, Clean Growth and Climate Change ()
We encourage community energy groups to work closely with local
authorities to support the development of projects through
UK-wide growth funding.
The Minister knows that community-owned local energy projects
will be critical to delivering net zero and national security,
and are often best delivered by co-operatives. However, he should
also know that the minimum tariff paid by the big suppliers to
the small suppliers is often too low to make many smaller
suppliers viable. Will he look into that minimum tariff, and also
work with the Co-operative party to support and fund the launch
of new locally owned community energy projects?
I should be happy to have a look at those tariffs, but I do not
think that this would prevent us from supporting community energy
projects as a Government. We have a very good track record in
that regard, through previous funds and through, for example, the
towns fund, run by the Department for Levelling Up, Housing and
Communities, which has just awarded more than £23.6 million to
Glastonbury Town Council. The projects involved include the
Glastonbury clean energy project, whose purpose is investment in
renewable energy generation and low-carbon transport
infrastructure. There is a great deal going on in this space, but
I am happy to look at the tariff question in particular.
Online Products: Safety
(Makerfield) (Lab)
14. When he will bring forward a consultation on the safety of
products that are sold online. (901031)
The Secretary of State for Business, Energy and Industrial
Strategy ()
As the hon. Lady should know, a consultation, which includes
proposals to take further steps to address unsafe products sold
online, is being finalised, and the consultation paper will be
published later this year.
Unsuspecting and cash-strapped consumers are being peddled
recalled white goods, unsafe devices claiming to save energy, and
dangerous toys. Online marketplaces are a hotbed for unsafe
products, as has been evidenced time and again by investigations
carried out by Electrical Safety First and other organisations.
What steps are the Government are taking to address the safety
risks that consumers face when shopping on these platforms?
As the hon. Lady will know, the Office for Product Safety and
Standards leads a national programme of regulatory action to look
at precisely those risks. In 2021, for example, 12,500 products
were removed from supply as a direct result of OPSS
intervention.
(Worcester) (Con)
My late constituent Bethany Shipsey was tragically killed after
consuming just a small amount of the lethal explosive precursor
dinitrophenol—DNP—which is sometimes wrongly marketed as a
slimming or bodybuilding product. May I ask my right hon. Friend
for a meeting to discuss this tragedy, and how we can take steps
to crack down on the overseas suppliers who are selling this
deadly substance into the UK online?
I should be happy to meet my hon. Friend, who did excellent work
at the Department for Education.
Mr Speaker
Unlike , who does not meet
people.
is not here, so I call .
Energy Price Cap: Living Standards
(Paisley and Renfrewshire
North) (SNP)
16. What recent discussions he has had with Cabinet colleagues on
the potential impact of increases in the energy price cap on
living standards. (901033)
The Secretary of State for Business, Energy and Industrial
Strategy ()
We have talked about energy prices. We have an energy price cap,
and we have it because it protects consumers from being exposed
to the wild gyration of prices—and that is what it has been
doing.
I thank the Secretary of State for that answer, whatever that
was.
More than a fifth of my constituents already live in fuel
poverty, despite the best efforts of the Scottish Government and
local agencies investing heavily in energy efficiency measures.
The £400 announced by the previous Chancellor is totally
inadequate given that we hear the price cap is to rise by a
further £500. What action will the Secretary of State, and what
is left of his Government, be taking to change the energy market
fundamentally in order to ensure that no one in this country is
left to choose between heating and eating?
I made the point about the price cap because wholesale gas prices
have gone up 20 times and the price cap is protecting vulnerable
people who are eligible for it, just as some in the House have
remarked that people relying on off-gas grid heating are not
protected by it. In relation to the substance of the hon.
Gentleman’s question, we are looking at energy market reform to
decouple the marginal cost—the cost that people pay—from the
actual cost of generation, which is much more based on
renewables.
Climate Change Progress Report
John Mc Nally (Falkirk) (SNP)
17. If he will make an assessment of the implications for his
policies of the report by the Climate Change Committee, “2022
Progress Report to Parliament”, published on 29 June
2022.(901034)
The Minister for Energy, Clean Growth and Climate Change ()
As required by the Climate Change Act 2008, the Government will
respond later this year to the committee’s report and will
provide an annual update on the delivery progress of the net zero
strategy.
John Mc Nally
I thank the Minister for that answer. However, less than a year
on from COP26, it is scary watching the Government rolling back
climate policies. The Climate Change Committee has said:
“Tangible progress is lagging the policy ambition”.
Examples include cutting support for electric vehicles, a levy
incentivising only oil exploration and prime ministerial
contenders planning to suspend green levies. Why is the Secretary
of State’s party determined to inflict damage on our common home,
this planet, at this critical time?
Can I just correct the hon. Gentleman on one thing? The Climate
Change Committee’s report was actually full of praise for the
Government on electric vehicles and on what we are doing on
electricity decarbonisation. On his wider point, this Government
have a fantastic record of action on climate, thanks to the COP26
President, my right hon. Friend the Member for Reading West
(). At the start of the year, 30%
of global GDP was signed up to net zero targets. That is now 90%,
and the UK is leading the way with our own net zero strategy,
published just before COP last year.
UK Nuclear Power
(North West Leicestershire)
(Con)
20. What steps he is taking to deliver new and advanced nuclear
power in the UK. (901037)
The Secretary of State for Business, Energy and Industrial
Strategy ()
My hon. Friend will have noticed that we are fully committed to
the nuclear power industry and, unlike the Opposition, we are
looking to develop nuclear power because it is an essential
component of decarbonised, stable, firm power.
I thank my right hon. Friend for that reassurance. I have long
spoken up for modular nuclear technology, not only for the
baseload it can supply to our energy production but for the jobs
and prosperity it can provide for the city of Derby and the north
of England. Does he agree that while we wait for this modular
nuclear technology to come online, it is also important that we
invest in fracking, because short-term energy security has never
been more important than it is currently?
My hon. Friend will know that I asked the British Geological
Survey to look at fracking, and we will be coming out with a
statement on its findings shortly.
(Gloucester) (Con)
rose—
Mr Speaker
, you have had a
question.
I’ve got another one.
Mr Speaker
You can’t have one! I hate to say it to you, but how long have
you been here?
Energy Price Rises
(Sheffield Central)
(Lab)
21. What assessment he has made of the impact of the rise in
energy prices on (a) households and (b) businesses. (901038)
The Minister for Energy, Clean Growth and Climate Change ()
The Government recognise the impact that increasing energy prices
are having on households. That is why we are providing £15
billion in additional support to the £22 billion we announced
previously. The Government are in regular contact with business
groups and suppliers to explore ways to protect businesses.
The finance director of Thessco, a successful Sheffield alloy
manufacturer, has told me that the company’s electricity bill has
increased by more than 300% and its gas bill by more than 400%.
It does not qualify for help under the energy intensive
industries compensation scheme simply because its raw materials
are precious metals. The previous Industry Minister acknowledged
this in a letter to me but hoped that, despite not helping, the
scheme did
“demonstrate an intent to try to help”.
Extraordinary. Does the Minister agree that small and
medium-sized enterprises such as Thessco do not need
demonstrations of intent and that they need practical support to
avoid being crushed by rising energy bills?
The Government absolutely recognise the challenge being faced by
businesses and consumers in relation to the rise in global energy
prices. It may be that the business in question qualifies for
other things, such as the energy intensive industries exemption
scheme, and I will have a look at that, but what is certain is
that it will qualify for the business rates relief—totalling £7
billion over the next five years—and the annual investment
allowance, which increases from £200,000 to £1 million over the
course of this year, as well as some of the other really
important measures the Government have put in place to support
businesses at this difficult time.
Business Supply Chains
(Bedford) (Lab)
22. What recent steps his Department has taken to help support
business supply chains. (901039)
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
We continue to monitor supply chain pressures, such as the
Russian invasion of Ukraine, to ensure business resilience. The
Government engage regularly with UK businesses and industry to
understand the impact of this and other global events on our
supply chains.
Whether it is shortages in medicines, shortages in building
materials or empty spaces on supermarket shelves, my constituents
are still finding stock shortages everywhere. Retailers say this
is the worst supply chain crisis they can remember, with no sign
of the problem easing soon. What is the Minister doing now to
help businesses through this and to mitigate the impact of
spiralling inflation?
Of course, these are global issues, but the Government have taken
decisive action to ease pressures on supply chains, such as by
managing peak demand at the end of last year, including by
expanding and streamlining testing for heavy goods vehicle
drivers to enable an extra 50,000 tests per year. So things are
being done.
Topical Questions
(Christchurch) (Con)
T1. If he will make a statement on his departmental
responsibilities.(901005)
The Secretary of State for Business, Energy and Industrial
Strategy ()
My Department remains relentlessly focused on energy security for
the winter, and I have met many business groups, business people
and energy suppliers over the last few days. Only last week, to
protect our people from costly bills, we published the Energy
Bill, and I am pleased that last week’s fourth round of the
contracts for difference scheme was the most successful ever. It
secured almost 11 GW across a range of clean technologies,
including offshore wind, onshore wind, solar and, for the first
time ever, floating offshore wind and tidal stream. This will
help to boost our energy security for many years to come.
In thanking my right hon. Friend for that answer, may I say that
his answer to my earlier question will have been of little
comfort to more than 100,000 households living in park homes? The
Government are apparently still working on how to deal with this
issue, but meanwhile those households fear they will miss out
while those with second homes benefit more than twice, so can he
guarantee that each of those households will get £400 in cash, as
an energy bill rebate, whether it be in the form of a voucher, a
direct payment or whatever? They need to know now that they will
get the £400.
My hon. Friend has very successfully asked the same question
twice, which is fair enough, and I will give him the same answer.
We have had the consultation, and we will come up with a response
that ensures his constituents get a fair deal on this issue.
Mr Speaker
I call the shadow Secretary of State, .
(Stalybridge and Hyde)
(Lab/Co-op)
In the last 12 years, this country has had a referendum on its
membership of the European Union, a referendum on the continued
existence of the UK and four general elections, and now we are
about to have our fourth Prime Minister. In that time, business
investment in the UK has fallen to the lowest level in the G7.
Does the Secretary of State accept that one reason for that is
the lack of political stability under the Conservative party?
I will take no lessons in political stability from the hon.
Gentleman, who stood on a platform to elect a neo-Marxist as
Prime Minister of this country. That would have been a
catastrophic disaster for business investment and, indeed, for
our economic prospects.
If the right hon. Gentleman wants to be the next Chancellor, he
will have to do better than that.
Let us look at an area where he should have taken a lesson from
us. Earlier in the year, we said it would be a mistake for this
Government to increase national insurance. With inflation and
energy bills rising for businesses, we said it was wrong for the
Government to add to that burden in a way no other major economy
was doing. It seems that Conservative contenders are now lining
up to disown the tax rise they voted for just a few months ago.
Does he agree with his colleagues that the Government got this
badly wrong?
People will understand that the increase in the national
insurance contribution was precisely to pay for the NHS backlog
and for ongoing health and social care costs. In that context, it
made sense.
(Waveney) (Con)
T3. As my right hon. Friend has indicated, we had the very good
news last week that ScottishPower Renewables had been successful
in the contract for difference auction for its East Anglia Three
offshore wind project. I would be grateful if he would outline
what else is being done to provide certainty over future CfD
auctions, which will allow offshore wind developers to invest
more in order to meet the Government’s 2030 target and bring more
jobs to coastal communities such as those in Waveney?(901007)
My hon. Friend will appreciate that when he first came into the
House we did not have any auctions and then for about six years
we had an auction every other year. It was very much my intention
as Secretary of State to introduce an annual auction, and I am
pleased to say we have done so. It has given much more security
and visibility to the supply chain, which was one reason why I
introduced it.
(Glasgow South West)
(SNP)
T2. More than 150 seafarers on P&O’s Cairnryan to Larne
services were covered by the national minimum wage when the
company callously sacked the remaining seafarers in March. The
Government’s nine-point plan makes great play of enforcing the
national minimum wage on international ferry routes but fails to
ensure that collectively bargained terms and conditions for crew
will be imposed on P&O to lift pay and conditions. So will
the Secretary of State take steps to ensure that P&O can no
longer undercut rival operators from Cairnryan, thus returning
jobs to local crew and protecting maritime jobs and
skills?(901006)
I have talked about this issue with my right hon. Friend the
Transport Secretary, and we are looking at ways in which
egregious action can be mitigated.
(Berwickshire, Roxburgh and
Selkirk) (Con)
T7. Torness power station provides excellent jobs in my
constituency and low-carbon power across the UK. Have the UK
Government made any progress in convincing the SNP Government of
the importance of nuclear power to our future energy
needs?(901012)
The Minister for Energy, Clean Growth and Climate Change ()
I have raised this issue continually. I have been in Scotland six
times in this role in the past nine months and I have raised the
issue repeatedly with the SNP—with Scottish Government Ministers
and in this House. They have an incredible disregard for
Scotland’s incredible nuclear past. The workers at Torness have
taken great pride in providing reliable, zero-carbon energy since
1988, and it is scandalous that the SNP and its representatives
here in Westminster want to end Scotland’s brilliant nuclear
tradition, which we know has really served the whole of the UK,
particularly my hon. Friend’s constituents.
(Birmingham, Selly Oak)
(Lab)
T4. When do the Government hope to respond to last week’s West
Midlands Combined Authority plan for growth and, in particular,
its urgent calls to support the electric vehicle industry by
securing a gigafactory at Coventry, the roll-out of electric
vehicle infrastructure and support for supply chain transition
and diversification?(901008)
The hon. Gentleman will appreciate that I have been to Coventry
many times to discuss this issue and that we have landed
gigafactories in Sunderland. There were none when I became
Secretary of State and we now have two, and we are working all
the time to land more of them here in the UK.
(York Outer) (Con)
T9. Given the changing ministerial personnel, will the Government
reassure us of their ongoing commitment to generate growth to
beat living cost pressures through backing science and technology
projects such as BioYorkshire in my constituency, which has
already brought some 40 new high-skilled jobs to the constituency
with the relocation of Azotic Technologies?(901014)
My hon. Friend is a consistent champion for his York
constituents, and I assure him that we remain committed to
delivering on the fastest sustained uplift in research and
development funding, reaching £20 billion per annum in just two
years’ time, from £15 billion today. That is a huge uplift, and
of course we are going to make sure that all parts of the UK
benefit from it. I am sure that part of that will be in and
around York.
(Kilmarnock and Loudoun)
(SNP)
T5. Last week, I asked the Secretary of State about support for
pumped storage hydro, and he let the cat out of the bag when he
responded: “It should be stressed that this is a very specific
technology to Scotland.”That was a disgraceful comment. It
probably explains why Scotland has been overlooked for carbon
capture and storage and excluded from the hydrogen village
trials. But we do have the highest grid charges in the whole of
Europe and we have contributed £400 billion in oil and gas
revenue. Scotland is getting exploited, not supported. Is not
that the case?(901010)
That is absolute nonsense. My answer to the hon. Gentleman’s
specific question was that pumped storage hydro was something
that was particular in Scotland—it was something that happened in
Scotland. But as for this general remark about us not supporting
Scottish energy, the SNP is the party that has turned its back on
Scottish nuclear, which employs huge numbers of people. The SNP
has completely abandoned nuclear, it does not care about the
jobs, and it does not care about industry in its own country.
(Mid Norfolk) (Con)
I had looked forward to being in the box, but as they say, them’s
the breaks. I take the opportunity to thank the Secretary of
State, my private office and the team in the Department for their
support in the past year. Does the Secretary of State agree that
whoever wins this fabulous festival of talent, it is essential
that we put science, technology and innovation at the very heart
of our economy—perhaps even with a Cabinet Minister for it?
I think it is absolutely essential. I am sure that my right hon.
Friend would agree when I say that he was an excellent Science
Minister, and I am delighted to see him take an interest in our
affairs from where he is seated. I look forward to his ongoing
contribution to our science and technology agenda in the course
of this Parliament.
(Twickenham) (LD)
T8. An ambitious nationwide insulation programme is absolutely
essential to meeting our net zero target, although I note this
morning that the hon. Member for Saffron Walden () has described that goal as
“unilateral economic disarmament”. If she and others hoping to be
Prime Minister had attended Sir Patrick Vallance’s alarming
briefing yesterday on the climate crisis, she would have
understood how important it was to reduce household emissions. So
will the Secretary of State create jobs, cut bills and slash
emissions by investing in insulation?(901013)
That is exactly what we are doing. We have committed £6.6 billion
over the course of this Parliament. The local authority delivery
scheme, £787 million; the home upgrade grants, £950 million; the
social housing decarbonisation fund, over £800 million. These are
real, big pieces of taxpayers’ money going into energy
efficiency, and it is coming at a good time, when people need it
most.
Dame (Llanelli) (Lab)
The Government’s energy security strategy acknowledges that
onshore wind is one of the cheapest forms of renewable power but,
shockingly, proposes no wholesale changes to planning regulations
for onshore wind in England. But we in Wales stand ready to help.
What funding will the Minister provide for further research and
development into producing greater efficiency in grid
transmission, and will the Minister now commit to significant
investment in the national grid in Wales?
The hon. Lady will have studied the evidence that I gave to the
Welsh Affairs Committee a couple of months ago on the national
grid in Wales. When it comes to ensuring that we are equipped in
renewable energy, we have just announced the results of last
week’s contract for difference auction. I remind her that when
she was a supporter of the last Labour Government, only 7% of our
electricity was generated from renewables. It is now 43%.
(Bury St Edmunds) (Con)
The east has offshore wind and nuclear to give the nation. London
wants its power. Why should Bury St Edmunds, and the broader
Suffolk, Norfolk and Essex, have 50-metre pylons tearing across
its countryside? Up north, we have routed it under the sea. We in
the east want a fair consultation. My right hon. Friend has
listened to us; please listen to us again to get to the right
answer.
I thank my hon. Friend for her question. She is right that I have
met East Anglia MPs to discuss this matter—it has been impressed
on me across more than 20 constituencies—and I am sure that I
will have further engagements with her. I continue to work with
National Grid as part of its processes to ensure that her
constituents get the best possible deal.
(Harrow West) (Lab/Co-op)
The Competition and Markets Authority recently concluded that a
lack of competition in key parts of the economy was leading to
higher mark-ups from already profitable firms. In short,
inflation was being caused in part because Ministers were not
doing enough to ensure effective competition across those key
bits of the economy. What is the Secretary of State doing about
that?
The new CMA chair, Marcus Bokkerink, was confirmed by the
Business, Energy and Industrial Strategy Committee. He and I are
working very closely to see how we can improve the performance of
the CMA, to make sure that consumers get a better deal.
(South Suffolk) (Con)
Further to the question from my hon. Friend the Member for Bury
St Edmunds (), the fact is that National Grid is committing to
800 miles of undersea cabling to protect countryside in Scotland
and the north of England from new pylons, but to only 80 miles
off East Anglia, even though we produce so much offshore wind.
Why are our constituents not going to get a fairer share?
My hon. Friend and I have met to discuss this issue at least
three times, and he continues to be a champion for his
constituents. I know he is doing a lot of constituency meetings
on this. I will continue to engage and make sure that National
Grid also engages with him constantly.
(Walsall South) (Lab)
The Minister knows that 115 Horizon Europe grants were cancelled
last week. Will he commit to ensuring that that money is given to
our excellent scientists, just as the previous, excellent,
science Minister would have done?
I am pleased to announce that we have, in the first instance,
committed to Horizon, but we also have a plan B—an alternative
that will ensure that all the money we have put into Horizon is
retained in the UK. That is exactly what I am discussing with the
Chancellor of the Exchequer.
(Maldon) (Con)
I strongly endorse the remarks made by my hon. Friends the
Members for Bury St Edmunds () and for South Suffolk (), but may I raise a
separate issue with the Secretary of State: the deep concern felt
across the creative industries about the proposal in the
consultation about relaxing the copyright exception for
artificial intelligence? I spoke to the Minister’s predecessor,
my right hon. Friend the Member for Kingswood (), who was sympathetic and
said he would look into it. May I ask that the new Minister also
looks into it and makes sure that we protect one of our most
important industries?
My right hon. Friend is absolutely right. He knows that I am in
constant talks with officials in the Department for Digital,
Culture, Media and Sport and my right hon. Friend the Secretary
of State for that Department to make sure that we have a
reasonable response to this danger, which he very ably
highlights.
(Barnsley East) (Lab)
I am grateful to the Minister for meeting me to discuss the
mineworkers’ pension scheme. I know, after speaking to him last
week, that it has been referred to the Treasury for a decision.
Given that that decision needs to be made before the House rises
next week, may I urge him to chase it up, please?
I am happy to have further conversations with Treasury Ministers.
As the hon. Lady knows, the Government’s position on the core
issue remains unchanged, but I will ensure that the specific,
additional issue she has raised is put again to Her Majesty’s
Treasury.
(Gloucester) (Con)
Thank you for giving me a second chance, Mr Speaker. May I
congratulate the Secretary of State and the Energy Minister on
last week’s first ever ringfenced marine energy renewables
auction? This is a landmark moment for the UK in generating our
own domestic green energy from some of the world’s fiercest
tides. When will my right hon. Friend be able to announce another
ringfenced pot for marine energy?
During my time as the Energy Minister, my hon. Friend lobbied
hard and consistently on this subject, and I am pleased to say
that through my successors as Energy Minister and with me as
Secretary of State, we have finally delivered. I pay tribute to
my hon. Friend for his work to secure that.
(Leyton and Wanstead) (Lab)
What discussions has the Secretary of State had with local
authorities and other Departments about what seems to be a threat
to the future of community swimming pools from rising energy
bills? Swim UK, the Royal Life Saving Society and other
organisations have said that, potentially, hundreds of pools face
closure.
I am happy to examine this issue as a former employee of a
swimming pool. In 1985, I worked for six months at a German
swimming pool, Sommerbad Kreuzberg, which I am happy to read into
Hansard for all the staff who still work there. The hon.
Gentleman knows that we have provided support for businesses at
this difficult time through grants, business rates relief and
other reliefs, and we will continue to engage with those facing
challenges in relation to energy bills.
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