Energy Price Guarantee: Impact on Households
(West
Dunbartonshire) (SNP)
1. What recent assessment his Department has made of the
potential impact of the increase in the energy price guarantee in
April 2023 on households.(902461)
(Dundee West) (SNP)
4. What recent assessment his Department has made of the
potential impact of the increase in the energy price guarantee in
April 2023 on households.(902464)
(Glasgow South West)
(SNP)
5. What recent assessment his Department has made of the
potential impact of the increase in the energy price guarantee in
April 2023 on households.(902465)
(Lanark and Hamilton East)
(SNP)
15. What recent assessment his Department has made of the
potential impact of the increase in the energy price guarantee in
April 2023 on households.(902477)
(Coatbridge, Chryston and
Bellshill) (SNP)
16. What recent assessment his Department has made of the
potential impact of the increase in the energy price guarantee in
April 2023 on households.(902478)
The Secretary of State for Business, Energy and Industrial
Strategy ()
Future energy prices remain highly uncertain and are expected to
remain elevated throughout next year. The energy price guarantee
from April ’23 is currently expected to equate to £500 of support
for households in 2023-24.
As I hope the Secretary of State will know, recent analysis
published by The Herald has shown that the typical dual fuel bill
for people in Scotland will be £3,300—£800 more than the current
£2,500 price cap. Given the Chancellor’s plans to increase the
price cap further, what levels does the Secretary of State expect
average energy bills to reach in Scotland next year?
As the hon. Gentleman will know, a comprehensive range of
different support is in place, including the energy price
guarantee, which on average looks to guarantee £2,500. It is not
specific to each household, of course, and it depends on how much
energy is actually used—it is a cap—but there is additional help
including the £400 non-repayable support through the energy bills
support scheme.
The support to which the Secretary of State refers offers scant
consolation to those suffering, particularly the near-130,000
households in Scotland who rely on heating oil. The £200 of
support from the UK Government covers less than half the price of
the typical minimum order of heating oil, so will he finally
commit to increasing the support available to these
households?
Of course, everybody has had a £400 discount from their bill that
is not repayable, and 8 million families also have additional
support—those on income support and the like. The hon. Gentleman
mentions the £200; we only just doubled that from £100 in the
autumn statement the week before last.
Rising bills terrify most households. The End Fuel Poverty
Coalition recently warned that
“predictions of ‘a humanitarian crisis’ for children stuck in
cold homes are now a very real possibility”,
so does the Secretary of State accept that failure to provide
additional support for vulnerable families in April will have
dire consequences?
I just mentioned support for 8 million families that goes beyond
just the £400 and the energy price guarantee. Those 8 million
families will benefit from all manner of additional support—£1
billion for local authorities, additional money for people on
various forms of universal credit, and money for pensioners—all
of which is designed to help people through a crisis that the
whole House should recognise has been brought on by Putin the
dictator invading Ukraine.
Contrary to what the Secretary of State says, the consequences
will be dire. The Institute of Health Equity indicates that the
development of millions of children will be damaged, so will he
commit to providing adequate support for vulnerable families so
that no child suffers the diverse health impacts of fuel poverty
this winter?
I have mentioned the 8 million homes, but perhaps it will help
the hon. Lady if I point out the specific means-tested benefits
which mean that those families will receive an extra payment of
£650 on top of all the other assistance and help that I have
outlined. This is an unprecedented situation. We have put
billions of pounds of taxpayers’ money into supporting people. I
hope the whole House will recognise that this Government have
done everything within our power to assist.
The reality is that it is a damning indictment of decades of
failed UK Government energy policy that we are even discussing
harm to children as a result of rising energy Bills, given the
vast energy resources at Scotland’s fingertips. Given that
context, does the Secretary of State agree that it is absurd that
nearly 1 million households in Scotland will be experiencing fuel
poverty?
I have mentioned the household support fund, which is also
available for the most vulnerable. I do just have to say, to this
line of questioning, that it is extraordinary that while this
Government are spending so much energy and money trying to
support consumers, we still have the SNP refusing to allow new
renewables such as nuclear power.
(New Forest West) (Con)
When will there be clarity for park home owners about exactly
what they have to do to get what they have still to receive?
My right hon. Friend is absolutely right to point out the plight
of park home owners, who are in a different position from others
because of the lack of connection, sometimes, to the grid. We are
working very hard to ensure that they get their payments as well,
which will happen this winter. My right hon. Friend can be
reassured that we are doing that, and currently working through
local authorities to deliver it.
(Stoke-on-Trent North)
(Con)
Mr Speaker, I know you are a huge fan of making sure your pottery
comes from the Potteries. Ceramic manufacturers, despite the
energy price cap guarantee—it has been hugely helpful, with one
manufacturer saying it will save it £4 million over the winter
months—are still left in a dire situation. Will the Secretary of
State agree to meet me, the other Members of Parliament for
Stoke-on-Trent and , the chief executive of the British Ceramic
Confederation, to discuss what further support can be given to
this vital industry?
My hon. Friend is absolutely right about the pressure those
manufacturers are under, and I absolutely recognise that. There
is the energy-intensive industries discount of 85%, but I would
certainly be very happy to meet him and colleagues to discuss the
matter further.
Mr Speaker
I call the SNP spokesperson.
(Aberdeen South) (SNP)
To summarise, what we know is that, in Scotland, average
household energy bills will exceed the energy price guarantee,
but the Secretary of State is unwilling or unable to tell us by
quite how much. Of course, we know that on top of that households
in Scotland, and indeed children in Scotland, are going to suffer
as a result, yet we see no new announcements of additional
financial support forthcoming. All the while, Scotland produces
its own energy far in excess of what would be required to meet
its own demands. Can I therefore ask the Secretary of State
whether it is little wonder that viewers watching this at this
moment in time would be thinking that Westminster is failing
Scotland?
I absolutely do not agree with the hon. Gentleman. I have already
talked about the £400 that everybody has been able to receive
back, with some additional measures coming through for people
with unusual connection positions. We have the £650 cost of
living payments for those on benefits, £300 for pensioners and
£150 for disability costs of living. From what I can work out,
the SNP does not like its oil and gas industry and does not want
new nuclear power, so I have no idea what its plan actually
is.
It is a remarkable state of affairs that a nation that produces
more energy than it requires faces child fuel poverty as a result
of the actions of this Government here. The Secretary of State
does not like those facts, but here are some more for him. To
alleviate this crisis in the medium to long term, what we need
from this UK Government is not investment in nuclear, but
investment in clean, sustainable renewable industries. In that
regard, can I welcome his U-turn on onshore wind, but also seek
clarity about whether he will provide the same tax incentives for
the renewables sector as he will for the fossil fuel
industry?
This Government have a very proud record when it comes to
renewables. When we came to power, barely 10% was from
renewables; now the figure is 42%. In fact, on one day the week
before last over half of this country’s energy was produced from
offshore wind alone. The SNP does not like the answers I am
giving because the amounts of money we are spending supporting
people, including Scots, with energy bills this year means that,
for example, the average single parent on means-tested benefit
will be £1,050 better off because of the energy bills support
scheme. Yes, we are doing our part, and perhaps it is time the
SNP looked at its own policy to make sure it is encouraging
energy production.
Sizewell C
(Ipswich) (Con)
2. What assessment the Government have made of the potential
impact of Sizewell C on employment in the local area.(902462)
The Secretary of State for Business, Energy and Industrial
Strategy ()
I visited the site yesterday and was delighted to confirm the
nearly £700 million investment in Sizewell C pledged in the
autumn statement.
There are clearly significant national benefits to Sizewell C in
terms of national security, but as a Suffolk MP I am particularly
interested in potential jobs creation. I understand that about
10,000 new jobs could be created. I previously worked closely
with EDF and Suffolk New College to see how we can ensure that as
many local people—and my constituents in Ipswich—benefit from
Sizewell C as possible. Will the Secretary of State, in his own
time—when he has a little availability—meet me, the principal of
Suffolk New College, other education sector leaders and EDF to
see how Ipswich people can benefit in a real, tangible way from
Sizewell C?
My hon. Friend will be interested and happy to learn that I met
two apprentices at Sizewell yesterday, who have two of what we
expect to be 1,500 new apprentice jobs. He is right to mention
10,000 jobs in the immediate area—perhaps there will be 20,000
across the country—and we expect more than 70% of investment in
the project to come to the UK. I will gladly meet him and his
colleagues to discuss that further.
(Westmorland and Lonsdale) (LD)
Cumbria’s energy coast, including nuclear, wind, wave and tidal,
also has the capacity to create thousands of jobs in our county.
When will the Secretary of State make an announcement in respect
of his engagement with Cumbria’s energy coast to make best
use—
Mr Speaker
Order. That is not a fair representation of the question. It is a
poor effort, so I am going to let it go.
Community Energy Sector
(North Devon) (Con)
3. What steps his Department is taking to help support the growth
of the community energy sector.(902463)
The Minister for Climate ()
Ofgem supports community energy projects and welcomes
applications from the sector to the industry voluntary redress
scheme. We encourage community energy groups to work with their
local authority to support the development of community energy
projects through UK-wide growth funding schemes.
Will my right hon. Friend support measures to enable community
energy schemes to sell their clean power directly to local
customers, as contained in last Session’s Local Electricity Bill,
and look at including them in the Energy Bill?
Although I am sympathetic to the outcome desired by proponents
of, for instance, last Session’s Local Electricity Bill, I am
concerned that mandating suppliers to offer local tariffs may be
disproportionate and have unintended consequences. But I am
delighted to tell my hon. Friend, who I recognise is a great
champion in this area, that as part of a wider review of market
mechanisms we are considering retail market reforms and responses
to the electricity market consultation.
(Cardiff North) (Lab)
While the Government seem particularly confused about their
position on onshore wind—the most tried and tested and easiest to
roll out of all renewables—their focus on community energy is
even worse. The creation of strong, well informed, capable
communities able to take advantage of their renewable energy
resources and create community benefits is embraced by the Welsh
Labour Government. Why do the Conservative Government not do the
same?
I thank the hon. Lady for her typically partisan contribution.
[Interruption.]She is always consistent, and her Front-Bench
colleagues rightly point out that I have some things in common
with her. The rural community energy fund has provided £8.8
million in development grants for 208 projects focusing on a
variety of technologies, which I am pleased to say include solar,
wind, low-carbon heating and electric vehicle charging. The
Government will be delighted to work with the devolved
Administrations and others to drive forward our pathway to net
zero.
(Hitchin and Harpenden)
(Con)
Referring to the Minister’s response to my hon. Friend the Member
for North Devon (), energy market reform is
critical to ensure the growth of the community energy sector and
to splitting out the wholesale gas price from the electricity
price and other things. Will the Minister update the House on the
Government’s current thinking on wholesale market reform?
We will update the House as soon as we have announcements to
make.
(Orkney and Shetland)
(LD)
Community energy schemes such as Hoy Energy Ltd in Orkney perform
a really important role in the community by reinvesting their
profits in local schemes and projects. Will the Minister assure
me that when it comes to devising regulations under section 16 of
the Energy Prices Act 2022, there will be exemptions for such
companies to ensure that they can continue to put the profits
that they generate back into the community?
The provisions in the Energy Prices Act have been superseded by
the announcements made by the Chancellor in the autumn statement,
and therefore I do not think that they strictly apply any longer,
as the right hon. Gentleman has suggested.
(Southampton, Test)
(Lab)
Does the Minister accept that the inability of local energy
providers to trade within their local community remains one of
the biggest obstacles to the development of community energy
overall? If he is not willing to take on board the provisions of
the community energy Bill that is presently being promoted by
community energy supporters, does he have any other ideas as to
how that problem could be overcome in the context of the Energy
Bill, which I am delighted to see has resumed its parliamentary
process today?
I thank the hon. Gentleman for his question, and for his close
interest in this field and knowledge of it. I look forward to
sharing with the House further thoughts on how we can deliver
precisely that more dynamic situation going forward. As he
rightly says, there are provisions in the Energy Bill, which I am
delighted to announce is resuming its passage through
Parliament.
Off-grid Energy Support
(Chesham and Amersham) (LD)
6. What steps his Department is taking to support off-grid
households with their energy bills.(902466)
(Ashfield) (Con)
14. What steps he is taking to support off-grid consumers with
their energy bills.(902476)
(North West Leicestershire)
(Con)
19. What steps he is taking to support off-grid consumers with
their energy bills.(902482)
The Minister for Climate ()
The Government have doubled support to £200 for alternatively
fuelled households in recognition of the pressures caused by
rising fuel costs. We are committed to delivering that payment to
households as soon as possible this winter, and will announce
further information on the delivery and timing of those payments
in due course.
People living in park homes are concerned that they have had no
further information on when support will be available to them, or
how they will access it. One representative of the company
managing a park home site in my constituency first raised this
issue with me in August, yet months on we still have no further
information. Can the Minister provide some reassurance that
people living in park homes will not slip through the cracks, and
give some clarity as to when they will receive the £400 of
support that they have been promised?
I think the hon. Lady has slightly confused the alternative fuel
payment for those who are not on the gas grid with the energy
bills support scheme—an easy mistake to make in this complex
landscape. Those with a domestic electricity supply are already
receiving the £400 discount under the EBS scheme that she has
talked about. We are looking to come forward with details about
timing, but it will be this winter; we are looking to work with
local authorities in Great Britain to set up a scheme whereby
people in park homes can apply as households, to ensure that they
receive that £400 through local authorities as quickly as we can
manage.
Now then. The residents of Ashfield mobile home park do not have
a regular energy supplier. They get their gas and electricity
sold on by the park owner—who, by the way, marks it up and puts a
little bit back in his own pocket. Those residents do not have a
great deal of money, so can the Minister please reassure them
that help is on the way as soon as possible?
I thank my hon. Friend for his question; I hope he found my
letter yesterday, and the annex to it, helpful. As I said, the
Government have doubled support to £200 for alternatively fuelled
households in recognition of the pressures caused by rising fuel
costs. We are also determined to get support in place for edge
cases. It sounds simple, and if I were where my hon. Friend is, I
would certainly be shouting at the Minister to get on with it,
but we do not live in a central database-driven society; it is
necessary to identify these people in a way that protects public
money. We are working flat out to deliver this support as quickly
as we can.
A number of my constituents live in park homes, and many more
have no access to gas mains and so rely on bulk deliveries of
kerosene and liquefied petroleum gas. They are all concerned
about the rising cost of energy, so would the Minister outline to
the House how he is going to communicate to those groups the
support that is available, and ensure that it is delivered for
them this winter?
I thank my hon. Friend for his question. As I said, we are very
much looking to work with local authorities, which we think are
in the best position to help to go through the verification and
assessment process and look after public money, and most
importantly, to get the funding to heating oil users and others
who need support to meet these unprecedented bills this
winter.
Mr Speaker
I call the Chair of the Business, Energy and Industrial Strategy
Committee.
(Bristol North West) (Lab)
The Government announced this week that £1 billion will go
towards energy efficiency to reduce energy bills. Will the
Minister confirm how many new homes will be covered by that £1
billion?
I cannot give the Chair of the Committee an exact figure, but I
hope that very large numbers will be covered by
that—[Interruption.] Opposition Front Benchers may find that
amusing, but we should remember how few homes had an energy
performance certificate C when Labour left power and how many
more have had their level raised since then.
Manufacturing: Support for Innovation
(Crawley) (Con)
7. What steps he is taking to support innovation in the
manufacturing sector. (902467)
The Minister of State, Department for Business, Energy and
Industrial Strategy ()
Despite the Opposition’s constant attempts to talk down UK
manufacturing, the truth is that we are ninth in the world and
fourth in Europe, and that our advanced manufacturing sector
contributes £205 billion gross value added to the UK economy.
That is why we continue to support it in sectors such as
aerospace, automotive and life sciences through £850 million to
the high-value manufacturing catapult and nearly £200 million
through our Made Smarter programme.
Recently, Rolls-Royce, in conjunction with Gatwick-based easyJet,
carried out a successful green hydrogen jet engine trial. Will my
hon. Friend assure me that the Government will continue to invest
in sustainable aviation innovation?
I thank my hon. Friend, the chair of the all-party group for the
future of aviation, and I take this opportunity to invite the
whole House to celebrate the world-first achieved by Rolls-Royce
and easyJet: the first run of a green hydrogen-powered auto
engine. I am happy to reconfirm our commitment to aerospace
technology. That is why we have put £685 million into the
Aerospace Technology Institute programme and £125 million through
the industrial strategy challenge fund into the UK Research and
Innovation future flight challenge. The UK is leading in clean
energy for the aviation sector and jet zero.
(Wansbeck) (Lab)
The Government set a goal of the development of eight
gigafactories before 2040. Will the Minister say how that is
progressing, and will he reassure my constituents that the
Government are in conversation with Britishvolt to secure its
gigafactory site at Cambois in my constituency?
The hon. Member is absolutely right that we are committed to
growing that supply chain for the gigafactory revolution in the
north-east, the midlands and all around the country. That is why
we set out, in our critical minerals strategy, a coherent plan
for making sure that the country has the whole supply chain, as
well as those factories. I know that the Minister with
responsibility for energy technology will be happy to talk to the
hon. Member to make sure that the supply chain is working locally
as well.
Mr Speaker
I call the shadow Minister.
(Sefton Central) (Lab)
On 16 November, the Government awarded the contract for the new
fleet solid support ships to a Spanish state-led consortium.
Around £700 million of that contract will go to overseas industry
when our steel and shipbuilding sectors are crying out for
support. Also on 16 November, the Minister for Industry and
Investment Security wrote to me to say that the future of UK
steel companies was a commercial decision. Will this Minister
explain why the UK Government did not take the commercial
decision to deliver £700 million of work to UK steelmakers and
shipyards?
The hon. Member raises an important point. We are committed to
using our Brexit freedoms both on procurement and regulation to
support UK industries. I will raise that issue with the Minister
for Industry and Investment Security, who sadly cannot be here
this morning, and make sure that she picks that up with the hon.
Member directly. However, the answer is that we are totally
committed to the UK steel sector and to getting the balance right
between ensuring that we have open procurement and that we use
Government procurement muscle to back our industries. They are
not easy decisions to make, but we are very sighted on them to
try to get that balance right.
Small Business Support
(Hornsey and Wood Green)
(Lab)
8. What steps his Department is taking to support small business
growth. (902468)
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
It is a delight to be part of a ministerial team of whom many
members actually have a business background. We are for business
because we are from business, and we know what it is like to lie
awake at night worrying about how to pay the bills.
The reversal of the national insurance rise will save small
businesses an average of approximately £4,200 a year, alongside
the cut to fuel duty for 12 months and the energy bill relief
scheme. The British Business Bank supports small and medium-sized
enterprises to access growth finance.
From Muswell Hill to Myddleton Road, from Turnpike Lane to
Hornsey High Street, we are celebrating Small Business Saturday
in my constituency this weekend. There are two major concerns on
the mind of small businesses. The first is the business rates
expense. When will the Minister consider reforming it to help
small business? The second is a wider question for business and
trade unions about retained EU legislation, which is providing a
lot of uncertainty in the business community and a drag on
growth. When will the Government come out with a decision on that
crucial issue?
I am grateful for the hon. Lady’s question, especially the part
about Small Business Saturday. As hon. Members can imagine, I
will be spending much of the day visiting small businesses across
my constituency. I will also shortly be attending a House of
Lords reception to celebrate the 100 small businesses recognised
in the programme.
As the hon. Lady knows, in the autumn statement my right hon.
Friend the Chancellor announced £13.6 billion of support for
businesses over the next five years, reducing the burden of
business rates for SMEs. Of course we all want to see reform, but
simply announcing the scrapping of business rates without
announcing any replacement cannot be the right thing, because it
does not give business the certainty that it needs. That is the
sensible reform that I think the hon. Lady should be grateful
for.
Mr (South West Hertfordshire)
(Con)
May I put it on the record that as well as being the week of
Small Business Saturday, this is Family Business Week? I had the
opportunity to visit Tony at Croxley Hardware a few weeks ago.
Does the Minister agree that small businesses are the lifeblood
not only of the economy, but of our communities?
I thank my hon. Friend for his recognition of the small
businesses in his constituency. He is absolutely right: there is
no greater force behind the supply side of the economy than small
businesses, which are essential to prosperity and productivity.
He is absolutely right to champion their cause, and we should all
join him in that endeavour.
Dame (Hackney South and Shoreditch) (Lab/Co-op)
There has been some talk about business rates. I appreciate what
the Minister says about needing a proper plan. Businesses in my
constituency tell me that business rates are their big bête noire
and that reforming and replacing them would make their lives a
lot easier and their survival more certain. Will he give some
indication of the Government’s thinking, and of the timescale in
which they might be looking at the matter? Labour is proposing a
radical reform.
Well, Labour is proposing a radical reform, but we cannot quite
work out whether it will scrap business rates or reform them.
There have been mixed messages among Labour Front
Benchers—indeed, among the shadow Chancellor and the Leader of
the Opposition—so we are not quite sure what Labour’s policy will
be. We are certainly not sure how it would replace the £25
billion to £30 billion of revenue. I would really like to
understand that.
This is a thorny issue, because if we scrapped business rates the
taxpayer would have to find that huge amount of money by some
other means. The right thing to do right now is to see businesses
through this very difficult time with the kind of concession that
we have made, such as the £13.6 billion, rather than making
irresponsible and in my view undeliverable promises to completely
scrap business rates.
Sir (Rochford and Southend
East) (Con)
Essex Linen Services, which provides laundry services to
hospitals and hotels, is struggling to survive because of
electricity prices. It believes that its sector has been left out
of the energy support packages. Will the Minister agree to review
the situation for providers of laundry services and see whether
they can be supported in paying their electricity bills in
future?
All businesses have access to the energy bill relief scheme.
There are concerns about which sectors will be covered by the
revised scheme. We will have details on that by the end of the
year; the Government have committed to that. Clearly we are
trying to balance the interests of the taxpayer, who has to fund
this, with those of business. It is right that we focus on
businesses that cannot mitigate their energy use, by whatever
means, or pass on the costs to consumers. My hon. Friend is
absolutely right to raise the interests of the sector.
Mr Speaker
I call the shadow Minister, .
(Feltham and Heston)
(Lab/Co-op)
I grew up in a small family business. Labour is proud to be
supporting Small Business Saturday and its 10th anniversary, and
to have supported last week’s family business week.
Small and medium-sized enterprises are indeed the lifeblood of
our economy, but they have been hit hard by 12 years of Tory
failure and staggeringly low growth. Even after three Prime
Ministers this year, the Government have no answers—and the House
should not just take that from me; the Federation of Small
Businesses judged the autumn statement as being
“low on wealth-creation, piling more pressure on the UK’s 5.5
million small businesses”.
If the Government are really serious about helping small
businesses to grow, is it not time they adopted Labour’s plan to
reform business rates, back our high streets, make Brexit work,
and make Britain the best place in which to start and grow a
business?
As one who was in business in 2010, I remember very well what the
economy was like in that year, when we took over from Labour: it
was not having a good time. [Interruption.] Yes, it is a lot
stronger now.
We should bear in mind that while we can choose our own opinions,
we cannot choose our own facts, and the facts are that the UK has
experienced the third fastest growth in the G7 since 2010—behind
only the United States and Canada—and has grown faster than
Germany since 2016. It is right that we seek to provide new
solutions for businesses; we have to stimulate the supply side of
the economy, not least because that is good not only for
businesses but for consumers. However, as I said earlier, simply
claiming that you are going to scrap business rates without
saying how you are going to replace that £25 billion of revenue
is highly irresponsible.
SMEs: Recruitment Support
(Dunfermline and West
Fife) (SNP)
9. What steps he is taking with Cabinet colleagues to help
support (a) small and medium-sized enterprises and (b) other
businesses to recruit adequate numbers of staff. (902471)
Mr Speaker
Come on!
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
I am new to this, Mr Speaker.
My Department works closely with other Government Departments and
with firms in all sectors of the economy on a range of issues
relating to the labour market and skills. That includes
increasing the number of apprentices and business investment in
skills development, the adoption of T-levels and skills
bootcamps, and ensuring that there is better information along
with easier routes into careers in a range of sectors.
Last month I held a business roundtable with the Association of
Chartered Certified Accountants. It was clear that SMEs were
struggling with recruitment, high energy costs, Brexit, and £20
billion worth of late payments.
When it comes to late payments, the prompt payment code does not
cut it for SMEs. Will the Minister work with me to introduce
legislation to outlaw late payments once and for all and give our
SMEs a fighting chance?
I am grateful for the hon. Gentleman’s correspondence on this
matter, and I look forward to meeting him on 7 December.
The prompt payment code, which we introduced and which we
reviewed recently, will be out for consultation very shortly, and
I am keen to learn from best practice how we can make it more
effective. The hon. Gentleman is right to say that there are many
issues facing businesses today, and we are keen to help them get
through the difficulties that will no doubt continue over the
next few months, but in my experience of business our best years
come after our worst years, and I think we can be confident when
looking ahead while also recognising that there will be difficult
times in the short term.
(Rugby) (Con)
There are many SMEs in the retail and hospital sector. It is a
sector that does well in the run-up to Christmas, which gives
those businesses the opportunity to make some money. What impact
does the Minister think the rail strikes that are planned for
next week will have on their ability to recruit more staff?
It is, of course, right that we look after the interests of
business and consumers. There is no doubt that the strikes will
have an impact on both parts of that sector, and it is also right
for us to prioritise the needs of all consumers, not just those
who are seeking to take industrial action. We urge all parties to
get round the negotiating table as quickly as possible and try to
reach a sensible agreement.
Energy Support
(Leigh) (Con)
11. What steps he is taking to support (a) households and (b)
businesses with energy bills in winter 2022-23. (902473)
The Minister of State, Department for Business, Energy and
Industrial Strategy ()
As my colleagues have already pointed out, the Government are
supporting households and businesses during the winter through a
series of measures including the energy price guarantee, which
will save the average household £900 this winter, the £400 energy
bill support scheme payment, and, for businesses, the energy bill
relief scheme, which will provide a price reduction to ensure
that all eligible businesses and other non-domestic customers are
protected. That is in addition to the £2 billion that the
energy-intensive industries have received since 2013.
Over the last six months, several businesses in my constituency
have approached me to raise concerns about potential tenfold
increases in their energy bills. Can my hon. Friend assure me
that the Government will continue to act to ensure that no
business will face such shocking increases in reality, either
this year or next year?
In a word, yes. All of us in the Business Department are focused
on the point that my hon. Friend raises—namely, the pressure on
businesses from the energy price spike this winter. In the autumn
statement the Chancellor announced the Treasury-led review of our
energy bill relief scheme beyond March, and we are actively
working as a Department to make sure that that review has all the
necessary data and evidence from businesses. Our energy bill
relief scheme supporting energy-intensive industries has put in
£2 billion of relief since 2013, and our 2022 energy security
strategy announced that the EII compensation scheme would be
extended for a further three years. We are also looking at making
similar changes to the related EII exemption scheme. The Business
Department absolutely gets how much difficulty businesses are
facing through energy.
(Middlesbrough) (Lab)
The north-east of England process industry cluster has advised me
that major companies on Teesside currently obtaining their energy
via a private wire relationship do not qualify for the energy
bill relief scheme, with some major employers paying millions
more for their energy and facing the real prospect of ceasing
operations and moving overseas. Will the Minister meet me to
discuss how their concerns can be addressed?
Even better than that, I can make sure that the energy Minister,
my right hon. Friend the Member for Beverley and Holderness
(), meets the hon. Gentleman.
We are aware of this problem and we are actively working on
it.
BEIS Capital Spending
(Carlisle) (Con)
12. What recent assessment he has made of the efficiency and
effectiveness of his Department’s capital spending. (902474)
The Minister of State, Department for Business, Energy and
Industrial Strategy ()
As the Department for science, research and innovation, with the
historic uplift in public R&D announced in the comprehensive
spending review 2021 and the autumn statement 2022, and the
Department for net zero, BEIS secured the highest increase in
capital budgets at the last spending review, growing at 8.3% per
annum over the spending review period.
As we know, capital expenditure spent effectively drives economic
growth. To this end, would the Minister agree that capital
projects such as those in my constituency that will clearly help
economic growth and can start in the next 12 months will be
prioritised, and that additional support will be given where they
have shortfalls due to rising costs?
My hon. Friend has put his powerful point on record. I can assure
him that the Department is actively working with the Treasury to
make sure that those sorts of schemes are accelerated.
(Kilmarnock and Loudoun)
(SNP)
Is it still in the Department’s plans to take a 20% shareholding
in Sizewell C? If so, will that result in a capital spend of £6
billion or £7 billion—money that could be better spent elsewhere?
Private investment could be freed up in the Scottish cluster if
it was made a track 1 cluster and pumped storage hydro could be
helped by agreeing a pricing mechanism for electricity.
Unlike the Scottish nationalists, we are committed to the
private-public partnership that drives investment in our nuclear
industry, and Sizewell C is a major commitment. The Government
are proud to be partnering with industry, and it is a shame that
the Scottish nationalists are not similarly partnering with
industry for the benefit of Scots voters and bill payers.
Energy Price Guarantee
(Weston-super-Mare) (Con)
13. If he will publish a White Paper on the long-term structure
of the UK energy sector after the energy price guarantee ends.
(902475)
The Minister for Climate ()
The Government have announced changes to the energy price
guarantee from April 2023, as well as additional support for
pensioners and those on benefits. The Government will work with
consumer groups and industry to consider the best approach to
consumer protection from April 2024 as part of wider retail
market reforms.
Does the Minister agree that while subsidies are necessary
short-term sticking plasters, investors will not commit the
multi-billion pound investments that the energy sector needs to
upgrade and modernise energy storage, generation and transmission
unless the long-term rules are clear? Will he therefore update
the Energy Bill to lay out a sustainable long-term future with
investable deadlines and milestones to transition from today’s
highly distorted, politicised and bureaucratic sector to a
cheaper, simpler, better-value industry with much lower political
and regulatory risks?
I am proud that this Government have led the way, with contracts
for difference driving renewables such as offshore wind by
driving down costs. I am also delighted that we have the
legislative vehicle to deliver the necessary changes, and the
Energy Security Bill will be taken forward in this Parliament to
transform our energy industry by turbocharging carbon capture,
utilisation and storage and our hydrogen industries in pioneering
projects from the Humber to the Mersey, and beyond. The Bill will
encourage competition in the energy sector, creating opportunity,
prosperity and security with clean jobs, new skills and, as my
hon. Friend rightly highlights, cheaper bills.
(East Antrim) (DUP)
The Minister talks about long-term energy support. Will he bear
in mind that, despite the promises made here today that everyone
in the United Kingdom is already benefiting from short-term
support, not one penny has been allocated to consumers in
Northern Ireland, even though the electricity companies are ready
and the utility regular has told him that the ground has been
set. When will payments be made to people in Northern Ireland? We
are looking not for promises tomorrow but for payments today.
The energy price guarantee is benefiting Northern Ireland
consumers today, along with pensioners and vulnerable
families—they are all being helped. Of course, energy policy is
devolved to Northern Ireland, and we have had to step in because
of the lack of an Executive. We are working very hard. I held a
roundtable with energy suppliers only last week, and another one
was held yesterday. We are doing everything within our power to
find the right route, while protecting public money in the proper
fashion, to get money out to Northern Ireland consumers this
winter. We are doing everything for our part, and I hope the
right hon. Gentleman will support me in urging others to do the
same.
Topical Questions
(North West Leicestershire)
(Con)
T2. If he will make a statement on his departmental
responsibilities.(902487)
The Secretary of State for Business, Energy and Industrial
Strategy ()
With Sizewell C, we are securing a cheap, clean and reliable
supply of energy to supercharge growth—I will provide more
details in my oral statement. We have recommitted to increasing
public investment in research and development to £20 billion each
year by 2024-25, which will supercharge science and innovation,
and we are supporting local enterprises and increasing the
national living wage by almost 10%, the largest ever cash-terms
increase.
As well as renewables, it is clear that we need to add more
baseload capacity, and nuclear is the favourite for that.
Hundreds of my constituents work at Rolls-Royce, and many of them
work on the development of small modular nuclear reactors. Will
my right hon. Friend outline what support the Government are
giving to Rolls-Royce to develop this technology, which will not
only add to the UK’s energy security but deliver a technology
that we will be able to export successfully around the globe?
Like my hon. Friend, I am very keen on small nuclear reactors as
part of the solution. We will be launching Great British Nuclear
early next year to assist both Rolls-Royce and its competitors.
There are other brands out there, all of which have interesting
ideas about modular production of nuclear power, which will
provide sustainable energy even when the wind is not blowing and
the sun is not shining.
Mr Speaker
I call the shadow Secretary of State.
(Stalybridge and Hyde)
(Lab/Co-op)
I welcome the Business Secretary to his first oral questions. He
is the third Business Secretary we have had this year, and I have
to say that lack of stability is the No. 1 complaint from
businesses, which genuinely cannot keep track of Government
policy in any particular area. If they do know the policy, they
feel it could change at any moment if the internal politics of
the Conservative party shift one way or the other. Does he accept
that political instability has very real consequences for
economic stability?
I very much welcome the hon. Gentleman’s welcome, I hope to be in
post for a long time, not to disappoint him in any way. His talk
about the instability of policy is a bit rich, as many Labour
Members sat on the Front Bench under their previous leader, who
believed in a whole bunch of different things. Even the shadow
Secretary of State for Climate Change and Net Zero, the right
hon. Member for Doncaster North (), once said it is
impossible for this country to get to 40% renewable energy—he
called it “pie in the sky.” Right now we are producing 43.1% of
our energy from renewables. That is from a party that is
consistent.
Respectfully, I think the Business Secretary needs to focus a
little bit more on his own side and the humility required to do
that.
On a more positive note, this Saturday is small business
Saturday. A future Labour Government will tackle the issue of
late payments to small and medium-sized enterprises by making
audit committees report on public companies’ payment practices.
With more than £20 million waiting to be paid at any one time,
this is a change that will make a real difference and one that is
backed by the Federation of Small Businesses. We could, however,
implement it sooner by amending the draft audit reform Bill when
it comes forward. Would the Secretary of State support that
change?
I agree that payment for small businesses is very important,
particularly when it is not done by larger companies that have
the resources. That is one of the reasons why the Government have
led the way to make sure that, when small businesses deal with
Government, payments are made quickly and efficiently. The
Under-Secretary of State for Business, Energy and Industrial
Strategy, my hon. Friend the Member for Thirsk and Malton () is looking at a whole
range of different things to ensure that we speed up the culture
of late payments to small businesses, and he will be saying more
about that very shortly.
(Carshalton and Wallington)
(Con)
T4. Transport for London consultation data shows that 80% of
outer London businesses said no to the Mayor of London expanding
the ultra low emission zone, but they have been ignored and now
many Carshalton and Wallington businesses are considering closing
their doors. Will my right hon. Friend agree to meet me and other
London Conservative MPs to discuss how we might be able to
support businesses in outer London?(902489)
My hon. Friend is absolutely right. Labour Members talk about
helping businesses, but that is what you get with a Labour Mayor
in London, bashing businesses. I would be proud to meet my hon.
Friend.
Mr Speaker
I call the shadow Minister.
(Newcastle upon Tyne Central) (Lab)
We do not know where the half a billion pounds announced last
week to cover Horizon uncertainty is coming from, as the Science
Minister refuses to answer my questions, but we do know that
British scientists are still having to choose between the country
they love and the funding they need. British science, British
businesses and British jobs are at risk while the Government play
a blame game, instead of keeping their manifesto promise to
associate with the world’s biggest science fund. Will the Science
Minister admit that no science fund can have the efficiency,
effectiveness, influence, prestige or range of Horizon, and that
he has let British science down?
The Minister of State, Department for Business, Energy and
Industrial Strategy ()
In a word, no. I will tell the hon. Lady exactly where the £484
million that we announced last Monday—I think the Opposition
supported it—is coming from. It is coming from Her Majesty’s
Treasury to support universities, researchers and companies in
this country that have been affected by—and this is the second
point—the European Union’s block on our negotiated membership of
Horizon, Copernicus and Euratom. I was in Paris last week
negotiating. We are still actively pushing to be in Horizon,
Copernicus and Euratom, but we have made provision, and early in
the new year Members will start to see that we will be rolling
out additional support for fellowships, innovation and global
partnerships. If UK scientists cannot play in the European cup,
we will play in the world cup of science.
(Dartford) (Con)
T5. Will the Secretary of State join me in condemning the actions
of the London Mayor in extending the ULEZ scheme out to the whole
of London? This will have a significant impact on businesses both
inside and outside London, creating a financial wall between
London and the rest of the country, and hitting areas such as
Dartford particularly hard, which, of course, have no say in who
the Mayor of London is.(902490)
That is absolutely right. Voters will have their say. I say no
taxation without representation.
(Rutherglen and Hamilton
West) (Ind)
T3. I welcome the Business Secretary to his place. What
assessment has he made of the number of European countries to
exit the energy charter treaty on the basis that attempts to
modernise the treaty have failed, and will the Government be
considering the UK’s position?(902488)
The Minister for Climate ()
We consider all those that have left the energy charter treaty,
but we have so far supported its modernisation. We keep that
under advisement.
(Buckingham) (Con)
T6. Does my right hon. Friend share my enthusiasm for synthetic
fuels made from green hydrogen and atmospheric carbon capture as
part of our route to decarbonisation? If so, what is his
Department doing to support the UK pioneers in this sector, such
as Zero Petroleum, to compete in what will surely be a
multitrillion-pound global industry and huge export
opportunity?(902491)
I do enthusiastically support our SAF—sustainable aviation
fuel—industry. Actually, it is a little known fact that last year
at COP26 we sent more than 500 aircraft home with sustainable
aviation fuel in their tanks, and this country has set a more
ambitious target for sustainable aviation fuel than elsewhere,
with 10% by 2030.
Sir (East Ham) (Lab)
The Groceries Code Adjudicator has done a good job over the past
10 years, leading to a big fall in the number of breaches of the
fair purchasing code, but bad practice is still rife in the
fashion industry, with UK fashion retailers among the worst
offenders. The Environmental Audit Committee called for a garment
trade adjudicator. Will Ministers bring that proposal
forward?
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
I thank the right hon. Member for all his work in this area; I
know that he has done an awful lot. We have no plans to bring
forward a garment code adjudicator, but we do take reports of
illegal and unsafe employment practices very seriously. Since
October 2020, a wide group of stakeholders, comprising retailers,
manufacturers and non-profit organisations have been working with
the Gangmasters and Labour Abuse Authority to address poor
practice and working conditions.
(Ynys Môn) (Con)
T7. May I say pob lwc, good luck, to the Wales football team
tonight? Can the Secretary of State confirm that, beyond Sizewell
C, Great British Nuclear will be empowered to commission and
build at not only gigawatt-scale, but small modular
reactor-scale, so that my constituents on Ynys Môn can benefit
from those new jobs from new nuclear?(902492)
I can confirm that that is the intention with Great British
Nuclear. I know that areas such as Wylfa Newydd—if I am
pronouncing it correctly—in my hon. Friend’s constituency could
well be in line to benefit. However, as she can tell from my
Welsh pronunciation, I suspect that I will be on the English side
tonight.
(Ealing, Southall)
(Lab)
Yesterday, I hosted a roundtable meeting for businesses in my
constituency. They were worried about late payments and a
Government who are not helping them. Fifty thousand businesses
close every year due to late payments, and small businesses
account for two thirds of UK private sector employment. Will this
Government act before the worst of the Tory-led recession bites
to save millions of jobs?
I thank the hon. Member for his question. He is absolutely right
to bring up this matter. It is one of the concerns that has been
raised most frequently with me since taking on this role. We are
tackling the culture of late payments with measures including the
Payment Practices Reporting, the Small Business Commissioner and
the Prompt Payment Code, but I am determined to see how much
further we can go to be effective in this area.
(Ruislip, Northwood and
Pinner) (Con)
T8. I recently met my constituent, Puneet Bhalla, who is the
founder and chief executive of Maxim World, a very successful
small exporter of hotel goods across the world. He told me of
some of the challenges that small and medium-sized exporters are
facing with post-Brexit trade arrangements. Can my hon. Friend
tell me what plans there are to involve SMEs in the review of EU
retained law?(902493)
It is great to hear that my hon. Friend’s constituent is looking
to export right across the world, and we are determined to make
it easier to do so through trade deals outside the European
Union. Ministers and officials from across BEIS regularly engage
with SMEs on a wide range of issues and will continue to do so as
the retained EU law programme proceeds.
(Leyton and Wanstead) (Lab)
Further to the question from my hon. Friend the Member for Sefton
Central (), when will Ministers start
to use procurement in order to generate and defend British jobs?
I have been listening for years to Ministers coming to that
Dispatch Box saying that they will use procurement, so when will
we actually see it?
That is a very important point. The Government are determined to
tackle not just their own procurement practices, but those
further afield. Clearly, we want to keep our markets open to
international competition, because we want to compete
internationally as well, but there also needs to be fair
competition. Where we can prioritise the needs of British
companies and British workers, we should do so.
(Birmingham, Northfield)
(Con)
T9. Northfield Business Improvement District and I are eagerly
awaiting the announcement of the levelling-up bid, especially the
one for Northfield High Street. In the meantime, many local
shops, especially independents, are in need of help to stay open.
Can the Minister help Marcia and Andy from the Northfield BID and
set out how the Government can help those businesses?(902494)
I am grateful to my hon. Friend for standing up for his
constituency businesses; I hope he is supporting Small Business
Saturday this weekend, as I am sure hon. Members across the House
will be. It is absolutely right that we are supporting businesses
through these difficult times with the energy bill relief scheme
and the £13.6 billion of rates support that they will see over
the next five years, but we will continue to look at the needs of
business to ensure that we have the right measures in place.
(Brighton, Pavilion)
(Green)
The Rosebank oilfield would produce more than 200 million tonnes
of CO2 when burned, which is equivalent to running 58 coal-fired
power stations for a year and more than the combined annual
emissions of 28 low-income countries. How does that make any
sense in a world where heating needs to be constrained to below
1.5°?
Our use of oil and gas in this country is falling as part of our
pathway to net zero. It is usage that drives the burning of oil
and gas, and it is on the downward pathway. Producing our own oil
and gas when we will be burning it on our net zero pathway
domestically is sensible. It is good for Scottish jobs—although
sadly opposed by the Scottish nationalists—it is good for the
British economy and it is entirely net zero compliant. That is
why we will continue to manage the mature and declining basin
that is the North sea.
Mr Speaker
I call .
(Crawley) (Con)
T10. Sorry—I did not know I had a topical question, Mr Speaker.
Can I get assurances from the Government that airports such as
Gatwick will be supported as they recover strongly from the
covid-19 pandemic?(902495)
My hon. Friend will be reassured to know that I did know that he
would have a topical question, and the answer to it is yes.
(Enfield North) (Lab)
Recently, a Premier Inn hotel in my constituency threw out one of
their visually impaired guests, Ms Angharad Paget-Jones, and her
guide dog Tudor in the middle of the night because they refused
to believe, despite being shown identification, that Tudor was a
guide dog. Can the Minister tell me what action his Department is
taking not only to ensure that businesses are complying with the
Equality Act 2010, but to go after those who show frank disregard
for it in practice?
That is a very disturbing case, and I am happy to help the hon.
Lady with it. I know that the guide dog campaigning organisations
have this issue in their sights as something we need to address.
I would be grateful if she wrote to me with the specific instance
and I will be happy to deal with it for her.
(Banff and Buchan) (Con)
I welcome the Government’s recent doubling of the alternative
fuel payment and yesterday’s written communication from the
Minister confirming that the majority of households eligible for
those payments will receive their £200 automatically as a credit
on their electricity bill. Can he reassure constituents in Banff
and Buchan who are dependent on heating oil in particular that
those payments will indeed be made as soon as practically
possible?
I can give my hon. Friend and his constituents that
assurance.
(Stockton North) (Lab)
A few months ago, CF Fertilisers in Billingham ceased ammonia
production there because of the high gas price. Now Mitsubishi,
just a few hundred yards along the road, is consulting on the
closure of one of its plants, with the loss of hundreds of direct
and contractor jobs, for the same reason. Is the Minister aware
of that latest blow to Teesside, and what is he doing to help
firms such as Mitsubishi?
I was up in Teesside the week before last, and I have been
keeping in close contact with what is happening there. The good
news is that there are new jobs coming about in new industries,
including new industries supplying electric battery
manufacturing, which are available because this country is
outside the European Union and able to produce new rules that
will allow things such as green lithium to thrive here and
provide up to 8% of Europe’s entire needs. New jobs are coming to
Teesside.
(South Basildon and East
Thurrock) (Con)
As my right hon. Friend will know, maths and higher maths is
often the foundation skill upon which other innovative
technologies are built. Can he therefore tell the House what
steps his Department is taking both to fund higher maths and to
give people the skills they need in maths to help us to reinforce
our status as a global science power?
The Minister of State, Department for Business, Energy and
Industrial Strategy ()
My hon. Friend makes an important point: maths is one of the
underpinning disciplines of all our science and technology
leadership. That is why we have increased funding through UK
Research and Innovation for core maths, and I am delighted to
confirm that we are looking at various ways in which we might be
able to turbocharge our international fellowships in maths as
well.
(North Down) (Alliance)
Households in Great Britain have had access to the £400 energy
support payments since 1 October, but households in Northern
Ireland have not had any substantial support whatsoever. The
energy price guarantee does not really work in Northern Ireland,
because 70% of households there use oil. Can the Government give
the people of Northern Ireland a firm date by which the £400
payments will be made available?
As I said in an earlier answer, we are doing everything we can,
working through suppliers, to ensure that the money reaches
Northern Ireland consumers. The hon. Gentleman will be pleased to
know that every single Northern Ireland household is receiving
the alternative fuel payment, in addition to the energy bills
support scheme. We are looking to make sure not only that that
money gets out and is credited to households, but that they are
able to access it this winter. There is no point having it as a
credit on an electricity bill, as that does not help them deal
with other costs this winter. That is the sticking point; that is
what we are working on.
Mr Speaker
Come on, Minister—you said you had already answered it once.
(Boston and Skegness)
(Con)
The proposed takeover of Activision by Microsoft has the
potential to have a profound impact on many of Britain’s
brilliant video games industry manufacturers and makers. Although
I know that the Secretary of State will not want to comment on
the specifics of that case, can he reassure me that the
Competition and Markets Authority has all the resources it needs
to come to the right conclusion and to do so as thoroughly and
rapidly as possible on this important matter?
My hon. Friend is right to raise that question. I know that the
CMA has received a large number of submissions, and some very
large submissions as well. I think it has until 1 March next year
to complete its phase 2 inquiry. We absolutely believe that it
has the right resources to do that, and we will make sure that it
has over the coming months.
