(5 days, 8 hours ago)
Commons Chamber
Claire Young (Thornbury and Yate) (LD)
Aphra Brandreth (Chester South and Eddisbury) (Con)
Bills are too high and the cost of living crisis is the biggest issue facing the country. That is why, at the last Budget, we took decisions to raise taxes on the wealthiest, which will enable us to take an average of £150 in costs off household energy bills from April. That builds on the fact that the price cap and average energy bills were lower in real terms in 2025 than in 2024.
We were promised a reduction in bills of £300, but they have actually gone up by just shy of £200. The impact assessment of the Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2026, which we passed last week, states:
“we estimate that cost-pass through for most sectors could feasibly be at 80-90%”.
That is a euphemism for even higher bills, isn’t it?
I am afraid that the right hon. Gentleman’s first point is wrong; he is taking one quarter—summer 2024 —and comparing it with today. If we look across 2025, bills are lower than in 2024. Actually, I had hoped that he would support the £150 that we have taken off energy bills, but the Opposition oppose all the measures making that possible.
Claire Young
The Government’s consultation on alternative heating that ends today does not cover installation costs, yet that is what is stopping many of my constituents in off-gas areas from switching away from oil. With National Energy Action warning of an £18 billion funding gap to meet fuel poverty targets, what action will the Government take to ensure that those least able to afford alternative forms of heating are not left dependent on fossil fuels and paying sky-high bills?
The hon. Lady is right to draw attention to our consultation. From talking to my ministerial colleagues, I know that we will take into account the points that she has made. We want to allow as many as people as possible across the country to convert to cheap, clean power. That is the point of our warm homes plan, and that is the point of the consultation she mentioned.
Aphra Brandreth
A recent survey conducted by Censuswide shows that two thirds of households with heat pumps say that their heating costs have increased, driven by electricity prices that are four times higher than gas. With energy bills now £190 higher, despite this Government promising to cut them by £300, does the Secretary of State acknowledge that his choices are making it harder for households to make the switch to greener heating options, and that, unlike the Conservatives’ cheap power plan, they are leaving households with higher bills?
I congratulate the hon. Lady on reading out the Whips’ handout. No, I do not, and I will tell her why. The Chancellor’s action in the Budget to take the renewables obligation off bills and put it on to public expenditure was the biggest single cut in the cost of electricity that we have seen dating back to even the Conservatives’ time in office.
The costs of new infrastructure are a pressure on bills, as the Secretary of State knows. He deserves enormous credit for the results of the allocation round 7 auction today, in which the strike price of renewables was less than half what it would have been with new gas. What is the approach to rolling out extra grid—and, indeed, maintaining the existing grid—which is so crucial to the plans, given that there is so much to make up for following the failure to invest over the many years since privatisation?
My hon. Friend is right to draw attention to this morning’s auction, which saw record amounts of solar power. It is the cheapest form of power that we could possibly have in this country, and it costs less than half the price of building and operating new gas. On the point about infrastructure, he is right that we inherited a terrible legacy, and we are building the new infrastructure that we need.
Amanda Hack (North West Leicestershire) (Lab)
My constituents in North West Leicestershire will soon benefit from an average £150 cut per household to energy bills, and a number will be able to access energy efficiency schemes. Can the Secretary of State outline in more detail the expected changes to the fixed elements of our bills, such as the standing charges, which impact those in fuel poverty so much more than the rest of us?
My hon. Friend draws attention to the really important issue of standing charges. We have been consulting on moving the warm home discount from fixed cost standing charges to unit rates, which has been welcomed by Martin Lewis, among others. We want to bear down on standing charges, and we will announce the results of that consultation soon.
Catherine Atkinson (Derby North) (Lab)
Last year, I teamed up with the local Labour council cabinet member for the cost of living and my hon. Friend the Member for Derby South (Baggy Shanker) to launch a free local pension advice service, which has delivered over half a million pounds to eligible pensioners in Derby. It has helped with pension credit, home heating tips, fire safety advice and utility deals, and has even provided free draught excluders and radiator insulators. What steps is the Secretary of State taking to ensure people know about the support they can get to reduce household bills?
My hon. Friend is right to draw attention to this important issue. As part of our warm homes plan, we are going to set up a warm homes agency to give people proper information, advice and guidance on what they can do to cut their bills. We have made the biggest public investment ever seen in this country to help people cut their bills and upgrade their homes, and we will make sure people know about it.
Lincoln Jopp (Spelthorne) (Con)
Dr Al Pinkerton (Surrey Heath) (LD)
Zöe Franklin (Guildford) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
We recognise that high energy costs remain a significant pressure on UK businesses. We are acting now through the British industry supercharger and the new British industrial competitiveness scheme to reduce electricity costs for energy-intensive sectors, while delivering our clean power 2030 mission to cut bills for good. We also intend to consult on further options to reduce costs and make low-carbon heat economically competitive.
Lincoln Jopp
Ametek and SSS Gears are two quite rare breeds—they are manufacturing companies in my Spelthorne constituency, inside the M25. One employs 200 people, while the other employs 43, and they seek to export around the world. How does the Minister expect those companies to be competitive in a global market when energy prices in Ashford, Middlesex are four times higher than those in Ashford, Alabama?
Chris McDonald
It is exactly that disparity in international energy prices for industry, which the previous Conservative Government left us with, that we are addressing through our clean power 2030 mission. However, we recognise that as clean power is coming online, industry will need further support. Both Ametek and SSS Gears are exactly the sorts of manufacturing businesses that this Government wish to support through initiatives such as our British industrial competitiveness scheme. The consultation for that scheme has just closed—I do hope both of those businesses responded to that consultation—and we will publish the results shortly.
Dr Pinkerton
Small and large businesses in my constituency of Surrey Heath—everything from small cafés to care providers and large manufacturers—tell me that they are being crushed by high energy costs. Given that the wholesale cost of gas has fallen substantially since its peak in 2022, can the Minister indicate what proportion of a typical business energy bill is driven by wholesale costs, network charges and policy costs, and which one of those is likely to be borne down on over the next year as a direct consequence of Government action?
Chris McDonald
The hon. Gentleman is quite right to point out the impact of energy costs on small businesses. As we have seen, that has been largely driven over many years by the linkage between energy costs and gas prices, which is something that this Government are determined to deal with as we pile on renewable energy as part of our clean power mission. UK gas costs are competitive with Europe after policy costs are included, but of course we want to remove businesses from having to rely on the whims of the fossil fuel market and enable them to rely on low-cost, secure, home-grown energy.
Zöe Franklin
A third-generation advanced manufacturer in my Guildford constituency invested in a solar-covered, energy-efficient factory to cut emissions and expand, yet overall operating costs have risen sharply, including business rates increasing from £130,000 to £570,000. That business is doing everything right, including switching to renewables and working to become more efficient. On top of the crippling hike in business rates, the straw that breaks the camel’s back is energy costs, so what discussions has the Secretary of State had with the Chancellor about reducing industrial energy costs and the associated costs so that firms investing in clean growth are properly supported?
Chris McDonald
Of course, it is central to the Government’s policy that businesses are incentivised to invest in renewable energy and electrification where that is possible, so that they can access the lower-cost electrical energy that is coming on stream as part of our 2030 clean power mission. The hon. Lady mentioned that the business was a manufacturing business, so it is possible that it could qualify for our British industrial competitiveness scheme, which we will bring forward in 2027. The results of the consultation on that scheme will be published shortly.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
In Cornwall, after our groundbreaking critical minerals strategy, there is the possibility that floating offshore wind could power critical minerals processing plants. This is a fantastic opportunity. Will the Minister look closely at the proposals and see how the Department can help something like that to happen?
Chris McDonald
My hon. Friend does a grand job of championing the critical minerals industry in Cornwall and the potential for floating offshore wind in her constituency. She highlights a great opportunity, where investment in energy and industry side by side can reduce the cost of capital for both parts of the supply chain and so create an economic opportunity. I thank her for the representations that she has made to me on behalf of her constituents prior to today. I will continue to work with her in trying to realise this opportunity.
Euan Stainbank (Falkirk) (Lab)
To transition away from fossil fuels, we need zero emission vehicles on the road. Manufacturers such as Alexander Dennis should be leading that transition, although it currently operates with a gas-intensive production process. To stay competitive against imports, those manufacturers need greater support. The British industrial competitiveness scheme is hugely welcome as it will reduce industrial electricity costs, but will the Minister consider supporting a dual fuel discount that includes the cost of gas to support the automotive advanced manufacturing sector, including Alexander Dennis?
Chris McDonald
I am very concerned about gas-intensive industries, and the Government’s policy is intended to ensure that they are given the support to decarbonise by electrifying, where that is possible, whether that is through confidence in long-term energy prices owing to the delivery of our clean power mission or through support to invest in their business.
Mr Richard Quigley (Isle of Wight West) (Lab)
I know that the Department is working hard with the Department for Transport to decarbonise shipping, but the current system works against businesses. One of our ferry companies is having to pay £12 million up front for a shoreside connection and then wait for up to seven years. Will the Minister commit to reviewing this system to speed up electric shipping for places such as the Isle of Wight?
Chris McDonald
I am extremely grateful to my hon. Friend for engaging with me on this topic in advance of the recent changes to the emissions trading scheme to include maritime emissions. It is incredibly important that domestic maritime emissions are included, so as to incentivise the investment required to decarbonise. I am aware of the issue in the Isle of Wight. On one route, two vessels will be affected. I know that he has invited me to visit the Isle of Wight and meet the businesses concerned, and I am allowed to make the commitment from the Dispatch Box that I will do that.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
Businesses and public services in the north of Scotland pay among the highest commercial energy prices in the whole UK. The Government have had 18 months to try and fix that. Why do they still think it is okay to discriminate against people in the north of Scotland in that way?
Chris McDonald
In fact, the Government are taking an approach across the whole United Kingdom to deliver the energy infrastructure and energy generation capacity to guarantee low-cost, home-grown, secure energy for the future, ensuring that the jobs and benefits from that are seen across the country. I would have thought that the hon. Member might wish to welcome those jobs in Scotland. There will be 20,000 additional jobs by 2030 in clean energy industries in his community and mine.
Time and again, small manufacturing firms in my constituency of Llanelli tell me that high energy costs are making it difficult for them to be competitive, and they feel that they are on the edge. Given the lack of investment by the previous Conservative Government and the fact that this Government are playing catch-up, when does the Minister think that enough new sources of energy will be generated to bring down prices? How soon will interim help arrive?
Chris McDonald
My hon. Friend is right to champion the small manufacturers in her constituency, which I know well from the time that I spent working in south Wales. It is important to note the announcement from my right hon. Friend the Secretary of State this morning—it will shortly be the subject of a statement to the House—about allocation round 7. It demonstrates our commitment to putting on new solar farms, new onshore wind and new offshore wind. Every single one of those installations contributes to our energy security and to reducing the cost of energy for domestic consumers and industry alike.
Pippa Heylings (South Cambridgeshire) (LD)
The cost of electricity is still too high, and, as we have heard, businesses are struggling to pay their energy bills. While the Government have offered help to the energy-intensive industries, it is the small and medium-sized businesses in my constituency and around the country that still feel overlooked and forgotten. Liberal Democrat researchers have estimated that 3.1 million SMEs saw a total bill increase of £7.6 billion when the Conservative Government ended the energy bill relief scheme. When will this Government finally help SMEs—the small businesses, the backbone of our economy—to see off their crippling energy bills?
Chris McDonald
The hon. Lady and I agree that more needs to be done to alleviate the high energy costs for small businesses. I used to run an energy-intensive small business myself, and I know how difficult that is. She is also right to point out that this is the legacy that the last Government left us.
We are pushing forward to 2030, when we will have lower energy costs and more secure energy in the UK, but we recognise that more needs to be done to support small businesses—although we are already helping with measures such as our zero carbon services hospitality trial, which is now delivering support for 600 hospitality SMEs across the UK, and the provision of £200,000 to fund improvements in the UK business climate hub and help SMEs with their carbon emissions.
Calum Miller (Bicester and Woodstock) (LD)
As we explained in our solar road map, the Government consider effective community engagement to be crucial as we scale-up solar deployment throughout the country. Developers must consider local community views as part of their applications, and the quality of that community engagement is taken into account by decision makers.
Calum Miller
Just across the border of my constituency lies Southill Solar, a scheme that works with the local community, pays a direct return to residents, funds local projects, and has even won awards for its landscape and environmental design. By contrast, Botley West, one of the largest solar farms ever brought forward in Europe, would have a profound and long-lasting impact on a rural area, but local people feel that the level of developer engagement and transparency, as well as the community benefit on offer, falls far short of the scale of that impact, and the Planning Inspectorate recently described the absence of key information as “very disappointing”. Does the Minister agree that community benefit should be proportionate to the scale and impact of solar development, and will he agree to meet me to discuss how those operating large-scale solar schemes can listen better to rural communities so that clean energy is delivered with, not against, local consent?
I have had many productive meetings with the hon. Gentleman, and I shall be happy to meet him again to talk about these issues. The Government absolutely believe that communities that host infrastructure should benefit from doing so. We have consulted on mandatory community benefits and we will respond to the consultation in due course, but today we have published the local power plan: the biggest shift in power and wealth that we have seen in the energy space in British history, which will ensure that the hon. Gentleman’s community and communities throughout the country benefit from the ability to own their energy infrastructure, and that the benefits of that flow into those communities. That is the ambition that we have set out as a Government.
Dr Jeevun Sandher (Loughborough) (Lab)
A solar farm is planned for my constituency, and the developer has engaged well with local residents. Yes, it will power 20,000 homes, and yes, it will get carbon emissions down, but most important of all, it will make our bills more affordable because solar is 50% cheaper than natural gas. Does the Minister agree that when it comes to renewable energy, Members in all parts of the House should say, as I say today, “Yes in my constituency, and yes in my back yard”?
Perhaps unsurprisingly, I warmly welcome my hon. Friend’s comments. He takes seriously the issue of how we can build the infrastructure that the country needs for our energy security, but he also rightly draws attention to a fact that Opposition Members seem to ignore completely: the fact that renewables are the cheapest and quickest form of power to get on to the system. Just today, the new auction has resulted in 4.9 GW of capacity. That, taken together with the offshore wind results, makes it the most successful renewables auction in British history. The entire Opposition Front Bench used to agree with this. These renewables are 50% cheaper than the new-build gas that is now championed by the shadow Secretary of State, the right hon. Member for East Surrey (Claire Coutinho), which would add money to the bills of people throughout the country. This is the right plan for bringing down bills, for our energy security and for providing jobs throughout the country.
I do not think the Minister fully appreciates just how much communities threatened by large-scale solar up and down the country feel that they are having things done to them and not with them. The No. 1 complaint that I have heard from campaign groups represented by Stop Oversized Solar up and down the land, including some in my constituency, concerns the threat to food security. When they try to engage, they keep being given this bogus figure of 1%, but if we carry on in the direction the Government are going in, by 2035 an area the size of Greater London will be covered in solar. That is equivalent to nearly 2,000 farms capable of producing 2 billion loaves of bread. When are we going to get the truth about the threat to food security from solar?
This is just the most absurd nonsense from the Conservatives, who I see are now crowdsourcing their energy policy on Twitter. It is not surprising that they come up with that sort of nonsense, when that is the information that they use. Even in the most ambitious deployment scenarios, all the statistics suggest that 0.4% of UK land would be occupied by solar. The Conservatives come to this House time and time and time again calling for bills to be brought down, but their policy would put them up and turn away the investment that is driving jobs and opportunities across the country. They had no answers in energy policy for 14 years, and they have learned absolutely nothing in opposition.
Helen Maguire (Epsom and Ewell) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Katie White)
This Government are absolutely committed to supporting the NHS to be at the heart of our decarbonisation effort in order that, first, it gets to reduce its emissions and that, secondly, it can reduce its dependence on expensive fossil fuels. That is why Great British Energy has already supported over 260 NHS sites with up to £130 million of funding. GPs are not part of NHS sites but under the boiler upgrade scheme they can access £7,500 towards heat pumps and £5,000 towards biomass boilers.
Helen Maguire
Primary care accounts for around 25% of the NHS’s carbon emissions, with many GPs working in ageing, energy-inefficient buildings with high running costs. Research from the Royal College of General Practitioners reveals that only five GP practices in England and Wales have accessed the boiler upgrade grant scheme since May 2022, and most are unable to access the public sector decarbonisation scheme. GP partners across the UK identify a lack of capital funding as the main barrier to decarbonisation, yet 260 NHS trusts are rightly receiving Government funding for new solar panels. Will the Minister meet me and the Royal College of General Practitioners to discuss how GPs can access decarbonisation schemes, and will she expand GB Energy’s investment model to GPs?
Katie White
I thank the hon. Member for raising this really important issue, and for raising the figures. I think she would agree that we have an ambitious plan. Today’s announcement of the local power plan may well meet some of the needs that she raises. I will take this issue away and have a look at it. We recognise that retrofitting commercial buildings can be costly and complex, and we are looking at other levers to do that, including accessing private finance and exploring novel options such as property-linked finance. Today’s announcement will help, and I am very happy to discuss it further with her.
It was fantastic to see GB Energy invest in new, clean, bill-saving technology for the Bedford Road health centre in my constituency last week. That comes on top of the investments already seen at Lister hospital and Bedford hospital, which serve my constituency. Solar is good for the NHS and for the planet, so how can we get it on to more public sector rooftops right across the country? Crucially, I have some fantastic examples in Hitchin where we would love to see further action.
Katie White
I applaud my hon. Friend for all his ambition and championing of the opportunities that are presented in our low-carbon transition plan. Today’s announcement of the local power plan is a real opportunity to turn the dial on this issue, for local communities to become involved, and to make the best of the benefits of the low-carbon transition. I look forward to working with him further on it.
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
The carbon pricing emissions trading scheme is set by the market, rather than the Government. The price is effective at driving investment in carbon abatement measures, but it is for individual operators to decide whether the costs of abatement in a project are effective for them.
Last week the Government updated their carbon values to reflect their latest net zero emission target, but the UK emissions trading scheme does not take into account the updated figures. In 2021, it was predicted that carbon abatement for a third runway at Heathrow would cost £100 million, and costs will have only risen since. According to the emissions trading scheme, just 15% of the clean-up costs of expansion will be covered by Heathrow; the rest will fall on the taxpayer. Will the Minister update the UK emissions trading scheme to reflect the carbon abatement costs of major projects such as Heathrow expansion, so that the taxpayer can understand how much they will have to pay for a third runway?
Chris McDonald
The Government do not comment on or interfere with the carbon price. Ultimately, the price is set by the market to ensure that the ETS drives decarbonisation where it is cheapest. In this way, it can act most effectively as a financial incentive to decarbonise, without specifying the particular technology.
Thank you, Mr Speaker, and it is great to see you back on your feet.
Last week, the Labour party voted to increase the carbon tax, which increases costs for households and industry, and those costs have already doubled because of its policies. It is absolutely shameful for the Government to say that they have had no impact on the carbon tax whatsoever. It now accounts for over 10% of household electricity bills, and the rise is in effect a £5 billion a year tax on the British economy. Can the Minister explain why the Labour party wants to tax our industrial jobs out of existence, leaving Britain reliant on dirtier imports from abroad?
Chris McDonald
I am not sure if the shadow Secretary of State is conflating the various carbon taxes with the emissions trading scheme, but to be clear: the Government do not set or comment on the value of the carbon in the emissions trading scheme. That is a matter for the market. It is of course a policy on which the previous Government were very keen, because it drives the most efficient forms of decarbonisation. Ultimately, it places a price on carbon emissions that ensures private capital floods into the right places to decarbonise, as we have seen so successfully with the power sector in the UK.
Irene Campbell (North Ayrshire and Arran) (Lab)
There is huge potential from small modular reactors for both our energy security and jobs. I am proud that the decisions this Government have taken have enabled us to fund the UK’s first SMRs at Wylfa, supporting up to 3,000 jobs on site and thousands more across the supply chain. We want every part of the country to benefit from this potential, including Scotland.
Irene Campbell
An SMR and new nuclear at Hunterston power station would make a huge difference to my constituency, given that nearly 650 people are already employed in highly skilled and well-paid jobs in the civil nuclear sector there. I was concerned to read a BBC article about a Scottish nuclear worker who relocated from Hunterston to Hinkley because there is no new nuclear in Scotland. Does the Secretary of State agree that we are losing talent and investment because of the SNP’s continuous opposition to nuclear?
My hon. Friend speaks incredibly well on this issue. It is just common sense to have nuclear as part of our energy mix. We know why it is not going to happen in Scotland under the current regime. It is because SNP politicians, for dogmatic reasons, have set their face against it. They are even embarrassed to have this policy. The answer to it is to vote Labour in May.
Order. Jim, you were not here—you have just appeared—and the problem is that I think you missed the first part of the question. [Interruption.] Do not worry, Jim—just get on with it!
I thank the Secretary of State and I know he is interested in small modular reactor schemes, which we are very interested in having in Northern Ireland. The shadow Secretary of State has also giving a commitment to them. Can I please ask the Secretary of State what discussion he has had with the Northern Ireland Assembly—Gordon Lyons, in particular—to ensure that we can also benefit?
Obviously, this is devolved to the Northern Ireland Assembly and Executive, but I think the hon. Gentleman makes an important point. Throughout the United Kingdom, there is huge potential for SMRs. This is the technology of the future, and it can play a really important role in our energy mix across the UK.
It is unusual—indeed, unheard of, in recent months anyway—for the Secretary of State and I to agree on anything on energy policy, but it is probably not the first time this week that he secretly agrees with a Scottish politician. I know he agrees that new nuclear, particularly SMRs, offer huge potential for the UK and for Scotland. This week, Trade Unionists for Safe Nuclear Energy launched a petition addressed to the First Minister of Scotland, calling on him to lift the ban on new nuclear development in Scotland. Can that group expect the Department’s support?
The hon. Gentleman is right about this. Let me put it this way: given the scale of the climate change challenge, only those who are dug in dogmatically can oppose new nuclear. Given the scale of the challenge we face, we need all the tools at our disposal. It provides good jobs and energy security, so it is only for dogmatic reasons that the SNP Government oppose it. There is one difference between him and me, and that is that he promised SMRs, but we are delivering them.
The difference is that this Secretary of State’s ambition for nuclear pales in comparison with our ambition when we were in government.
When I served as the Minister for nuclear, it was a source of the greatest frustration that, despite the many countless—indeed, huge—strides we took to kick-start the new nuclear age in the UK, none of the investment or the jobs would be seen north of the border. The Scottish National party is most at home refighting the battles of the past—they tend to be the battles of the 14th century—but in this age of nuclear revolution across the world, the aversion to nuclear is inexplicable. It is a luddite approach. The SNP is anti-science, anti-progress and anti-jobs. There can and should be a future for nuclear in Scotland. Does the Secretary State not agree that this is the time for the SNP Government to drag themselves into, and to move Scotland into, the 20th century—let alone the 21st century—change course and lift this ridiculous ban?
The hon. Gentleman makes his point in his own way. As I say, I believe the SNP’s position makes no sense. I gently point out to him that although he might have had grand ambitions, with no delivery they are completely worthless—and that was the Conservatives’ record on nuclear.
Warinder Juss (Wolverhampton West) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)
Great British Energy’s mission is to power Britain with clean, secure and home-grown energy. It has already started that work, with Great British Energy and the Government funding around 250 school and 260 hospital solar installations, including at Rakegate primary school and Ormiston NEW Academy in my hon. Friend’s constituency.
Warinder Juss
In my constituency, almost one in five households have been living in fuel poverty, struggling to heat their homes this winter. I welcome the Government’s commitment to lifting 1 million more households out of fuel poverty by 2030, which will have a significant impact on my constituents. Will the Minister please outline what other tangible changes my constituents can expect to see over the next year thanks to GB Energy, so that by the time we come to next winter they can feel comfortable that they can now afford to heat their homes?
Martin McCluskey
I thank my hon. Friend for that question. I know that he is focused, as I am, on reducing energy bills for his constituents and people across the country. I have already spoken about the extensive investment in solar not just in his constituency but across the country. People in Wolverhampton and across the country will also be benefiting from our action to reduce energy costs by an average of £150 this April. That is in addition to continuing the warm home discount for nearly 6 million eligible households this year.
There have been numerous references to the cost of energy and reducing that cost in the United Kingdom. Has any assessment been made by the Minister or the Department of the comments made by the International Energy Agency in the past few days, which seem to indicate we have one of the highest prices in the western world?
Martin McCluskey
I think where the IEA and I would agree is that we need to get off the rollercoaster of fossil fuels and ensure we are investing in clean home-grown energy that people across the country can take advantage of to lower their bills.
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Katie White)
As set out in the recent northern growth strategy, the north-east is at the forefront of our clean energy revolution. Our industrial strategy’s clean energy industries sector plan sets out measures which will support investment and growth across the UK. Great British Energy has supported grants to mayoral strategic authorities, which will enable locally led energy projects.
I thank the Minister for that response. For 100 years and more, skilled workers in the north-east have relied on high-paid energy jobs, be they in coal, gas or oil in mines, factories, ports and rigs. Labour’s clean power mission can bring new jobs to existing supply chains, but companies and workers need help to transition. Will the Minister tell me how she plans to future-proof the north-east’s energy supply chain and deliver secure, well-paid and unionised jobs?
Katie White
My hon. Friend is absolutely correct to highlight the huge opportunities for the north-east in the energy transition. We estimate an additional 10,000 jobs by 2030, building on those that are already in place in offshore wind in the Port of Tyne and in nuclear Hartlepool. She is right to point out the importance of the transition for both existing workers and the next generation. That is why we have introduced a clean energy jobs plan to ensure that that transition is as successful as possible. I highlight the work of Mayor Kim McGuinness, who held an excellent green jobs fair in the north-east, which has provided a blueprint for the rest of the country, and the importance of our work, hand in hand with the trade unions, to ensure that we deliver the most effective transition possible.
Great Britain’s electricity distribution network is highly resilient and the Government work closely with industry to maintain that. Energy resilience is a top priority for the Government, which is why my Department will publish an energy resilience plan in 2026.
Constituents in areas like Esh Winning, Witton Gilbert, Brandon and Waterhouses and increasingly businesses in Durham city regularly contact me about repairing power outages. They have been told by Northern Powergrid that temporary repairs will be made, but that clearly offers no reassurance to those who are elderly, live alone or rely on their electricity supply for medication or to power medical equipment. Recent storms cannot be blamed, as many of the outages were reported during spells of fine weather. Will the Minister say what work the Government are carrying out to improve the resilience of the electricity distribution network in Durham so that my constituents are not constantly worried about when their power will next go out?
My hon. Friend asks an important question. I completely understand the frustrations of people who are without power and the disruption that it has on people’s lives. My Department has had a number of conversations with Northern Powergrid on the particular issues in my hon. Friend’s constituency and I am advised that many of the power outages across Waterhouses, Brandon and Esh Winning were caused by trees contacting overhead lines. This is all feeding into work that is being done to ensure that the resilience of the network allows us to avoid those situations in the future. We are also working on how we can upgrade the network where possible to ensure it is resilient. There is always more that we can do, but the grid does remain hugely resilient across the country, and we will work to support communities such as that of my hon. Friend where, unfortunately, there are power outages.
There are two things that the Government could do to improve energy resilience, particularly in communities like mine in Cumbria. First, they could support Electricity North West by ensuring that it buries its cables where possible to protect them against wild weather, which, as the Minister knows, we have from time to time. Secondly, they could accelerate local energy markets so that in places like Coniston, which the Minister and I discussed in our meeting yesterday, they are able to provide energy for the community they are embedded within, thereby enhancing the resilience of the network. Will the Minister do those things?
I think Electricity North West is considering exactly that question, looking at where the lines can be buried to avoid repetition of the issues that have been caused so far. I will follow up on that point in particular with it. I had a fantastic meeting with the hon. Gentleman yesterday to talk about Coniston and local energy markets. I encourage him and Members across the House to read the local power plan, published this morning, which sets out our ambition to look at innovative ways in which communities can own and invest in their own energy while also having the resilience of local energy networks and smart energy systems that help the grid both nationally and locally.
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)
This Government’s actions mean lower bills for people across Scotland and lower levels of fuel poverty; in April, because of the Government’s actions, households across Scotland will see an average of £150 of costs removed from their energy bills. Just last week, we announced the extension of the warm home discount to 2031, meaning £92 million of support for some of the most vulnerable people across Scotland every year into the next decade.
The energy market in Scotland operates in surplus in both generation and transmission, whereas the energy market in England operates in shortage in both generation and transmission. Unfortunately, that means that in a GB energy market, Scotland gets sucked in to subsidising energy costs for English consumers. Over and above that, Energy UK has made it clear that there will be no meaningful reduction in energy bills until some indeterminate point in the 2030s. Will the Minister recommit—just before the Scottish elections—to energy bills in Scotland being £300 lower in 2029 than in 2024?
Martin McCluskey
Bills are coming down, and yes, I will recommit to that. [Interruption.] If the hon. Gentleman does not want to listen to me about the impact of our policies, he might look at the Scottish Government’s own modelling of the £150 off energy bills, which says that the number of people in fuel poverty in Scotland will reduce by 9% and the number in extreme fuel poverty will reduce by 12.5% this April. That is because of this Government’s actions, not because of anything the hon. Gentleman or his colleagues are doing.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
It was good to see you walking in today, Mr Speaker.
I welcome the publication of the local power plan, which will be keenly read in my constituency—the heart of the Atlantic—where communities are taking their share in the wealth of wind. To renew and expand community energy, we need to get connected to the grid. I welcome what the local power plan has to say about setting up tailored support for communities, but there must be priority support from Ofgem, the grid operators and this Government to ensure that communities benefit from the wealth of wind.
Martin McCluskey
I know that my hon. Friend is a real champion for local community power in Na h-Eileanan an Iar. I am sure my hon. Friend the Minister for Energy will have lots to say on the matter soon on his visit to the Western Isles.
The first-of-a-kind clean industry bonus as part of allocation round 7 is set to crowd in up to £3.4 billion of private investment in supply chains and support up to 7,000 jobs across the country. After a legacy of failure under the previous Government, we are determined that the clean energy future is made in Britain.
What steps is the Secretary of State taking to ensure that the jobs generated through the clean industry bonus are directed towards communities formerly dependent on fossil fuel industries and that workers at risk of displacement during the transition are supported into those new opportunities?
My hon. Friend makes an important point. One great thing about the clean industry bonus is that it will be focused on the industrial areas of our country, including those that are based on oil and gas. We also have, as part of our North sea future plan, a whole set of plans to help displaced oil and gas workers into these areas. There is huge potential in this innovation, as it rewards companies that invest in our country.
Cat Eccles (Stourbridge) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)
One of the best ways to ensure accurate billing is by using a smart meter, which automatically records energy use in every half-hour period, allowing bills based on actual rather than estimated usage. That is why more than two thirds of non-domestic premises are already using a smart meter.
Cat Eccles
Small businesses across my constituency have been mis-sold commercial energy contracts by brokers. A business in Lye was recently locked into a three-year contract in which it found itself paying more than double the market rate. An independent café in the Merry Hill centre recently had to close due to the £1,500 a month in energy bills that it was forced to pay. Will the Government strengthen the law to protect small businesses against unscrupulous energy brokers and consider introducing a cap on business tariffs?
Martin McCluskey
I am sorry to hear about the experience of businesses in my hon. Friend’s constituency. The short answer to her question is yes, we will strengthen the law in this area. Rogue energy brokers have been allowed to use predatory sales tactics for too long to take advantage of customers. That is why, once parliamentary time allows, we will be introducing new measures to stamp out that exploitation.
Mr Jonathan Brash (Hartlepool) (Lab)
On 4 February, the Government published the advanced nuclear framework, which establishes a pathway to market by introducing the UK advanced nuclear pipeline and clarifying the enabling policy landscape to unlock privately financed advanced nuclear projects in the UK, which is all part of our new golden age of nuclear power.
Mr Brash
I congratulate my hon. Friend on the publication of the advanced nuclear framework. It is an important step forward, providing a clear pathway for credible projects such as the one that X-Energy and Centrica are delivering in my constituency. Will he ensure, though, that the right balance is struck between backing those projects that are most robust and mature and recognising that Government support will be particularly important to unlocking private investment for the first project of its kind in the UK, which will make Hartlepool a trailblazer for our country?
Let me pay tribute to my hon. Friend who is an absolute champion for Hartlepool. I was delighted to be at an event recently as part of Nuclear Week in Parliament, where I met some of his constituents who pay tribute to him for the work that he does in this place and outside it to bring nuclear investment to Hartlepool. The framework that we have announced enables credible, mature privately led projects by providing the clarity needed to attract private capital. To join the UK advanced nuclear pipeline, projects must meet the readiness assessment, gaining in principle the endorsement of deliverability. Therefore, his point is hugely important and we look forward to these private-led projects coming forward as part of this huge investment in new nuclear.
Mr Luke Charters (York Outer) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)
I am proud that the Government have extended the warm home discount to an extra 2.7 million households, taking the total to around 6 million. Last week, we announced that the scheme would continue supporting households for a further five years to 2031. This will make a vital difference to so many families this winter, including an additional 190,000 households in Yorkshire and the Humber.
Mr Charters
I will never forget my mum renting a house in York with ancient heating, freezing rooms and an evil prepayment meter that drained her finances. In York, over a third of fuel-poor households rent privately. What is the Secretary of State doing to ensure that the warm home discount reaches them and ends the unfair penalty paid by many simply for renting?
Martin McCluskey
The experience that my hon. Friend outlines is still all too common in our country, and I know that he continues to raise this issue on behalf of all his constituents. The warm home discount is available to eligible private renting households on prepayment meters, and through the warm homes plan we are taking significant action to increase the minimum energy efficiency standards for the private rental sector, so that every private renter in my hon. Friend’s constituency and elsewhere benefits from a warm home that is cheaper to heat.
Gregory Stafford (Farnham and Bordon) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Katie White)
This Government take energy security extremely seriously. We run one of the world’s safest, most reliable energy systems, and we are a top destination for investment. Investment in our energy infrastructure undergoes the highest level of national security scrutiny.
Gregory Stafford
Given reports from Norway and Denmark that Chinese-manufactured electric buses contain remote kill switch technology, and that the recent UK-China engagement appears to have delivered an embassy for the Chinese and little more than a Labubu for the United Kingdom, how can the Minister be confident that Chinese-made energy infrastructure does not pose similar national security risks? What steps is she taking to remove our reliance on Chinese-made infrastructure?
Katie White
That is slightly audacious, given that when we left government in 2010 we had, I think, three of the top solar companies in the world, but when we came back into office we had nothing—there was no supply chain. National security is this Government’s No. 1 overriding priority. We are engaging constructively with every opportunity and all actors but at the same time making sure that every single decision takes into account our national security, which comes first above anything else.
Perran Moon (Camborne and Redruth) (Lab)
Domestic production of clean energy infrastructure technologies insulates us from Chinese security issues. In Cornwall we are on the cusp of significant geothermal baseload energy production. Geothermal Engineering Ltd in my constituency will imminently open the UK’s first ever geothermal electricity plant, producing energy and lithium from beneath our feet. Will the Minister ensure that there will be ministerial representation at this key milestone in the UK’s clean energy transition?
Katie White
From China to Cornwall, Mr Speaker! I thank my hon. Friend for his continued championing of Cornwall, geothermal energy and critical minerals. This Government support geothermal, and we will engage constructively at any key moment.
This morning we have announced a record-breaking auction for solar and onshore wind, and we are launching our local power plan. That follows a month in which we secured the biggest offshore wind auction in Europe’s history and launched our warm homes plan. We are determined to deliver lower bills and good jobs as we take back control of Britain’s energy.
I welcome the Secretary of State’s leadership in restoring momentum on net zero. Will he outline how the Government’s energy and climate strategies will be underpinned by clear delivery plans, milestones and transparent reporting to Parliament?
My hon. Friend speaks with great eloquence on these issues. As she knows, that is the great thing about the Climate Change Act 2008, which was passed with the support of all parties. David Cameron—my nemesis—was a great supporter of that plan. The Act gives us the milestones that my hon. Friend talks about. On top of that, we have our clean power action plan.
Last year, the Secretary of State signed a secret energy deal with China, which he has refused to publish. This is simply unheard of. We have heard repeatedly from intelligence services that China might seek to disrupt our energy system, so it is crucial that the public get to see what he has signed us up to. Will the Secretary of State commit to publishing the full text of his secret energy deal with China, and if not, will he tell the House what it is that he is trying to hide?
May I give the right hon. Lady a piece of advice? Wacky conspiracy theories that she gets on the internet are no substitute for a proper policy.
That is frankly another patronising non-answer from the Secretary of State. I am not sure whether he got the memo, but his party is fed up with the sexist boys club. What is crucial is that the public have lost faith in the Labour party. This is a serious moment. Does he accept that when he stands at the Dispatch Box and tells the public that by his calculation their bills are falling, not rising, they simply do not believe him? Does he also accept that when he does not set out what any of his plans—such as doubling the carbon tax or clean power 2030—will do to bills, he makes a mockery of his party’s pretence that it cares about the cost of living? Does he not reflect on all this—the £300 nonsense pledge, the Great British Energy fig leaf—and realise that when it comes to loss of trust, he is not their salvation but their problem?
We will take no lectures from the right hon. Lady on the cost of living crisis, because her Government presided over the worst cost of living crisis in generations. Let me tell her what we are doing: £150 off bills; the warm home discount extended; the warm homes plan. We have done more in 18 months to cut bills for people than they did in 14 years.
Brian Leishman (Alloa and Grangemouth) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
My hon. Friend does a good job of standing up for workers in his constituency and, following the statement that I made in the House before Christmas, he will know very well the views of the Government on this closure. I was pleased to attend the local taskforce recently with my hon. Friend the Member for Cowdenbeath and Kirkcaldy (Melanie Ward). Along with the investment that the Government are making in Grangemouth and the guarantee of an interview for workers from Mossmorran at Grangemouth, our focus is on supporting the workers and the local community. A significant investment by the Government in the local area stands in stark contrast to the SNP Scottish Government, who have limited their support to £3 million a year.
Pippa Heylings (South Cambridgeshire) (LD)
Trump’s national security report made it clear that he wanted to use America’s gas to project geopolitical power. We must not replace Putin’s gas with a reliance on Trump’s gas. That is why signing the Hamburg declaration was a step in the right direction, strengthening energy co-operation with our European neighbours. We need to go further, and we should host the next North sea summit, demonstrating UK leadership. Has the Secretary of State managed to get the Treasury to see sense and agree to hosting the next summit?
Not yet, but the hon. Lady makes a really important point, which is that energy security from home-grown clean energy is important here, but that we should also work with our European allies.
Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)
Order. Mr Witherden, think about other people, not just yourself, please. We have to get more questions in.
My hon. Friend was at a Westminster Hall debate on this issue a few months ago, and what I said then remains the Government’s position: we work closely with the Welsh Government on this issue. We are content with the Welsh Government’s position that this area is already regulated and sufficient, but we obviously keep these things under review.
David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)
Again, we have had a meeting to discuss that issue. I will not get into Ofgem’s decisions, but any planning applications or further processes will be dealt with by the Government and by Ofgem in the usual manner.
Kirsteen Sullivan (Bathgate and Linlithgow) (Lab/Co-op)
As a Labour and Co-operative MP, I am absolutely delighted by the publication of the local power plan. I have seen that work in action through local energy projects such as Bo’ness scout group, which is reducing its bills with 40 solar panels and delivering funding support for young people. What steps will the Government take to increase accessibility and community capacity to deliver local power plans, and will the Secretary of State join me on a visit to Bo’ness scouts?
My hon. Friend makes an important point. I congratulate the scout group. The Minister for Energy promises that he will visit, and that is now on the record in Hansard.
The hon. Lady will not be disappointed because, as she said in her question, I will not comment on the application. However, we set out clearly in response to the Finch ruling how scope 3 emissions will be taken into account. That process is now under way, and I cannot comment on those applications.
Peter Prinsley (Bury St Edmunds and Stowmarket) (Lab)
The 2025 EU-UK summit set ambitions for the UK to join the single electricity market. Does the Minister agree that close and easier energy interconnection between the EU and the UK constitutes a key strategic component of our continent’s energy security, and reduces costs for UK businesses and customers?
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Katie White)
At the recent North sea summit, we committed to a joint ambition of 100 GW of offshore renewable projects with our European neighbours, including through co-ordinated energy infrastructure planning. We are determined to work closer than ever with our European neighbours to maximise our joint clean energy independence. Strategically planned, interconnected and efficient electricity trading is a key element of that plan.
This has happened because of the fossil fuel crisis presided over by the previous Government. All I can say to the hon. Gentleman is that we are doing absolutely everything we can to help his constituents and others. We recognise the scale of the problem and that there is more to do.
Tony Vaughan (Folkestone and Hythe) (Lab)
My local workforce desperately needs new nuclear at Dungeness. Does the Secretary of State agree that the way we protect nature and habitats must be reformed in the way recommended by the nuclear regulatory taskforce, so that we better protect nature while also providing the skilled jobs and energy security that my constituents deserve?
We want to improve regulations and processes for new nuclear projects while continuing to protect the environment. We will present a full Government response, and an implementation plan, by the end of this month, taking into account our national security and environmental considerations.
Vikki Slade (Mid Dorset and North Poole) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)
We are working closely with heritage organisations to tackle precisely that problem. The hon. Lady will see in the warm homes plan that there is specific advise about retrofitting historic buildings. [Interruption.] Although they are not in her constituency, I will be visiting some projects soon.
Lloyd Hatton (South Dorset) (Lab)
Morwind recently received funding to conduct an important feasibility study for a major offshore wind hub at Portland. If built, the hub would be a key part of the west country’s manufacturing supply chain, and it would create hundreds of well-paid green jobs for local people. Will the Minister work with Morwind and me to deliver the hub at pace, and will he come to Portland to meet the key players and get the ball rolling?
Carla Denyer (Bristol Central) (Green)
Of course, all projects that are consented and licensed have to follow the law, and the North Sea Transition Authority as a regulator makes that happen. I will not comment on projects that are currently going through the consenting process.
Chris Webb (Blackpool South) (Lab)
In Blackpool, around 75% of privately rented homes have damp or mould. It is a huge problem in our town, so I was delighted when the Chancellor announced £30 million in the warm homes plan. Can the Secretary of State outline for my residents when Blackpool will receive that money and when this plan will finally get under way?
My hon. Friend is absolutely right. What is really important is not just the funding we are providing but the regulation we are introducing in the warm homes plan—promised by the last Government but never delivered—so that people who are privately renting get the decent, warm, comfortable homes they deserve.
I must raise a very important issue with the Secretary of State: there is concern about thermal runaway in batteries, especially those on prime agricultural land. Heavy metals vaporise at 900° and thermal runaway burns at over 1,000°. What research and assessment has been done on the evaporation of these heavy metals, which would poison agricultural land?
The right hon. Gentleman raises an important point. All the evidence points to the fact that the fire risk from batteries is less than in residential homes, but we take safety incredibly seriously. I recently convened a roundtable of those involved to look at what more we might do in the regulatory space, and DEFRA is looking at environmental regulations on batteries. We obviously take fire safety incredibly seriously.
Noah Law (St Austell and Newquay) (Lab)
I welcome the news this morning of Imerys’s success in auction round 7. What steps is the Minister taking as part of the local power plan to ensure that local communities share the spoils of Cornwall’s great renewable energy potential?
If my hon. Friend stays tuned, he will be hearing all about it in an hour’s time.
Sarah Pochin (Runcorn and Helsby) (Reform)
Many of my constituents are anxious about the consultation process and the environmental impact of the Peak Cluster project in rural Cheshire. Will the Secretary of State commit to meeting me and local representatives to ensure that community concerns are properly addressed before the development consent order is submitted?
As I have said repeatedly, any projects that are going through the planning system have to demonstrate community engagement and that they have engaged genuinely with that feedback. That is part of the process, and projects of any kind are assessed against that. I will not comment on individual applications for obvious reasons.
What progress is being made on carbon capture, usage and storage and hydrogen projects in the Humber?
Given that it is topical questions, I might struggle to say all the progress that is being made, but the Government have committed in our energy strategy and in decisions made by the Chancellor to fund hydrogen and carbon capture, to ensure that those are important parts of our energy mix. I will be visiting projects in the Humber soon, to see exactly what is happening on the ground, but we are committed to carbon capture, usage and storage and the jobs that go with it.
Max Wilkinson (Cheltenham) (LD)
Rendesco is a brilliant renewable energy business in my constituency. Just before Christmas, it was awarded a £2 million grant from UK Research and Innovation, but since then the phone has not been working at UKRI’s end. Can Ministers have a word to see whether this money can be unlocked, to ensure that Rendesco’s product can be brought to market and that jobs are not lost?
Luke Myer (Middlesbrough South and East Cleveland) (Lab)
Working with Councillor David Branson, I have been pushing to get more support for our local schools to cut their bills. I am really pleased that Great British Energy funded new solar panels for Sunnyside academy in Coulby Newham last year. Will Ministers meet me to see whether we can get more support so that more of our local schools to cut their bills?
I congratulate Sunnyside academy. This Government and GB Energy are delivering a policy opposed by the Conservative party.
Last week the Government pushed through the imposition of the emissions trading scheme on domestic shipping. That will have a huge impact on Northern Ireland, because so many goods are brought into Northern Ireland from GB, or sent there, on ferries. What assessment has the Minister made of the impact this will have on consumer prices and manufacturing costs in Northern Ireland? Does he recognise that Northern Ireland will face heavy costs because of this net zero policy?
Chris McDonald
The right hon. Member and I debated this at length in the Delegated Legislation Committee last week. On the impact of this measure on Northern Ireland, I am sure he will be pleased to welcome the fact that we are providing a 50% reduction on the carbon tax associated with the extension to domestic maritime for journeys to Northern Ireland, to ensure that they are not disadvantaged when compared with journeys to the Republic of Ireland.
Sonia Kumar (Dudley) (Lab)
This year Teddy Grays in Dudley celebrates 200 years in business, with five generations of the same family keeping that local sweetshop and mainstay in Dudley. However, as with many small businesses, energy bills are a constant threat to its success. What steps is my right hon. Friend taking to ensure that Teddy Grays can enjoy another 200 years of sweet success, and will he meet me to discuss this further?
Chris McDonald
That was an extremely sweet question, and I would be happy to meet my hon. Friend to discuss the issue further and outline many of the initiatives that the Government are taking to support small businesses. Perhaps it would be best to do that on site, where I can get my favourite chocolate limes.
Harriet Cross (Gordon and Buchan) (Con)
Thank you, Mr Speaker.
“Our Governments seem stricken, almost delusional, in the face of onrushing disaster,”
and we are seeing
“arguably the most destructive industrial calamity in our nation’s history”.
Those are the words of the GMB’s Scotland Secretary about the Government’s determination to tax and regulate the oil and gas sector out of business. Does the Minister agree with the words of his union friend?
I recently had a useful meeting in Aberdeen, in which the GMB participated, about building up the future of the North sea. What I never hear from Conservative Members is any support for industries that will invest in the North sea in the future, and in the tens of thousands of jobs that will go with it. Perhaps at some point they should support the future in the North sea.
James Naish (Rushcliffe) (Lab)
As the Secretary of State knows, there is a fantastic site on the edge of the M1 at Ratcliffe-on-Soar—the last of the coal-fired power station sites to be decommissioned—which will make a superb site for clean energy generation. Will he commit to meeting me and Claire Ward, Mayor of the East Midlands, to discuss it further?
I visited Ratcliffe-on-Soar for the closure ceremony. It was a good example of a just transition done well, and an historic moment of consensus, delivering the phase-out of coal across our country. I am happy to meet my hon. Friend. I recently met the mayor to talk about the future of that site, which has huge potential.
Jim Allister (North Antrim) (TUV)
Returning to the imminent imposition of the emissions trading scheme on domestic shipping, why will consumers in Northern Ireland face the imposition of a carbon tax, whereas consumers in Scotland who equally depend on ferries for their supplies are obtaining an exemption? Where is the parity?
Chris McDonald
The Government were pleased to provide an exemption for the islands around Scotland for a number of reasons, but particularly because of the small populations on those islands and the non-competitive nature of the ferry services.