Oral Answers to Questions

Greg Clark Excerpts

Tuesday 22nd October 2019 Commons Chamber

[Kelly Tolhurst]

I thank the hon. Lady for her question and I am more than happy to meet her to discuss her constituency in further detail if she would require. There is no programme of closures and the Post Office is working extremely hard, where post offices do shut for any, sometimes unpredictable, reason, to find replacements. We do have outreach services that are available when there is a lack of service, but I am happy to speak with her further about that.

[Greg Clark (Tunbridge Wells) (Ind)]

I welcome the Secretary of State to the Dispatch Box and hope that she will have distinguished tenure at this important time. She will know that the recommendations of the independent review of the Financial Reporting Council, conducted by Sir John Kingman, were widely endorsed and are urgently required. I was concerned that the statutory implementation of those recommendations was not included in the Queen’s Speech. Can she assure me that she is not going to miss a golden opportunity to make these reforms and give a big boost to our standing in the world?

[Andrea Leadsom]

First, let me pay tribute to my right hon. Friend, my predecessor, who did a fantastic job in this Department. I am delighted to stand by the position that he took as Secretary of State: it is the Government’s plan to legislate for a new regulator with stronger powers, replacing the FRC, as soon as parliamentary time allows. We are planning to progress this work in the first quarter of next year, once we have received Sir Donald Brydon’s review of the quality and effectiveness of audit.

British Steel

Greg Clark Excerpts

Wednesday 24th July 2019 Commons Chamber

[Anna Turley (Redcar) (Lab/Co-op)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on the sale of British Steel.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

As hon. Members will recall, I made a statement to the House a few hours after British Steel entered insolvency on 22 May. This was, and still is, an uncertain time for the British Steel workforce, their families and their communities, for the customers and suppliers of the business and for everyone who believes, as I do, in the importance of excellent steelmaking and manufacturing in the UK.

In my statement, I said that, although the independent official receiver is solely responsible for the operation and sale of the British Steel business, I would, both personally and on behalf of the Government, do everything that I possibly could within my powers to help secure a good future for the whole of British Steel’s operations.

Following a visit to the Scunthorpe plant the following day and to Skinningrove and Lackenby on Teesside the day after with local MPs, including the hon. Member for Redcar (Anna Turley), we formed a British Steel support group to work together immediately and actively to pursue that aim. I chaired the group with the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Pendle (Andrew Stephenson), which has included British Steel management; trade unions Community, Unite and the GMB; the Mayor of the Tees Valley and the leader of North Lincolnshire Council and their officers; the chairs of the Humber, Greater Lincolnshire and Tees Valley local enterprise partnerships; UK Steel; Make UK, the manufacturers’ organisation, on behalf of suppliers and customers; the Federation of Small Businesses; Government officials and other local MPs, including the hon. Lady, my hon. Friends the Members for Middlesbrough South and East Cleveland (Mr Clarke) and for Brigg and Goole (Andrew Percy), and the hon. Member for Scunthorpe (Nic Dakin). The support group has now met eight times, usually in Doncaster, and sub-groups on the supply chain have met separately, as have local partners.

I wish to pay tribute to the hard work, tenacity and dedication of this group and the extraordinary commitment of the workforce who, during this time, have worked magnificently, not only to continue but to increase steel production.

Often in insolvencies, customer orders dry up, suppliers withdraw their services and the workforce drifts away, precipitating a rapid failure. In this instance, the opposite has been the case. The confidence that the support group has built, coupled with a Government indemnity to the official receiver, has allowed trading to continue, orders to be won and production to increase. This is without precedent in my experience.

Although all decisions are for the official receiver, I have been active, as Members know, in visiting prospective buyers in many parts of the world to make it clear that the UK Government will, within our legal powers, work with a good long-term owner of these important assets to see how we can help them to realise their vision for the company.

I am pleased to say that the official receiver has said that he is encouraged by the interest in purchasing British Steel and his special managers, EY, are currently in further discussions with potential buyers. The official receiver has made it clear that, given the complex nature of the operations, any potential sale will take time to deliver.

I said in May that I was determined to see the proud record of steelmaking excellence continue. The world needs steel, and British Steel is among the best in the world. To secure that will require, in my experience, the continued active participation of everyone that I mentioned earlier without interruption during the critical weeks ahead. In particular, whoever stands at this Dispatch Box will need to devote themselves unstintingly to achieve a great outcome for everyone concerned with British Steel, which I believe, although not certain, is certainly within grasp, and that is the flourishing of British Steel’s operations for many years to come.

[Anna Turley]

Let me begin by putting on record my thanks to the Secretary of State—not only for his response just now, but for the way in which he has responded to this crisis. We find ourselves in a fundamentally different position from the situation in 2015, where, either by design or flat-footedness, the Government failed to respond, with devastating consequences. This is a completely different scenario, and I am grateful to the Secretary of State for stepping in and helping to secure the asset, enabling the business to continue and ensuring that the workforce were paid. Through the indemnity that the Government have given to the official receiver, the Secretary of State has given us a very good chance of ensuring the future for British Steel in this country. I also thank him for his efforts in going around the world to help secure a buyer.

Of course, the situation remain precarious. In the past few weeks, we have seen the new Prime Minister running around the country waving kippers in the air; by contrast, 5,000 dedicated, highly-skilled workers in British Steel have been putting their shoulders to the wheel in Scunthorpe, Skinningrove and Lackenby, despite their livelihoods being in the balance. They have been producing at record levels and working with every effort they have to ensure that the business continues to produce the best steel in the world and to flourish. I pay tribute to all those working within British Steel. They deserve a Government who will be straining every single sinew to ensure that the business survives.

I pay tribute to the trade unions, including Community and Unite; every worker in British Steel; everybody in the customer base who has continued to ensure that requests for steel have come through, including some who have even stepped up their demands; everyone in the supply chain who has continued to work so hard to supply the business; and colleagues in the Doncaster round- table. I again pay tribute to the Secretary of State for the inclusive and positive way in which he has responded. However, I do have a number of questions for the Secretary of State—for whoever will be at the Dispatch Box in the coming days, weeks and months ahead.

First, does the incoming Secretary of State understand the implications of failure? We know what 5,000 job losses could be like in areas such as Scunthorpe, Redcar and Skinningrove where there is no alternative employment, and we know the cost of cleaning up the site: £1 billion. Does the future Secretary of State understand the loss of a major industry in Britain that any self-respecting major economy would value and recognise to be essential? Will they recognise the role of steel as a foundation industry for our defence, automotive and construction sectors and what reliance on overseas production could mean for our economy, our independence and our self-reliance?

Secondly, will the future Secretary of State endeavour to ensure that the official receiver continues to receive the indemnity for as long as it takes to find a buyer? Thirdly, will they endeavour to give wholehearted Government support to the bids that primarily keep the business together as one industry across Skinningrove, Lackenby and Scunthorpe? Will they pledge to prevent cherry-picking, to keep asset strippers at bay so that we do not suffer the same issues that we have experienced before and to ensure that the terms and conditions of the workforce are maintained? Will they ensure that any company that the Government support will invest in the assets and ensure that they are modernised for the future of our industry? Will they invest in research and development and be committed to the long-term interests of steelmaking in this country?

Finally, I hope that whoever will be at the Dispatch Box in the weeks ahead will recognise that they have the jobs and livelihoods of thousands of men and women in their hands, as well as the guardianship of a vital, modern, innovative and potentially world-leading British industry.

[Greg Clark]

I am grateful to the hon. Lady for asking the question that has given us the chance to talk about these issues. She has been dedicated and devoted to her constituents, as have other Members—starting the week with me in Doncaster with the colleagues I described to ensure that we can work together and join together to ensure that there are no gaps between any of the interested parties. That has had an appreciable effect, as has been noted by many prospective buyers. Certainly, many customers and suppliers have also observed the resolution and the unanimity of resolution behind this.

Many of the hon. Lady’s questions were addressed to whoever might be the Secretary of State under the new Prime Minister, so it would be presumptuous of me to answer on his or her behalf, but she has placed a clear set of requirements on the record and I endorse everything she said. Not only would the consequences of the loss of historical assets—hugely important in all the communities she mentions—be unconscionable; there would also be the loss of a substantial opportunity.

The hon. Lady, like me, believes that there is a strong strategic future for the British steel industry. As I said in my previous answer, the world is going to need steel. Through investing in infrastructure, this country has opportunities to make greater use of UK steel. We export much in the way of our scrap steel to other countries. That could be made better use of, both environmentally and in terms of industrial opportunities. If we invest—as we intend to and are doing through the industrial strategy—in the technologies that will make steelmaking cleaner, more efficient and suitable for new uses, there is every reason to think that the UK steel industry, including British Steel, can be a beacon showing the rest of the world how a modern manufacturing industry can flourish.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

May I associate myself with the priorities outlined by my constituency neighbour, the hon. Member for Redcar (Anna Turley)? This is an opportunity to say a big thank you on behalf of the people of Teesside for all the dedication that the Secretary of State—a son of Teesside—has shown to our steel industry. It has not gone unnoticed locally how much he has gone over and above what might be called the ordinary line of duty to secure a positive outcome to this sale, so I pass on a sincere and lasting thank you.

It would be helpful to get on record what the Secretary of State has been doing to leave no stone unturned in these negotiations. In particular, will he talk about the in-principle willingness potentially to invest alongside a future purchaser?

[Greg Clark]

I am grateful for my hon. Friend’s generous words. He has been assiduous not just in being a member of the support group, but by working in Skinningrove with the customers of British Steel to convey the assurances that are necessary. Buyers will have questions about this extensive and complex set of assets, so it is important—and will continue to be important, especially during the weeks ahead in August—that everyone is available and active in providing the answers to those questions.

Through the industrial strategy, the Government have established programmes to support improvement in energy efficiency, which is very important; to decarbonise industrial clusters, of which steelmaking is a prime example; and to invest in research and development. Through the industrial strategy, we have the biggest increase in R&D in the history of this country. I am making these points to prospective purchasers so that they can see that the environment is a positive one.

It would be wrong for me to comment on the individual bids, as that is legally and strictly a matter for the official receiver, but I have made myself available in this country and overseas to answer questions. I think that I have had more than 25 meetings with bidders, and it has been encouraging—to use the words of the official receiver—that serious bids have been made, but the work must continue to land them and to secure the future.

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

I do hope that this is not my last exchange with the Secretary of State, but just in case it is, I want to stress my thanks for the amazing Mini Cooper toy that he presented me with last week and to say that he should not worry because there will always be a parking space in my heart for him. We might differ in our approach to many of the structural flaws that our economy faces, but we actually have more in common on most issues than many people would realise, not least on industrial strategy. I also thank my hon. Friend the Member for Redcar (Anna Turley) for securing this important update on British Steel.

The Secretary of State shares my opinion that British Steel must be kept as one entity, not splintered off to different buyers who do not have the long-term success of the company at heart. However, there have been reports this week that the Chinese Jingye Group, which was interested in the company as a whole, has pulled out. It was also reported that the deadline for bids has been moved a number of times. Indeed, an email sent from the official receiver is reported to have stated that no deadline has been set to conclude a sale process. Can the Secretary of State confirm how many prospective buyers remain, how many are interested in acquiring the entire the company and what deadlines for the sale have been set? Will he also confirm, as my hon. Friend mentioned earlier, that he will only give his support to bids that support the long-term interests of the company, the workforce, the local community and the steel industry as a whole?

The Secretary of State must recognise that, as Labour has repeatedly stated, action must be taken on electricity prices, business rates, driving investment and, of course, securing a good Brexit deal, because no deal could mean no steel. Will he therefore assure the House that he will be taking steps to ensure that the new Prime Minister urgently takes action on these issues and understands the real importance of the steel industry?

[Greg Clark]

I am very grateful to the hon. Lady for the generosity of her remarks. I have enjoyed my exchanges and meetings with her. I hope the parking space in her heart has a charging point for the electric Mini—that would be very important.

The hon. Lady invites me to comment on the bids and some of the press speculation as to who is bidding and who is not. First, this is a matter for the official receiver, and secondly, I would not want to prejudice any of the bids by commenting. The discussions, in many cases, take place under confidential terms, and it would be wrong to do anything that might disadvantage that. There is often, in situations like this, speculation in the press, and much of it is misplaced. What I can say—the official receiver has said this publicly—is that several bids have been made and he is looking for bids that consider the whole of the operation. I welcome that, as the hon. Lady does.

On long-term commitments, we do have a long-term commitment to manufacturing, and to steel in particular. I mentioned some of the funds that are available in the industrial strategy. Of course, because they would accompany substantial investments, which I hope will be in place, they require a long-term commitment from any prospective buyer.

The hon. Lady is right to raise the question of energy prices and electricity prices. This is not a new phenomenon, and it is not unique to any particular Government. In fact, the biggest increase in industrial electricity prices took place under the previous Government. In the past five years, we have contributed nearly £300 million to energy-intensive industries as a rebate towards those costs. Through the industrial energy efficiency fund that is available in the industrial strategy, we want to reduce further the costs of energy. It is very important that we should do that.

The hon. Lady asks questions about the incoming Prime Minister. I spoke to both candidates during the leadership contest to impress on them what she and I agree is the crucial role of this industry. I know that she, the Under-Secretary—my hon. Friend the Member for Pendle (Andrew Stephenson)—and other hon. Members have communicated not just with the current Prime Minister but with her potential successors to reinforce the resolution across all parts of the House that this is at the top of the new Prime Minister’s agenda.

[Sir Edward Leigh (Gainsborough) (Con)]

A very large number of my constituents work at Scunthorpe. Can the Secretary of State assure me that whatever happens, their welfare is at the forefront of his mind? In an international market that is often manipulated by Governments, notably the Chinese, will he assure me that in this case, to quote Sir Keith Joseph, the market is not enough, and there will be an activist and extremely interventionist approach by the Government to ensure that there is a buyer? Lastly, I have always thought that my right hon. Friend was an outstanding parliamentarian ever since our days on the Public Accounts Committee together, and I wish him well in the reshuffle.

[Greg Clark]

I am very grateful to my right hon. Friend. My training under his expert tutelage on the PAC stood me in good stead for ministerial office, and I am grateful to him for that.

I am encouraged by my right hon. Friend’s encouragement to take an activist approach. That is the approach that I have been taking. In my view—and this applies to everyone who has been part of the support group—we let this slip through our fingers if we are not there to make sure that all the questions can be answered, whether through the trade unions, which have been magnificent in this, or through the local authorities, including some of his neighbours in Lincolnshire. Ursula Lidbetter, who leads the Lincolnshire local enterprise partnership, has been very active in the group. I will, in so far as I am still at this Dispatch Box, continue that approach. I am sure that my right hon. Friend’s recommendation of an activist approach will sound with some resonance down the corridors of this place and reach the ears of the new Prime Minister, who I hope will follow his sage advice.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

It is disheartening to hear that this process continues to drag on with no idea how long it will take for a deal to conclude. This UK Government must at last stand up for the steel industry and deliver a sector deal. In today’s global world, the uncertainty caused by Brexit is providing businesses with the nudge they need to leave the UK. How many more will leave when it becomes apparent that the new Prime Minister has no plans beyond a no-deal Brexit? Our thoughts are with all those dealing with continued uncertainty—employees, management, unions, and those in the supply chain. What will the Secretary of State, who has shown real commitment to securing the continuation of the British steel plants, do—or, indeed, what will his successor do—in the face of a Brexit that is doing irreparable damage to our manufacturing sector?

[Greg Clark]

I am grateful for what the hon. Lady said about me personally.

I think it would be more disheartening if this process had concluded, as was the wide expectation eight weeks ago, with what happened in Redcar, as the Redcar mentioned, which was the more or less immediate closure of the plant. The fact that the process continues, far from being disheartening, is heartening in that there are several bidders that the official receiver and his agents are working with. It is absolutely vital that those discussions should continue for as long as they prove necessary. That is one of the reasons why my first act on the warning of the insolvency was to commit a Government indemnity to allow an orderly process to take place, and I very much hope it will.

I very much agree with the hon. Lady that having a sector deal with the steel sector is highly desirable. All the sector deals—colleagues have heard me launch different sector deals from this Dispatch Box—require investment by the industry and by the Government alongside each other. That is precisely what we want to do in this case. I hope that this will be a catalyst for the investment that allows such a deal to take place.

[Andrew Percy (Brigg and Goole) (Con)]

I, too, thank the Secretary of State for his work on behalf of the very large number of my constituents who work at Scunthorpe. It is because of his actions, and the actions of our Government, that they have continued to be paid throughout this process and that they continue to have the confidence to commit to the British Steel site at Scunthorpe. Moving forward, does he agree that it is really important that the incoming new Government commit once again to big infrastructure projects such as High Speed 2 and, of course, Northern Powerhouse Rail—HS3—to give the industry the certainty into the future that there is going to be investment from this Government in such vital infrastructure?

[Greg Clark]

I am grateful to my hon. Friend for his participation in the support group in support of his constituents, which has been very valuable. As I made clear, this is for the official receiver, and I do not want to get ahead of his progress. The situation is still not resolved. He has said that it is encouraging, but we need to work very carefully to ensure that it is resolved satisfactorily. In terms of audit, one of the striking things he has found, as my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke) and the hon. Member for Redcar (Anna Turley) will know, is how loyal customers of British Steel have been, in many cases confirming orders well into the future. Network Rail is one such customer, for two reasons—partly for steel reasons but partly because I believe that we should have big upgrades in our national infrastructure. I very much endorse what my hon. Friend said.

[Rachel Reeves (Leeds West) (Lab)]

I very much welcome the activist approach that the Secretary of State has taken with regard to British Steel. I also welcome the fact that no deadline has been imposed, because the most important thing is that this time we find a buyer who is going to support British Steel, invest in it and see it through to the future, unlike the previous owner. Will he give an assurance that the Government will stand by British Steel until a new buyer is found? He knows full well that if a steelworks is closed, it is incredibly hard to reopen it. I urge him to look again at a sector deal for the steel sector, which is so important for the whole industry’s future. Our Select Committee, the Business, Energy and Industrial Strategy Committee, will be looking specifically at British Steel, but also at the wider steel industry, in our inquiry in September. We will be looking both at the actions that this Secretary of State has taken, which we welcome, and at those of his successor.

[Greg Clark]

I am grateful to the hon. Lady, the Chair of the Select Committee, and I welcome the prospect of that inquiry. There is a lot to examine, and she will approach it with her usual forensic attention to detail. I very much hope that the new Prime Minister will continue the commitment that the current Prime Minister was willing to give and the authority that she has given me to act in the way that I have. She and others will hold to account the new Prime Minister and his team on that.

The hon. Lady is right; there is something special about steel assets in many respects, but one is that if they are closed down, it is very hard for them to spring back into life, so continuity is of great importance. That is one of the achievements that, together, we have been able to bring about over recent weeks.

No one is keener than I am to conclude a sector deal. It requires investment. There is an opportunity for the British steel industry to be more strategic than it has been and, as some other sectors have done, align itself to some of the products that we know will be in demand in the future, backed by research and development. That is the approach that the industrial strategy takes, and it applies in spades to steel, so I hope there will be a sector deal to reflect that.

[Trudy Harrison (Copeland) (Con)]

I am pleased to hear my right hon. Friend acknowledge the world’s dependence on steel and the value that he places on British Steel. Does he also recognise that, without coking coal, there would be no steel industry? The privately funded, multimillion-pound Woodhouse colliery being developed by West Cumbria Mining in my constituency is of vital importance and will have economic, social and environmental benefits for our area and, indeed, the country. Will he do all he can to help move that project forward?

[Greg Clark]

As my hon. Friend says, much steel production requires coking coal, so it needs to be provided. I understand that there was broad cross-party support for the operation that she describes. One of the imperatives is to move steelmaking to be cleaner and greener in its energy efficiency and use of other fuels. That feature of the industrial strategy programme applies very much to the steel industry.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

I echo the comments of my hon. Friend the Member for Redcar (Anna Turley) in thanking the Secretary of State for his approach to the industry in general and this issue in particular. He has reminded us today and on previous occasions that we cannot just turn on and off a steelworks like a tap. If it is allowed to go cold, it is very expensive and difficult to set up again. The indemnity has been the key thing in enabling operations to continue while a buyer is found. What assurance can he give the House that that indemnity will continue for as long as it takes to finish the process of finding a buyer?

[Greg Clark]

I am grateful to the right hon. Gentleman; he knows about the manufacturing industry, and he is right in his description of it. I have to report that my request for the indemnity was granted readily; I think the lessons of the Redcar closure have been learned. I have no reason to suppose that the incoming Prime Minister will take a different view—in fact, quite the reverse. I have met him and his competitor, and during the days ahead I hope and expect that that support will continue to be available. But I should be clear with the House: British Steel is in the hands of the official receiver. Neither I nor any other Minister determines its future, so it will be important to conclude a sale to a long-term investor in it. That is not in the bag yet, but I think it is evident that everyone is doing everything they can to secure it.

[Mrs Kemi Badenoch (Saffron Walden) (Con)]

I was pleased to hear from the Secretary of State that he has been working tirelessly with British Steel and the official receiver to find a new buyer for the company. Can he tell the House what further plans the Government have to support companies in the supply chain, such as those in my constituency, over the coming days and weeks?

[Greg Clark]

I am grateful to my hon. Friend, because she gives me the opportunity to pay tribute to Stephen Phipson, the director general of Make UK, the manufacturers’ organisation. He serves on the support group and has been present at the meetings, and he has convened a panel of suppliers and customers, to ensure that some of the uncertainty and challenges that they have faced during the insolvency of British Steel have been dealt with. Working with HMRC, the British Business Bank and the official receiver, the panel has had—as I think colleagues on the support group would accept—a positive role in providing help and reassurance to the supply chain across the country.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

The Secretary of State has acknowledged that the closure of a major steelworks is an intergenerational blight, as we have seen with the closure of Redcar and of Ravenscraig, which is still a wasteland 30 years on. It is therefore critical that we maintain long-term planning in the sector. That is aided by patient finance. Access to patient finance in this country is very poor compared with some of our peer nations, notably Germany. What will he do to improve patient finance access for the huge capital investment needed in the steel industry, in order to improve the attractiveness of British Steel to potential investors?

[Greg Clark]

The hon. Gentleman makes an excellent point. Improving the access to and availability of patient capital in this country is a focus through the industrial strategy and some of the work that the Treasury is doing, but there is more work to be done. He is right—a long-term owner of British Steel needs to have the patience required in an industry that is, and always has been, subject to the ups and downs of the economic cycle and sometimes conditions in international trade. It is often not the most stable of industries, and as I think he would agree, any owner needs to be resilient to that.

[Jeremy Lefroy (Stafford) (Con)]

British-manufactured steel is vital for exporting companies in my constituency, such as General Electric, and across the country and therefore makes a huge contribution to our balance of payments. What is being done to support the export of British steel both directly and through other manufactured goods? Will my right hon. Friend comment on what my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke) said about the possibility of the UK Government being a co-investor, alongside others, to ensure that British Steel continues to serve this nation so well?

[Greg Clark]

On the first point, there are great opportunities for exports. The support group has been working with the Construction Products Association, for example, to improve the marketing of British Steel products in this country and to overseas markets. Support is available through UK Export Finance for British exporters in all sectors. When it comes to the requirements of any bidder, strict rules pertain to British Steel, which is one reason why it requires an understanding of the investment plans of prospective bidders. That is something I have been doing, and I hope it will continue in the new Government.

[Nick Smith (Blaenau Gwent) (Lab)]

As the son of a steelworker, may I join the Secretary of State in praising the workforce and the trade unions at British Steel? I want to press him: will the Government ensure that the terms and conditions of the workforce are kept high through this difficult time, until a new buyer emerges?

[Greg Clark]

The terms and conditions have continued. The special managers, on behalf of the official receiver, have worked closely with the trade unions. Through the support group, we have no complaints and no reason to think that anything in those terms and conditions has been impaired during the insolvency. Of course, when a company is in insolvency, it is in the hands of the official receiver, but the special managers have shown themselves to be understanding and accommodating of the requirements of the workforce. It is a reflection of the workforce that they have committed themselves to the company and increased production at a time of uncertainty. That is a real tribute to their professionalism and the faith they have in the quality of their product.

[Caroline Flint (Don Valley) (Lab)]

I know from friends and colleagues in the trade unions, particularly Community, that they are thankful for the positive approach the Secretary of State has taken to his dealings with this. I am glad that Doncaster is providing the venue for talks, and everybody who is a party to them is welcome to come to my house for beer and sandwiches—or whatever they fancy—if it helps the talks in any way.

The Secretary of State has mentioned securing a steel sector deal a couple of times, and he alluded to one of the issues that the industry should think about. Does he still believe that getting those talks under way again at the earliest possible opportunity is crucial, and what other main headline issues need to be sorted, discussed or broached to get those talks up and running at the earliest opportunity?

[Greg Clark]

I am grateful to the right hon. Lady, and it has been good to meet in Doncaster. It may seem a surprising place to meet, but it is quite convenient for both Scunthorpe and Teesside, as well as London, so that is where we start our week. The invitation to go to the right hon. Lady’s house is a very inviting one, which I am sure the support group will want to take up.

On the sector deal, we have made good progress, but all sector deals are about investment. It has been a feature of the steel industry in recent years that the investment in the future has not been at the level of some other industries where we have concluded deals—life sciences, automotive, aerospace and others. It is not in any sense that the talks have broken down; it requires investments to be made. I hope that, if there is to be a successful resolution for British Steel, that might provide the ability to do precisely that.

[Mike Wood (Dudley South) (Con)]

Does my right hon. Friend agree that what the steel industry, including in the Black Country, needs above all else is a long-term strategy, with a pipeline of projects that can create good opportunities for those who work in the sector?

[Greg Clark]

My hon. Friend is right, and he is right, as his neighbour the right hon. Member for Wolverhampton South East (Mr McFadden) did, to call attention to the role of the Black Country. They have a phrase in the Black Country, “Made in the Black Country, sold around the world”, and that is a proud and accurate boast. However, there are opportunities in the UK for those products, and the Government have published a forward pipeline of infrastructure investments that require steel so that companies can gear themselves up to participate in procurement.

That is very important, and I would like to pay tribute to the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Pendle (Andrew Stephenson), who has responsibility for industry. He has signed the steel charter and is promoting it across all public bodies. Again, it requires and encourages the use of British steel to be taken into account in all procurement decisions.

[Stephanie Peacock (Barnsley East) (Lab)]

Following on from the Secretary of State’s answer, he may recall the Defence Secretary saying that

“we can and must buy British.”

Does he agree that one way to do this would be to back a British bid to build the Navy’s new support ships, which could create 16,000 jobs throughout the supply chain in Barnsley and across the country?

[Greg Clark]

The hon. Lady makes a good point. We have published figures for each Department on their use of British steel. It is the case, and the House should be aware of this, that not all types of steel used are actually made in the UK. At least at the moment, it is not possible to supply all of our steel needs from domestic supplies; that is the reality. She mentioned the MOD, and my hon. Friend the Under-Secretary of State is working closely with the Ministry of Defence so that its support for the steel charter results in increasing levels of procurement of British steel.

[Chuka Umunna (Streatham) (LD)]

We can be incredibly proud of our steel industry. It is of course a primary example of where industrial activism generally, on the part of the Government, is absolutely vital. If we see any form of Brexit, which the Secretary of State knows I oppose, it will of course be even more important that we have industrial activism. I am in no way agitating for his removal, but will he assure this House that if he is replaced in post in the next 24 hours, he will urge any successor not to turn their back on implementing a proper industrial strategy? Now is certainly not the time for a return to the Thatcherite economics that, frankly, saw the destruction of so many great industries in this country.

[Greg Clark]

I am grateful to the hon. Gentleman for what he has said. He and other hon. Members will know that the approach we took to developing the industrial strategy was to seek, I think successfully, to engage all parts of the country, all parts of the economy, and different firms, business leaders, local leaders and trade unions, to have something that reflects, as far as possible, a shared view of what our priorities should be in the future—whether that is investing in infrastructure, investing in skills, increasing the research and development investments that we make in this country, and identifying opportunities, such as in the future of mobility or the analysis of data, that are great sources of global opportunity for Britain. We did it in that way because I think it is right for an industrial strategy to endure—a short-term strategy is a contradiction in terms. I hope the consensual way in which it has been put together and the content of it will commend the industrial strategy to the incoming Government. It is obvious from what the hon. Gentleman has said that he will play a role from his seat in ensuring that those in government do that.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

As chair of the all-party manufacturing group of MPs, may I remind the Secretary of State, whom I have a lot of time for, that it is essential we have steel in this country? I represent Huddersfield, which is a major engineering community, and the community is at the heart of this. Manufacturing, steel and engineering all hang closely together. Will he take a long-term view, but will he also make sure that we do not sell at the weakest time in the market? If the steel industry needed a period of public ownership, what would be wrong with that? This pragmatic Government have done it with London North Eastern Railway, so why not with steel? May I urge him to be totally pragmatic, not ideological, and to make sure that we have a steel industry that is successful in the future?

[Greg Clark]

The hon. Gentleman and I share a view about the importance of steel and manufacturing. At the University of Huddersfield, the national rail testing facility is a very important part of our contribution to increasing standards of technological development, so he is absolutely right. When it comes to the steel industry, the key thing is having an owner that, in my view, is willing and has an ambition to invest for the future. Since the official receiver is encouraged by the level of interest, what we in the support group—I would observe that it is a pragmatic group of people—want to do is to support those bidders to make sure that we have the long-term future we all want.

[Sammy Wilson (East Antrim) (DUP)]

It is important strategically and for regional employment to maintain a steel industry in the United Kingdom, and I do welcome the efforts that the Secretary of State has made to date. However, does he not realise that high-cost renewable energy plans and costly decarbonisation policies—pursued by this Government and previous Administrations, who, quite frankly, have pandered to a Luddite green lobby in this country—have resulted in energy-intensive industries moving out of Britain, with the aluminium industry being an example? These issues will have to be addressed if we are to maintain a viable steel industry in the United Kingdom in the future.

[Greg Clark]

My experience from conversations with the bidders for British Steel is that there is a recognition in the steel industry—not just in this country, but around the world—that the move to cleaner and greener production is happening globally. Actually, there is an opportunity to get ahead of that, as investing in improved energy efficiency and reducing carbon emissions will have to be done everywhere. Again, one of the purposes of the industrial strategy is to advance ourselves as a place where this has been done well and reliably and has been well supported. That, it seems to me, is best for the long-term future of steel making and other manufacturing, rather than attaching ourselves to a model that will be increasingly costly around the world. The future depends on being more energy efficient and greener.

[Stephen Kinnock (Aberavon) (Lab)]

The UK exports 2.6 million tonnes of steel to the European Union every year. It is estimated that a no-deal Brexit would add £70 million of additional administration costs and costs relating to border checks. Does the Secretary of State therefore agree that a no-deal Brexit represents an existential threat to the British steel industry, and will he be conveying that message loud and clear to his successor and to the incoming Prime Minister?

[Greg Clark]

I gently say to the hon. Gentleman that that message should be conveyed to all Members of the House who did not vote for a deal that would have provided, as British steel advised, the ability to trade in that way. My views on the desirability—in fact, the imperative—of having a good deal that allows us to trade without introducing barriers and frictions are well known to the House, and indeed beyond. What I will say is that at this time, when potential purchasers are considering British steel, actually it is not the case that the steel industry would not have a future in the event of different forms of Brexit. It is very important to convey to prospective buyers the fact that the industry that exists, with its opportunities domestically and internationally, and with the quality of its workforce and of its steel production, is attractive in itself and will not be trumped by the Brexit settlement. It is important that those prospective buyers have confidence, as some of them have having done their due diligence, that this is a good investment in all circumstances.

[Peter Kyle (Hove) (Lab)]

May I first thank my hon. Friend the Member for Redcar (Anna Turley) for her advocacy in the Chamber and—those of us who also know her as a friend know this—for her tireless activism on behalf of the steel sector, which has no better advocate? I also thank the Secretary of State; in a time of upheaval on the Government Front Bench, I hope that one point of consistency will be his position there. He has explained in the past, and in many appearances here in the Chamber, that the steel sector does not quite fit the criteria for a sector deal. Does that mean that we need to look at how the sector deals themselves are operating, to see whether they could be tailored to support such a vital industry?

[Greg Clark]

I am grateful to the hon. Gentleman for his kind words. It is not that the sector deals do not fit at all; it is that that would require investment on behalf of the industry, the players in the sector, and in recent years that investment in the future has not been as readily available or forthcoming as it has been in other industries. I hope that will change. I have a big appetite to invest alongside the sector, as we do in others, so there is absolutely no question but that it is available, and I hope that we will be able to conclude one very quickly.

[Alex Cunningham (Stockton North) (Lab)]

I, too, welcome the Secretary of State’s work and lament the likelihood that he will not be there to see the deal through and a foundation industry saved, alongside many jobs, many of which are in my constituency. When he leaves a little note for his successor, will he show his true Teesside-born credentials and just tell them that they must do all they can to get the deal across the line, and that they must not fail?

[Greg Clark]

The hon. Gentleman seems to have powers of prediction that are certainly beyond me. I think that Hansard this afternoon will provide the little note—perhaps an extensive note—that he has in mind.

[Madam Deputy Speaker (Dame Eleanor Laing)]

The prize for patience and perseverance goes to Jonathan Edwards.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Diolch yn fawr iawn, Madam Deputy Speaker. In February this year the EU put in place a definitive safeguard strategy on steel imports, covering 26 steel product categories. It put in place a 25% tariff once the quota has been surpassed. What analysis have the British Government undertaken of the impact on the UK steel sector of leaving the EU customs union, in terms of exports to our biggest market and imports to the UK?

[Greg Clark]

We have been very clear in the discussions that have been taken prospectively. Obviously, the arrangements are not settled until the Brexit conclusions are settled, but we have been very clear in a number of product areas that safeguards should be available and should be used for precisely the purpose they have been so far and will be needed in future.

Consumer Update

Greg Clark Excerpts

Tuesday 23rd July 2019 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

Last week, on Thursday 18 July, I gave a speech at the Social Market Foundation which considered three current challenges in relation to competition. The speech is available on the Department’s website at https://www.gov.uk/government/speeches/competition-rules-must-continue-to-evolve-with-emergence-of-digital-platforms.

The three challenges are: reducing consumer harm caused by the “loyalty penalty” in sectors such as cash savings, mortgages, household insurance, mobile phone contracts and broadband; second, addressing the new competition issues that are arising in digital markets, including in relation to the market power of large platforms; third, harnessing the power of competition to raising the UK’s productivity.

In conjunction with this speech, the Government last week brought forward publications relating to the role and performance of the UK’s competition institutions. Together, these pave the way for further consideration of potential reforms to address the challenges identified.

Strategic steer to the Competition and Markets Authority

On Thursday 18 July, I published the Government’s strategic steer to the Competition and Markets Authority (CMA). For each Parliament the Government issues a non-binding strategic steer to the CMA. The intention of the steer is to support the CMA in achieving its legal duties and objectives to promote competition, both within and outside the UK, for the benefit of consumers and the UK economy. The steer provides a transparent statement of how the Government sees competition fitting with its wider objectives for the economy alongside the CMA’s accountability framework.

Review of aspects of competition law

I also laid before Parliament on 18 July the review of aspects of the law on competition as required under sections 46 and 56 of the Enterprise and Regulatory Reform Act 2013. The review considers the effectiveness of competition enforcement and changes made to the competition regime by the 2013 Act.

The review finds that the direction of travel is broadly positive. More competition cases are being opened, merger reviews and market studies are being brought to a conclusion more quickly, and stakeholder views suggest a good degree of confidence in the regime.

The review notes that we need to consider how well-equipped the UK’s competition framework is to respond to current and future competition challenges. In its upcoming Competition Green Paper, the Government will take a wide-ranging look at the institutions, powers and tools that promote and enforce competition in the UK.

Consultation on the statutory audit services market

The Government have also published a consultation in response to the statutory audit services market study by the Competition and Markets Authority (CMA).

We have a problem with audit quality, as has been recognised and analysed by Sir John Kingman’s review, the BEIS Select Committee, the CMA and, more recently, the Financial Reporting Council itself. This is why it is right that we continuously review our audit regime to maintain the UK’s world-leading position.

In October 2018,1 asked Lord Tyrie, Chair of the CMA, to consider what can be done to improve competition in the statutory audit sector. I took this action because I want the UK to continue to benefit from a high-quality, competitive and resilient audit services market. Good governance underpins our modern industrial strategy and audits are a vital contributor to the trust and confidence required in a modern economy.

The CMA’s final report concluded that the statutory audit market has fallen short of what the UK needs in a modern economy, and made a series of compelling and wide-reaching recommendations to improve quality and increase choice in the audit market. I am most grateful to Lord Tyrie and his colleagues for their detailed and comprehensive study, which captures evidence and views from a wide variety of stakeholders. I share their concerns, and I am pleased that this study complements a wider body of work being undertaken to improve audit quality. Most importantly, we have endorsed Sir John Kingman’s recommendation to replace the Financial Reporting Council with an independent statutory regulator with a new mandate and powers.

The Government are committed to creating a fit-for-purpose and proportionate regulatory regime that delivers a competitive and resilient audit market that works for shareholders, investors and the wider public. I would welcome views on the CMA’s final proposals. I would also strongly encourage proposals from the sector outlining what they believe could be done to address the CMA’s concerns on a voluntary basis ahead of regulatory intervention. The Government will then develop a full set of proposals for reform taking account of both the recommendations from the CMA and the outcome of Sir John Kingman’s Review of the Financial Reporting Council. I do not believe that the Government need wait on the outcome of Sir Donald Brydon’s review of the purpose of audit before continuing with the process of reform of the audit market.

The consultation document will be placed in the Libraries of both Houses and is available on the gov.uk website. The consultation is open for 8 weeks and I look forward to the continued contribution of interested parties.

[HCWS1794]

Energy Policy: Net Zero Emissions

Greg Clark Excerpts

Monday 22nd July 2019 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

On 27 June, the UK became the first major economy in the world to legislate to reach net zero emissions by 2050.

Achieving this target will require significant changes in the way we produce, deliver and use energy. We will need to harness the power of innovation and new technology to ensure the energy system remains flexible and resilient. We will need to provide confidence to businesses across the country to invest in a greener future by maintaining clear and stable policy frameworks. We will also have to ensure that as we move to cut greenhouse gas emissions across the economy, the security of our energy supplies is never in doubt and energy costs are kept low for all households and businesses.

As we set out on the path to reach net zero emissions, the Government are today outlining a series of important reforms across the energy system. These include new approaches to how low-carbon infrastructure is financed, potential changes to the retail energy market so it works better for all consumers, a new strategy for tackling fuel poverty and significant changes to the way we set the detailed rules that govern the energy system.

The action we are taking today is only a first step. Continuous action over the next three decades by successive Governments will be required if we are to end the UK’s contribution to global warming and inspire the necessary action at a global level.

The Government have today published the following public consultations and reviews:

Regulated asset base financing model for new nuclear projects

The Government committed in January 2019 to publish an assessment of the regulated asset base model as a means of financing new nuclear projects. We are today publishing that assessment as part of a public consultation on the regulated asset base model. The purpose of this consultation is to set out the basis for our assessment and to seek views from a range of interested parties on how it could be implemented within the current energy system in such a way that allows new nuclear to be built at low cost to consumers. The consultation includes a set of core principles that have resulted from our feasibility assessment and considers important issues such as the approach to risk-sharing under such a model. This consultation will be open for responses until 14 October 2019.

Business models for carbon capture usage and storage (CCUS) projects

As we committed to in the CCUS action plan, we are today publishing a consultation on how we can bring CCUS projects to market in the years ahead. This is an important step in order to meet our action plan commitment of delivering the UK’s first CCUS project from the mid-2020s. The consultation seeks views on possible CCUS business models for industry, power, and carbon dioxide transport and storage, as well as a framework to support hydrogen production with CCUS. The consultation sets out the risks that are inherent in first of a kind CCUS projects, and the possible delivery and co-ordination challenges of deploying CCUS at scale. This consultation will be open for responses until 16 September 2019.

The re-use of oil and gas assets for carbon capture usage and storage (CCUS) projects

This consultation fulfils the Government commitment in the CCUS action plan to identify existing oil and gas infrastructure that has the potential for re-use and to develop a policy to support the development of CCUS in the UK. It seeks views on whether Government should introduce a discretionary power for the Secretary of State to remove the decommissioning liability from previous oil and gas asset owners if assets are transferred to CCUS projects; and on changing guidance from the Oil and Gas Authority and Government to encourage owners and operators of oil and gas assets to propose a period of suspension prior to decommissioning in circumstances in which there is a reasonable prospect of the asset being acquired by a CCUS project. This consultation will be open for responses until 16 September 2019.

Flexible and responsive energy retail markets

The consultation is issued in partnership with Ofgem and sets out a vision for the future energy retail market, the key challenges which the Government and Ofgem wish to address, and the outcomes the retail energy market needs to deliver for all consumers. This includes how the regulatory framework may need to change to facilitate the introduction of innovative products and services that may face barriers today and could support our transition to a greener future. The consultation assesses the case for making reforms which could remove market distortions so as to improve the functioning of the energy retail market as a dynamic and competitive sector. The consultation also outlines how the energy retail market can benefit all consumers, ensuring they are able to secure a fair deal and receive a good level of customer service. This consultation will be open for responses until 16 September 2019.

Reforming energy industry codes

This consultation seeks to address the fact that the way the detailed rules governing the energy system are managed may be frustrating the shift towards a greener future. The consultation suggests creating a new function to translate the Government’s vision for the energy system into a strategic direction for codes, as well as giving code administrators more power to change codes, ensuring that vision can be delivered. We propose creating a new process that allows for greater agility in how codes and code changes are governed. We also set out an approach that will ensure we can deliver rules that are clear, accessible and simpler. This consultation will be open for responses until 16 September 2019.

Fuel poverty strategy

We are consulting on proposed reforms to the 2015 fuel poverty strategy to ensure that the actions we are taking to support people out of fuel poverty are as effective as possible. This includes a potential change to the way that fuel poverty is measured to ensure that we are able to include all those living in fuel poverty. We also propose making changes to ensure that those most at risk from living in a cold home get the support they need by aligning our fuel poverty policies with medical evidence. We are also proposing a new principle which would ensure that policies contributing to the fuel poverty target are complementary to other Government priorities such as the clean growth strategy. This consultation will be open for responses until 16 September 2019.

Capacity market five-year review and consultation on proposals for capacity market emissions limits

We are today publishing a five-year review of the capacity market mechanism. This review has found that the scheme is working effectively and performance against the original objectives has been achieved. In considering the future of the scheme, we propose focusing on specific areas of the scheme that will need to change as we maintain security of electricity supply while also moving towards net zero emissions. One of the first steps we propose to take is to implement a restriction on the most polluting types of energy generation, such as coal, within the capacity market by introducing new carbon emissions limits. To implement these changes, we are today issuing a public consultation on carbon emission limits within the scheme. This consultation will be open for responses until 2 September 2019.

Facilitating energy efficiency in the electricity system

Increasing our ambition on improving energy efficiency across the UK energy system will be vital if we are to reach net zero emissions. The electricity demand reduction pilot evaluation we are publishing today has concluded that energy efficiency projects are not yet ready to enter the GB capacity market. We are therefore publishing a call for evidence on market barriers to energy efficiency, and how we can create new markets for energy efficiency and secure its role in the wider energy market. This includes considering how energy efficiency could help reduce the requirement for network reinforcement and help compliment the growth in distributed generation. This call for evidence will be open for responses until 25 September 2019.

Funding for advanced nuclear technologies

In addition to the above consultations, we are today announcing that we are developing proposals to invest Government money in the creation of innovative small modular reactors (SMRs) which are less expensive to build than traditional nuclear power plants. As stated to this house on 17 January, we have received a proposal from a consortium of businesses, led by Rolls-Royce, which has proposed a significant joint investment of more than £500 million focused on designing a first-of-a-kind SMR. The consortium expects to more than match any Government funding both by direct investment and by raising funds from third party organisations that wish to invest.

The Government can today confirm that the consortium’s proposal has been accepted into wave 3 of the industrial strategy challenge fund. The challenge is to design a working model that could be operational by the early 2030s. We are looking to make an initial award of up to £18 million to the Rolls-Royce led consortium in early autumn 2019. This is subject to final decisions to invest, including business case and other approvals, and this consortium representing the best option for pursuing this technology. The Rolls-Royce led consortium believes this new technology could create 40,000 jobs at its peak and each power station could produce enough clean energy to power 750,000 homes.

This money is alongside up to £45 million to be invested in the second phase of the advanced modular reactor programme, with project bids currently under consideration.

The Office for Nuclear Regulation and the Environment Agency plan shortly to publish their modernised guidance for developers of SMRs on their generic design assessment, the process through which reactor designs are scrutinised by the regulators prior to further necessary regulatory steps, including site specific assessment and issuing of site licence and environmental permits, to enable subsequent deployment.

[HCWS1789]

Taylor Review: Implementation

Greg Clark Excerpts

Tuesday 16th July 2019 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

The good work plan sets out the Government’s vision for the future of the UK labour market and how we will implement the Taylor review recommendations. It forms an integral part of the modern industrial strategy and this Government’s long-term plan to boost the productivity and earning power of people throughout the UK and to develop better jobs for all.

Today we are delivering the next phase of the good work plan. The good work plan recognised the vital role effective enforcement plays in ensuring confidence to challenge when the law is broken and in creating a level playing field between businesses. Establishing the director of labour market enforcement has been an excellent innovation, in terms of improving co-ordination across agencies, but we think we can go further. Today, we are publishing a consultation on new proposals for a single labour market enforcement body and will be seeking views on how the enforcement landscape could be simplified.

We will also be publishing the most recent director of labour market enforcement’s strategy, setting out recommendations for the Government which we will be carefully considering. The Home Secretary and I are very grateful to Sir David Metcalf for producing this report prior to his retirement and for all his hard work in this role. We are also delighted to announce that we have appointed a new interim director of labour market enforcement. Matthew Taylor, chief executive of the RSA, will be taking up this role from 1 August for 12 months.

The reforms we have announced today are the next important step in delivering on the good work plan and ensuring we have a labour market that is fit for purpose. We recognise that the world of work is changing and are delivering the necessary reforms to ensure the UK labour market can adapt effectively, and support the needs of both workers and employers.

Copies of the referenced consultation and the director of labour market enforcement’s strategy will be placed in the Libraries of both Houses.

[HCWS1726]

Oral Answers to Questions

Greg Clark Excerpts

Tuesday 16th July 2019 Commons Chamber

[Peter Heaton-Jones (North Devon) (Con)]

1. What plans he has to establish a tourism sector deal under the Industrial Strategy.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

This summer we should recognise the vital role that visitors play in the UK economy—particularly, I might say, overseas sporting visitors. Overseas visitors spent nearly £150 million in Devon last year, supporting jobs and growth throughout the county. Our new sector deal with the tourism industry was published last month, and includes commitments to an additional 10,000 apprenticeships annually and an extra 130,000 hotel rooms.

[Peter Heaton-Jones]

As the Secretary of State will know, the best place to visit as a tourist is, of course, North Devon. I welcome the publication of the tourism sector deal, but will he look favourably on the granting of tourism zone status to my constituency? Will he also join me in thanking all those who work so hard at this time of year in the tourism and hospitality industries, especially the North Devon Marketing Bureau, which does such good work in ensuring that people know that North Devon is the place to come to?

[Mr Speaker]

Including the Woolacombe Bay Hotel.

[Greg Clark]

That is a great endorsement, Mr Speaker.

I certainly join my hon. Friend in recognising that what is a time for holidays for many people is a time of intense work for people in the hospitality and tourism industries throughout the country. I also recognise North Devon’s bid to become one of the tourism zones. As my hon. Friend knows, the sector deal includes an investment of more than £26 million in the English coastal path, one of the most beautiful and popular attractions in his very beautiful constituency.

[Tim Farron (Westmorland and Lonsdale) (LD)]

20. Given that 20,000 non-UK staff work in tourism in the Lake District, there is a desperate need for home-grown talent, whether we leave the EU or not. However, the Government have watered down the already delayed catering and hospitality T-level, which no longer includes hospitality. Will the Secretary of State undo that backwards move, and fast-track a catering and hospitality T-level to next year?

[Greg Clark]

If the hon. Gentleman looks at the sector deal, he will see a great commitment to the development of careers in the hospitality industry, including 30,000 apprenticeships a year. The new T-levels have been developed in conjunction with the sector. I hope the hon. Gentleman will acknowledge that that is a great step forward, and that they will be available as a result of the commitment that has been made.

[Steve Double (St Austell and Newquay) (Con)]

I am tempted to say that the best thing about Devon is that it is the place that one drives through on the way to Cornwall, which has again been recognised as the UK’s best and favourite holiday destination. I welcome the announcement of the tourism sector deal, but more than 50% of international tourists visit only London. What extra help can the Government give to get more of them out of London, and into places like Cornwall?

[Greg Clark]

I am fearful that I shall find myself in an invidious position, given the competing claims of west country Members. All I will say is that, on this day of the 50th anniversary of the moon mission, my hon. Friend will know that Newquay’s unique claim to be in pole position for a UK spaceport adds to the already considerable attractions of his constituency.

[Bill Esterson (Sefton Central) (Lab)]

During last week’s Westminster Hall debate, the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Rochester and Strood (Kelly Tolhurst), was enthusiastic when she told us that Amazon was leading the retail task group. I dread to think who the Secretary of State might have in mind for tourism—Airbnb, perhaps?

It is Labour that is standing up for the crucial sectors in our economy, not the likes of Amazon, with its exploitation of workers and undercutting of other businesses, not to mention its sweetheart tax agreements. When will the Government stop the gimmicks, and deliver not only hospitality deals but the retail deals that are so badly needed by those vital sectors of the economy?

[Greg Clark]

That is a strange point for the hon. Gentleman to make, given that our tourism sector deal—the subject of this question—has been hailed by the industry as a pivotal moment for it. Of course it is right to engage with all retailers of all sizes, but colleagues who represent rural communities will know that the outlets, national and international, that web-based platforms such as Amazon give to small rural businesses are very important to retailing. It is vital for that perspective to be part of the deal.

[Anna McMorrin (Cardiff North) (Lab)]

2. What steps he is taking to ensure a smooth transition to a zero-carbon economy.

--- Later in debate ---

[Kevin Hollinrake (Thirsk and Malton) (Con)]

3. What recent steps his Department has taken to protect consumers.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

In June, the Government announced steps to ensure that consumers will not be punished for their loyalty. We are giving increased powers to the Competition and Markets Authority to fine companies that breach the law and to enable consumers to take control of the data that businesses hold on them.

[Kevin Hollinrake]

Mr Speaker, when you stay at the Woolacombe Bay Hotel, you may be paying 20% too much, because online agencies such as Booking.com use brandjacking clauses to colonise search results, and rate parity clauses, which mean that even if you go direct, you still pay 20% more than you need to. Other EU nations have banned this. Will we?

[Greg Clark]

My hon. Friend is absolutely right to raise that point. The Competition and Markets Authority is taking enforcement action against the major hotel booking sites precisely because of those concerns. It has already secured binding commitments from those companies, which will protect consumers in exactly the way that he recommends.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Why can we not protect consumers from having their goods delivered by companies such as Amazon in filthy, dirty, polluting vehicles? Why will the Secretary of State not step in and do something about that?

[Greg Clark]

We have already had exchanges across the Chamber on the move to electric vehicles. The investments of recent days are moving us towards a clean and green fleet. With his industrial interests, I know that the hon. Gentleman welcomes that.

[Mr Speaker]

Pithiness personified: I call Mr Philip Hollobone.

[Mr Philip Hollobone (Kettering) (Con)]

Is not the best way to protect value, service and price for consumers through the promotion of competition?

[Greg Clark]

I completely agree with my hon. Friend.

[Conor McGinn (St Helens North) (Lab)]

Consumers can sign up to long-term financial commitments for broadband, television and mobile phone services by clicking a few buttons online, but to cancel those services they have to fill out arduous forms, make numerous phone calls or even write to the companies involved. Will the Secretary of State look at that anomaly, to ensure fairness, and to provide the same mechanism for getting and stopping?

[Greg Clark]

For precisely those reasons, the issue is already being looked at by the Competition and Markets Authority. It is important that people are not penalised and do not find it difficult to extract themselves from commitments that are easily entered into. There needs to be fairness and transparency, and that is precisely what the CMA is engaged in.

[Chuka Umunna (Streatham) (LD)]

4. What assessment he has made of the effect of two-factor payment authentication on (a) consumers and (b) businesses.

--- Later in debate ---

[Justin Madders (Ellesmere Port and Neston) (Lab)]

12. What steps he plans to take to support the UK automotive sector in the event that the UK leaves the EU without a deal.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

The industrial strategy chose to invest to make Britain a leading location for the next generation of vehicles, irrespective of Brexit. This month, we have worked with Jaguar Land Rover to secure the electric XJ at Castle Bromwich. Last week, I launched the new electric Mini, to be built in Oxford. Immediately after these questions, I am unveiling Lotus’s Evija, the UK’s first all-electric hypercar, made in Norfolk. I am determined that Britain’s automotive strength will flourish through the next generation of vehicles.

[Justin Madders]

As the Secretary of State knows, Vauxhall Motors in Ellesmere Port has a future if we can avoid a no-deal Brexit. In recent weeks, members of the Government have been falling over themselves to endorse a no-deal Brexit, despite the damage that will do to the automotive sector. Will he not put his own job ahead of those of my constituents—will he rule out a no-deal Brexit today?

[Greg Clark]

I am sure the hon. Gentleman welcomes the commitment given by Vauxhall’s owners to invest in Ellesmere Port, but he is absolutely right that they have said that that depends on a successful resolution of Brexit that means Vauxhall can continue to trade without tariffs and friction with the rest of the European Union. That reinforces how vital it is to secure such a deal.

[Nicky Morgan (Loughborough) (Con)]

13. What steps the Government are taking to help improve the viability of fuel cell manufacturing in the UK.

--- Later in debate ---

[Kevin Brennan (Cardiff West) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

May I take this opportunity to say to the hon. Member for Salford and Eccles (Rebecca Long Bailey) that although she and I strongly disagree on various issues, including on the future of modern capitalism, we should be proud to have a shared commitment to reaching net zero emissions? Since our last oral questions session, the UK has become the first major economy in the world to pass laws to end its contribution to global warming by 2050, and companies from around the world are choosing to develop green technologies here in the UK. Last week I launched the new electric Mini, built in Oxford; the week before, Jaguar Land Rover announced that it is making a range of electric vehicles; and in an hour’s time I will be launching Lotus’s new electric hypercar. So, in keeping with what appears to be a new tradition of sharing pre-holiday gifts across the Dispatch Box, I would like to provide the hon. Lady with a small symbol—this model Mini—of what I hope will be our efforts to support our automotive industry, of which we are very proud, in its shift to a greener future.

[Mr Speaker]

I call Laura Pidcock.

--- Later in debate ---

[Kevin Brennan]

I will not take it personally, Mr Speaker.

While the Secretary of State is in the mood for holiday gifts, the latest Government statistics show that 61% of those working in music, performing and visual arts are self-employed, so will the Secretary of State update shared parental leave rules to include self-employed people to prevent talented women from having to leave their careers in the creative industries and other industries when they have children?

[Greg Clark]

The hon. Gentleman is absolutely right. We are evaluating the responses we have had from the creative industries and others on that issue. I fully recognise that it is an unresolved matter that we will address during the months ahead.

[Luke Hall (Thornbury and Yate) (Con)]

T4. The introduction of the national living wage has helped to raise the living standards of many of my constituents. What assessment has the Minister made of the impact of increasing the national living wage from 60% to 66% of median earnings and the ability of the retail sector to continue to grow its workforce considering that change?

[Laura Pidcock]

Given the reported use of food banks by staff in the Secretary of State’s Department, and given that the first ever indefinite strike action of outsourced workers in Whitehall is happening now, does the Secretary of State not see it as his duty at least to ensure that BEIS contractors are not breaking legislation? That includes potential breaches of regulation 7 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003, whereby an employment business may not supply a temporary worker to a hirer to replace an individual taking part in official strike action. Can the Secretary of State please explain to the House what action he has taken on the issue following the Public and Commercial Services Union’s referral of the matter to the Met police, and letters sent to him and his permanent secretary on 10 July?

[Greg Clark]

I value very highly everyone who works in my Department, whether they are directly employed or employed through contractors. Of course, we will always require our contractors to obey the law. What we have done, and what I have acted to do, is make sure that our contractor staff are paid at least the average level across London for their employment. I know that that has been welcomed. I take the issue very seriously and I am grateful to the hon. Lady for raising it.

[Peter Heaton-Jones (North Devon) (Con)]

T5. Do Ministers agree that improving the whole A303, A30 and A358 corridor would remove a significant barrier to growth across the south-west and North Devon?

--- Later in debate ---

[Rosie Cooper (West Lancashire) (Lab)]

T6. Could the Secretary of State respond to the findings of Citizens Advice that utility companies have overcharged customers by £24 billion over 15 years?

[Greg Clark]

As I said in answer to earlier questions, the Competition and Markets Authority has recognised the unacceptable position of loyal customers being overcharged, and it is acting to correct that, as we have done in this House when it comes to energy bills.

[Trudy Harrison (Copeland) (Con)]

T10. Does the Secretary of State agree that nuclear energy must be part of the decarbonisation of this country? Could he update the House on progress made with the regulated asset base financial model and the energy White Paper?

--- Later in debate ---

[Greg Clark]

I work very well with not only the Scotland Office here but the Scottish Government, and I am happy to take that up after this session.

[Ms Esther McVey (Tatton) (Con)]

All forms of company are registered and incorporated with Companies House. While it is a great resource if used properly, it is open to misuse, abuse and fraudulent information. What steps will the Secretary of State take to ensure validation before companies are registered, so that the public can have faith in the register?

[Ms McVey]

Secretary of State, please.

[Greg Clark]

I am happy to respond to my right hon. Friend. The problem that she identifies is a real and present one. We are taking steps to require information given to Companies House, and therefore made use of, to be validated. [Interruption.]

[Mr Speaker]

Someone chunters from a sedentary position, “Can she do that?”—can the right hon. Lady demand that the Secretary of State, rather than some other Minister, answers the question? There is no prohibition. It is a matter of the force of personality, which the right hon. Lady has just eloquently exhibited, and it may well encourage copycat behaviour.

[Mr Gregory Campbell (East Londonderry) (DUP)]

What better week than this to discuss the potential for a tourism sector deal for Northern Ireland? After all, this week the sun has got its hat on, Rory’s out to play, the Open has come to Ulster—hopefully, it’s coming home to stay.

[Greg Clark]

I did not have the hon. Gentleman down as a poet, as well as his other accomplishments.

The sector deal that has been signed very much relates to the whole United Kingdom, and I hope the manifold attractions of Northern Ireland will be given a boost by the very good news that this sector deal constitutes for the industry.

[Andrea Jenkyns (Morley and Outwood) (Con)]

I recently visited Coca-Cola in my constituency. It will be investing £50 million in its Wakefield plant this year, providing jobs and apprenticeships to my constituents. Companies are investing in Britain, demonstrating that the future will be bright after Brexit. What is the Department doing to attract further foreign investment?

--- Later in debate ---

[Greg Clark]

You were right, Mr Speaker; this is becoming a habit. I am happy to respond to the hon. Lady. The ability—especially in the creative industries, but also in professional and business services—for people to ply their trade by visiting and working in other countries is essential. It is a big part of the negotiations, which I hope will result in a deal that allows a strong part of the UK economy to continue to flourish.

[Andrew Griffiths (Burton) (Con)]

Some 900 jobs were put at risk when Kerry Foods announced the closure of its plant in Burton. I know the Secretary of State has been in touch with the managing director of Kerry to press it on finding a new buyer. Will he commit to doing all he can to make sure that a new buyer is found and that those jobs are protected?

[Greg Clark]

I will indeed. I have been in touch with the owners of the site. My hon. Friend is absolutely right: the most important thing is that a new owner should be found for that historic site in Burton, so that it can continue its good track record of employment.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

The chief executives of Coca-Cola, Unilever, Nestlé and PepsiCo are indirectly responsible for much of the 8 million tonnes of plastic waste that ends up in our seas. Will the Secretary of State meet those chief executives to encourage them to adopt more sustainable packaging?

--- Later in debate ---

[Jack Dromey (Birmingham, Erdington) (Lab)]

It was a privilege to stand with 1,000 Jaguar workers and hear that the factory that built the Spitfire during the war and two generations of Jaguar after the war—it nearly closed 10 years ago—will now build the electric cars of the future. Will the Secretary of State, in welcoming yesterday’s announcement, join me in saying that we must now build the batteries in Britain so that we have a vibrant British industry?

Will the Secretary of State also join me in paying tribute to the remarkable man that was Lord Kumar Bhattacharyya for his championing of manufacturing in Britain and his drive, intellect and ambition for Britain and British workers? It is thanks to Kumar that the Jaguar plant remains open.

[Greg Clark]

The hon. Gentleman is absolutely right. It was a proud moment for all of us to have the commitment that Jaguar Land Rover has made. I know everyone is immensely proud not just of the history but of the future of that great company.

I join the hon. Gentleman in paying tribute to Lord Bhattacharyya, the regius professor of manufacturing at Warwick and the founder of the Warwick Manufacturing Group. I can announce to the House that, in recognition of his immense contribution, we are establishing two awards. The first is the Bhattacharyya award for collaboration between academia and industry, which will be a prize of £25,000 each year to the team who best show how industry and universities can work together. Because Lord Bhattacharyya was such a champion of inclusion and helped so many young people enjoy flourishing careers in engineering, we are establishing the Bhattacharyya engineering inclusion programme, working with school and further education college students in the west midlands. It will make available 80 bursaries a year for students from disadvantaged backgrounds to study engineering, and it will also support extracurricular activities to inspire the next generation of young people to study engineering.

[Several hon. Members rose—]

Tourism Sector Deal

Greg Clark Excerpts

Monday 1st July 2019 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

The Government’s modern industrial strategy sets out a long-term plan to boost the productivity and earning power of people throughout the UK. Sector deals bring industry and Government together in partnership to boost productivity in their sector and to ensure sectors are able to take advantage of major global changes such as those identified in the industrial strategy grand challenges. The tourism sector has the scale and geographical reach to deliver real change for local economies.

The deal that has been struck today means that the Government and industry have agreed a plan that will drive economic growth, underpin continued infrastructure investment and enhance the attractiveness of the sector as a long-term career.

Tourism zones will bring businesses and local organisations together to establish a co-ordinated strategy for growth in their local visitor economy—and a reduction in the impact of seasonality. Industry will deliver 30,000 apprenticeships in England per year by 2025 as well as leading a mentoring programme aimed at supporting 10,000 employees—so that they are more likely to remain in the sector.

The UK will continue to be Europe’s leading hub for hotel investment for the next decade with over 130,000 additional bedrooms added to accommodation stocks by 2025—with 75% of these outside of London.

A new independent tourism data hub will be created with support offered from some of our biggest travel companies. This will allow organisations, including SMEs, to make the most of the big data revolution to understand activity and product preferences in their area.

In conjunction with the sector deal, the UK Government have also published an international business events action plan. The action plan outlines in detail how the Government will support the business events industry in attracting, creating and growing international business events.

These mutual commitments are impressive but we want to go even further—ensuring that as many different visitors as possible can experience our tourism offer. That is why this deal commits to ensuring that the UK will become the most accessible tourism destination in Europe by 2025 and increasing the number of international disabled visitors by 33%.

Additionally, the introduction of sustainable development plans as part of the tourism zones policy sets a clear expectation on the sector to reduce its carbon footprint today, and in the future, helping the UK on its path to clean growth.

Taken together these measures are key in building a world-class experience economy and will ensure the tourism industry can continue to grow inbound visitor numbers by an estimated 25% by 2025. They will boost local economies by making best use of tourism assets throughout the year—ensuring we will be able to give the visitors of the future the very best of experiences throughout our country.

This is an ambitious deal—which is why joint delivery mechanisms are being established to ensure government and industry work closely together to deliver the plans. The UK Government will also work closely with the devolved Administrations—complementing their existing tourism strategies—and ensuring the benefits of the deal extend right across the UK. It is a deal that will support tourism and hospitality employees as the sector grows—helping it to remain a global leader, long into the future.

I will be placing a copy of this document in the Libraries of both Houses.

[HCWS1678]

CMA Loyalty Penalty Report

Greg Clark Excerpts

Tuesday 18th June 2019 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

Our competition, legal and regulatory frameworks are fundamental to our future economic success. We have a reputation for a world-leading competition framework and independent economic regulators with duties to protect the interests of consumers. However, where markets are not working for consumers, we will ensure that they are treated fairly. Today I published the Government response to the Competition and Markets Authority’s (CMA) loyalty penalty report. It is my intention that the UK’s competition and markets regime is firmly focused on delivering improved outcomes for consumers. That means ensuring that significant sources of consumer detriment, such as the loyalty penalty, are tackled quickly and effectively.

Following concerns raised by Citizens Advice in a “super-complaint”, the CMA uncovered harmful business practices by firms, which exploit consumer loyalty. The CMA investigation looked at the five markets highlighted by the super-complaint—cash savings, mortgages, household insurance, mobile and broadband—and found that there is a total loyalty penalty of around £4 billion a year in these markets. It also found that vulnerable people, including the elderly and those on a low income, may be more at risk of paying the loyalty penalty.

Our response to the CMA’s loyalty penalty investigation sends a strong signal that poor practices by suppliers will not be tolerated and sets out the following:

our intention to establish an administrative model of consumer enforcement for the CMA and to consult on how to do this as part of the forthcoming consumer White Paper

that the CMA and the economic regulators must do more to stop business practices that lead to the loyalty penalty, and that we are prepared to legislate to give our enforcers new tools to do so where necessary

that targeted price interventions, where proportionate, should be considered by regulators to tackle the loyalty penalty. Although pricing interventions should be a matter of last resort, it is vital that all potential interventions are considered to protect those who are most vulnerable

reiterates the commitments we set out in our smart data review, including creating an “open communications” initiative and establishing a vulnerable consumer challenge.

This builds on our consumer Green Paper, as part of our modern industrial strategy, published in April 2018, which tackles areas where markets are not working for consumers and businesses. We believe that all of these measures will help create the conditions for more effective competition and improve day to day outcomes for consumers.

I will place a copy of our letter to the CMA in the Libraries of both Houses.

[HCWS1629]

Local Industrial Strategies

Greg Clark Excerpts

Thursday 13th June 2019 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

Our modern industrial strategy is a long-term plan to boost productivity and earning power for people throughout the country.

Since 2010, local leaders, working in partnership with Government, have delivered historic city deals with Greater Manchester. There have been multiple devolution agreements resulting in devolved new powers including bus reform, the adult education budget and growth deal funding of £633 million.

Building on these strong foundations, we set out in the modern industrial strategy to work in partnership with places to develop local industrial strategies. Local industrial strategies are central to our aim of creating prosperous communities across the country. They are being developed locally and agreed with government. They are long-term, based on clear evidence and aligned to the modern industrial strategy.

On 16 May we launched the first of these strategies, the West Midlands local industrial strategy. Today we are launching the Greater Manchester local industrial strategy. This has been developed locally by the Greater Manchester combined authority, led by Mayor Andy Burnham, and Sir Richard Leese, Leader of Manchester City Council, supported by the local enterprise partnership and Greater Manchester partners, and agreed with Government.

This ambitious strategy sets out how Greater Manchester will work in partnership with Government to:

Set Greater Manchester up to be a global leader on health and care innovation, creating new industries and jobs, improving population health and extending healthy life expectancy, and working to identify a home for a prospective international centre for healthy ageing;

Position Greater Manchester as a world leading region for innovative firms to experiment with, develop and adopt advanced materials in manufacturing, including University of Manchester work to establish “Graphene City” in the centre;

Build on Greater Manchester’s position as a leading European digital city-region, to maximise growing assets in cyber security;

Enable the digitalisation of all sectors, and capitalise on the links between digital and creative industries that feed internationally significant clusters in broadcasting, content creation and media;

Launch the UK’s first city-region clean growth mission to achieve carbon neutral living in Greater Manchester by 2038; and

Ensure that the education, skills and employment system allow everyone to reach their potential and employers have access to the skills required to deliver the Greater Manchester local industrial strategy.

Greater Manchester is a growing economy with a growing population of 2.8 million. Our shared national and local ambition is for the Greater Manchester local industrial strategy to boost productivity and people’s earning power through our collaborative national, regional and local leadership, recognising the economic strengths and potential of Greater Manchester.

A copy of the Greater Manchester local industrial strategy will be placed in the Libraries of both Houses.

[HCWS1616]

Net Zero Emissions Target

Greg Clark Excerpts

Wednesday 12th June 2019 Commons Chamber

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

I am very grateful, Mr Speaker, for your permission to give this statement on the proposed legislation I have tabled today to end our country’s contribution to global warming. There are many issues in this House on which we passionately disagree, but there are moments when we can act together to take the long-term decisions that will shape the future of the world that we leave to our children and grandchildren.

Just over a decade ago, I was the shadow Secretary of State for Energy and Climate Change when the right hon. Member for Doncaster North (Edward Miliband) secured Royal Assent for the landmark Climate Change Act 2008. I was proud, on behalf of my party, to speak in support of the first law of its kind in the world, setting a legally binding target to reduce greenhouse gas emissions by at least 80% by 2050 relative to 1990 levels. Today, I am proud to stand on the Government side of the House to propose an amendment to that Act that will enable this Parliament to make its own historic commitment to tackling climate change—a commitment that has been made possible by many years of hard work from Members across this House of Commons on both sides, and beyond. I thank in particular Lord Deben for his leadership as chair of the independent Committee on Climate Change, as well as its members and staff, and the hon. Member for Leeds West (Rachel Reeves) and my hon. Friend the Member for Cheltenham (Alex Chalk) for their recent Bills that paved the way for today’s proposed legislation. I also pay tribute to the extraordinary work of my friend and ministerial colleague, the Minister for Energy and Clean Growth.

Today, we can make the United Kingdom the first major economy in the world to commit to ending our contribution to global warming forever. The United Kingdom was the home of the first industrial revolution. Furnaces and mills nestled in English dales, coal mines in the Welsh valleys and shipyards on the Clyde and in Belfast harbour powered the world into the first industrial age. We now stand on the threshold of a new, fourth industrial revolution—one not powered by fossil fuels, but driven by green growth and clean, renewable technologies. Once again, the United Kingdom and all its parts stand ready to lead the way. It is right that economies such as ours, which made use of carbon-intensive technologies to start the first industrial revolution, now blaze a trail in the fourth industrial revolution. Whether it is through our global offshore wind industry, our leadership on green finance, or our unrivalled research base that is leading the charge on electric vehicles, we are showing the economic benefits of how cutting emissions can help to grow our economy.

Through our industrial strategy, the UK is already forging that future, leading the way in the development, manufacture and use of low-carbon technologies. By responding to the grand challenges we have set, including on the future of mobility and clean growth, we are already creating thousands of new jobs right across the country. We are showing that there is no false choice between protecting our planet and improving our prosperity: we can and must do both.

Indeed, low-carbon technology and clean energy already contribute more than £44 billion to our economy every year. In 2017, energy-related carbon dioxide emissions in the UK reached their lowest levels since 1888. Last year, we secured more than half of our electricity from low-carbon sources. Just last month, we set a new record for the number of days we have gone without burning any coal since the world’s first public coal power station opened in London in 1882.

We have said that we will completely phase out unabated coal-fired power generation by 2025, ending the harmful impacts to our health and environment for good. Together with Canada, we have launched the Powering Past Coal Alliance, which has now seen 80 national and local governments, businesses and non-governmental organisations join together in a pioneering commitment to phase out unabated coal.

However, if our actions are to be equal to the scale of the threat, nations across the world must strive to go further still, and we in the United Kingdom must continue to fulfil our responsibility to lead the way. That is why, in October, following the latest evidence from the Intergovernmental Panel on Climate Change, the Government wrote to the independent Committee on Climate Change to seek its advice on our long-term emissions targets. Just last month, it issued its response, recommending that we legislate for the UK to reach net zero greenhouse gas emissions by 2050, taking into account our emissions from international air travel and shipping. So I am today laying a statutory instrument—in fact, it is already before the House—that will amend the Climate Change Act 2008 with a new, legally binding net zero emissions target by 2050.

Ending our contribution to climate change can be the defining decision of our generation in fulfilling our responsibility to the next, but it will require the effort of a generation to deliver it. I am grateful to all those business leaders, faith leaders, scientists and climate campaigners who have written to the Prime Minister, me and many Members in this House to express support for this landmark proposal. It will require Governments and political parties of all colours to work with all sectors of business and society. We must fully engage young people, too, which is why a new youth steering group, led by the British Youth Council, will be set up to advise the Government—for the first time giving young people directly the chance to shape our future climate policy.

The assessment of the independent Committee on Climate Change is based on the latest climate science. It drives our ability to take action on the international stage, and it considers current consumer trends and developments in technology. The committee has concluded that a net zero 2050 target is feasible and deliverable, and can be met within the exact same cost envelope of 1% to 2% of GDP in 2050 as the 80% target when that was set, such has been the power of innovation in reducing costs.

It is, however, absolutely right that we should look carefully at how such costs are distributed in the longer term, as Professor Dieter Helm recommended in his report to the Government. The Government are also today accepting the recommendation of the Committee on Climate Change that the Treasury lead a review into the costs of decarbonisation. This will consider how to achieve the transition to net zero in a way that works for households, businesses and the public finances. It will also consider the implications for UK competitiveness.

In fulfilling the scale of the commitment we are making today, we will need technological and logistical changes in the way we use our land, with more emphasis, for example, on carbon sequestration. We will need to redouble our determination to seize the opportunity to support investment in a range of new technologies, including in areas such as carbon capture, usage and storage, and in hydrogen and bioenergy.

However, as the committee also found, the foundations for these step changes are already in place, including in the industrial strategy and the clean growth strategy. Indeed, there is no reason whatever to fear that fulfilling this commitment will do anything to limit our success in the years ahead—quite the reverse. In our industrial strategy, we have backed technology and innovation, including the UK’s biggest ever increase in public investment in research and development.

The International Energy Agency’s report on the UK, published last week, found:

“The United Kingdom has shown real results in terms of boosting investment in renewables, reducing emissions and maintaining energy security”.

By doubling down on innovation in this way, we can expect to reap the benefits as we move forward to meeting this target by 2050.

I believe that by leading the world and harnessing the power of innovative new technologies we can seize the full economic potential of building a competitive, climate-neutral economy, but we do not intend for a moment for this to be simply a unilateral action. If we are to meet the challenge of climate change, we need international partners across the world to step up to this level of ambition. While we retain the ability in the Act to use international carbon credits that contribute to actions in other countries, we want them to take their own actions and we do not intend to use those credits.

We will continue to drive this, including through our bid to host the COP 26 conference. As the IEA report found last week, the UK’s efforts are

“an inspiration for many countries who seek to design effective decarbonisation frameworks.”

Just as we have reviewed the 2008 Act in making this amendment today, so we will use the review mechanism contained in the Act, within five years, to confirm that other countries are taking similarly ambitious action, multiplying the effect of the UK’s lead and ensuring that our industries do not face unfair competition.

Finally, I do not believe that this commitment will negatively affect our day-to-day lives. No G20 country has decarbonised its economy as quickly as we have. Today, the UK is cleaner and greener, but no-one can credibly suggest that our lives are worse as a result—quite the reverse. We are richer, in every sense of the word, for being cleaner, for wasting less and for cherishing, not squandering, our common inheritance.

We may account for less than 1% of the world’s population and for about 1% of global carbon emissions, but by making this commitment today we can lead by example. We can be the ambitious global Britain we all want our country to be. We can seize this once-in-a-generation opportunity to tackle one of the greatest threats to humanity, and we can make this a defining, unifying commitment of this otherwise riven and often irresolute Parliament—one that is agreed by all, honoured by all and fulfilled by all.

In the first industrial revolution, we applied the powers of science and innovation to create products and services in which this country came to excel, but which came at a cost to our environment. In this new industrial revolution, we can innovate and lead all over again, creating new markets and earning our way in the world in the decades ahead, but in a way that protects our planet for every generation that follows ours. When history is written, this Parliament can be remembered not only for the times that it disagreed, but for the moment when it forged this most significant agreement of all. I commend this statement to the House.

[Mr Speaker]

It is very good indeed to see the Minister for Energy and Clean Growth, the right hon. Member for Devizes (Claire Perry), in her place in the Chamber, and we welcome her here.

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

I thank the Secretary of State for advance sight of his statement. I echo his thanks, not least to the Committee on Climate Change, and to my right hon. Friend the Member for Doncaster North (Edward Miliband), my hon. Friend the Member for Leeds West (Rachel Reeves) and the hon. Member for Cheltenham (Alex Chalk). I, too, would like to welcome the right hon. Member for Devizes (Claire Perry) back to her place.

I begin by welcoming the statement. The Chancellor of the Exchequer was just wrong, in my view, recently to exaggerate the costs of achieving net zero, and it is good to see the Government listening instead to the experts at the Committee on Climate Change. The Labour party committed to a target of net zero emissions before 2050 at its 2018 conference, and it is welcome to see the Government move in a similar direction.

Now that the Government are prepared to legislate their duty, it is now imperative that they urgently take the strategic decisions necessary. Sadly, at last week’s Prime Minister's questions, the Minister for the Cabinet Office, referring to the UK’s carbon budgets, said:

“We are not off track”—[Official Report, 5 June 2019; Vol. 661, c. 136]—

in meeting those targets at all. It is, however, a matter of fact, confirmed by the Committee on Climate Change and official BEIS statistics, that the UK is off track to meet its fourth and fifth carbon budgets. It would be helpful if the Secretary of State took this opportunity to correct the record, and to tell the House—if the Government are off track to meet their existing carbon budgets—what immediate strategic decisions he will make to ensure that the public can have confidence in the Government’s ability to meet even more stringent targets. That confidence can certainly be restored, but the Secretary of State must recognise that urgent commitments to investment and new legislation will be needed

Today’s statement is a welcome first step, but the Secretary of State has already recognised the scale of the task that lies ahead. Since 2015, when the Conservative Government secured a majority, they have systematically dismantled the policy frameworks that were designed to tackle climate change. They have effectively banned onshore wind, reduced almost all support for solar power, scrapped the zero carbon homes standard, sold off the UK Green Investment Bank, removed support for tidal power, and relentlessly pushed fracking—fracking, of all things! Moreover, there has been a 98% fall in home insulation measures since 2010.

At this point the Secretary of State will mention offshore wind, so let us be clear about that. The Government have committed themselves to bringing 30 GW of offshore wind on stream by 2030—well done!—but that is significantly less than the 50 GW that the Labour party has pledged, and dramatically less than the 75 GW that the Committee on Climate Change says we could need by 2050. Greenpeace has described the slow pace at which the Government have made contracts for difference available as “bewildering”, and analysis by Green Alliance has found that the Government are pushing the sector into a boom-and-bust cycle.

I could go on—these policy decisions have put the UK back by years—but, as climate change is still reversible, so is the Government’s track record. I am trusting the Secretary of State today to promise the House that, as one of his lasting legacies, he will turn that record around. I welcome his collegiate tone, because there are many—not least the Committee on Climate Change, the Labour party, other Members of Parliament, numerous industry groups, and energy and climate organisations—who have the ground-breaking ideas that are necessary. The Secretary of State need only reach out to those who are desperate to help him.

Achieving net zero before 2050 is necessary and affordable, and there is no need to rely on international offsets, which—let us be honest—does look like cheating. At this point, may I ask the Secretary of State whether aviation and shipping are excluded from the net zero targets, and if so, why? To achieve net zero, however, we will need huge levels of investment. We will need co-ordinated planning and new laws, and, as with any emergency, we will need significant Government intervention. I do not believe that that is ideological, or even party-political; it is just common sense, and that is why it is at the heart of Labour’s plans for ushering in a green industrial revolution.

I welcome today’s announcement, but I must ask the Secretary of State of State when he will start to act in accordance with it.

[Greg Clark]

I thank the hon. Lady for her welcome. It contained some caveats, but it was there nevertheless, and I am grateful for it.

I think that the hon. Lady should take this opportunity to reinforce the joint determination—which is noted around the world—of parties in this House of Commons to commit themselves to leading the world. We have delivered on that. I do not know whether the hon. Lady has seen this week’s report from the International Energy Agency, but it is something of which she, and all of us, should be proud. The IEA—the world’s foremost body in commenting dispassionately on energy matters—says in its report:

“The United Kingdom has led the way in the transition to a low-carbon economy by taking ambitious climate action at international and national levels.”

That is its headline conclusion. As I said in my statement, it has also commented that the Government’s efforts—and I think we can include the efforts of successive Governments—are

“an inspiration for many countries who seek to design effective decarbonisation frameworks.”

This is a moment at which, for all the fractiousness of current debates, I think the House can be proud of the decisions that have been made.

The hon. Lady asked about carbon budgets, which were established by the Climate Change Act. As she will know, for the two carbon budgets that have been met—most recently in 2017—we have achieved surpluses of 1.2% in the first and 4.7% in the second, and we are on track for a surplus of 3.6% in the current one, which will end in 2022. As for the carbon budgets that follow, which run until 2032, at this stage—and we are talking about 15 years or more from now—we are already 90% of the way there.

An important feature of the report from the Committee on Climate Change is its recognition of the astonishing returns from investment in innovation. When the right hon. Member for Doncaster North (Edward Miliband) and I were debating the Climate Change Bill across the Dispatch Boxes—the right hon. Gentleman will remember this—the Opposition came close to defeating the then Government on the question of imposing an emissions performance standard on new coal-fired power stations: we were defeated by just a few votes. The need for such a performance standard is now cast into history, because we have no new coal-fired power stations and we are closing the existing ones. Such is the pace of change. So I am absolutely confident that we will meet the ambition that we have set today.

The hon. Lady mentioned solar power. The Committee on Climate Change has commended the action we have taken through the feed-in tariffs. They were always intended to kick-start the solar industry. The scheme cost £1.2 billion a year, and £30 billion has been spent on supporting the industry. It has been successful, as intended, in bringing prices down. Just as in every other advanced economy, as intended from the outset, it has now closed, but has been replaced by an export guarantee that allows those supplying surplus energy in the market to be paid for it.

Proposals of that kind have been endorsed by commentators around the world. In choosing to make this big increase in research and development, we can be confident that we can maintain and fulfil our ambition not only for the environment, but for the job creation in every part of the country that comes with a consistent and determined act of leadership. I am grateful for the support of the Opposition in that regard.

[Mark Pawsey (Rugby) (Con)]

Today’s announcement has been broadly welcomed—by, among others, the Confederation of British Industry—but our energy-intensive industries such as steel, ceramics and cement are currently paying a higher price for energy than is paid in comparable countries. What reassurance can the Secretary of State give such industries that other industrial economies will follow our lead and that the measures that will have to be introduced if we are meet the zero target by 2050 will not place those industries at a competitive disadvantage?

--- Later in debate ---

[Greg Clark]

My hon. Friend makes an excellent point. One of our requirements, which has been recognised by the Committee on Climate Change, is our need to invest in the energy-intensive industries in particular, to improve their energy efficiency so that they can compete effectively and also to enable us to capture, store and, in some cases, use the carbon they generate. The commitment to carbon capture, use and storage is one of the steps we must take to meet those ambitions.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I thank the Secretary of State for advance sight of his statement. I also welcome the Minister for Energy and Clean Growth, the right hon. Member for Devizes (Claire Perry), back to the Chamber—although she is no longer present—and echo others in thanking the Committee on Climate Change for its work.

We welcome the statement. It is important that we all work together to address this challenge. We especially welcome the intention to follow the Scottish Government by including aviation and shipping in the targets, but why not have the ambition to match the Scottish Government’s emissions plan? In Scotland, the target date for zero net emissions is 2045 rather than 2050, and the carbon-neutral target date is 2040. So let us see if we can step up that ambition.

Even before the actions contained in Scotland’s climate change plan, actual emissions were down 3.3% between 2016 and 2017 and down to nearly half of the emissions levels of 1990. The Secretary of State’s Government must be more ambitious. The Committee on Climate Change said that this is “feasible and deliverable”, as was mentioned in the Secretary of State’s statement. Will he also accept the committee’s recommendation which agrees with the CBI on the National Infrastructure Commission’s call that in the 2020s we really need to push ahead with renewables to meet the 2050 target?

The Secretary of State said that he is taking these actions to

“tackle one of the greatest threats to humanity”,

yet the Committee on Climate Change, the National Infrastructure Commission and the CBI all say that investment in onshore wind and solar has stalled for political reasons. The CBI has said we should take the politics off the table for onshore wind, so will the Secretary of State drop the Tory ideological opposition to onshore wind?

Finally, there is another choice other than nuclear: carbon capture and storage utilisation. St Fergus near Aberdeen could be operational quickly, by 2023 with the right investment and commitment. At minimum it could capture 5.7 gigatons, equivalent to 150 years-worth of all of Scotland’s 2016 gas emissions, so will the Secretary of State reverse the betrayal over Peterhead and that carbon capture programme being withdrawn and commit to investing in St Fergus, to deliver these benefits, not only for Scotland but for the UK and the rest of the planet?

[Greg Clark]

I am grateful to the hon. Gentleman. He seemed to be welcoming the committee’s report but criticising the Government for not agreeing with its recommendation to set a date of 2045 for Scotland and 2050 for the United Kingdom. That was its clear advice and we are following it. There were particular reasons, such as the greater potential for afforestation in Scotland, why it regarded a 2045 target as appropriate. I hope the hon. Gentleman will not take it amiss when I agree with the first part of what he said—that we should follow the committee’s advice—rather than the second part, which is that we should then disagree with it.

On the points about carbon capture and storage, part of the opportunity and requirement for net zero is that it is possible to take carbon out of the atmosphere, especially from industrial processes, and of course Scotland and its industrial clusters will have an important part to play in that.

The hon. Gentleman mentions the National Infrastructure Commission, and again I welcome his respect for its expert analysis. We support what it says about increasing renewables. I hope that in the same spirit he will support its recommendation that we should have more new nuclear power—something he opposed. I do not want to be excessively partisan on an issue that I know from my discussions with the Scottish Government is a common commitment that we make to maintain and increase our ambition and at the same time create jobs in every part of the UK including Scotland.

[Richard Benyon (Newbury) (Con)]

Yesterday, I was in Washington, where I was reminded that this is a fiercely partisan issue there that divides politics, perhaps more than any other. It is something to rejoice in that here there is a very bipartisan view on it. I am very proud that this Government have taken this decision today. They have listened to the scientific evidence and are acting on it, but does my right hon. Friend agree that this is the easy part? We have to carry our population with us as we decarbonise our economy further, change the way we travel, farm and move around, and be a beacon for other countries to do the same.

[Greg Clark]

I completely agree with my right hon. Friend and pay tribute to him for his leadership both as a Member of this House and a Minister in DEFRA in pursuing this at a national and international level. He is absolutely right that we need to change the way we do things, but the prospects of leaning into technology mean that we can do that in a way that does not make our lives more miserable or more constrained. No one could look back on the last 20 or 30 years and think that, having achieved what we have in terms of emissions reductions, we have done so at the expense of our quality of life. That is the guiding philosophy we should take: we should harness technology to make sure our lives can be better and greener and cleaner in the future.

[Edward Miliband (Doncaster North) (Lab)]

I warmly welcome the Secretary of State’s announcement and join those who have paid tribute to the Minister for Energy and Clean Growth, because this idea had been lying around for a couple of years in the long grass of government and it was she who took it out of that long grass and helped make it happen. I also welcome the five-year review mechanism because we might well need to bring forward the net zero date from 2050; that might not be the original intention of the review mechanism but it may be necessary. May I however ask the Secretary of State to recognise that in its advice the Climate Change Committee said very specifically that as well as setting the target itself, the Government must put in place the policies to meet the target? That means, as it said, a 2030, not 2040, cut-off date for new petrol and diesel vehicles; a proper decarbonisation plan for our 27 million homes, which we do not have; and an end to the moratorium on onshore wind—a moratorium I believe is now economically illiterate as it is now our cheapest fuel available? Can the Secretary of State assure us that henceforth there will be leadership not just on targets but on action?

[Greg Clark]

I pay tribute to the right hon. Gentleman for his own leadership in this. I think he will recognise that we are not credited simply with leadership in terms of legislation and targets but with achievement. Of the major industrialised countries we are the world leader in decarbonising our economy at the same time as growing that economy. We should be proud of that.

The right hon. Gentleman is quite right: the inclusion of the review mechanism in the Climate Change Act was a prescient one because it has allowed me to write to the committee, which has resulted in the report to which we are responding today. I think five years is a good period in which to see how we and others are doing against that target and whether the pace of implementation is what is required.

The right hon. Gentleman is absolutely right that policies to support that will be required. The essence of good policy is that it should not have unintended consequences. In terms of the automotive sector for example, I and Opposition Members know that car companies need to be able to generate the returns to make the capital investment to install the new capital equipment that is needed to make electric powertrains, for instance, so getting that pace right so that they can have the returns to be able to reinvest is crucial; otherwise, there could be unintended consequences. The right hon. Gentleman talked about homes and wind, and of course all these things make contributions to meeting that target. The action from now on, including in the energy White Paper, is to set out the policy framework that supports our ambitions.

[Sarah Newton (Truro and Falmouth) (Con)]

I warmly welcome the Minister’s statement today and his beautifully articulated ambition for the UK. Cornish engineers, scientists and miners were at the forefront of the first industrial revolution, and the Cornwall and Isles of Scilly local enterprise partnership clean growth strategy shows that we want to play a pivotal role in this fourth industrial revolution. Will my right hon. Friend congratulate a team from Cornwall that yesterday won money from the Faraday challenge? Cornish Lithium and Wardell Armstrong came together to make sure we can set a path for extracting lithium from Cornish mines and create a supply chain here in the UK for the batteries we will need to power up this fourth industrial revolution.

[Greg Clark]

I agree with my hon. Friend and I am grateful for her warm words. She is absolutely right to point out some of the possibilities for Cornwall, including the sources of lithium that will be in demand as we decarbonise and electrify cars and other forms of transportation. There are great opportunities for Cornwall and I know that companies there will be creating new jobs on the back of that prospect.

[Rachel Reeves (Leeds West) (Lab)]

May I start by welcoming the statement and the commitment that the Secretary of State and the Minister for Energy and Clean Growth have given to this? May I also say how proud I am to be a Member of a Parliament that continues to lead the way globally in tackling climate change? I am pleasantly surprised that the Bill I presented to Parliament yesterday has been adopted so quickly by the Government. However, I would say to the Secretary of State that if we are going to will the ends, we also need to will the means, and I urge him to go back to the reports from the Business, Energy and Industrial Strategy Committee and look again at bringing forward the target date for phasing out petrol and diesel vehicles, getting on with the demonstration projects for carbon capture and storage, improving the energy efficiency of our homes by genuinely ensuring that all new homes are zero carbon, and asking more from our house builders. If we do that, we have a chance of meeting the targets that we are now signing up to.

[Greg Clark]

The hon. Lady is a very influential member of this House, and when she publishes a Bill, the Government respond with alacrity. I will draw on the expertise of colleagues on her Select Committee, who have participated in the preparatory work that is needed to review the policy framework to support our ambition, and I dare say that her Committee will hold me and the ministerial team to account in terms of our implementation of the work that is needed.

[Steve Brine (Winchester) (Con)]

Today is a fantastic day, and this commitment will be warmly welcomed by my constituents in Winchester and, I hope, by the young people watching in the Gallery who have picked a good time to come in. May I ask my excellent right hon. Friend the Secretary of State, who has spoken so passionately on this, what role he sees local authorities playing in this new zero ambition and what targets we as a Parliament might set them so that they can match their words with action—not on everything, but on things like retrofitting existing housing stock and protecting the natural environment from developers? What targets can we set them?

[Greg Clark]

My hon. Friend answers his own question in giving me some examples. It is important to acknowledge that each place has different challenges and different opportunities. My hon. Friend the Member for Truro and Falmouth (Sarah Newton) talked about the potential for the exploitation of lithium in Cornwall, for example. Every part of the country will have its role to play. One of the areas in which local authorities have a signal role to play is charging for electric vehicles. If people have the confidence to accelerate the take-up of electric vehicles, that will make a big contribution to decarbonising the economy.

[Hilary Benn (Leeds Central) (Lab)]

I, too, welcome this announcement. This is a significant day on the journey that our country must make towards a zero carbon future, although we recognise that some of the steps we have yet to take will be a little more challenging than the ones we have already taken. May I pick up the point that the Secretary of State just referred to? Part of the green revolution will have to be built on electric vehicles, not least because a third of our remaining emissions come from transport. We are seeing new electric cars being developed and the range extending, but having talked about responsibility of local authorities, will he explain who is going to pay for the charging infrastructure, particularly in residential areas, as this will be essential if consumers are to have the confidence to buy the cars, which will lead the manufacturers to make more of them?

[Greg Clark]

The right hon. Gentleman makes an excellent point. This is a shared responsibility, and part of the funding that we have made available—more will be needed—is to ensure that both the private and public sectors contribute to establishing a network that is not only available but dependable and also rapid in its ability to charge. That network needs to cover every part of the country—cities as well as rural areas.

[Sir Desmond Swayne (New Forest West) (Con)]

The Secretary of State will recall the green deal. Will he ensure, now we have a new target, that we have a commensurately robust plan to incentivise households?

[Greg Clark]

I do recall the green deal, and it is fair to reflect that as we take decisions and adopt policies in this area, not every one of them is going to work in the way that is intended. It is an area in which we are innovating, and my view is that we should innovate in technology as well as in policy. I hope that the House will not be too harsh when innovations are attempted that perhaps do not work out in the way that was predicted. However, my right hon. Friend is right to say that we need to give incentives to individuals as well as companies to participate in this roll-out, and through the clean growth strategy and the forthcoming energy White Paper, he will be able to see more of that in the weeks ahead.

[Mary Creagh (Wakefield) (Lab)]

I welcome this historic announcement by the Secretary of State and congratulate him and the Minister of State on this achievement. Does the right hon. Gentleman agree that any transition must be a just transition for the communities that are experiencing this if we are to avoid the social devastation that we saw in coalfield communities such as mine, where the mines were abruptly closed in the 1980s and 1990s with no plan? Given that there is no accompanying policy to today’s announcement, may I suggest that he follow the advice of the Environmental Audit Committee’s report, published on Monday, which is to phase out taxpayer subsidies for fossil fuel exports so that we are not exporting carbon dependency into low and middle-income countries while preaching about our own virtues here at home?

[Greg Clark]

I am grateful to the hon. Lady. The work of her Committee will be important in scrutinising the policies that are set in place to meet our ambitions. I have not seen the report to which she refers, but it will be my bedtime reading this evening.

[Tim Loughton (East Worthing and Shoreham) (Con)]

I very much welcome this announcement. In two weeks’ time, the EYE—eco, young and engaged—project that I founded in 2008 will hold its 11th eco-summit in Worthing, attended by 250 local schoolchildren, to share environmental best practice. Does my right hon. Friend agree that those who most enthusiastically embrace the need to take urgent action on climate change are our youngest citizens? If so, what more can we do to turbo-charge plans to do more in their schools and to lead by example on becoming more carbon neutral by doing more on renewable energy, energy monitoring, understanding food miles and environmentally friendly school transport plans?

[Greg Clark]

I am grateful for the support of my hon. Friend, and, as I said in my statement, we have created a particular role for young people to advise on the policy framework in the knowledge that the consequences of climate change will be felt most particularly by the younger generations. There is a further opportunity. If we succeed, as I hope we will, in hosting the conference of the parties next year, that will provide a big opportunity for young people across the world, and especially in this country, to participate in the deliberations on some of the most important decisions that the world will take. I very much hope we will be able to give that opportunity to young people.

[Several hon. Members rose—]

[Norman Lamb (North Norfolk) (LD)]

Thank you very much indeed, Mr Speaker. I warmly welcome this statement. It is a significant milestone, but does the Secretary of State agree that we now need to significantly increase the sense of urgency, particularly in decarbonising the heating of buildings and transport? We have no incentive at all to increase energy efficiency in the heating of homes other than for the most vulnerable households; we are still waiting for the consultation on building regulations to deliver zero carbon; and the plug-in grant for vehicles has been cut. This surely is not good enough, and we need to increase that sense of urgency.

[Greg Clark]

I am grateful to the right hon. Gentleman and I congratulate him on his well-deserved knighthood. I think everyone will recognise the reasons for it—[Interruption.] The hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) will have to wait in line, I fear. The right hon. Gentleman is correct to say that we need to decarbonise all parts of the economy. That means reviewing our policies in every area, and it is important that we should do that. He mentioned the plug-in grant for electric vehicles, and one of the desirable features of policies is that a commitment can be made to kick-start the development of an industry to bring costs down, with the intention of withdrawing that commitment when the market has taken flight. We must not get into a position where we can never propose something without it needing to be there in perpetuity, because that would reduce our overall potential for innovation, which, as he knows from his work as Chair of the Select Committee on Science and Technology, would not be good for the UK or for science and innovation.

[James Gray (North Wiltshire) (Con)]

Anyone who truly cares about passing on a cleaner, greener, better globe to our children and grandchildren will warmly welcome the content of today’s statement and will be glad that the whole House has risen above party-political bickering to do just that. The Secretary of State mentioned the manufacturing of electric cars, so will he congratulate Dyson in my constituency on investing £250 million in research and development at Hullavington in my constituency? Will he seek to try to persuade Dyson to make good use of vacated automotive manufacturing facilities nearby, perhaps by manufacturing vehicles at the Honda site in Swindon?

[Greg Clark]

I agree with my hon. Friend, and I congratulate and praise Sir James Dyson. He is one of our most brilliant inventors and entrepreneurs, and he makes a big contribution to our country, not only through the people he employs, but in the education training that he gives. I share my hon. Friend’s ambition for us to be able to attract Dyson to locate manufacturing facilities in the United Kingdom. We have the research, the brains, the skilled workforce and the facilities. I hope, in time, that we will be able to celebrate further opportunities that Dyson may have in the United Kingdom.

[Caroline Lucas (Brighton, Pavilion) (Green)]

I do welcome this report, but I would welcome it a lot more if the Government had followed all the recommendations of the Committee on Climate Change, not just the ones that do not cause ideological indigestion. In particular, the committee recommended that the emission reduction effort needs to be done here at home, not outsourced to poorer countries. Carbon offsetting basically slows decarbonisation, and it deprives poorer countries of the low-hanging fruit that they need to meet their own reduction targets. Will the Secretary of State therefore review the decision to rely on dodgy loopholes, and will he ensure that the domestic action is all done here at home?

[Greg Clark]

I am grateful to the hon. Lady for welcoming the commitment, but she knows that the Climate Change Act 2008 includes the use of credits. The Committee on Climate Change has not recommended that we should repeal that part of the Act, just that we should not aim to make use of them. We support, accept and agree with that recommendation, so we will not be making use of credits.

[Henry Smith (Crawley) (Con)]

The Crawley-headquartered Virgin Atlantic had its first biofuel flight last year, and the Gatwick-based easyJet is now flying the new A320neo, which has a much-reduced carbon output. In moving towards net zero emissions, what support can the Government give to the world-leading UK aviation industry, so that it can play its part in ensuring that we can be an island trading nation while leading the world on environmental protection?

[Greg Clark]

The aerospace sector deal that was concluded as part of our industrial strategy includes the research and development of electric power for aeroplanes, which positions us at the forefront of the development of that technology. That has the obvious benefits of contributing to the reduction in omissions and creating further success for what my hon. Friend correctly describes as an important and successful industry in this country.

[Liz Kendall (Leicester West) (Lab)]

The UK is making good progress on clean electricity thanks to policies introduced by successive Governments, but we are not yet making the progress we desperately need to reduce greenhouse gas emissions from transport. What does the Secretary of State think the key problems and challenges are, and what we are going to do about them?

[Greg Clark]

If the hon. Lady reflects on the progress that is being made, she will see that the accelerating take-up of electric vehicles makes a major contribution. Through the industrial strategy, we have funded the research and development of new electric powertrains for commercial vehicles—vans, lorries and agricultural vehicles—which will be important. We need to double down on that commitment, but we made the right strategic judgment three years ago when we targeted the future of mobility, including electric vehicles, as being one of the principal contributors not just to tackling climate change, but to creating jobs in the economy.

[Richard Graham (Gloucester) (Con)]

I congratulate the Secretary of State on this important announcement. As he says, the challenge is now all about implementation. May I therefore encourage him to look closely at the Marine Energy Council’s proposals for how to stimulate the production of that side of green energy, which is still the Cinderella of the sector? In addition, may I ask him to work closely with the Secretary of State for Environment, Food and Rural Affairs to reduce the amount of illegal plastic waste currently being exported in a disgraceful way to Malaysia and elsewhere in south-east Asia, which will, if not stopped, damage our strong environmental commitments?

[Greg Clark]

I agree with my hon. Friend and recognise his long-standing campaigning and his contribution to creating a clean environment. In the quest to pursue the possibilities of new technologies and their research and development, I agree that marine and tidal technologies have an important role to play. Since 2010, we have made available over £90 million in grant funding, and we will continue not only to do that but, working with our universities and businesses, to accelerate the research and development that is taking place in all parts of the United Kingdom.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

In wholeheartedly welcoming this statement, may I ask the Secretary of State to do two things? First, will he reverse the Government’s decisions to abolish the zero-carbon homes regulations, to ban onshore wind and to proceed with a third runway at Heathrow? Secondly, will he agree to meet me to discuss how we can decarbonise capitalism, particularly in the City of London? Given that the City funds 15% of global fossil fuel investment, if we can decarbonise the City, that can have a massive impact on the whole world.

[Greg Clark]

I acknowledge the right hon. Gentleman’s experience and contribution to the cross-party efforts that have been made in this area. When it comes to wind, we sometimes have to make some strategic calls, and the decision we took to provide funding and incentives for the development of the offshore wind industry has allowed it to develop to the extent that we are now the world leader, creating jobs right across the country, so it was right to champion offshore wind. He also mentions the City, and it is important to recognise the contribution and the leadership that the green finance expertise in the City of London offers to the world. The City will be extremely important in financing many of the investments that will be needed in the years ahead.

[Crispin Blunt (Reigate) (Con)]

I note that this statement marks 30 years of global British leadership on this issue, under both parties. Margaret Thatcher was the first P5 leader to devote the entirety of her speech to the United Nations General Assembly to this issue. Turning to the cost estimates, does the 2% envelope include the likely benefits that will come from the technology that will be generated from investment in this area? On the flipside of that, if British leadership fails to take the rest of the world with us, what kind of estimates have been made of the costs of protecting our country from the consequences of climate change?

[Greg Clark]

My hon. Friend makes an excellent point. Mrs Thatcher was the first world leader to declare a climate emergency. I recently reread the speech that she made to the UN, and I would commend it to any Member of this House. Its prescience and rigour are remarkable, and it bears reading again today.

The 1% to 2% cost estimate of the Committee on Climate Change is exactly what the House voted for in 2008. It is a gross figure, not a net figure, and does not include the benefits. My hon. Friend is absolutely right that it also does not include the consequences and costs of a failure to tackle climate change, although the committee’s report sets out in great detail some of the negative consequences were we and the rest of the world to fail to act.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I, too, welcome today’s statement as an important step forward. I hope the Secretary of State will join me in congratulating Birmingham City Council, which last night declared a climate emergency and a much more ambitious date to achieve zero carbon status. I hope he will also congratulate Birmingham Youth Strike 4 Climate, which has helped to lead this campaign in our region.

It would be a misreading of economic history if the Secretary of State forgot the mission critical role of a creative, active state in making industrial revolutions happen. In our region that means we need municipal energy companies to drive forward solar in the cities, green development corporations to help us build green council houses, an office of community wealth building to target the procurement spend we put into the market each year, a national education service to make sure we have the skills, and a regional investment bank to make sure we have the capital.

Will the Secretary of State work with us to help our region be the first to become zero carbon? That is the target we would like to set because, of course, we sparked the carbon revolution in the first place.

[Greg Clark]

As the right hon. Gentleman says, the west midlands has a distinguished role not just in the history but in the future of industrial production in this country and around the world. He is right that that sense of place is important and that it is crucial the Government play an active role in this at every level. We just need to look at the success of offshore wind, which was driven, in part at least, by a framework in which private companies could invest with confidence, knowing that they would be supported.

It is open to local authorities and to companies to take decisions themselves on when they can be carbon neutral, and many have done so. I am interested to hear that the right hon. Gentleman’s council has followed suit. He knows that the west midlands industrial strategy, which was mentioned in Prime Minister’s questions, has a substantial recognition of the opportunities across the region not only for participating in solving climate change but in reaping the benefits of the technologies.

[Luke Graham (Ochil and South Perthshire) (Con)]

I welcome the announcement. My right hon. Friend will appreciate that this has policy implications right the way through central Government, devolved authorities and local government. Can he reassure the House that central Government will lean forward and engage with every part of the United Kingdom to make sure we deliver this target so that we avoid negative targets such as the zero landfill target in Scotland, which sees opportunities lost and waste shipped to northern England, and so we see positive initiatives like the international environment centre in Alloa and, hopefully, geothermal in Clackmannanshire?

[Greg Clark]

My hon. Friend is absolutely right. We have set out a global ambition, and it would be absurd if we were divided within this United Kingdom on how we achieve it. We will work together to take advantage of all the opportunities, including in Scotland, to achieve the transition we need.

[Mr Chris Leslie (Nottingham East) (Change UK)]

This is an important commitment, but will the Secretary of State make sure he publishes the impact assessment and the cost-benefit analysis so that, if we want to bring this forward to 2045, we can continue to review it and do so? Is it not a glaring omission that Brexit is not mentioned at all in this statement? There are a number of ways in which the European Union helps us to reduce carbon emissions. Will the EU emissions trading scheme continue? What will happen to the EU funding for low-carbon projects? Many of us believe that we should remain in the European Union if we want to leverage our impact on carbon reduction.

[Greg Clark]

Sometimes I agree strongly with the hon. Gentleman, and on climate matters we have a record of leading in the European Union. The legislation that was passed and the achievements we have made are in advance of other European countries. It is within the capacity of this Parliament and this Government to make the necessary changes. I want us to lead Europe, as well as leading the world.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

I warmly welcome this announcement. Will the Secretary of State join me in encouraging everyone inside and outside this House to see decarbonisation as an opportunity to be grasped, not a burden to be managed? Combining technology, particularly artificial intelligence, can lead to lower costs, economic benefits, efficiencies, cleaner energy and, of course, high-quality employment opportunities for our constituents.

[Greg Clark]

I agree with my hon. Friend, whom I congratulate on being reappointed as the Prime Minister’s envoy on engineering, which makes a huge contribution. We need to have the skills to be able to take up the jobs and to implement the changes that are being made here. Training the next generation of engineers will be crucial.

From his work on the Science and Technology Committee, my hon. Friend knows the importance of innovation in this. Innovation enjoys prominent billing in my response today, and with just cause because it will be one of the ways in which we succeed.

[Kerry McCarthy (Bristol East) (Lab)]

It is a simple fact that we cannot reach net zero without a change in diet, a radical rethink of land use, at least a halving of food waste and embedding sustainability in the food chain from farm to fork. It is all well and good for Ministers to talk about carbon sequestration from soil and planting more trees, but that is very much the safe ground. We need to see a far more ambitious strategy both from the Department for Business, Energy and Industrial Strategy and from the Department for Environment, Food and Rural Affairs to achieve the reduction in emissions from food and farming that we need to see. Will the Secretary of State start by endorsing the National Farmers Union’s commitment to reach net zero by 2040?

[Greg Clark]

I am always strongly supportive of the NFU and its work to make food and farming not only sustainable but a source of prosperity for this country. The hon. Lady is absolutely right that there are challenges and opportunities in how we use land. Across the Government, and I hope across this House, we can work together to make sure those opportunities are reaped and applied so that we can benefit from them in this country and export them around the world.

[Alex Chalk (Cheltenham) (Con)]

This is hugely welcome. A legal commitment to net zero will help to preserve our planet while encouraging the kind of tech and innovation that we can export around the world. It is hugely welcome in Cheltenham, too.

I congratulate the Prime Minister and the Secretary of State on their decisive and historic leadership on this issue. What is the plan to ensure that other countries face up to their responsibilities, too?

[Greg Clark]

I commend my hon. Friend for his well-supported Climate Change (Net Zero UK Carbon Account) Bill and for his fantastic speech in support of it, in which he urged us in this direction. It is a source of great pleasure to me that we can meet his ambitions.

We will have an early opportunity to advance this cause with our international partners and with all countries around the world if, as I hope, we succeed in hosting the next conference of the parties, which takes place next year.

[Dr David Drew (Stroud) (Lab/Co-op)]

We would not be here discussing this today if not for Extinction Rebellion and the hundreds of thousands of young people who, week after week, grabbed this issue and brought it back into the mainstream. With that in mind, and given that many local authorities have more ambitious targets, will the Secretary of State agree to include in his plan at least an opportunity to meet this target at a much earlier time?

[Greg Clark]

I have referred to the hugely important contribution that young people have made in advocating the action we are taking, and they are joined by many other campaigners in this country and around the world. The substantial report of the Committee on Climate Change, which I hope the hon. Gentleman will have a chance to study in detail, makes a proposal that is not plucked out of the air but is evidenced and referenced. In adopting and legislating for this target, we are doing so on the best possible advice. That is the best way to proceed.

[Nigel Huddleston (Mid Worcestershire) (Con)]

I enthusiastically welcome today’s net zero announcement, because this issue has an impact on us all, and especially on young people. I therefore particularly welcome the announcement of a youth steering group to advise the Government on this issue, and perhaps we could employ this model in other policy areas. When will we find out a little more about the role and purpose of this group?

[Greg Clark]

Everything my hon. Friend does is with enthusiasm. We will publish the details of the terms of reference and composition of the group in the next few days, and I hope it will meet with his approval.

[Geraint Davies (Swansea West) (Lab/Co-op)]

The Secretary of State knows that the reason for our leadership on emissions is that we have relocated much of our manufacturing to China and elsewhere, and closed our coalmines. Is he aware of the predictions of Professor Yangyang Xu, published in Nature magazine, which simply show that because there is more methane production than originally projected and less sulphur, which has a cooling effect, we are expected now to reach the 1.5° threshold not by 2040 but by 2030? In the light of that, will the Secretary of State look again at the assumptions underlying the report on which he is predicating his 2050 target, with a view to bringing that forward? Will he listen to some of the pressure groups, such as Extinction Rebellion, which want firmer action, be it getting rid of fracking, or action on wave, solar or wind, and move forward more quickly, because there is a desperate emergency and this statement is simply too little, too late?

[Greg Clark]

The hon. Gentleman is wrong in saying that the reduction in emissions comes simply from exporting our production; he does a disservice to the hundreds and thousands of men and women who work in our renewables industry and lead the world in the development of offshore wind. It is a source of great national pride and I hope he will join in that. The Committee on Climate Change is a serious and substantial body that has done an important piece of work. It was rightly established by his party when he was in government, and those on both sides of the House have respected its advice. The Committee references and is impelled by the latest climate science, which, as he says, requires a more urgent response than was previously committed to. That is exactly why it has provided this advice and exactly why we are legislating to implement it.

[Derek Thomas (St Ives) (Con)]

Cornwall was early in declaring a climate emergency, and it will be glad to hear today’s commitment, not least because of the opportunity to create well-paid, skilled jobs by doing the right thing. The Committee on Climate Change recommendations talk about a massive skilled jobs programme and we have seen the need for that today. We are talking about the roll-out of smart meters, which helps to address the climate change emergency; the need for storage, as we heard from my Cornish colleague; home efficiency improvements; and even the management of waste food. Those things all require new skills and existing skills that people do not have at the moment. Will the Secretary of State work with the Department for Education and, in particular, with the Treasury to make sure that further education colleges, which are well placed to deliver these skills, have the money and have it quickly?

[Greg Clark]

I will indeed do that. Let me give the example of the offshore wind sector deal, where one of the major commitments between the industry and government was to establish the skills needed in the supply chain to be able to create those jobs and allow the industry to flourish. This does not just apply to offshore wind; it applies across the clean energy sector. That is a good model for how to proceed.

[Wera Hobhouse (Bath) (LD)]

I, too, welcome today’s announcement. However, the Liberal Democrats are setting out more ambitious targets to achieve net zero greenhouse gas emissions by 2045, together with clear interim targets to make sure that we do not kick the can down the road and avoid difficult decisions now. Does the Minister recognise that today’s announcement somewhat contradicts Government policies on, for example, fracking, which is a fossil fuel, and on withdrawal from the European Union, which undermines international co-operation?

[Greg Clark]

No, I do not. I am disappointed that the hon. Lady seems to be speaking on behalf of the Liberal Democrats in withdrawing the support for the Climate Change Act 2008, which set up the committee to give advice to the Government. The committee has been clear in saying that the ambition of 2050 is the right one for the United Kingdom. If she reads the report, she will respect the evidence on which that is based. It is always possible—and in our exchanges we have said that the Act provides for this ability—to review that progress and for the committee to give further advice. I have said that in five years’ time we will go back to the committee to ask it for an assessment of how we are doing.

[Melanie Onn (Great Grimsby) (Lab)]

What are the Government doing to support bioenergy and carbon capture and storage technology to enable the energy estuary of the Humber to become the UK’s first net zero industrial cluster?

[Greg Clark]

The hon. Lady knows that the Humber is one of the prime areas that can benefit from the capture of carbon by the high emitters of CO₂. We have a commitment to invest in carbon capture, usage and storage, and I know that across the Humber we have a strong contender for part of that investment fund.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Last night, at the Renewable Energy Association dinner, its chair, Nina Skorupska, said that the Committee on Climate Change should be renamed the committee for climate emergency. With that in mind, this net carbon zero statement is going in the right direction. A practical step to help what the Secretary of State is talking about would be to build a 600 MW interconnector to the Hebrides, rather than a 450 MW one. That would give us 33% more capacity for only 5% extra cost, and the extra electricity it would produce would probably drop wholesale prices and even eradicate that. Given today’s statement, will he make sure that Ofgem sees the big picture and gives the 600 MW the green light? Ofgem is currently not fit for purpose in this regard, because if it keeps its blinkered formula, its policies will result not in 600 MW or 450 MW, but in net zero MW.

[Greg Clark]

I know that the hon. Gentleman is frustrated at the decision that Ofgem has taken. He and I had a successful and productive meeting in Stornoway a few years ago, as he will recall, to make it possible for remote islands to benefit from wind. He knows that Ofgem has an independent role, but I will follow up on his concerns.

[Richard Burden (Birmingham, Northfield) (Lab)]

This morning, the all-party motor group, which I chair, met a wide range of senior representatives of UK automotive companies, and there was a real welcome for the announcement that the Government have committed to net zero by 2050. However, they also noted that there is so much more to do if we are going to get there. That has to include a step change in infrastructure investment, making sure that the rapid charging points are available in the quantities and places needed, and that they are interoperable, and ensuring that the grid can cope. They also noted that we have to manage the transition more effectively, which means ending the confusion in the Government’s signals about intermediate technologies, about the regulatory frameworks to be put in place and about the kinds of incentives that can help to change consumer behaviour. In that context, may I gently say to the Secretary of State that cutting back on the plug-in car grant does not necessarily help, in a market that is not yet mature?

[Greg Clark]

I am grateful to the hon. Gentleman for conveying the support of the automotive industry, which has a crucial role to play in this transition. He is right about, and in earlier exchanges I have paid particular attention to, the importance of getting that transition right, so that it does not have unintended consequences of depriving of investment an industry that is crucial to making that change. Of course we will look at all the policy components. The plug-in grant was established and has been successful in launching an industry—or, at least, in expanding the early take-up of an industry. It was intended that it should come to an end when its budget was exhausted, but of course, through the spending review, decisions will need to be taken on how the industry can be supported in future.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

The Secretary of State was correct to refer to the important role that the Clyde shipyards played in the first industrial revolution, but of course they will also have an important role to play in the next green industrial revolution if there is an appropriate industrial strategy. That is why I am dismayed that in respect of the offshore wind sector deal that the Government announced, they buckled to the lobbying by large energy companies and diluted the requirement for 60% of manufactured content to be made in the UK down to 60% of through-life content. As a result, EDF is sending the £2 billion contract for manufacturing a wind farm off the coast of Fife to Indonesia, instead of building it in the BiFab yards that lie 10 miles away on the coast of Fife and employ 1,000 people. Will the Secretary of State address this glaring inconsistency in the offshore wind sector strategy and ensure that we maximise British manufacturing of heavy engineered products in British renewable energy projects?

[Greg Clark]

The hon. Gentleman is absolutely right that our heritage and skills in shipbuilding are now being put to use throughout the country in marine energy and offshore wind in particular, but he will acknowledge that the commitment in the sector deal was to increase UK content. That was the right ambition to establish and it was agreed between the industry and the Government, although it can of course be kept under review. We always want to see content produced in the UK, including in the very shipyards that the hon. Gentleman mentioned that were so important in our first industrial revolution.

[Dr Sarah Wollaston (Totnes) (Ind)]

I warmly welcome the commitment to net zero emissions. Does the Secretary of State agree that to help to achieve that we need to do far more to encourage people out of their cars where possible and to make more journeys by cycling or walking? We know what works to achieve European levels of cycling; will the Secretary of State commit to looking into the evidence and meeting me and the all-party group on cycling to see what further can be done to achieve those targets?

[Greg Clark]

I would be delighted to do that. I am a strong advocate and have campaigned for and achieved the establishment of some important new cycle routes in my constituency. They are a good example of something that makes a contribution to the environment as well as giving us all opportunities to enjoy the fresh air and in many cases the countryside, including in the hon. Lady’s beautiful constituency.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

My Lancashire constituents want to step up and play their role in meeting the climate emergency, including by choosing greener transport options. Will the Secretary of State look into opening disused rail lines, such as the one into Fleetwood, as part of the strategy? Does he recognise that fracking locks us into a reliance on fossil fuels for years to come? Will he review the Government’s support for fracking?

[Greg Clark]

I will of course talk to my colleagues in the Department for Transport. As the hon. Lady said, we need to look into all the options to give people a choice of how to get about that is environmentally sustainable. On gas, whether derived onshore or offshore, the Committee on Climate Change has always been clear that in the transition to net zero there is a role for gas in all scenarios. In my view, if we have a domestic contribution to that, that helps with the resilience of our energy supplies.

[Ben Lake (Ceredigion) (PC)]

The Secretary of State rightly referred in his statement to the historic opportunity before Parliament to make real progress in tackling climate change by achieving net zero carbon emissions. In order fully to realise that opportunity, will the Government reconsider existing policies—such as those relating to maximising the extraction of offshore oil and gas deposits—to ensure that they comply with the aspiration outlined this afternoon?

[Greg Clark]

As I said to the hon. Member for Lancaster and Fleetwood (Cat Smith), the Committee on Climate Change, which advises not only the Government but the House and the country on this issue, recognises the need for a transition and that gas and oil will be required in that context. As we recognise the jobs and exports generated by gas and oil, it seems to me that we should do that as efficiently as we can and with the best deployment of technology that we possibly can.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

As the Secretary of State knows, I am usually supportive of our bid to host COP 26, on which I led on a joint letter with the hon. Member for Middlesbrough South and East Cleveland (Mr Clarke) that was signed by more than 100 Members, but I am concerned that we are due to miss the fourth and fifth carbon budget targets. The explanatory notes that accompany the statutory instrument laid this morning say that the Government will leave headroom for emissions from international aviation and shipping. When will we adopt a Norwegian-style plan on aviation and shipping emissions that will eradicate those emissions and mean that we can meet our carbon budget targets?

[Greg Clark]

We have followed the advice of the Committee on Climate Change and our plans for net zero cover the whole economy, including international aviation and shipping. We await the committee’s advice on how to legislate. One opportunity that our hosting the COP would bring forward is the ability to accelerate international agreements. I hope the hon. Gentleman would welcome that.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

I join others in welcoming the legislation, but does the Secretary of State genuinely believe that the machinery of government is currently organised in such a way as to facilitate the type of ambitious policy response that we will need in this Parliament in order for the target to have credibility? He will know that we used to have a clean growth inter-ministerial group, but no such body now exists. Does he agree that, given the scale and pace of the transition required, we will almost certainly need to make changes to the institutional architecture of government to co-ordinate and drive progress across all Departments?

[Greg Clark]

The hon. Gentleman is absolutely right that we should have the best arrangement. In fact, that inter-ministerial group does exist, and my hon. Friend the Minister for Energy and Clean Growth chaired its most recent meeting just last week. The hon. Gentleman should reflect on the creation of my Department, which brought together the responsibilities for business and industry with energy and climate change, because that is a recognition that if we want, as we must, to take action to achieve the targets, we must make sure that the economy is run and companies operate in a way that supports that action. It is a practical example of just the kind of thinking and acting that the hon. Gentleman advocates.

[John Woodcock (Barrow and Furness) (Ind)]

The 2050 deadline is of course important, but anyone who has seen how Parliament is squandering its time ahead of 31 October will understand that deadlines are not sufficient in and of themselves. What is the Secretary of State going to do on two critical issues: what is he going to do to rescue the Moorside nuclear deal and Wylfa; and will he meet the team behind the strategic business case that is being put together for the plan for a tidal barrage across Morecambe bay and the Duddon, which could be transformative?

[Greg Clark]

I am happy to meet anyone who has a contribution to make, both to reducing our emissions and to achieving technological advances. On the nuclear industry, the hon. Gentleman knows that the financing of new nuclear power stations has been done commercially, and we are reviewing the financing model to see whether a different approach might address some of the difficulties that private sector investors have had in financing the scale of investment required for new nuclear. That review will report soon.

[Jim Shannon (Strangford) (DUP)]

On behalf of the Democratic Unionist party, I welcome the Government’s continuing commitment to deal with this vital issue. It is important that the United Kingdom of Great Britain and Northern Ireland does its bit to safeguard the environment for our children and grandchildren. Will the Secretary of State confirm that other countries are also committed and will do all that they can do to address the issue with equal determination?

[Greg Clark]

I am grateful for what the hon. Gentleman said; I know that he has regular discussions with the Minister for Energy and Clean Growth and is a strong advocate. Northern Ireland is one of the parts of the United Kingdom that has benefited strongly from clean energy and its deployment. We will continue that effort and I am grateful for the hon. Gentleman’s support.