Oral Answers to Questions

David Duguid Excerpts

Tuesday 14th November 2023 Commons Chamber

[Jeremy Hunt]

I think £94 billion of support to help families up and down the country, including with food prices and energy prices, is a rather different answer from saying that we are doing nothing.

[David Duguid (Banff and Buchan) (Con)]

5. What fiscal steps his Department is taking to support the growth of the energy sector.

[The Exchequer Secretary to the Treasury (Gareth Davies)]

Since March 2021, the Government have committed a total of £30 billion in public investment for the green industrial revolution. Since then, the Chancellor has announced £6 billion for clean heat and improving energy efficiency, and £20 billion for carbon capture, usage and storage. Alongside the launch of Great British Nuclear and the small modular reactor competition, the Government have also invested £1 billion in Sizewell C.

[David Duguid]

According to a recent survey, 90% of North sea oil and gas operators have reduced spending since the energy profits levy was introduced. I therefore welcome recent announcements on new North sea licences and the announcement before the summer of the energy security investment mechanism, by which the EPL will be removed when appropriate. Can my hon. Friend tell me when we can expect a response to the consultation on the ESIM and what plans this Government have to legislate for the mechanism? Will he meet me to discuss how investor confidence in our home-grown industry can be assured further?

[Gareth Davies]

Introducing the price floor for the oil and gas industry comes from the principle that, while it is right that oil and gas companies pay a higher share of tax during exceptional times, it is also right that when prices fall to normal levels, so do their tax rates. That is why we introduced the price floor in June and we have extensively engaged with the industry since then. I know that legislating will provide some certainty; we are looking carefully at that and will respond soon. I will always be happy to meet with my hon. Friend.