Fracking: Local Consent

George Freeman Excerpts

Tuesday 15th November 2022 Westminster Hall

[Helen Morgan (North Shropshire) (LD)]

I beg to move,

That this House has considered local consent for fracking.

It is a pleasure to serve under your chairmanship, Mr Paisley. I thank colleagues who have sponsored the debate, particularly my hon. Friend the Member for Bath (Wera Hobhouse), who joins me here. I was grateful to receive cross-party support for my application from colleagues from six different parties, on both sides of the House, but it is a little disappointing that nobody from the Government Benches has joined us today.

I made the application for the debate to the Backbench Business Committee some six weeks—and one Prime Minister—ago, at a time when the Government had lifted the moratorium on fracking, claiming that it was necessary to increase our domestic fossil fuel output to cut costs and increase energy security.

[The Minister of State, Department for Business, Energy and Industrial Strategy (George Freeman)]

I very much welcome the debate and congratulate the hon. Lady on securing it. I just want to make it clear that there is somebody from the Government Front Bench here: I am sitting here and listening carefully to everything she says.

[Helen Morgan]

I thank the Minister for that intervention, but I was referring to Back Benchers in my previous comment.

The former Secretary of State for Business, Energy and Industrial Strategy, the right hon. Member for North East Somerset (Mr Rees-Mogg), argued that fracking would only happen with local consent, but repeatedly declined to outline the detail on how consent might be obtained and whether it was synonymous with compensation. As I have said before, compensation is not consent, and I firmly believe that affected communities would oppose fracking in their area.

Since then, the current Prime Minister has U-turned on that U-turn. That is welcome, but with much of the Government’s 2019 manifesto abandoned, the Prime Minister pledging his own support for fracking over the summer and the Conservatives having voted to allow fracking just one month ago, I believe it is worthwhile obtaining some clarification from the Minister on the matter. I ask him to guarantee that fracking without consent is never forced on our communities, either in my constituency or anywhere else in Britain. We must prevent the Government from making yet another U-turn.

There is no mandate for fracking. It was outlawed in the manifesto of every major party in 2019 and only a tiny minority appear to believe that there is a benefit. The Liberal Democrat manifesto mentions “banning fracking for good.” “Permanently ban fracking”—the Labour party manifesto. The Conservative manifesto states,

“We will not support fracking”,

and the Green party manifesto reads

“Ban fracking, and other unconventional forms of fossil fuel extraction”.

Some 90% of the electorate voted for one of those parties. It is clear that people do not want fracking, and there are very good reasons why.

Britain cannot produce enough gas from fracking to reduce the global gas price, so it will not reduce our energy bills, especially when electricity from renewable sources is the cheapest form of energy we can produce. Investing in renewables—not only the cheapest, but the cleanest form of energy—is the best way to bring down our bills and our carbon emissions. As COP27 meets in Sharm El Sheikh and the lack of progress on the climate emergency is brought to international attention, it would be disastrous for the UK to start novel types of fossil fuel extraction. We need to find ways to keep fossil fuels in the ground, not waste effort looking for ever more inventive ways of extracting them.

The fundamental scientific evidence surrounding fracking and its safety has not changed either. Fracking is still unsafe and unproven. Last month the British Geological Survey refused to endorse fracking as a safe practice in its report for the Government. The House of Commons Environmental Audit Committee has previously warned that fracking poses a “risk to groundwater” and a

“risk of polluting surface water”,

and that the need for considerable quantities of water for fracking

“could pose localised risks to water supplies”.

This follows one of the driest summers ever; we cannot afford to take the risk.

Research commissioned by the Liberal Democrats has revealed that fracking caused 192 earthquakes in 182 days at one active site in the UK. That is more than one a day. A 2.9 magnitude earthquake was recorded near Cuadrilla’s site near Blackpool in 2019. Residents reported their shock at houses being shaken for two to three seconds. A report by the Oil and Gas Authority said it was not possible to predict the probability or size of tremors caused by the practice, so people do not want fracking for good reason. When they have had the opportunity to express their opposition, they have done so in numbers.

When fracking was last proposed at Dudleston Heath— a small village near Ellesmere in my constituency—a huge number of residents rapidly organised opposition to the proposed site. One constituent who led the protest said that they

“crammed about 300 people into the village hall”

in a public meeting about fracking. At the end of the meeting, a show of hands was requested, and he reported that

“everyone bar one person was against”

fracking.

Lovely as they are, I doubt whether the views of people in Dudleston Heath and Criftins are unique, and every MP in a potentially impacted area has had countless emails from constituents opposing the plans. Furthermore, the huge number of well-organised grassroots community groups that have cropped up across the country is evidence of a groundswell of opposition to the fracking plans.

We also saw well-organised opposition on a national level in the well-publicised campaigns by organisations such as the Campaign to Protect Rural England and Friends of the Earth, signalling the depth of support among many who do not live anywhere near one of the proposed sites.

In North Shropshire, a licence exists covering a small area of land by the Cheshire border, but whose impact zone extends to the market towns of Whitchurch and Market Drayton. There was huge concern in October when the then Secretary of State for Business, Energy and Industrial Strategy, the right hon. Member for North East Somerset, said in response to an urgent question that

“the moratorium on the extraction of shale gas is being lifted”.

He also said, in response to a question from me:

“Compensation and consent become two sides of the same coin. People will be able to negotiate the level of compensation and it will be a matter for the companies to try and ensure widespread consent by offering a compensation package that is attractive.”—[Official Report, 22 September 2022; Vol. 719, c. 790-95.]

I find the suggestion that anyone will agree to something if they are paid enough slightly odd, although perhaps I am being a little idealistic, but I also believe that if the Conservatives refuse to impose an outright ban on fracking, a valid consent process must be put in place now to protect local communities in the event that the moratorium is lifted in future.

I propose a local referendum process—not just for those in the area covered by the fracking licence, but for the people living in the surrounding impact zone. When a council was approached for planning permission, it would have to gain the express consent of those in the affected areas before granting such permission. That should follow a period in which the full facts of the impact on the area were not only publicly available, but actively communicated to those affected. The planning inspector should not be able to overrule the decision reached in the local referendum and the subsequent council planning committee decision.

Local councils have been impacted by the cost of living crisis and are struggling to balance their budgets as it is, with many reporting financial distress, so the cost of administering those public information campaigns and subsequent referendums should not fall on the local council, or indeed the local taxpayer, but should be met by the company making the planning application. An application to exploit the resources of the British countryside should in no way be foisted on the taxpayer, but should be met by the companies that are making huge profits as a result of the global gas price. Will the Minister comment specifically on those suggestions for safeguarding communities that could be impacted by fracking in the event of a further Government U-turn?

Local communities affected by fracking have already expressed their opposition to the lifting of the moratorium; so, too, have the vast majority of the British people, who in 2019 voted for parties that opposed fracking in some form or another. Fracking simply will not bring down our energy bills, and if we are to address the energy problems the country faces, we must rapidly invest in renewable energy sources. The science has not changed either, and fracking is just as unsafe and unreliable as it was three years ago. I would welcome the Government’s confirmation of that point.

Given that the Conservative moratorium has been demonstrated to be fragile and temporary in nature, and that the Prime Minister pledged to overturn it in the summer leadership campaign, and given that Conservative MPs voted in favour of lifting the moratorium only a month ago, it is essential that a watertight process of local consent be put in place. If Conservative MPs will not pledge to honour their manifesto commitment and keep the ban on fracking, we must safeguard our communities from this unnecessary, disruptive and dangerous practice.

--- Later in debate ---

[The Minister of State, Department for Business, Energy and Industrial Strategy (George Freeman)]

It is a great pleasure to serve under your chairmanship, Mr Paisley, in the absence of the Minister for Climate, my right hon. Friend the Member for Beverley and Holderness (Graham Stuart), who is dealing with these very issues at COP27 today. I congratulate the hon. Member for North Shropshire (Helen Morgan); she is a very exciting new Member of Parliament, and she has done well today in bringing this issue to the attention of the House.

As somebody who was as concerned as everyone else here that the very short-lived Administration that took office in September flirted with the idea of lifting the 2019 Conservative moratorium on fracking, I am delighted to say that that policy has very clearly been reversed by the Prime Minister. To say that this horse has bolted is to liken Shergar to a beach pony; the issue is well and truly put to bed. I will deal with the points that hon. Members have made, but it gives me great pleasure to make it very clear that this Prime Minister, the Cabinet, the Secretary of State, and the Minister for Climate—in fact, this whole Government—have returned to our position in the 2019 manifesto, which was an effective moratorium on fracking.

Furthermore—this may go some way towards answering the point made by the hon. Member for Bristol East (Kerry McCarthy)—Ministers are taking a presumption against issuing any further hydraulic fracking consents. I accept that for a month or two, all sorts of horses were running wild around the beach, but the position is absolutely clear. For those listening, and for the 18,000 people who signed the petition, let me be very clear: the Government are not about to open up the UK fracking market. We are back to the position that we set out in 2019.

I thank those who have spoken today. It is a great pleasure to see the hon. Member for Strangford (Jim Shannon); I know I am in the right room when I see him here, assiduous as ever. I also thank the hon. Members for East Londonderry (Mr Campbell), for Bath (Wera Hobhouse) and for Bristol East. I will deal with the points that have been made and with the broader context in which we need to view this issue. I will say something about the energy supply market, something about gas and something about local consent. Members have raised some important points about the role and the mechanisms of local consent in these sectors, in relation not only to gas but to all critical national infrastructure and other renewables.

Let me start by setting the scene. As someone who has been in this House for 12 years and has been watching it for about 30, I think it is fair to say—I can see that colleagues around the House feel the same way—that, as a country, for decades we have rather taken energy for granted. Until about 15 years ago we presumed it was something that would always be there, very cheaply, at the flick of a switch, and we did not have to worry too much about it. That position has changed, rather belatedly but dramatically, in the last 15 years. I pay tribute to the last climate change Minister in the Labour Government before 2010, who started a profound acceleration of our leadership on net zero. I am proud that the Conservative-Liberal Democrat coalition between 2010 and 2015, and then the Conservative Government, have taken that forward. Our leadership on net zero has come on leaps and bounds.

The scale of that success bears repeating. Since 1990, we have managed to grow the economy by about 40% and the net zero sector by around 70%. We have managed to demonstrate that it is possible to have green growth. There has been extraordinary progress. I accept, as I think everyone does, that as a country we were late to this. However, low-carbon electricity now gives us around half of our total generation, we have installed 99% of our solar capacity since 2010, the onshore wind industry is already generating over 14 GW and is happily accepted around the country—onshore wind is cheap—and we have put £30 billion of domestic investment into the green industrial revolution. Those are figures that, even 15 years ago, one might have been surprised to see. This country is genuinely leading in making the big transitional investments to move to net zero.

Of course, in the last 18 months, the pandemic and the appalling situation in Ukraine have triggered a cost of living crisis and, in particular, a cost of energy crisis globally. That has reminded us of the importance of having resilient supply chains and ensuring that we are not vulnerable to hostile actors internationally, or to supply chains in which we can be held to ransom.

[Wera Hobhouse]

The Minister talks about the UK’s leadership in renewables, which is positive. Should there not be a Government ambition to be an exporter of renewable energy, since we have so many opportunities to share that with Europe? Is that not a brilliant opportunity when we are talking about global Britain and its leadership in renewables?

[George Freeman]

The hon. Lady makes an excellent point. Indeed, that is why the former Prime Minister, my right hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson), used to refer to the southern North sea as the Saudi Arabia of wind energy. That is precisely our ambition. First, we need to ensure that we can meet our own domestic energy market needs.

The hon. Member for Bath makes a crucial point for me very well, which is that we are in a global market and global energy demand over the next 20, 30 and 40 years will rise. It is not just a question of moving our existing energy demands to renewable supplies, vital though that is; it is also about developing the renewables of the future and contributing globally. As Minister for science, research, technology and innovation, I can say that we are investing heavily in small nuclear, in fusion, in marine and in geothermal, because we see a huge opportunity for the UK to be in the vanguard of the renewables and clean energies of tomorrow.

[Jim Shannon]

I thank the Minister for his detailed, helpful and comprehensive response. I read in the paper over the weekend about some of the innovation across the world on which we can interact with others. I understand that Morocco has an abundance of green energy, and, if the press are correct, that discussions are taking place between the UK Government and the Moroccan Government to export that green energy to the United Kingdom by an undersea channel. Is the Minister aware of that and if he is, could he elaborate on it?

[George Freeman]

The hon. Member has made an important point. I will not attempt to answer it because I am not the Minister for Climate, but I will flag it with him and ask that the hon. Member gets a proper answer.

As well as our groundbreaking leadership in the transition of our existing energy system to net zero supply, we are investing heavily in the technologies of tomorrow to ensure that we can be a global player in the great challenges we face. Agriculture and transport are the two biggest industries after energy that generate and use the most carbon and greenhouse gases, and we are hugely advanced in research and development in those sectors. I say that as a former Minister for future transport and for agritech. This country has a huge opportunity as part of the science superpower mission to generate solutions that we can export around the world, and I am proud of what we are doing.

Given the crisis in Ukraine and the extraordinary pressures on everybody this year when it comes to paying their energy bills, the Government made a huge commitment to cap those energy bills and provide support, but it is right that our customers—the constituents we serve, taxpayers, households and businesses—would expect any responsible Government to look at whether there are easily and quickly accessible supplies of clean gas in the UK that could be extracted in a sensible and environmentally satisfactory way. People would think it was daft and weird if we were not prepared even to look at doing so in such a context. But let me be clear: that cannot in any situation go against our own environmental commitments, the environmental advice we have received or, crucially, local consent. As others have said, the British Geological Survey has made it crystal clear that there is no evidence to suggest that fracking can be pursued in any way that would pass that test. Again, I am delighted to repeat how pleased I personally am that we—the Prime Minister, the Cabinet and the Government —have made it clear that we are back to our 2019 effective moratorium.

[Helen Morgan]

Given that the Government are happy to express their commitment to stopping fracking, would they be willing to put that into legislation so that we do not always have a shadow of doubt hanging over us that the issue might raise its ugly head again?

[George Freeman]

I hear the hon. Member; she has made her point and put it on the record. I am slightly adverse to the idea that we put into legislation every single thing that we are not going to do. We would be here an awfully long time to reassure everyone. I am not sure that that is a sustainable way for Parliament to proceed. The Prime Minister made it clear through the written ministerial statement to the House, and the sector and community generally have understood that the idea mooted in September is now dead and buried, and we will not go back there.

I turn to the important point regarding local consent, which a number of colleagues have made. There is little I can say about pockets of local consent in particular areas. With regard to the situation in North Shropshire, in response to which the hon. Member for North Shropshire partly brought forward this debate, the licence for fracking that would potentially impact the Market Drayton and Whitchurch area is an indicative licence. No work has been done and no application for work has been received. In the light of the announcement of the return to the 2019 position, it is difficult to envisage any situation in which that licence could be of any use. I reassure her that we are not expecting any activity in that area.

We all—and the Government certainly—recognise that community support is important. We generally want planning to be something that is done through and with local communities, not to them. Some sort of balance is always required. Obviously, there is a huge difference between a loft extension and the siting of a huge piece of critical national infrastructure. However, a good developer will and should always engage with the local community and listen to real concerns.

I have seen consultations in my area where concerns have been expressed but have not been listened to or reflected in the proposals, and no change has been made to anything that was promoted. That often drives the view of sham consultations, in which people are not being heard. We need to be wary of assuming a one-size-fits-all approach would work for local support. Difficult though it is to see how this would take off, we have left open the possibility that if an area—north, south, south-west, Scotland or Northern Ireland—found itself sitting on an easy and geologically stable opportunity to exploit shale gas and came to the Government with strong local consent, strong environmental data and a strong business and environmental case, the Government would consider it. That is very different from us setting an ambition and encouraging this industry around the country.

My constituency is home to the first two major substations, connecting the first two offshore wind farms in the southern North sea. As the local constituency MP, I watched as the scheme promoter came forward with a proposal for a substation, which I naively thought 10 years ago was a thing the size of a shipping container that hums behind a yew bush, but this thing is the size of Wembley stadium and its proposed location was on top of a hill, so the whole of Norfolk could see this huge piece of industrial development. I was not against hosting the substation in Mid Norfolk, but through decent consultation with the company, we ended up siting it in low-lying ground, out of sight, with minimal light and visual impact.

For our thanks, we have had another one; we now have two next to each other in Mid Norfolk. It is critical infrastructure, although if we were better connecting all the offshore wind farms, we could reduce the need for individual substations and cabling all across the Norfolk and Suffolk coast. The Minister for Climate is looking into that, because it would support the infrastructure for trading out of the southern North sea. I have seen at first hand that communities are often not properly consulted. As other hon. Members have said, without in any way opening up the risk of community benefit creating an opportunity for some sort of inappropriate payments to buy consent, I believe it is important that when a village is hosting two vast pieces of national infrastructure, it might get a park bench or some swings or something from the developer, which is making a huge amount of money.

There is a difficult balance to strike, but we all know good consent and good consultation when we see it. We know when a company is listening and when a community has been properly heard. I do not think that has been the case often enough and I am delighted to have the chance to put that on record.

[Kerry McCarthy]

I thank the Minister for giving way and engaging so much in the debate. There are question marks around where the Government are going with planning. I believe investment zones have been dropped, but I am not sure where we are on fast-tracking things, and bypassing planning permission and local consent. I will leave that for another day. What I want to ask him is this: I understand what he said about a hypothetical situation where fracking was proven to be safe, the local community wanted it and so on, but why is that not the case for onshore wind? If a local community would clearly benefit from onshore wind, why are they not allowed to have it?

[George Freeman]

I do not want to steal the thunder of my ministerial colleague, my right hon. Friend the Member for Beverley and Holderness, who is looking at that issue right now. The pandemic and the war in Ukraine have revealed that we are exposed on a number of our food and agricultural supply chains. We need to get the balance right between covering far too much of our agricultural land and equally making sure that where communities can carry industrial sites, we have the right incentives in place.

[Jim Shannon]

We have had a number of debates in Westminster Hall on that very issue. Others who have spoken on that have said that key agricultural land needs to be retained for food production, and all the more so because of the food supply crisis across the world and the Ukraine war. With great respect, I believe there has been a consensus that highly productive agricultural land needs to be retained for that purpose alone.

[George Freeman]

The hon. Member makes an important point, which I personally agree with and the Government are sensitive to. Again, our constituents would think it perverse if, at the very time when our exposure to international food supply and agricultural supply chains has been exacerbated by the war in Ukraine and the pandemic, we were then to decide to take out of productive capacity huge areas of agricultural land. Agriculture is a great British industry and the agritech sector is developing net zero technologies that allow us to do clean and green agriculture. We do not want to undermine that industry.

[Wera Hobhouse]

The Minister is being generous in giving way. Is it not time that we busted some urban myths about solar panels and where they go? Most of the time they go on land that is not suitable for agricultural use other than, for example, sheep grazing. Is there not a myth about where we are putting these solar farms?

[George Freeman]

I am not sure it is a myth; it is a mixed bag. There are areas where solar has been deployed very effectively, with happy sheep grazing around it and very little reduction in the productive capacity of land. I do not want to stray beyond my brief—I am not the Minister with responsibility for energy—but equally there are in my part of the world, in the east of England, proposals for huge, industrial-scale solar on good productive farmland. In the spirit of the question from the hon. Member for Strangford, I think a lot of people are worried about those proposals.

[Kerry McCarthy]

I was asking about onshore wind, not the solar issue. With solar, there is the question of how the Government classify the best and most versatile—BMV—land. I totally agree with the hon. Member for Strangford that genuine BMV land should not be used for anything other than growing food, but I asked about onshore wind. Onshore wind does not always need to be put on farmland; there are lots of other potential sites.

[George Freeman]

The hon. Lady makes a very important point. In some ways, the two are linked, because there are plenty of examples of deployment of solar and wind onshore that do not undermine the productive capacity of land or the attractiveness of the area. Opinion polls show that if they are properly deployed in the right areas with the right consultation and consent, onshore measures can be popular. My right hon. Friend the Minister for Climate is considering whether there is more we can do to tackle this short-term energy crisis in a way that does not create a problem for us downstream.

I should wrap up; I have strayed beyond my core brief as the Minister for science, research and innovation. Let me close by giving all those watching this debate around the country clear reassurance that the Prime Minister, the Cabinet, the Government, the Secretary of State and the Minister for Climate have taken us back to the position set out in our 2019 manifesto, of which I was proud: an effective moratorium on fracking. We have made it clear that Ministers are not looking to open up fracking to support the crisis in our energy sector. I hope that message goes forth, loud and clear around the country, to those who were understandably worried back in September. They no longer need worry about that at least.

Britain’s Industrial Future

George Freeman Excerpts

Tuesday 15th November 2022 Commons Chamber

[The Minister of State, Department for Business, Energy and Industrial Strategy (George Freeman)]

It is a great pleasure to serve in this debate and to have my first outing at the Dispatch Box as the returned Minister for science research, innovation and technology at the Department for Business, Energy and Industrial Strategy—a name written proudly on the side of the building—in order to refute the litany of woe and failure that those on the Opposition Benches love to reel out, to paint a picture of a British economy that the businesses around this country would recognise and understand, and to set out in some detail the plans we have to support not only the industries of today, but the industries of tomorrow, for which this country is leading in creating the framework globally.

I look forward to a good debate, not least about the depression of the Opposition’s motion, which says very little about their own positive plans to develop an industrial sector for the 21st century, but simply looks to print a cheap leaflet for distribution on the doorstep. We can do better than that, and I hope that we will this afternoon.

As Minister for science, research and innovation in technology, my mission is to make the strategic shift in this country’s economy. The Labour party, in its long period in office, seemed to delight in—I remember the “Deputy Prime Minister” saying he was profoundly relaxed—all the deregulation in the City, the move to a service economy and deindustrialisation. This Government are absolutely committed to taking the crash of 2007-8 under the Labour Government, the difficult fiscal situation afterwards, the pandemic and the emergency in Ukraine as the wake-up call that they are to invest more in our industries of tomorrow and today, to develop our industrial resilience, to support the R&D for tomorrow’s sectors, and to support our leadership in net zero. I would like to think that the Labour party would celebrate that. The truth is that British industry is leading the way in net zero in this country, and that is something we should be proud of. I will come to the detail of that in due course.

[Grahame Morris (Easington) (Lab)]

Will the Minister give way?

[George Freeman]

I will make some progress in my opening remarks and then I will give way to the hon. Gentleman.

In my specific role and portfolio, my job is to support the industries of tomorrow. In life sciences, I set out with the then Minister the first 10-year life science strategy in this country. We launched the genomics programme, NHS digital and accelerated access, and we laid a lot of the foundations for this country’s success in the pandemic. Last year, we launched a 10-year space strategy for commercial leadership in the space sector, and we are now in the process of implementing it.

We have set out a 10-year plan for fusion, and we are investing, through the UK Atomic Energy Authority, in the ground-breaking technology at the Culham Centre for Fusion Energy. We announced this summer that we are moving that to Nottinghamshire and creating the world’s first industrial deployment of fusion technology at commercial scale over the next 10 to 15 years.

We are setting out a quantum strategy. On Friday, I was with the quantum industry, which is applauding us; we are No. 1 in Europe in the quantum industry and investment. That is a partnership between big companies—Toshiba, BT, BAE Systems and many others—and our very fertile ecosystem of small companies and universities. Similarly, I was proud, as the then Minister, to launch the UK’s first industrial strategy for agri-tech.

Forgive me, then, if I do not take any lectures from the Labour party on the lack of an industrial strategy. Far from it, the former Member for Hartlepool and “Deputy Prime Minister” paid tribute to the Conservative party, to me, the then Chancellor and the then Minister, David Willets—who is now in the other place—for leading the thinking on a modern industrial strategy for a modern economy.

In truth, in the last few years that work has inevitably been interrupted, first by the pandemic—I am proud that the Conservative party put in £400 billion of business support for industry—and secondly by Ukraine, which has been a wake-up call to the world about the resilience of industrial supply chains. We have worked head and shoulders in the last year to beef up those industrial supply chains to protect British industry from that vulnerability, and we continue to do so.

[Grahame Morris]

rose—

[Alex Cunningham (Stockton North) (Lab)]

rose—

[George Freeman]

Let me finish this point.

Thirdly, the tightening of the global energy markets has hit many energy-intensive industries hard. We have announced £25 billion of support for the next six months. That is far from the doom and gloom of the motion, which, for anyone who reads it, paints a picture of this Government having no strategy or policy for industry, which is complete rubbish.

[Grahame Morris]

I am grateful to the Minister for giving way on doom and gloom. There was a mention earlier of fleet solid support ships, which we on this side of the House have argued for many years should be built here for strategic reasons, with steel manufactured here.

May I ask about rail and the home of the railways in the north-east? In my constituency, Vivarail—a world-beating, self-charging all-electric train manufacturer—is starved of Government support and investment. It could be a beacon for the future, so why is it not on the Minister’s list of shining examples?

--- Later in debate ---

[George Freeman]

The reason it was not on the list is that I was listing all the industries of tomorrow. I will come to the specific points he makes. The biggest customer for steel in this country is our rail sector, and we are proud that the UK rail industry, into which we are pouring an unprecedented level of investment, is a major user of British steel. I will come to the steel industry in a moment.

The motion paints a picture of doom and gloom and the collapse of manufacturing. It is time to put that stale old Labour trope to bed. The UK is still the ninth biggest manufacturing country in the world. Manufacturing this year contributed £205 billion in gross value added to the UK economy. We are the fourth largest manufacturing economy in Europe, supporting almost 2.5 million jobs.

Under the last Labour Government, manufacturing jobs had been haemorrhaging. We stopped that in 2010 and, through major investment of the sort that I just set out, we have turned around this country’s manufacturing sector, which is now much more advanced. Again, I am surprised that Labour Members are not congratulating us on that. Manufacturing jobs were collapsing in this country, but 84% of manufacturing now takes place throughout the country, outside London, not just in the old industrial belt, but in the space economy in Cornwall and in Glasgow—I thought that Scottish National party Members would cheer that. There is the north Wales energy corridor, the south Wales compound semiconductor cluster and the Warwick robotics cluster. Our manufacturing economy is highly advanced, highly competitive and decentralised.

[Grahame Morris]

rose—

[George Freeman]

I will come to steel, shipbuilding and automotive shortly. I had not mentioned the hon. Gentleman’s rail point because I was highlighting the industries of tomorrow.

[Stephen Kinnock (Aberavon) (Lab)]

Does the Minister know how many tonnes of British steel there are in a single wind turbine, onshore or offshore, in our country?

[George Freeman]

I do not have that figure at my fingertips, but I have a funny feeling that the hon. Gentleman does. The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) will respond on that later.

[Paul Howell (Sedgefield) (Con)]

The Minister has talked about the space and science-led businesses around the country. On the north-east, in response to the hon. Member for Easington (Grahame Morris), we should not forget the tremendous things that are happening at NETPark in Sedgefield.

[George Freeman]

Indeed, fantastic things are happening at NETPark. One would think that the Labour party, which dominated County Durham politics for decades and seemed to indulge in the poverty up there, would celebrate the phenomenal turnaround in the north-east. It is one of our leading manufacturing regions. NETPark is home to Kromek and Newcastle is home to QuantuMDX. That is a great story of British manufacturing driving an advanced economy in the areas that were blighted by painful deindustrialisation. I am proud that the Conservative party is in the vanguard of that.

[Alex Cunningham]

There is no doubt that we have new manufacturing to celebrate in the north-east, but Teesside’s steel industry is a shadow of its former self. It has a few hundred jobs, instead of the many thousands that existed a few years ago, before the Government abandoned us. Does the Minister agree that we should invest in Teesside steel now and use its product for the new industry jobs that we are promised?

[George Freeman]

That brings me to steel, and the hon. Gentleman makes an important point. There has been real pressure on the steel industry in the past 15 to 20 years. Global economic conditions are hugely challenging for all domestic steel sectors. There has been massive overcapacity, unfair overseas subsidies and steel dumping. The real issue is that global steel production has more than doubled since 1995 and China is by far the biggest contributor to that growth. In 1995, China accounted for 13% of the world’s steel production. By 2019, that had risen to 53%. There has been a phenomenal change in the global steel market.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I have been in this place 10 years today and I have worked with my local steel company since I was first elected. It has consistently raised the same issues with me: competitive electricity prices for the green steel it produces and ensuring that the industries of the future, particularly green industries, use UK steel. What exactly have the Government done to ensure that prices are competitive and that UK steel is used in those green industries? They have not done enough.

[George Freeman]

The hon. Gentleman makes an important point about the challenge. We have done a lot—let me share that with him.

[Stephen Doughty]

On the specific point.

[George Freeman]

I will deal with the specific point. Our ongoing support for the steel industry this year includes more than £800 million in relief for electricity costs, in addition to the energy bills relief scheme. The sector can apply for help with all sorts of energy efficiency, with decarbonisation and low-carbon infrastructure. More than £1 billion is available in competitive funding for the industry in that sector alone.

[Several hon. Members rose—]

[George Freeman]

Let me just deal with this point.

We are investing more than £600 billion to transform our country’s infrastructure—roads, rail, broadband and more—and we plan to procure 8.5 million tonnes of steel as part of that over the next decade; the hon. Member for Cardiff South and Penarth (Stephen Doughty) touched on procurement. We published an updated steel pipeline in June 2020, to help the industry plan ahead. The value of UK steel procured by the Government for major public projects in 2021, which I checked before coming to the debate, was £268 million—an increase of £160 million from the previous year. The steel procurement taskforce, which we set up as a joint working group between Government and the steel industry, published seven recommendations in February this year, and those are being implemented through updating the Cabinet Office procurement policy note. As the hon. Member will see—he asked a good question—we are taking serious steps on procurement.

In 2021, the Secretary of State for Defence acquired specialist steel producer Sheffield Forgemasters, with £400 million of investment over the next 10 years, and Sheffield Forgemasters is working with other companies, including Rolls-Royce and the Canadian company General Fusion, on the development of nuclear power generation. In March this year, we successfully secured an expansive removal of US section 232 tariffs on UK steel and aluminium products, which means that UK steel and aluminium exports to the US can return to levels not seen since before 2018. We have also extended our steel safeguard measures for a further two years. I simply do not accept, and I do not think anyone listening to the debate would say, that the Government have done nothing and are doing nothing on procurement. It is simply not true.

[Andy McDonald (Middlesbrough) (Lab)]

I am grateful to the Minister for giving way. I have heard what he has to say, but what does he say to the people of Teesside about his Government’s inaction in 2015? The Italian Government intervened at the Ilva plant in Taranto and came to the rescue of 25,000 workers. The French did the same in Florange, but this Government did absolutely nothing to protect our core industries at Redcar—and we have not forgotten it.

[George Freeman]

I would point out that last week, Green Lithium announced the UK’s first large-scale merchant lithium refinery and the first such refinery in Europe, to be built in Teesport, supported by the automotive transformation fund.

[John Penrose]

I want to ask the Minister the same question that I asked the hon. Member for Sefton Central (Bill Esterson) about a potential solution to the problems of high electricity costs faced by energy-intensive industries such as steel, which we have been hearing about from Opposition Members. Would a carbon border adjustment mechanism, which the Government have already consulted on and committed to in principle, help to level the playing field between British energy costs and those abroad, therefore making British heavy industry—particularly energy-intensive industries—far more competitive on the international stage?

[George Freeman]

My hon. Friend, as ever, makes a very interesting policy observation; as Minister for science, I will not accept it at the Dispatch Box, but I will raise it with the Ministers for industry and for energy.

[Alan Brown]

The Minister mentioned nuclear power. He heard what I said about costs earlier, but it is also reported that the Government are taking a 20% share in Sizewell C. Does that mean the Government are going to borrow £5 billion or £6 billion to pay for their 20% share of Sizewell C?

[George Freeman]

How interesting to hear the SNP take issue with—[Interruption.] The hon. Member asked the question, so I will answer it. We are determined to make sure that, unlike parties on the Opposition Benches, we invest properly in new nuclear in this country, so that we have a resilient, clean and secure energy system. If that means an active industrial strategy to ensure we are able to do it, we are doing it. It would be nice to hear the SNP Government in Scotland take a similar approach to their future and to nuclear in this country, which is vital for the next few years as we get through this global tightening in energy.

[Peter Grant (Glenrothes) (SNP)]

Will the Minister give way?

[George Freeman]

No, I shall make some progress on this point about the automotive sector, which is also mentioned in the motion. The UK’s auto sector is hugely competitive globally. It is export-focused and has a very strong research and development base. In the last 20 to 30 years, it has transformed from what it was in the 1970s to a highly competitive and technologically advanced R&D-based sector. It is also in the vanguard of the transition to net zero, and the UK is well placed to seize those opportunities because of the Government’s efforts, as we are pursuing an active industrial strategy for net zero in industry.

The automotive-related manufacturing sector is worth £58 billion to the economy and typically invests around £3 billion each year in R&D—£3 billion in R&D from the sector alone. There are 155,000 people employed in automotive manufacturing in the UK in 2021. That is 6% of total UK manufacturing. [Interruption.] Opposition Members may laugh about the success of the British automotive sector, but this is a tribute to business and industry adaptability and the Government’s partnership in setting out a framework for the net zero transition.

Decarbonising transport is already starting to create thousands of jobs in green industries. The production of net zero road transport vehicles is on track to support the development of 72,000 jobs worth up to £9 billion to the economy. The Government have proven loud and clear that we can deliver a green transition and growth—something that all Opposition parties bitterly insisted was not possible.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

The Minister talks about the decarbonisation of transport. Of the 4,000 buses that the former Prime Minister, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), promised nearly three years ago, how many are currently on the road in England?

[George Freeman]

I will have to check the exact number. I am surprised that the hon. Gentleman did not mention Aberdeen’s leadership. With our support, Aberdeen is a hydrogen hub and there has been the creation of hydrogen hubs in Teesside, Harwich and all around the country. We are investing in another industry of tomorrow—green and blue hydrogen. His question is revealing. The motion suggests that the Government are doing nothing at all about hydrogen, but far from it. We are investing in the infrastructure for the hydrogen of tomorrow.

[John Redwood]

Is there a danger that the UK could end diesel and petrol vehicle production too early compared with competitors—before we have a large electric car industry up and running? Would that not be bad news for our industry?

--- Later in debate ---

[George Freeman]

My right hon. Friend makes an important point about ensuring that, as we lead on the delivery of the net zero automotive sector, we get the balance right, so that we are not unrealistically expecting consumers to make the transition too fast or, indeed, undermining our leadership in that sector. That is a fine balance that the Government are committed to striking. We are determined to lead the way in demonstrating green growth in pursuit of net zero, but we want to ensure that we capture the industrial leadership in that sector.

In the automotive sector, we have again made significant investments. We have invested more than £1.2 billion to support innovative projects through the Advanced Propulsion Centre. The projects that it has funded have helped to create more than 50,000 jobs and save 277 million tonnes of carbon dioxide. Last month, we announced a record £200 million for the Faraday battery challenge. We have worked closely with Nissan and just announced a £1 billion investment to create a north of England electric vehicle hub in Sunderland that will safeguard 6,500 jobs. There have been investments of £227 million in Ford in Halewood, more than £100 million in Stellantis at the Vauxhall plant in Ellesmere Port, and £2.5 billion in Bentley—those are major investments from an industry that is growing in this country with Government support. It would have been nice to hear the Opposition at least pay tribute to some of that success.

In the EV supply chain, we are actively investing in pursuit of our industrial strategy for green growth. The active travel fund has supported that £1 billion electric vehicle hub. We have also supported Pensana’s £145 million investment in East Yorkshire. Through the ATF, we recently supported a £60 million investment to develop hydrogen technologies with Johnson Matthey. Far from the Government abandoning our commitment to industry, we are doubling down on our commitment to help the existing industries of today to make the transition, and to support the industries of tomorrow.

The shipbuilding industry in this country, which Opposition Members suggest has been decimated, actually employs 42,500 people and is worth £2.8 billion. It is a major sector. Naval orders through the Government remain an important driver of its prosperity. In 2020, the Ministry of Defence spent £3.8 billion on shipbuilding and repair, which directly supported 22,000 jobs around the economy. Over the last decade, we have seen once great names in shipbuilding, such as Harland & Wolff, struggle, which puts that heritage at risk. Under the ownership of InfraStrata, however, Harland & Wolff is now strong again; that resurgence is part of a general trend of global consolidation in the industry.

We have seen how the symbiosis between MOD, naval and commercial buildings brings improved competitiveness, as businesses such as Cammell Laird deliver large commercial vessels alongside the Royal Fleet Auxiliary commitments. I am proud, as the Minister for Science, that the royal research ship Sir David Attenborough is one of the ships that has been built of British steel. The commissioning and delivery of the new aircraft carriers has been a massive shot in the arm. At the same time, we have seen big advances in key technologies, such as aluminium hull design and the application of robots for automated welding. That programme is also driving technological leadership. In 2019, ship boat repair maintenance was worth £2.6 billion to the economy.

I do not think it is fair to suggest, as the motion does, that this Government have neither an interest in industry nor a policy for industry, and that we are abandoning industry—far from it. Not only are we helping our key industries deal with massive global challenges—the pandemic and the energy crisis—but we are actively pursuing an industrial strategy for the industries of tomorrow, and that is actively supporting clusters all around the country to drive levelling up and opportunity. It would be nice to hear the Opposition parties at least pay some tribute to the success of that private-public partnership and to the success and resilience of British industry.

[Several hon. Members rose—]

Public Ownership of Energy Companies

George Freeman Excerpts

Monday 31st October 2022 Westminster Hall

[The Minister of State, Department for Business, Energy and Industrial Strategy (George Freeman)]

It is a great pleasure to serve under your chairmanship, Mrs Murray. May I take this opportunity to say what a pleasure it is to be back on the Front Bench after the turmoil of the last few months?

Let me first congratulate the hon. Member for Linlithgow and East Falkirk (Martyn Day) on securing the debate, and David and the 100,000 public petitioners who triggered it. As an open democrat, I welcome the fact that the public are able to trigger debates. It is important that we respond, and I am glad that the public will be able to see the response both in real time and recorded. I thank hon. Members for their contributions, and I am grateful to all those who have taken an interest in the topic.

The petition received over 100,000 signatures and calls on the Government to do two things: to set out a coherent 25-year plan for UK energy security and strategy, and to take back ownership of our strategic energy assets. As the Minister for Science, Technology, Research and Innovation in the Department, I am delighted to be replying on behalf of the Minister for Climate, my right hon. Friend the Member for Beverley and Holderness (Graham Stuart).

Let me put everyone out of their misery of expectation and anxiety about what I might say. I absolutely agree that we need a 25-year coherent plan for energy, which is why the Government have put just that in place. I also agree that we need to think much more strategically about our energy security resilience and energy economy, but the Government do not agree that nationalisation is the right way to achieve the objectives that many, but not all, of us share. I say that not in the spirit of complacency at all.

It is fair to say that successive Governments over the last 40-odd years have taken cheap energy rather for granted, and have not foreseen the urgency of decarbonising our energy supply nor the geopolitical perils of being dependent on overseas suppliers, often from hostile or unsavoury regimes.

[Margaret Greenwood]

rose—

[George Freeman]

I will just finish this list, if I may. I approach this issue with no ideology, either. All parties have had their problems in the past: in the ’60s and ’70s Labour was rather heavily dominated by the union barons, and the nationalised industry did not do nearly enough to promote innovation. I notice no Liberal Democrat Members here; theirs and the Scottish National party’s tribal opposition to nuclear leaves them playing one-club golf. I do not think there are any easy solutions to this issue, but I do not want to dismiss the urgency of the problem.

[Margaret Greenwood]

The Minister is talking about a 25-year strategy. Given that we are facing a climate emergency, could he explain what the thinking was, and presumably still is, on allowing companies to shield 91% of their profits from a windfall tax designed to tax profits? That means that they are able to invest those profits in fossil fuels.

[George Freeman]

I will happily set out the explanation for our position, which I think will deal with that point. If it does not, I am sure that the Climate Minister will want to follow up with the hon. Lady. We profoundly believe that the way to deliver a low carbon, net zero, sustainable, resilient British energy market and supply chain is to harness the market—the enterprise, the investment, the leadership and the management excellence of the free market—but not in an untrammelled way. I will set out in a moment how our approach is not at all about the free market but about harnessing the market with a lot of regulations, shape and structure, harnessing the genius of the market to public ends. That is a fundamental difference.

[Margaret Greenwood]

I thank the Minister for giving way; he is being generous with his time. He talks about harnessing the market, but he is talking about directing that investment at fossil fuels. How does he square that with our need to meet net zero? That does not make sense.

[George Freeman]

I will deal with that point as I come on to explain our position on net zero and the extraordinary success that the market has had, with appropriate regulation.

[Alan Brown]

rose—

[George Freeman]

I would like to make some progress as I have hardly even got through my first paragraph, but I will give way.

[Alan Brown]

I thank the Minister for giving way again. On energy resilience and his point about harnessing the market, we know that energy resilience requires long-duration storage. That can be provided by pumped-storage hydro, a technology that already exists. SSE has all the permissions in place to build a new pumped-storage hydro scheme at Coire Glas. It will have 1.5 GW output. All the private investment is there—we are talking about harnessing the market, but the private investment is already there. All that is needed is for the Government to negotiate a cap and floor price mechanism for the sale of electricity. Will the Minister commit to having officials speak to SSE and other operators in the pumped-storage hydro market to bring these schemes forward?

--- Later in debate ---

[George Freeman]

I did make clear that I am not the Climate Minister, so I am not going to make that commitment on his behalf, but I will make the undertaking that he will follow up that specific point with the hon. Member.

I will make some progress and summarise, not least for those listening and watching, the background to this debate and where we have been with British energy policy. Almost four decades have passed since the privatisation of the British energy system began—long enough that I forgive all those watching who may have forgotten why the original decision was taken.

Back in the 1970s, nationalised industries were run by Government, along with many others, and they were in a very bad state, not least the energy industry. These inefficient monopolies were leaking cash, and they needed much more money to upgrade their age-old and similarly leaky infrastructure. Privatisation, beginning in the 1980s, has completely transformed that situation. I am not suggesting that the energy market is functioning perfectly, but it has transformed that situation.

It is a shame that this debate has had so little balance and so few references to any of the successes of any private industry. Indeed, at times it sounded like a Corbynite litany of anti-capitalist, anti-business complaints. This debate needs some balance. I am not saying that the energy market is perfect, but let us at least acknowledge the extraordinary progress in the last few years.

[Sam Tarry]

Will the Minister give way?

[George Freeman]

No, I am going to make some progress. Since privatisation, the UK’s energy sector has attracted around £20 billion a year of private capital investment into our energy infrastructure. That money would otherwise have had to come from higher taxes or additional borrowing. Those are policies that the Opposition may prefer, but we prefer to secure private capital to secure those public goods.

The cost of transporting a unit of electricity has fallen by 17% since the 1990s, while investment has increased. Energy efficiency has gone up. Reliability has increased. Customer service has improved—though it is still not perfect. The number of power cuts has almost halved. These are the real lived experiences of people over the last 30 or 40 years of privatisation. Finally, current market arrangements have allowed for massive decarbonisation of our energy system, with dramatic drops in the cost of renewables.

It is worth making the point that between 1990 and 2019, we grew the UK economy by 76%, and we cut our emissions by over 44%, decarbonising faster than any other G7 country. That is an extraordinary achievement, secured by the private sector working in partnership with Government. There is more. In the last 15 years, not only have we led the way in decarbonisation; we have also led the way in many of the specific areas of clean energy. We have put it at the heart of the UK’s commitment to reduce emissions as we expand our economy.

Personally, having arrived here following the 2010 election, I would have liked to have seen the coalition and the Lib Dem-run Department of Energy and Climate Change take the opportunity of a “buy one, get five free” nuclear deal and double and modernise our nuclear capacity. The Lib Dems were religious in opposition to anything nuclear—a position seemingly mirrored by the SNP—but they also thought it would take too long to come on stream. I have news for listeners. It would have been on stream now. We would have had a high-quality, green, resilient supply of nuclear energy for one more generation, guaranteeing clean and green resilience, and many jobs in Scotland, and we would have been able to use this period to invest in the range of renewables that hon. Members have hardly mentioned. I will come to those in a minute.

Nobody can look back and say that this was all easy. A lot of mistakes have been made, but the truth is that our net zero strategy is the most comprehensive of its kind. The British energy security strategy sets out extra ambitions to those we set out in 2010. It is on track to secure 480,000 well-paid jobs by the end of the 2030s, unlocking £100 billion in private investment by 2030 and mobilising £30 billion of Government investment. That is not the free market with no support from Government. It is a massive programme of Government in partnership with the private sector, and that is why we have driven down emissions at the fastest rate in the G7.

[Dr Whitehead]

Does the Minister agree that, as has been suggested in this debate, quite a lot of the investment that has been achieved for future energy—indeed, it is coming in now—is from companies representative of other states in Europe putting forward that investment, so we could say that he would be happy to have publicly owned investment in this country, provided it is not from the UK? Is that the right conclusion to come to?

[George Freeman]

I am not totally sure I understand the question. The point is that we live in a modern global economy. I do not think anyone other than political dinosaurs would think we can ring-fence all investment to only one country. We live in a global economy, and that is all to the good. This country benefits hugely from that investment. A huge risk of the proposed renationalisation is that, internationally, it would destroy investors’ confidence in the UK, and that is something we have to think seriously about. We do not have a right to attract international investment. We need to be competitive, and this debate has lacked that point.

We are a world leader in offshore wind, with an ambition to deliver up to 50 GW of offshore wind power by 2030, including 5 GW of floating wind. That is something to be proud of. In my part of the world in East Anglia, the southern North sea is rapidly becoming the Saudi Arabia of wind energy. With proper interconnected offshore grid connectors, we will be able to use off-peak energy to generate green hydrogen. That is an exciting development and it has all been provided by the market—not the free and untrammelled market of the profiteering stereotype, but businesses investing in partnership with Government.

We continue to break records in renewable energy, which has more than quadrupled since 2010, with low-carbon electricity overall now giving us more than 50% of our total generation. It would have been nice to hear Members at least pay tribute to that achievement, rather than attack the profiteering businesses that have been at the frontline of delivering it.

We have installed 90% of our solar capacity in this country since 2010, which is enough for 3 million homes. That has happened—

[Margaret Greenwood]

Will the Minister give way?

[George Freeman]

No, I am going to make some progress.

That capacity has happened by harnessing the power of the market. I do not think anyone would suggest we have had an untrammelled free market. I am not here to make that case; others may. It has been a partnership of the private and public sector. That is why the Government continue to believe in properly regulated markets.

I have written and spoken widely about the opportunity Brexit gives us to set our own regulatory standards—not in a race to the bottom, but in a race to the top—and to set the standards in the smart grid, in digital energy and in new forms of energy. There is a huge opportunity for us to use that freedom to incentivise private capital to invest in the energy system, provide the best outcomes for consumers, and promote market competition as the drivers of efficiency, innovation and value.

My party believes profoundly that private ownership of energy assets, properly regulated, improves performance and reliability, and offers consumers greater choice and higher standards of products and services. No market is perfect. There are always pay-offs and balances, but it is very difficult to see how nationalisation would work, particularly as it has been set out this afternoon, with no detail, vague assumptions that there will be lots of money, which would come in the end only from taxation or borrowing, and very little understanding of how it would be done. Anyone listening to this debate has not heard a serious proposal for how nationalisation would happen. They have simply heard a ragtag of arguments against the private sector and against business.

The argument becomes even more important when we look at the global market and the international energy market in which we find ourselves. These days, no energy market exists in isolation. We do not exist in a vacuum. The pandemic and the war in Ukraine have revealed painfully the interdependence of our global energy supplies. We are not in a position where we can unilaterally declare independence from the global markets. Any renationalised energy company would still have to buy its gas on the global market at the same price—there is no way round that. But it does heighten the urgency of reducing our dependency on foreign actors, hostile states and those who might use their energy power to exercise geopolitical influence on us.

We are absolutely committed, as we have set out, to diversifying our energy supply and resilience. We understand that sky-high global energy prices, caused by Russia’s appalling invasion of Ukraine, are having real consequences for consumer bills across the country, exacerbating the consequences of the pandemic shutdown of the global economy and its refiring up and opening, which has driven inflation into the system. European gas prices soared by more than 200% last year, and coal prices by more than 100%, leading to an inevitable increase in the cost of energy, which drives the cost of living across our economy.

That is why, through our British energy security strategy, we are absolutely committed to—and are already implementing—support for diverse sources of home-grown energy to provide greater energy security in the longer term. Let me unpack that: we have set out, first, a comprehensive long-term plan, just as today’s motion calls for, to 2050 for our energy system in 2020’s 10-point plan for a green industrial revolution and the energy White Paper. It needed doing and it has been done. Secondly, the British energy security strategy, published in April this year, charts a pathway to reducing our vulnerability to international energy prices by reducing our dependence on imported oil and gas.

We will achieve our ambitions by accelerating the deployment of wind, solar and new nuclear energy, supercharging our production of low-carbon hydrogen, and within my portfolio supporting next-generation energy sources including fusion and small modular nuclear. We will support North sea oil and gas in the near term for security of supply, and the important work that is being done in Scotland, particularly on the North sea transition, to turn that infrastructure into the infrastructure for clean, green energy.

Thirdly, we will ensure a more flexible and efficient system for both generators and users, undertaking our comprehensive view of electricity market arrangements to ensure that consumers fully benefit from the next phase of our energy transformation. That is why we have committed to publishing, with Ofgem, a strategic framework this year on how networks will deliver net zero. Fourthly, not only are we thinking about reforming energy supply, but we have an ambitious programme of energy efficiency measures to lower demand, and to bring down bills and emissions.

Nationalisation, however, will not solve or help to tackle those challenges, for a number of reasons. First, as I have said, nationalised energy companies would still have to buy gas on the international markets. There is no price reduction that comes with being nationalised. Secondly, if a Labour Government, or perhaps more likely a Labour-SNP-Lib Dem coalition, who were committed to renationalisation came into office, their measures would mean that the British taxpayer would have to compensate directors, shareholders and creditors to the tune of tens of billions of pounds—money that would otherwise be spent on schools, hospitals and public services. Thirdly, the sort of nationalisation that has been talked about blithely but not explained would hugely damage our ability to attract the international investment that I have set out, which is key to delivering net zero.

[Dr Whitehead]

The Minister is either not hearing what is being said by the Opposition, or he is going out of his way to put it in an entirely different light. Neither the Scottish nationalists nor the Opposition have said that we want to renationalise the whole energy industry; we have said that different ways of working from the complete market fetishism that has been going on would be much better for attracting investment from the private sector. A reliable partner in Government could, among other things, bring the cost of capital down. That is very different from what he is talking about.

[George Freeman]

It is. It is also different, as the record will show, from what Opposition Members said. For an hour, I listened to a reheated hash of the same old anti-capitalist, anti-business, easy—

[Dr Whitehead]

Did you?

[George Freeman]

Yes, I did, and the record will show it. Those interested in how we might build a modern energy economy will observe that there was very little detail on how nationalisation will be done. Very little was said about innovation, new sectors, or how we create exciting areas of innovation, use the smart grid, create a network of incentives, penalties, rewards and points, and empower consumers. There was none of that. It was a litany of the same old Labour and SNP anti-business, anti-capitalist talk of profiteering companies. Those are, by the way, the same companies that pay dividends into the pension funds of our constituents—and probably the trade union barons who are lobbying for this nationalisation. It is old-fashioned economics that has been proven not to work. I was hoping to come this afternoon and hear—

[Sam Tarry]

Will the Minister give way?

[George Freeman]

No, I have had enough of giving way. All Members are doing is repeating the same points that we have already listened to, and I want to make some progress.

I will turn to the winter support for energy bills, which is a really important issue and relates to the second half of the petition. We are absolutely committed to reducing the impact on people’s bills of the terrible global events that I have described, including the impact of the war in Ukraine and of the reopening of the global economy after the pandemic. As this Prime Minister and the two previous Prime Ministers have made clear, we are absolutely committed to helping the British public through this, and we are taking action at an unprecedented scale.

First, our energy price guarantee will save a typical British household about £700 this winter. Secondly, that comes on top of the £37 billion package of support announced earlier this year, which will give all households circa £400 off their energy bills through the energy bills support scheme. That means a typical household saving about £1,100. Thirdly, we are taking further, targeted action to ensure that the most vulnerable can stay warm this winter: the UK’s poorest families will continue to receive £1,200 of support—including £400 from the energy bills support scheme—provided in instalments over the year, with additional support for pensioners and those claiming disability benefits.

Fourthly, the Government are investing more than £6.6 billion across this Parliament in critical work to improve energy efficiency and decarbonise heating. We will deliver upgrades to more than half a million homes in the coming years through our social housing decarbonisation fund, home upgrade grant schemes and energy company obligation scheme, delivering average bill savings of £300. Fifthly, we have extended the energy company obligation from 2022 to 2026, boosting its value from £640 million to £1 billion a year, helping an extra 450,000 families with green measures such as insulation.

Sixthly, it is not just households; we are also taking action to support schools, hospitals and businesses. Through the new energy bill relief scheme, the Government will provide a discount on wholesale gas and electricity prices for all non-domestic consumers in Great Britain and Northern Ireland.

This is not the free-market, laissez-faire, devil-take-the-hindmost economics that has been portrayed this afternoon. This is a Government taking huge and unprecedented steps—on a scale with those we took in the pandemic—to help families, households, businesses and charities to deal with the global cost of living crisis. Again, it would have been nice to hear some reference from Opposition Members to the immensity of that package.

I come now to energy profits—an issue that Opposition Members raised. We are not just cutting bills in the short term; we are thinking about how we can guarantee an affordable, clean and secure supply of energy for this winter and beyond. We have listened closely to the public debate about the profits enjoyed by energy generators thanks to high international gas prices. We have not just listened; we have acted. That is why in May we introduced a 25% surcharge on extraordinary profits in the oil and gas sector, which will raise about £5 billion over the next year. That revenue will support our support for those hardest hit by the rise in the cost of living and cost of energy.

We have brought forward primary legislation to give us powers to deliver a temporary revenue limit for renewable generation in the wholesale market. The details of that proposal will be set out in subsequent secondary legislation, and we are committed to collaborating closely with industry to develop it further. This will return a substantial amount of excess profits—profits made through the price surge—to consumers via suppliers.

[Alan Brown]

To get some sort of level playing field, why is there not a renewable energy investment allowance that allows tax write-offs for greater investment in renewable energy, when there is one for oil and gas. It just makes no sense if the Minister is talking about having a cleaner, greener system going forward.

[George Freeman]

I refer the hon. Gentleman to the facts as I have set them out. We are attracting billions of pounds of investment into clean energy—into a whole raft of new renewables. I do not think anyone would argue that the UK is struggling to attract international investment. What we need to do, which I completely accept, is not just to accelerate the deployment of wind and solar, but to continue to invest in the technologies of tomorrow to ensure that we are able to increase global and UK energy supply for a modern society and economy in a way that is clean, green and smart and that develops new jobs.

I am surprised that Opposition Members are not more excited by the opportunities in this sector for Scotland, which would be recklessly undermined by an uncosted, unthought-through plan for both nationalisation and independence, without credibility for how those plans are going to be funded. That is why our energy security strategy sets out a long-term plan for the whole UK that reduces our vulnerability to international energy prices by reducing our dependence on imported oil and gas.

We know that this is a very difficult time for families and businesses who are struggling, and that this issue is a matter of genuine public concern—as this petition rightly shows. However, I hope that I have reassured the hon. Members who are present in Westminster Hall and the constituents who they nobly represent that we are addressing this issue with the seriousness that it deserves.

[Margaret Greenwood]

I thank the Minister for giving way; he is being very generous with his time. Recent reports have shown that a lot of people on prepayment meters are not taking up the support. What steps can his Government take to make sure that 100% of people can take up the support that they need, because my big concern is that the most vulnerable people will struggle in this situation?

[George Freeman]

The hon. Lady makes an important point about the particular circumstances of those people on prepayment meters and those who are most prone to energy poverty and vulnerability. Again, I am not the energy Minister so, with permission, I will allow the Minister for Climate, my right hon. Friend the Member for Beverley and Holderness, to follow up that point with her.

This is a long journey. It is one that we, as a country, started on a little late, but we have led the world in moving at pace, and that is a tribute to all the parties involved, to be fair. The last Labour Government before 2010 began some important measures; we in the coalition took things forward; and the Conservative Governments have pursued things at pace since. I believe that we are on the road to success and I have no doubt that consumers will be at the heart of Government policy every step of the way.

Right now, that means we are focused on doing all we can to support consumers through the very difficult winter ahead, but nationalisation is not the right solution. I will just say that it has been rather extraordinary for me this afternoon to see how strongly the old anti-capitalist politics of the hard left have been shown to continue to thrive in the Labour party and the Scottish National party. We have heard aeons about anti-business millionaires and profiteering, and there has been no talk about companies generating the profits that drive dividends that supply pensioners with revenue, or public sector workers with their pensions, or, for that matter, the trade unions with their pensions.

We have heard nothing serious from the SNP about how it would pay for independence, which has traditionally been based—on its own assumptions—on the revenues from oil and gas. The SNP is anti-nuclear—it appears to be anti-everything that will score a point—but there is no serious and costed plan for how Scotland could be in the vanguard of the new energy economy. The Liberal Democrats, who are not present here today in Westminster Hall, have described Labour’s policy of nationalisation as “pointless and costly”.

[Dr Whitehead]

We have not got a policy of nationalisation. The Minister is not telling the truth.

[Dr Whitehead]

Sorry—I am getting very annoyed about this.

[George Freeman]

Thank you, Mrs Murray.

We have heard nothing today about the really exciting opportunities in our energy sector: the new renewables, including those in marine, tidal, geothermal, hydrogen and fusion, that this Government and I, as Minister with responsibility for research, are supporting. There are also opportunities for the UK’s cleantech sector—the small and large companies that are in the frontline of developing global solutions for new energy. We have heard nothing about the smart grid, the importance of incentives or the digitalisation of the grid to create a micro-market and bring net zero down to the ground in different communities. We have heard very little about energy use. We have heard a lot about generation, but very little about how transport and agriculture—the two big industries on the frontline of energy usage—are making huge strides in decreasing their reliance on energy. Instead, we have heard quite a lot of the old dogma of decline.

To be honest, I think that explains why there are so few colleagues from other parties here this afternoon; most of them are more interested in trying to develop practical solutions. I honestly think that the 100,000 people who petitioned for a proper debate about long-term energy strategy deserve something slightly better than we have heard today, and the Government are determined to provide it.

[Mrs Sheryll Murray (in the Chair)]

Mr Martyn Day, you have two minutes to wind up.

Oral Answers to Questions

George Freeman Excerpts

Tuesday 12th July 2022 Commons Chamber

[Kwasi Kwarteng]

That is absolute nonsense. My answer to the hon. Gentleman’s specific question was that pumped storage hydro was something that was particular in Scotland—it was something that happened in Scotland. But as for this general remark about us not supporting Scottish energy, the SNP is the party that has turned its back on Scottish nuclear, which employs huge numbers of people. The SNP has completely abandoned nuclear, it does not care about the jobs, and it does not care about industry in its own country.

[George Freeman (Mid Norfolk) (Con)]

I had looked forward to being in the box, but as they say, them’s the breaks. I take the opportunity to thank the Secretary of State, my private office and the team in the Department for their support in the past year. Does the Secretary of State agree that whoever wins this fabulous festival of talent, it is essential that we put science, technology and innovation at the very heart of our economy—perhaps even with a Cabinet Minister for it?

[Kwasi Kwarteng]

I think it is absolutely essential. I am sure that my right hon. Friend would agree when I say that he was an excellent Science Minister, and I am delighted to see him take an interest in our affairs from where he is seated. I look forward to his ongoing contribution to our science and technology agenda in the course of this Parliament.

Oral Answers to Questions

George Freeman Excerpts

Tuesday 7th June 2022 Commons Chamber

[Siobhan Baillie (Stroud) (Con)]

5. What steps his Department is taking to promote fusion energy in the UK.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (George Freeman)]

The widely reported breakthroughs in fusion energy by the United Kingdom Atomic Energy Authority team at Harwell this year signal UK leadership in a new era of industrial-scale fusion energy. I am sure the whole House takes pride in that achievement and will want to pass our best wishes on to the team at Harwell. That is why we are investing £700 million in the next phase of fusion facilities and research. We are announcing the location of the spherical tokamak, our first industrial power plant, and this month we will launch our paper on the regulation of fusion energy for industrial roll-out.

[Siobhan Baillie]

I have written to the Secretary of State recently about our Severn Edge fusion bid in Berkeley and Oldbury, because we provide the ideal location for the spherical tokamak for energy production fusion programme. We can deliver the project and we have cross-party support spanning the south-west and Wales. I believe this is a good opportunity for Government to prove that we are not just levelling up the north. Does my hon. Friend agree that the decision on where to locate the STEP prototype is crucial to the UK’s fusion ambitions, and will he say a little bit more about the timetable he is working to?

[George Freeman]

I congratulate my hon. Friend on being such an advocate for her patch. I completely agree that the location of the spherical tokamak plant is critical to our future fusion industry ambitions. Some 15 sites across the UK have applied to host STEP, and the UKAEA has shortlisted five: Ardeer in Ayrshire, Goole in the East Riding of Yorkshire, Moorside in Cumbria, Severn Edge in Gloucestershire and West Burton in Nottinghamshire. The UKAEA has now completed a detailed analysis of those sites and has submitted its recommendation to the Secretary of State, who will make a final decision and announcement by the end of the year.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Dounreay in Caithness in my constituency was in the 1950s the site of the UK’s first nuclear reactor. The nuclear industry did a very great deal to provide local employment and to halt the curse of the highlands, namely depopulation. Today, we have a licensed site, we have a willing and skilled workforce and we have a local population who support the nuclear industry. Will the Secretary of State or the Minister talk to the Scottish Government, who have not ruled out nuclear fusion, about the potential for developing nuclear fusion at a site such as Dounreay?

[George Freeman]

The hon. Gentleman makes an important point. I congratulate him on his enlightened stance: he is supportive of the UK and the Scottish nuclear industry—a position we all rather wish the Scottish nationalists would take more widely. I have regular meetings with the Scottish Ministers for science, technology and innovation. This Government are very supportive of that cluster; if only the Scottish nationalists were.

[Julie Marson (Hertford and Stortford) (Con)]

6. What steps he is taking to ensure that UK businesses benefit from the UK leaving the EU.

--- Later in debate ---

[Rachael Maskell (York Central) (Lab/Co-op)]

11. What steps he is taking to support business and social business incubator and accelerator hubs.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (George Freeman)]

Incubators and accelerators across the country play a vital role in helping our high-growth start-ups and scale- ups. That is why we continue to fund the strength in places fund, and are investing £100 million to pilot new innovation accelerators. That is also why, on my various tours around clusters, I recently went to the Leicester space and satellite hub, the Leeds digital health and medtech hub in the hon. Lady’s county, the Northumbria University and Ashington further education hub, and the BioYorkshire hub in her area.

[Rachael Maskell]

York’s economic future depends on releasing the talent of our entrepreneurs and social enterprises. To do that, we need to ensure that they have space to innovate and grow. In each of the last four quarters, however, we have seen the loss of 100,000 entrepreneurs, so what investment will be made to ensure that we have the infrastructure in place for the acceleration and incubation of the future business industry?

[George Freeman]

The hon. Lady makes an important point about social enterprises being mainstreamed in the business community. She may have seen the recent report by the all-party parliamentary group for social enterprise, of which I have long been a supporter, that argued that we should mainstream social enterprise in the BEIS policy framework, which is an interesting proposal. We have just announced the biggest increase in research and development and innovation funding—an increase of £25 billion over the next three years. I have asked UK Research and Innovation to focus on that incubation hub infrastructure around the country, so that we can continue to support the university and small business networks that create the opportunities for tomorrow.

[Holly Mumby-Croft (Scunthorpe) (Con)]

13. What steps he is taking to support manufacturers.

--- Later in debate ---

[Ben Everitt (Milton Keynes North) (Con)]

T6. Mr Speaker, you will know as well as I do that Milton Keynes has a rich history of science and innovation that goes well beyond me banging on about robots in this place. I was pleased to see the historic settlement for the UK Research and Innovation fund last month. Does my hon. Friend agree that places such as Milton Keynes with such a history of innovation should get a fair share of that funding?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (George Freeman)]

Milton Keynes has been slowly becoming a globally recognised innovation hub on the Oxford-Cambridge arc, particularly on autonomous vehicles and with the connected places catapult. May I take this opportunity to congratulate my hon. Friend and Milton Keynes on achieving city status as part of the jubilee celebrations? I assure him that our funding allocation mechanism is designed to support emerging clusters such as Milton Keynes.

[Mary Glindon (North Tyneside) (Lab)]

T4. What is the Department doing, working with the Department of Health and Social Care, to improve the recovery of cancer trials and clinical research more broadly? Will the Minister meet me and Cancer Research UK to discuss how the rate of recovery can catch up with comparable countries post pandemic?

[George Freeman]

I would be delighted to meet the hon. Lady. We have allocated £8 billion over the next three years for life science and medical research across the Medical Research Council, the National Institute for Health and Care Research, and all relevant agencies. We will launch a cancer mission shortly and I would be delighted to talk to her about it.

[Simon Baynes (Clwyd South) (Con)]

T7.   I declare an interest as the chairman of the all-party parliamentary markets group. The “Love Your Local Market” campaign, supported by many Members across the House, has just come to an end. Does my hon. Friend agree that local markets and traders are a vital part of the local business community and make a huge economic contribution to the health of our high streets and the regeneration of our city and town centres?

[Owen Thompson (Midlothian) (SNP)]

T5. Insect protein is likely to play a significant part in meeting the needs of the agri-food industry and it can certainly address some of the sector’s climate impacts, but it needs the right support. Brexit and supply chain issues have caused major chaos for the industry. Will the Minister meet me to discuss how to support the industry and, more importantly, how to protect the really highly skilled jobs it supports?

[George Freeman]

The insect protein industry is becoming increasingly important, given the need to nearly double global food supply in the next 20 or 30 years. I would be delighted to meet the hon. Gentleman. It is one of the sectors we are looking at, as part of our £25 billion three- year allocation, that needs development and support.

[Laura Farris (Newbury) (Con)]

T8. In a rural constituency like Newbury, fuel prices are a key driver of spiralling living costs. As such, it is a source of frustration that petrol stations are still failing to pass on the Treasury fuel duty cut. I know my right hon. Friend and his team have been working closely with the Competition and Markets Authority, but could he tell me what progress has been made to ensure that consumers are getting a fair deal at the pumps?

--- Later in debate ---

[Christine Jardine (Edinburgh West) (LD)]

Exactly what steps is the Department taking to reduce the prohibitive bureaucracy facing scientists trying to access the very welcome £50 million funding for research into motor neurone disease, a horrifying disease that affects more than 5,000 people in this country? The research was announced in November last year, but they have faced those problems.

[George Freeman]

The hon. Lady makes an important point. We made a major announcement on MND research and will shortly be setting out our fully funded broader dementia and mental health missions. On research bureaucracy, we are looking, through the Professor Adam Tickell review, at how we can reduce administrative bureaucracy in the system so we are able to get those grants out much more quickly. I will happily talk her through that.

[Mark Logan (Bolton North East) (Con)]

T9. Mr Speaker, would you believe it? Where I live in Westminster there is a lift that was made by the Bolton Gate Company 100 years ago and is still operating at the back end. Bolton Gate leads the door industry on the latest standards, but will the Minister outline what support we can provide to companies like Bolton Gate to navigate the new UK Conformity Assessed marking regulations, and to ensure that both Bolton Gate Company and its MP will be operating for another 100 years?

Potential for a Hydrogen Village

George Freeman Excerpts

Tuesday 24th May 2022 Westminster Hall

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (George Freeman)]

It is a pleasure to serve under your chairmanship, Ms Bardell. I thank the hon. Member for Ellesmere Port and Neston (Justin Madders) and congratulate him on securing this debate. I thank my hon. Friend the Member for Redcar (Jacob Young) for making some powerful points. We are on the cusp of an exciting opportunity for the hydrogen economy, and the pilot is about making sure that we get the infrastructure right to roll it out across the country.

I will start by framing our hydrogen commitments within the broader context of clean energy, and then deal with the specific points that have been made. I am responding today on behalf of the Minister for Energy, but also as the Minister for science, research and innovation. We see the hydrogen revolution in the heating of homes and the powering of vehicles—in particular heavy goods vehicles, trains and planes—as a fundamental part of our clean energy revolution. That is why, as Minister in charge of our science, research and innovation budget, I am strongly supporting the net zero transition and innovation. I say that as a former Minister of State in the Department for Transport, where, in addition to the electric vehicle revolution, we have now stepped up fast to support hydrogen roll-out in the transport sector.

That is all part of our green industrial revolution plan—the 10-point plan set out by the Prime Minster. The key commitment is to double our ambition of low-carbon hydrogen production to 10 GW by 2030. Further work is required to understand the feasibility, costs and convenience of transporting 100% hydrogen in the gas grid and using hydrogen for heating and cooking. That is what this trial is about. We want to establish the costs, logistics and practical issues as quickly as possible, so that we can then deal with them in a wider roll-out. We are working closely with industry, regulators and other stakeholders to deliver a range of research, development and testing projects for hydrogen heating.

Last year, I was pleased to see that HyNet North West, in north-west England and north Wales, which I know the hon. Member for Ellesmere Port and Neston has long championed, was selected to progress within track 1 of the industrial decarbonisation cluster sequencing process. That puts the region at the forefront of the industrial “SuperPlaces” we are supporting in this revolution. In the Government’s 10-point plan for a green industrial revolution, we set out the goal of supporting industry to deliver a neighbourhood trial by 2023, a village-scale trial by 2025 and a potential hydrogen-heated town before the end of the decade. Fundamental to our approach is the development of hydrogen hubs: centres of expertise that drive forward and accelerate the adoption of hydrogen as an energy source. The plans for a hydrogen neighbourhood trial are already under way, as colleagues know. That trial in Fife will supply hydrogen to around 300 homes, with hydrogen distributed through pipes laid parallel to the existing gas network. The trial of hydrogen for heat on a large village scale will be the first of its kind globally. It is a groundbreaking project.

It is an exciting time for the hydrogen village trial. Ofgem recently published its decision to take forward two proposals to the next stage of development. As my colleagues will know, Whitby in the Ellesmere Port area was one of the potential locations, alongside Redcar. The village trial will be led by the gas distribution network and will convert 1,000 to 2,000 properties to hydrogen instead of natural gas. Unlike the neighbourhood trial, it will involve the complete conversion of existing gas network infrastructure in the local area, repurposing it 100% for hydrogen.

We believe the hydrogen heating trials will encourage local employment opportunities and investment, along with the culture change that is required, as was mentioned by both the hon. Member for Ellesmere Port and Neston and my hon. Friend the Member for Redcar. The trials represent another opportunity for us to build back better with investment in green jobs and new technologies, while reducing the cost of energy for consumers. I understand that the hon. Member for Ellesmere Port and Neston is closely engaged with the proposal in his constituency, which is all to the good and hugely welcome. It is important that we support the proposals at this stage, because they have the potential to both generate the diverse, quality evidence that we need and drive that culture change.

Ofgem and the Department for Business, Energy and Industrial Strategy will assess final proposals for the networks in spring 2023 and make a decision on where the trial will be located. Without prejudice to my ministerial colleagues’ decisions next year, the points the hon. Member for Ellesmere Port and Neston and my hon. Friend the Member for Redcar have both made today about scale are well made and on the record, and I will pass them on.

We are working closely with Cadent and Northern Gas Networks, the gas distribution network operators responsible for the short-listed projects, to develop their detailed plans for the trial. Strong community engagement is key and I hugely welcome the comments of the hon. Member for Ellesmere Port and Neston in that regard. The gas distribution network operators are working with local consumers to encourage as many people as possible to participate in the trial. It is important for me to say that nobody would be forced to use hydrogen and nobody would be required to pay extra. I think those two messages will help drive public adoption.

I want to touch on consumer protection, because it is key. Our first duty must be to the safety of consumers, so before any community trial can go ahead, the Health and Safety Executive will need to be satisfied that it is safe. As with natural gas, measures will be needed to ensure that hydrogen is stored, distributed and used safely. As part of our world-leading research into the subject, we have gathered evidence on the safety of using hydrogen in homes. The BEIS-funded Hy4Heat programme has shown that the use of 100% hydrogen can be made as safe as natural gas when used for heating and cooking in the types of houses that were studied. However, research is one thing; practical roll-out in the real world is the key. That is why the pilot is so important.

I reassure hon. Friends and Members here, as well as those listening, that we are 100% committed to safety and that we want to make sure that protecting the rights and interests of consumers is at the heart of the trial. It is the first of its kind in the UK. We are therefore committed to a framework of additional consumer protections, which we set out in our consultation last year, including transparency of information, fair treatment and quality of service. We hope that they will enhance the existing protections in energy and consumer legislation, which already apply to consumers and will apply for the trial. We are clear that nobody taking part in the trial will be required to pay any extra.

With regard to multiple hydrogen trials, colleagues can see the logic of our next step, which is the village and neighbourhood trials. That combination, alongside the wider programme of research and testing that we are running, is designed to provide the Government with the necessary evidence to take big strategic decisions on heating within a matter of two or three years. I know the ambition that colleagues have shared today to go further and faster is shared by the Secretary of State, the Minister for Energy, Clean Growth and Climate Change, and the Prime Minister. It is not lack of political will that is holding us back; we simply need to make sure that we have the practical realities of roll-out and conversion of the gas network clear.

Colleagues have raised the issue of blue versus green hydrogen. I want to make it clear that our hydrogen strategy sets out the Government’s twin-track approach to supporting both electrolytic green and carbon capture-enabled blue hydrogen production. We see blue and green hydrogen as complementary and not as an either/or choice. Our new UK standard for low-carbon hydrogen production will ensure that the technologies we support—green, blue and other potential production routes—make a real contribution to our decarbonisation goals.

We are on track to make a decision on blending in 2023. We are exploring whether to enable the blending of up to 20% of hydrogen by volume into GB gas networks, and we are on track to make the policy decision next year, subject to the outcomes of the ongoing economic and safety assessments, and wider strategic considerations about the energy market. If the decision to proceed with blending is positive, we will look to start the legislative and regulatory process to enable blending, as well as the process to make any physical changes that are required to gas networks. Given the timelines on that work, officials do not anticipate blending on a commercial scale to commence before 2025.

We are looking to publish the hydrogen-ready boiler consultation as soon as possible—“in due course” is the official phrase. I cannot speak for my ministerial colleague, but I know that is very high in his in-tray. The consultation will consider the case for requiring newly installed domestic-scale gas boilers to be hydrogen ready, which would be a step change. The consultation will also include proposals to improve in-home boiler performance, building on the existing boiler efficiency standards of boiler-plus in England.

On manufacturers’ commitments to make hydrogen-ready boilers in the UK and sell them at the same cost, we absolutely welcome the commitment to maintain gas boiler prices at current levels in the case of a widespread roll-out of hydrogen-ready boilers. We look forward to working with manufacturers to ensure that that is possible at scale, because it is fundamental to adoption.

On the trade union debate about whether it is possible to achieve a large-scale workforce shift from boilers to heat pumps, we absolutely think it is possible. I was grateful to hear the hon. Member for Ellesmere Port and Neston, with his strong union background, make it clear that his unions are supportive of that. It is important that we send a signal that this is not a massive challenge, but a part of the upskilling of our broader workforce and economy. Existing heating engineers can train reasonably simply to install heat pumps in one week or less, and thousands of new heating engineers have already seized the opportunity to learn those skills.

I reiterate my thanks to the hon. Member for Ellesmere Port and Neston and my hon. Friend the Member for Redcar for raising the issues today. I hope they can see how committed the Government are to making sure we protect consumers and get the practical logistics right. They would be the first on their feet if we rushed into something that had not been properly thought through. We want to make sure that the trials lay the foundation for a wider nationwide roll-out. The aim is not to have one or two world-class trials; the aim is to prove what we need to do to roll out hydrogen at an industrial scale across the country as part of our net zero targets.

As was outlined in our consultation last year, we are including legislative measures to facilitate the trials in the landmark energy security Bill. I very much look forward to working with colleagues here. More importantly, the Energy Minister looks forward to working with colleagues across the House as the Bill goes through Parliament. This is an exciting time not just for the UK hydrogen economy, but for the communities that are in the vanguard, and we are keen to make sure that that public support continues to grow.

Question put and agreed to.

Ending BEIS ODA Spending in China

George Freeman Excerpts

Tuesday 17th May 2022 Written Statements

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (George Freeman)]

As one of the world’s fastest growing economies, China plays a critical role in addressing many of the world’s most urgent challenges such as tackling climate change and preventing antimicrobial resistance. It is important that we continue to work with China in these areas, and BEIS will build on our collaboration to date with China to address those key global challenges together, as set out in the integrated review of security, defence, development and foreign policy.



However, BEIS is bringing its bilateral official development assistance (ODA) funding in China to an end.



BEIS will not be using ODA funding to support research and innovation partnerships with China as we have previously done through ODA vehicles, such as the Newton fund and global challenges research fund. Existing ODA-funded activity with China through these will finish by the end of financial year 2022-23. The technical assistance we have provided through our UK partnering for accelerated climate transitions programme (UK PACT) is also no longer from our ODA from the end of financial year 2021-22 and, instead, technical assistance to China on climate change issues will be smaller in scale and use non-ODA sources.

[HCWS32]

UK Diagnostics Industry and Covid-19 Recovery

George Freeman Excerpts

Tuesday 10th May 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (George Freeman)]

I congratulate the hon. Member for Kirkcaldy and Cowdenbeath (Neale Hanvey) on securing this important debate and thank him for putting on record some serious points, which I have listened to and will read with great interest. I also pay tribute to his own personal experience as a respected professional clinician in the fields of oncology and adolescent cancer in particular. His bringing this different expertise to the House is hugely valuable and I welcome his input. I am grateful for this opportunity to respond on behalf of the Government.

The points the hon. Gentleman has made are probably better answered by someone from the Department of Health and Social Care, and I will raise them with the Department, particularly his points on infection control in the new post-pandemic landscape and on the importance of learning the lessons from the pandemic procurement emergency and the lessons for a sustainable and vibrant diagnostics sector. I also note the concerns he raised on behalf of his constituent, Craig Inglis, about investments, and the issues around Omega, the reliability of the lateral flow tests and the new pathogens. The point made by the hon. Member for Strangford (Jim Shannon) was also well made: Belfast University in Northern Ireland is a diagnostics powerhouse. I am very well sighted on that in the heart of our science superpower and innovation plans, and I am looking forward to revisiting Belfast to see that work.

In the three minutes that I have, I cannot deal with all the points that have been made, but I will pick up the specific questions that the hon. Member for Kirkcaldy and Cowdenbeath has raised and write to him with an answer. It is worth saying that the covid pandemic was the most extraordinary unprecedented emergency that we faced, and the first pandemic that we faced as a generation—

[Mr Deputy Speaker (Mr Nigel Evans)]

You have until half-past.

[George Freeman]

I have until half-past? I will not detain the House unnecessarily, but that means that I do not need to rush quite so much.

If we cast our minds back to January and February 2020, the truth is that we were confronting completely unprecedented national decisions and emergencies. There was no playbook for this. Sadly, I was unable to bring my expertise in this sector to the Government at the time because I was liberated from the burden of office on 13 February, in the Valentine’s day reshuffle. In fact, my last Government role was to attend the first Cobra meeting on what was then called the virus emergency.

[Neale Hanvey]

I may be professionally slanted on this, but one observation I made was that we had lots of very “academic” academics involved in the decision making at Cobra. There are some extremely capable and experienced senior nurses and emergency clinicians who deal with major incidents day in and day out, and they are the ones who understand how to run an emergency and where the gaps might be. I have a bit of a professional hero in Louise Boden. She was chief nurse at University College London Hospital and she got us through the 7/7 bombs and the Admiral Duncan pub bomb. Unfortunately I was on duty for both of those incidents, which was not pleasant, but it was important to have someone of that capability there, and I would gently suggest that the Government have someone with that kind of major incident experience in the room when planning these things in future.

[George Freeman]

The hon. Gentleman makes an important point. Sadly, I was not a Minister at the time—I would love to have been—but I do not think it is a state secret to say that there were clearly mistakes made in that national emergency. That is why there is a proper and full inquiry. He has made some important points that need to be picked up, but I do not think he would expect me to give a running commentary here on the decisions that were taken. If we cast our minds back, there was a two or three-week period when we were worried that the lack of ventilators would be the great crisis. Innovative groups all around the country were stood up as part of the national challenge to try to design ventilators, with engineers working out how to do things. All that happened in very fast order, and all sorts of issues were raised and procurements flagged that we did not need in the end. I do not think anyone would say that it was a seamless process; it was a national emergency, and there were clearly many lessons to learn.

To deal with the hon. Gentleman’s bigger points—I will perhaps pick up the specifics in detail in a written reply—as a former Life Sciences Minister, I observe that the pandemic revealed that things that we had done seven or eight years earlier in the coalition Government had paid not just the four times return on investment that is traditional in this sector, but many times over that. The truth is that the reasons we were able to sequence the virus so fast were the launching of the genomics programme, which I was proud to have led back under the coalition, the accelerated access review we put in place, the parallel approvals process with the Medicines and Healthcare products Regulatory Agency, the early access to medicines scheme, and the setting up of Vaccine Manufacturing and Innovation Centre. John Bell and I suggested in 2016 that it would be a sensible piece of foresight to invest in vaccine manufacturing, which was clearly going to change. Of course, we had no idea that a pandemic would mean that that facility would suddenly become incredibly important.

Also important was the establishment of NHS Digital. One of the lessons of the pandemic is the importance of really good data and of both national and local data sets. As a Norfolk MP, I remember being frustrated that we did not have the granularity of data or the ability to do public health by cities or districts; it was instead by big, clumsy Government regions. There are all sorts of lessons there about how an emergency requires not only national implementation and measures but the subtlety of local control, empowering local experts on the ground who are best equipped to work out how to contain and control.

I want to focus on where I can add perhaps most value in this debate and on the hon. Gentleman’s points about the importance of the diagnostics industry. One of the great lessons of the pandemic, which has absolutely been taken to the heart of Government, is that we must recognise that globalisation will drive more and more infectious disease challenges. God forbid we have another pandemic of this type, but over the past 10 or 15 years we have had zika, Ebola and covid. It is likely that we will see more such things. Hopefully they will be local or regional, but if we are not ready to contain them, we could see outbreaks of disease.

Globalisation will drive the release of new pathogens, which is why pathogen detection is one of the technologies that I am putting at the heart of our three-year plan going forward. Indeed, I am working with the chief scientific adviser Sir Patrick Vallance on how we can ensure that we harness our leadership in genomics for broader pathogen detection across animal, plant and human health and make sure that we build that network off the back of the pandemic.

The hon. Gentleman made a more specific point that in the NHS, the care system and the life sciences industry—I say this as someone who spent 15 years in the sector before coming to Parliament—diagnostics was for years the slightly poor relation. Drug discovery and the pharmaceutical sector tended to raise the big money and have the higher profile, but the pandemic revealed that diagnostics is absolutely key to getting on top of the disease. The life sciences industry is moving to recognise that if we want to deliver real value and reduce the cost of disease, which is the real key to the economy and the health system, we need to build in diagnosis much earlier. That means both the easy diagnosis—if I may call it that—of easily detectable and treatable diseases and the deeper science of longer-term diagnosis of tomorrow’s conditions.

That is why, in the update to our life sciences industrial strategy that we set out last year, we have insisted on closing the gap over the next 10 years between the traditional dichotomy in Government—the Department for Business, Energy and Industrial Strategy sponsors the research and the Department of Health and Social Care does the procurement, licensing and approvals—to try to build a much more integrated model through which we focus on diseases in places and the patient pathway and bring diagnosis, treatment and prevention together around the eight disease missions. One thing I hope and intend that that will do is put the diagnostics industry at the heart of those missions; traditionally, it has been an industry that has tended to be about the black box that sits on the hospital ward, but these days it is becoming integral to the life sciences industry and to working out how to treat, understand and detect disease. Those missions are completely key.

Let me reassure the hon. Gentleman and other colleagues here this evening by saying that we are also investing heavily, in this next phase, in the mRNA technologies that are key to the next phase of detection and diagnosis, and in new treatments. VMIC, which we set up as an academic unit to work on future vaccine manufacturing technologies, suddenly became an urgent facility for onshoring during the pandemic. I am pleased that we have transferred VMIC into the hands of Catalent, a world leader in mRNA diagnostics, therapeutics and treatments. So we have established a much more robust national supply chain in dealing with both flu and other respiratory diseases, and other pathogens. Many of the lessons have been learned, but obviously there is more to do.

We have set out in our latest life sciences vision an £8 billion commitment to research, including work with the Medical Research Council, deep research on my side of the portfolio at the Department for Business, Energy and Industrial Strategy and putting some £4.5 billion into the Department of Health and Social Care and the National Institute for Health and Care Research. The NIHR, where we are talking about £1 billion a year, is the sort of engine of research under the NHS. Crucially, we have said that, at its heart, diagnostics has to be central to that landscape. I refer not only to the detection of influenza and other respiratory pathogens, but to molecular diagnostics, biomarkers and genomic insights into disease. That is because the NHS is a huge procurer daily of blood tests for individual conditions, as the hon. Gentleman knows well. If we properly integrate that, we will be building up a database of deep expertise in biomarkers and understanding the early signals of disease, and we can harness that to make the NHS much more of a diagnostics research engine.

The dream and aim in respect of those eight disease missions is that we will be able to mobilise patients much more quickly, through digital technologies, into trials. Patients, through charities, will be able to enrol in clinical research. Using that spine of the biobank and molecular diagnostics, we can start to give industry much quicker access to the patients who are on the frontline of the conditions we need to treat.

That should drive a virtuous circle, in which we detect earlier, treat earlier and attract investment, and ultimately, as the hon. Gentleman says, we move from a paradigm where the NHS, under cost pressures, is a low-price and often late procurer to a scenario in which it does not have to be a high-price payer because it is giving industry an even more valuable thing: access to patients, charities and disease and patient consent for research. The NHS’s role in this sector is, thus, as a research engine. I have made it clear to industry that we will never, in a publicly funded healthcare system, be the highest-price payer—it would not expect us to be—but that the promise I can make it is that we will move heaven and earth to be an earlier adopter, an earlier tester and the best place in the world for it to come to test and diagnose its new treatments, and get the data on which patients they work in. Industry will then be able to use that to go around the world and sell to other countries. That is the vision of the NHS as a 21st-century research engine.

[Jim Shannon]

The Minister referred to Queen’s University Belfast, and I know he has a particular interest in being there and being involved with it. Will he indicate whether Queen’s University Belfast, or any other university in Northern Ireland, has been involved in this type of research and partnership? It is so important to take advantage of the massive amount of knowledge in the sector.

[George Freeman]

The hon. Gentleman makes an important point and invites me to signal again my support for what is going on in Northern Ireland. If we look at the cancer outcomes in Northern Ireland, the Queen’s University team that has been working on biomarkers and earlier detection has ended up driving not just investment, but much quicker and better outcomes for the people of Northern Ireland. The real power of the sector is that it delivers better healthcare for everybody within the values of the NHS, but also attracts investment and drives industry. I would go so far as to say that in the new landscape, companies such as Randox will develop affordable consumer diagnostic kits that can help drive earlier detection, building on to a digital interface. We can then support patients to get into trials earlier and drive research medicine. Belfast is on the frontline of that.

[Rachael Maskell (York Central) (Lab/Co-op)]

This evening’s debate has been excellent. In York, we had a company that was developing aptamers to be used in the diagnostic process. The Government did not have a grip on the governance or an understanding of what could be produced and the quality that that would bring. How is that mapping being done to ensure that every part of the manufacturing process is brought together?

[George Freeman]

The hon. Lady, not for the first time, makes an important point. As I am not a Minister in the Department of Health and Social Care, I had better defer to them on where they are on that specific mapping point. In terms of my responsibility at the Department for Business, Energy and Industrial Strategy, we are looking to grow the innovation economy by mapping the clusters of expertise around the country, including BioYorkshire, which I visited recently, and to ensure that we are aware of and supporting those clusters of research. Given that I have been invited to comment on other geographies, I will highlight how proud I am that the Norwich research park was the first place in the country to establish a local testing facility and local testing infrastructure to support it.

One thing the pandemic revealed was that, whether it is test and trace, data or epidemiological control, the best people to get on top of it are those on the ground locally. One of the lessons of the pandemic is that, yes, we need strong national leadership, but we also need to free up and trust the clinical and professional judgment on the ground.

For the record, it is important to speak about the scale of the diagnostics challenge in the pandemic. At peak, more than 700,000 PCR tests and 74,000 genomic sequences were done daily. It has been the most extraordinary turbocharging of our diagnostics infrastructure. I think everyone is aware of what we owe the diagnostics industry—that needs to be put on the record—but also that the infrastructure must be maintained for future events.

Genomic sequencing technology has been fundamental. The groundbreaking analyses of the combined SARS-CoV-2 genomic sequences and epidemiological data have supported the uploading of 2.7 million of 10.7 million genomes in GISAID—the global initiative on sharing avian influenza data. We are leaders in the global networks for genomic sequencing because of that genomics investment. More than 2 billion lateral flow tests have been provided across the UK.

I am conscious of the time. With permission, I will deal with the detailed questions that the hon. Member for Kirkcaldy and Cowdenbeath has raised in writing. I hope that I have reassured colleagues that we have absolutely learned the lesson that the diagnostics industry will never again be the poor relation. Emergencies require us to learn the lessons—we will not have got everything right, and the official inquiry is important. I would like to take the politics out of it and ensure that the clinical lessons are learned. I assure the hon. Gentleman that we are determined to ensure that the industry is put at the heart of our life sciences vision.

Question put and agreed to.

Performance Targets for the Intellectual Property Office

George Freeman Excerpts

Thursday 31st March 2022 Written Statements

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (George Freeman)]

Our innovation strategy sets out our ambitions for an innovation-led economy. Now, more than ever, we must support innovators as the UK looks to embrace the science and innovation that is at the heart of our post-pandemic economic plan to build back better.

For a company and as a country, having your IP secure makes life more enjoyable, easier, safer, and prosperous, giving researchers, inventors, creators, businesses and organisations the confidence to invest their time, energy and money in doing something new.

This confidence is essential. It incentivises innovation which drives economic growth and improvements in society.

The UK is fortunate to start from an enviable position. We are already renowned for our leadership in research and our excellent scientific institutions that generate life-changing technological advances. We are home to many innovative businesses, from established global players to burgeoning start-ups. Our research and development (R&D) roadmap has committed to unprecedented levels of public investment (a 30% increase) in R&D. And our creative industries are known around the world for their excellence in fields as diverse as music, cinema, literature and computer games.

Innovation drives economic growth and creates jobs. However, too few businesses are aware of and able to access the tools they need to translate new ideas into new products and services and to challenge established businesses. We are committed to making the UK the best ecosystem in the world for starting and growing a business. That means having the best access to capital, skills and ideas, as well as a smart and stable regulatory framework.

The Intellectual Property Office (IPO) corporate priorities 2022-23 will, through its stewardship of the IP system, play a fundamental role in ensuring the UK becomes the most innovative and creative country in the world. The IPO is an ambitious, growing organisation that aims to be the best IP office in the world. The IPO team has a clear plan to deliver its corporate priorities and provide excellent services internally and externally, shaping our UK IP environment and making the IPO a first-class place to work.

As an Executive agency and trading fund of the Department for Business, Energy and Industrial Strategy, the IPO has set targets which are agreed by Ministers and laid before Parliament. I am glad that today I can inform the House that for 2022-23 the IPO’s strategic targets are:

By the end of March 2023, the service design, business processes and technical requirements for all six transformation projects (manage, secure, challenge, registers, search and IP journals) will be fully defined and documented.

Achieve an average overall customer satisfaction of 85% or more.

Produce a strategic threat and harm intelligence assessment of intellectual property rights infringement (by November 2022).

To achieve efficiencies worth at least 3.5% of our core operating costs.

IPO will work with BEIS and other partner organisations to review its priorities regularly, ensuring they support wider Government aims and that its efforts and resources are focused where they will have the most significant impact driving UK innovation and a creative economy.

[HCWS745]

Oral Answers to Questions

George Freeman Excerpts

Tuesday 29th March 2022 Commons Chamber

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

5. What recent assessment he has made of the potential effect on consumers of removing standing charges on energy bills.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (George Freeman)]

As the hon. Lady knows, the standing charge is designed to reflect the costs of connectivity and usually covers the fixed costs that the suppliers incur. If it was removed, that cost would simply be passed on to consumers. Standing charges are a matter for Ofgem, which has launched a call for evidence. The Government are focused on helping consumers through the £9 billion package of relief announced by the Chancellor a few weeks ago and the £5 billion announced last week to help families and households with the cost of fuel.

[Patricia Gibson]

From this Friday, households will face an average 80% increase in standing charges for electricity. Negligent policy making and bad practice in the industry will be paid for by the poorest and most vulnerable consumers, who will pay the highest standing charges, with those in Scotland amongst the hardest hit. Will the Minister consider capping or even scrapping these standing charges on the basis that they are discriminatory to the poorest and most vulnerable consumers?

[George Freeman]

If it was as straightforward as that, the answer might be simple, but it is not—[Hon. Members: “Yes it is!”] No, it is not. The energy market is extremely complex, and there is a whole raft of charges. It is not true to say that Scottish consumers are hit particularly hard, as Scotland is also a net exporter and English and Welsh consumers are paying for it. The Government are absolutely focused on helping consumers with the cost of energy through the £9 billion relief announced in February, the £5 billion announced last week, the extra money for the warm home bonus and all the support mechanisms for the vulnerable. It is not simply a case of constantly tinkering with market price.

[Suzanne Webb (Stourbridge) (Con)]

6. What assessment he has made of the capacity of the UK’s nuclear power generation industry to strengthen energy security.

--- Later in debate ---

[Dr Luke Evans (Bosworth) (Con)]

18. What assessment he has made of the effect of trends in the level of investment in renewables on household energy bills.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (George Freeman)]

Achieving the UK’s ambitious net zero target to prevent global warming and climate emergency beyond 1.5° and protect consumers from global price volatility will require significant extra investment in renewable electricity generation. We have seen the cost of renewable technologies, most notably offshore wind, reduce fast and as more renewables are added to the system, household electricity bills will be less affected by fluctuations in volatile global gas prices.

[Karl MᶜCartney]

An effective way for household energy bills in Lincoln and across the UK to be cut by 25% right now is through the removal of the renewables surcharge on everyone’s bills, even temporarily. Have the Minister and his colleagues put that simple idea to their Treasury colleagues?

[George Freeman]

I can assure my hon. Friend that lots of ideas have been put to Treasury colleagues. The truth is that the falling cost of UK renewables, with offshore wind now down 60% through the contract for difference, is the best protection against global supply chain volatility. This country has led the way. In the past 30 years, we have grown the economy by 78% and reduced emissions by 44%. The Government focused on helping consumers, households and businesses with direct support and that is why the Chancellor announced £9 billion of relief in his February package, £5 billion last week, contrary to the claim from the Opposition that nothing was done, and extra funding for the warm home scheme and winter fuel levy.

[Dr Evans]

Constituents in Bosworth are concerned about three things: the cost of their energy bills, the environmental impact and the security of our energy supply. While being mindful of those three things, does my hon. Friend agree that a transition period is paramount while we deal with the fallout of a war, with rising energy prices and, of course, with meeting our net zero targets?

[George Freeman]

My hon. Friend makes an important point that has not been picked up by the Opposition. We are emerging from a global pandemic and experiencing a war in Europe. Those are two unprecedented shocks to the global energy system. The Government have done everything necessary through the pandemic and we are doing it again on energy, but in the end we are in a global energy market and the best strategy, as my hon. Friend sets out, is the transition plan we have put in place, with strong support for renewables and help with the cost of energy in the short term for consumers, businesses and households.

[Carol Monaghan (Glasgow North West) (SNP)]

For Norway to feed energy into our national grid it costs £1.36 per MWh, for Belgium it is 77p per MWh, for France, 17p and for Germany, Luxembourg and The Netherlands it costs not a penny. Can the Minister explain how Scotland can exploit its renewable potential when it costs £7.36 per MWh to feed into the grid?

[George Freeman]

I am delighted to explain how Scotland can benefit from our renewables programme: the North sea transition deal, the net zero hydrogen fund, the industrial energy transformation fund, £20 million ringfenced for Scottish tidal, £40 million for carbon capture and storage, and £27 million for the Aberdeen energy transition zone. Frankly, we need fewer complaints from the Scottish nationalists and more support for the Scottish energy sector.

[Kerry McCarthy (Bristol East) (Lab)]

It is a little disappointing that the Minister could not just give a straightforward no to the question from the hon. Member for Lincoln (Karl MᶜCartney). Moving on, however, there are more than 600 wind and solar projects in the UK that already have planning permission. Will the Government admit they made a mistake in stopping the development of onshore wind, and fast-track those projects? They already have planning permission and are ready to go ahead. They are the answer to meeting our energy needs in the future.

[George Freeman]

The evidence suggests that the UK is the fastest economy in the G7 in deploying renewables. Offshore wind costs have fallen by 60%. Of course, everyone can do more, but I do not accept the criticism that we have not been in the vanguard; we have been, and we are, and offshore wind and solar have been fundamental to reducing the cost of renewables. That is the best support against rising energy prices.

[Patrick Grady (Glasgow North) (SNP)]

11. What plans he has to support new energy transition projects in Scotland.

[Alyn Smith (Stirling) (SNP)]

13. What plans he has to support new energy transition projects in Scotland.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (George Freeman)]

I am delighted to assure hon. Members that Scotland is at the heart of the UK’s transition to net zero—something I hope they will welcome. In November last year, we committed £20 million to the funding for tidal stream projects through the contracts for difference, giving Scotland’s significant marine energy sector a chance to develop its expertise. We have also allocated £40 million in carbon capture development funding for the Acorn Project and £27 million for the Aberdeen energy transition zone.

[Patrick Grady]

I am sure the rest of the UK welcomes that contribution to renewable energy as well, but local communities up and down the country, such as Partick in Glasgow North, want to champion the just transition by generating their own local renewable electricity. If the Local Electricity Bill, which has cross-party support on both sides of the House, is brought back in the next Session, will the Government make time and support it?

[George Freeman]

The hon. Gentleman makes an important point, which I will pass on to my hon. Friend the Energy Minister, who is currently suffering from covid. We have put money into the community energy fund. We are supporting community energy and we are passionate not just about the big infrastructure but, as the hon. Gentleman says, about community energy schemes.

[Alyn Smith (Stirling) (SNP)]

The University of Stirling has cut its carbon emissions by 43.8% since 2007. It has an ambitious target to achieve net zero by 2040, with fantastic plans for a solar farm, geothermal developments, the repurposing of an existing combined heat and power plant, and hydro. However, it is finding that those developments are held back by a lack of UK Government support and the rhetoric is often not matched by the reality. Will the Minister, in a constructive spirit, meet me to see whether we can crack through the paperwork and support those great projects?

[George Freeman]

As Minister for Science, Research and Innovation I would be delighted to meet the hon. Gentleman. The university is doing great work. We have just announced and made the allocation of the biggest increase for a generation in science, research and innovation funding for universities, and I would be very happy to meet him and see what we can do to support that cluster.

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

I thank the Minister for reminding the House that this is a transition, not an extinction. Can he confirm that, as part of the North sea transition deal, we need to keep extracting hydrocarbons for the ongoing, albeit declining, demand that we have in this country and to support investment and jobs in that industry? Finally, does he agree that the companies on which the Opposition parties, including the SNP, want to slap an arbitrary windfall tax are precisely those companies that have the skills, the knowledge, the expertise, the technology and the capital to invest in the energy transition that this country desperately needs, and that we can show the world how it is done?

[George Freeman]

My hon. Friend is absolutely spot on. It is surprising not to hear the Scottish nationalists welcoming the North sea transition deal a bit more. To remind the House, it is a programme that will draw on the expertise in Scotland’s offshore North sea oil and gas sector and help it to lead the transition to carbon capture and storage, hydrogen, offshore wind and tidal, and it is set to create over 40,000 jobs and attract £14 billion of investment. That is the best way—and frankly, the best thing the SNP here could do is to help their colleagues in Scotland to support it.

[Greg Smith (Buckingham) (Con)]

12. What assessment he has made of the potential role of synthetic fuels in achieving net zero targets.

--- Later in debate ---

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

T2. We have world-leading motor neurone disease scientists here in the UK who are on the cusp of developing the first ever treatments for this disease. Patients, scientists and charities were promised that by the end of January we would know how the £50 million of targeted MND research funding would be allocated. It is now the end of March. Will the Secretary of State confirm that the funding will be awarded quickly and in full, and via a single application process, as set out by MND charities in the 2021 spending review submissi-on?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (George Freeman)]

As former Minister for life science and Minister for research, I would be very happy to meet with the hon. Member to talk that through. We have just made the biggest allocation for science, research and innovation, which included £9 billion for health research.

[Jason McCartney (Colne Valley) (Con)]

T5. I very much welcome the Chancellor scrapping VAT on home energy-saving products in his spring statement last week. Does my right hon. Friend the Secretary of State agree that now really is the time to turbo-charge a green homes programme? Let us insulate homes and help people to cut their energy bills and keep warm.

--- Later in debate ---

[Bim Afolami (Hitchin and Harpenden) (Con)]

T6. On nuclear, there has been much talk of the small modular reactors created by Rolls-Royce, which the Government are rightly supporting, and lots of talk of the progress on nuclear fusion at Culham in Oxfordshire. What is the Department’s assessment of progress on these technologies? How can we increase the speed of their deployment, and what policy interventions might help with that?

[George Freeman]

That is an excellent question. We can be very proud: UK scientists at Harwell recently demonstrated the ability to generate temperatures equivalent to those on the sun at the flick of a switch, and Rolls-Royce is ready to roll out and industrialise small nuclear reactors over the next 10 to 15 years. We are looking to accelerate their deployment to help tackle the global energy crisis.

[Beth Winter (Cynon Valley) (Lab)]

T9. For the 11,5000 Cynon Valley households in receipt of social security benefits, the spring statement offered absolutely nothing. Inflation is anticipated to reach 9%, and they are expected to use a disproportionate amount of their income to cover energy cost increases of 50% in April—and another 40% increase is forecast for October. There is to be a social security payment increase of a paltry and quite insulting 3.1%, which links back to the inflation rate in September last year. What consideration have the Government given to introducing a low income energy tariff, so that they can better target support at lower-income households, as suggested by the Welsh Government?

--- Later in debate ---

[Dan Jarvis (Barnsley Central) (Lab)]

South Yorkshire is home to some extraordinary research and development assets, including the University of Sheffield Advanced Manufacturing Research Centre and the Advanced Wellbeing and Research Centre. It was great to meet the Minister recently to discuss the issue. Will he continue to work with me and others on unlocking the undoubtedly huge potential in South Yorkshire?

[George Freeman]

With absolute pleasure. The South Yorkshire cluster is becoming a world-class, globally recognised leader in advanced manufacturing and associated industries. I look forward to supporting that cluster.

[Lee Anderson (Ashfield) (Con)]

Geothermal energy from old coalmines can heat our homes for years to come. Will the Secretary of State please assure me that he is doing all he can to support the Coal Authority in developing this fantastic new energy opportunity?