The Growth Plan

Debate between Greg Clark and Kwasi Kwarteng

Friday 23rd September 2022 Commons Chamber

[Kwasi Kwarteng]

I am glad to hear the hon. Gentleman’s optimistic assessment of my growth plan, but he is entirely wrong. What we have to do is focus on growth. That is what we are doing and that is what we will be delivering.

[Greg Clark (Tunbridge Wells) (Con)]

I welcome my right hon. Friend’s statement. He is absolutely right to focus the Treasury on growth. One of the most important sources of that is to build on our excellence in science and innovation. Will he say whether he is still committed to reaching the 2.4% international average for research and development investment by 2027 and to achieve his target of £20 billion by the end of this Parliament?

[Kwasi Kwarteng]

I pay tribute to my right hon. Friend’s tenure in the Department for Business, Energy and Industrial Strategy. He was a great Secretary of State who really championed science. I tried to do the same in that post. I look forward to engaging with him on the science agenda going forward.

10-point Plan: Six Months On

Debate between Greg Clark and Kwasi Kwarteng

Tuesday 18th May 2021 Commons Chamber

[Kwasi Kwarteng]

The right hon. Gentleman raised a number of points. The heat and buildings strategy was always due in 2021; I know that because I commissioned it when I was the Energy Minister. I hope it will be published shortly. We also have a hydrogen strategy. He mentioned that our £240 million hydrogen fund was little compared to other countries, but private sector investment has been very successful in the deployment of offshore wind. The reason we have a commanding position—the No. 1 position—in offshore wind deployment is not because of the Government writing cheques; it is because the Government created incentives for the private sector to invest. That will be exactly the way in which we will scale up the hydrogen economy.

The right hon. Gentleman mentioned offshore wind and the UK content of the supply chain. We are absolutely focused on that; we potentially have an auction round 4 at the end of this year, and I am committed to increasing—in fact, we have policies to increase—the level of UK content in offshore wind. The GE Renewable Energy announcement in Teesside only a couple of months ago, in which it committed £142 million, is exactly the kind of investment and commitment to the UK supply chain that we want to see.

[Greg Clark (Tunbridge Wells) (Con)]

Point 4 of the 10-point plan refers to the need for large-scale battery factories for electric vehicles—sometimes called gigafactories. They need to be up and running within five years, so will the Secretary of State update the House as to where we are in securing them? Will he also comment on the state of discussions about the future of Vauxhall at Ellesmere Port, with its ambitions to build electric vehicles there?

[Kwasi Kwarteng]

I am pleased that my right hon. Friend mentions gigafactories and the opportunities that they represent. There are conversations as we speak between people who are making batteries and the car makers; clearly, the dynamic between the auto manufacturers and the people who will be making the batteries is an important one. I hope to make a positive announcement about that soon. In relation to Ellesmere Port, there are very positive discussions with Stellantis. I am very much engaged with this matter, and we are particularly hopeful that we can make some movement in the summer on this too.

Budget Resolutions and Economic Situation

Debate between Greg Clark and Kwasi Kwarteng

Tuesday 9th March 2021 Commons Chamber

[Kwasi Kwarteng]

I have not come here to defend or rebut any of the wonderful measures that we took under my right hon. Friend’s leadership. I am very conscious of the fact that many people want to take part in this debate, and I am afraid that I have to press on.

The researchers and manufacturers have done an extremely good job, as my right hon. Friend says, in shoring up our response to the crisis. The Budget provides an additional £65 billion of measures in response to covid, designed to support the economy this year. It covers an extension of the furlough scheme, which has already supported 1.3 million employers and more than 11 million jobs, providing vital funds to households and communities throughout our country. It has added to the near £20 billion of support that the Treasury has paid out to support 2.7 million self-employed people.

The Budget presents a dynamic and generous plan to help businesses to get up to speed. We are providing restart grants of up to £18,000 to more than 680,000 business premises. We are also providing further support for hospitality and retail businesses who may be more affected by restrictions when they reopen. While our plan for jobs has been given a £126 million boost supporting 40,000 more traineeships and doubling the cash incentive for firms taking on new apprentices, the Budget ensures that more people are able to access secure, skilled work.

Of course, there can be no denial that the jobs market has changed profoundly over the past year.

[Greg Clark (Tunbridge Wells) (Con)]

Will my right hon. Friend give way?

[Kwasi Kwarteng]

I am very conscious, as I am sure my right hon. Friend I, that many, many Back Benchers want to take part in the debate. I understand that he is on the call list, so I am afraid I am going to have to make more progress.

It is no secret that over the years, and even in years of strong growth, prosperity has not been spread fairly between the regions and nations that make up our United Kingdom. That is an imbalance that this Budget seeks to correct, with the Department for Business, Energy and Industrial Strategy leading the charge. Where regions have been left behind by the decline of old industries, we will create new industries and support sectors as they transition to a low-carbon, sustainable and competitive future.

[Greg Clark]

Will my right hon. Friend give way on that point?

[Kwasi Kwarteng]

I must press on. Lots of Back Benchers want to speak. However eminent and distinguished my right hon. Friend is, there are lots of other people who want to speak.

We are backing the development of hydrogen hubs in the Tees Valley and Holyhead, to breathe new life into coastal and post-industrial communities while we drive a new clean energy transition. We are establishing four carbon capture and storage clusters across the next two decades, and we hope that they will play their part in decarbonising our industrial processes. We are investing tens of millions of pounds in the Aberdeen energy transition zone and the global underwater hub.

We are providing a support package of more than £2 billion to Britain’s incredible auto industry, with £500 million going towards the growth of our electric vehicle supply chain. That package will help to support and safeguard nearly 170,000 jobs in the UK auto sector, including in the north of England, the west midlands and Wales. We intend fully to deliver a boost to the ambition to build at least one UK gigafactory before the end of this Parliament, and we hope to secure investment for others in the longer term.

[Greg Clark]

I am grateful to my right hon. Friend and successor for giving way. Will he acknowledge that the battery manufacturing innovation centre and the Faraday challenge, which galvanised the move to providing batteries for electric vehicles, were part of the industrial strategy, as was vaccine manufacturing? Can he explain why it is thought appropriate to abolish that strategy? Is it not better to have a plan, rather than no plan?

[Kwasi Kwarteng]

I hear my right hon. Friend’s passionate defence of his own work, and I commend a lot of his work. I have read the industrial strategy comprehensively, and it was a pudding without a theme, in my view. I feel very strongly that the conditions of 2017 do not apply to 2021, and I am very pleased to announce to the House that we are morphing and changing the industrial strategy into the plan for growth. I am happy to take further interventions on that, should they arise.

What we have announced in these packages is levelling up in action. There will be new investment in new industries, creating new jobs and driving real change in communities across the UK. With these examples, we are talking about a vision for the future of the kind of country we want to be: a country that hosts good-quality, high-skilled, long-term jobs in every community and that takes its commitment to net zero extremely seriously. I would like to commend the work of my right hon. Friends the Members for Maidenhead (Mrs May) and for Tunbridge Wells (Greg Clark) in passing the net zero legislation in 2019. That was a signal piece of legislation for which I commend them heartily. As Secretary of State for Business, Energy and Industrial Strategy—which is still the name of the Department—I am very pleased that we are committed to net zero in the way that we are.

Because of all the profound changes that we have seen over the last three or four years, as well as our departure from the EU, our legislation to end our contribution to climate change by 2050 and the unprecedented impact of the coronavirus, I believe that we must take a fresh look at our plans for industrial policy and long-term economic growth. As a consequence of all this, alongside the Budget, we have published “Build Back Better: our plan for growth”. Our cross-government plan for growth signals a departure from the industrial strategy brand and details a renewed focus on infrastructure, skills and innovation. It reflects new opportunities available to us following our exit from the European Union, which was successfully achieved as a consequence of the deal that we struck at the end of last year. This opens up new ways to drive growth, build on our competitive advantage and support a vision for a truly global Britain. We will draw on the valuable lessons we have learnt from the 2017 industrial strategy as we transition to this new, more focused and more ambitious plan for growth.

I want to reassure the House that the energy of my Department is entirely focused on building back better after the coronavirus pandemic. It is leading the Government’s work on supporting British industry and priority sectors, and I am happy to acknowledge that we are building on the incredibly dynamic and good work that was pursued by my right hon. Friend the Member for Tunbridge Wells. We will publish our innovation strategy in the summer. We will set out details of our approach to supporting sectors, places and technologies in the innovation strategy. Those will give a clear indication and sense of purpose as we seek to shape the UK’s future. My Department is already leading on strategies with respect to net zero, hydrogen and, of course, innovation itself, as well as the space strategy. We are engaging on a comprehensive programme of work to protect and create jobs as we transition to net zero.

The principle underlying all this effort is, of course, the green recovery. We fully intend to end, and we will end, our contribution to climate change by 2050, and we will do so through investments and innovations such as the ones I have just mentioned. Last week’s Budget builds on the framework set out by the Prime Minister’s 10-point plan, as well as on the support announced at the spending review and in the national infrastructure strategy.

I am delighted that my right hon. Friend the Chancellor spoke fulsomely about the UK infrastructure bank. The bank will target investment in green projects, which will help us meet our net zero targets in the public and private sectors throughout the country. It will provide a global centre of excellence and advisory support for net zero projects across the country.

We have committed an initial £12 billion of capital and £10 billion of guarantees. By crowding in— attracting—private investment, we fully expect the bank to support at least £40 billion of investment in our precious infrastructure. This investment will help us to amplify success in decreasing emissions, which we have already reduced by 44% against 1990 levels. That is by far the best performance in the G7.

With our strengths in many sectors, from offshore wind to hydrogen, carbon capture technologies and zero-emission vehicles, we are well placed to seize the opportunity of the green transition and lead a global green industrial revolution. The 10-point plan, which the Budget expands on, puts us in a very good position to achieve that goal.

Backed by £12 billion of public investment, the 10-point plan will reinvigorate our industrial heartlands in the north-east, the north-west, Yorkshire, the Humber, the midlands, Scotland, Wales and elsewhere. It will support the creation of hundreds of thousands of green jobs across the UK by 2030. It represents a really exciting and dynamic vision for the development of economic opportunity throughout this country.

This is a Budget that is timely in its interventions, entirely realistic in its ambitions and, above all, remorselessly and unapologetically optimistic about the future of the United Kingdom. It outlines an investment-led recovery, with a targeted, laser-like approach to levelling up every nation and region.

Thanks to the actions of the Government, we will emerge from this virus sooner and stronger than many would have anticipated. Thanks to the Budget, we have the means and the tools necessary to continue our trajectory towards recovery in the next year. We will be embracing innovation, we will be creating green jobs and we will be rejuvenating our industrial heartlands and spreading opportunities. We look forward to building back better throughout the entirety of the United Kingdom.

Vauxhall at Ellesmere Port and Battery Manufacturing Strategy

Debate between Greg Clark and Kwasi Kwarteng

Monday 1st March 2021 Commons Chamber

[Greg Clark (Tunbridge Wells) (Con)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on the future of car manufacturing by Vauxhall at Ellesmere Port and the Government’s strategy for battery manufacturing.

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

I pay tribute to my right hon. Friend for the great work he did as Secretary of State. He was the first Secretary of State for Business, Energy and Industrial Strategy, and I think that we can all say that we appreciate the outstanding work he did at that time.

The Government are absolutely committed to ensuring the future of manufacturing at Ellesmere Port and to secure the jobs and livelihoods of the workers at the plant. Since I was appointed Business Secretary last month, I have held a number of meetings with both Vauxhall and its new parent company, Stellantis, to support the company to make a positive investment decision. Only last week, I also held a constructive meeting with the general secretary of Unite, Mr Len McCluskey. Over the coming days and weeks, I, fellow Ministers and officials at BEIS will continue this intensive dialogue with the company.

More widely, the Government are continuing their long-standing programme of support to keep the British automotive sector at the forefront of technology and maintain its competitiveness, building on the work that my right hon. Friend did through the automotive sector deal.

It is my priority as Business Secretary to ensure that the UK continues to enjoy the benefits from our transition to ultra low and zero emission vehicles by continuing to build an agile, innovative and cost-competitive supply chain, which we need to secure vital international investment. With that in mind, we remain dedicated and absolutely committed to securing UK battery manufacturing. As part of the Prime Minister’s 10-point plan, we have already announced £500 million to support the electrification of vehicles and their supply chains, and other strategically important technologies, through the automotive transformation fund over the next four years. We continue to work with investors through the automotive transformation fund, and to progress plans for manufacturing the batteries that we will need for the next generation of electric vehicles here in the UK.

The Government and industry have jointly committed almost £1.5 billion through the Advanced Propulsion Centre and Faraday battery challenge to support the research, development and manufacture of zero and low emission technologies. Between 2013 and 2020, the Advanced Propulsion Centre has funded 67 collaborative R&D projects, creating and safeguarding nearly 47,000 jobs, with projected CO₂ savings of 244 million tonnes.

I repeat: we are 100% committed to making sure that the UK continues to be one of the best locations in the world for automotive manufacturing, and we are doing all we can to protect and create jobs while securing a competitive future for the sector here in the UK in particular, including at Ellesmere Port.

--- Later in debate ---

[Greg Clark]

I bring it to the House’s attention that I am a vice-chair of the all-party parliamentary motor group and the chemical industry all-party parliamentary group.

I am grateful to the Secretary of State for his response to my urgent question and for his kind words. The industrial strategy made a number of commitments. One was to make Britain a home for vaccine development and to build vaccine manufacturing capability. Another was to make Britain a leading manufacturer of electric vehicles, including the batteries that power them. I mention them both not to claim special prescience, but rather the opposite; both are obviously required if our industrial strengths are to continue in the future.

In the case of electric vehicles, there are three important facts. First, we have one of the most important, diverse and efficient car industries in the world, employing over 800,000 people in all parts of Britain. Secondly, by 2030 no new car will be sold in Britain with simply a petrol or a diesel engine. Thirdly, unless the batteries for vehicles made in the UK are manufactured in Britain within five years, the cars that they power will no longer be able to be exported tariff-free to the EU. We therefore urgently need to install the manufacturing capacity in the UK. That means not just one gigafactory, but many. It all needs to be planned, built and operating at scale within five years.

In the case of Vauxhall at Ellesmere Port, as the Secretary of State says, a decision is imminent as to whether a new electric model will be built there. The same is true of Jaguar Land Rover in the west midlands and supply chain companies such as GKN. A laissez-faire approach will not do it, and neither will just general encouragement. It requires sleeves-rolled-up concrete action to be taken now between Government and industry, just as was the case with vaccines. Will the Secretary of State, for whom I have a high regard, make this commitment today and do whatever it takes urgently to ensure that Britain is a global force in manufacturing electric vehicles long into the future?

[Kwasi Kwarteng]

My right hon. Friend is quite right. The issues raised by his question are of critical strategic importance, and I fully appreciate the work that he did on driving the industrial strategy. As he pointed out, the industrial strategy set the foundation for vaccines and the success of the vaccine roll-out. He is quite right to point out that we need the same rigour and focus in ensuring that the United Kingdom continues to be an attractive place in which to invest for the manufacture of electric vehicles, in order to meet the Prime Minister’s 10-point plan. Electric vehicles were a key part of that 10-point plan.