Automotive Industry

Debate between Greg Smith and Jonathan Reynolds

Wednesday 12th July 2023 Commons Chamber

[Jonathan Reynolds]

I thoroughly agree—the scale of ambition that I see around the world daunts me when I compare it with this Government’s ambition. There are some incredibly exciting technologies out there, including sodium-ion batteries that would reduce our dependence on lithium and almost certainly cut costs in battery production. Hydrogen is clearly going to be extremely exciting, as are fuel cells, and there are markets for off-road vehicles that could be huge potential markets for the UK. We should also not forget buses: that is an area in which new technology could contribute to things like cleaner air, as well as better transport.

[Greg Smith (Buckingham) (Con)]

Does the shadow Minister agree that on top of battery innovation and hydrogen innovation, the UK is leading in another field: that of synthetic fuels? However, giving the automotive sector a really strong future in this country involves a whole-system analysis, not just of how the vehicle is manufactured but how the energy that will run it is manufactured. That involves looking again at the zero tailpipe standards that are coming in, because if we have that whole-system analysis, we will get to green technology and greener transport but with a whole-picture effect.

[Jonathan Reynolds]

I agree with part of what the hon. Gentleman has said. I agree about the whole-system analysis: many parts of the decarbonisation journey that industry will need to take on will be a much bigger question than simply unplugging one form of old fossil fuel technology and plugging in another. For instance, the steel industry will have to think about scrap if it is to make the conversion to electric arc furnaces; and if we are to move towards synthetic fuels, we will clearly have to look at where the feed stocks are coming from.

However, one of the most defining features of the past 13 years—I say this without any kind of partisanship—has been a series of very ambitious targets from this Government in areas that relate to decarbonisation, but with no real means to deliver them. That target is then pulled away, and confidence in the British state to decarbonise falls apart. I am thinking particularly about the famous “cut the green crap” comments from the former Prime Minister, David Cameron, regarding home insulation. When we talk about changing existing Government policy, we should not underestimate just how little confidence the international business community has in this Government’s promises at times. Broadly, the approach has been very ambitious targets but with no means to actually deliver them, which undermines the case.