Oral Answers to Questions

Iain Stewart Excerpts

Wednesday 18th May 2022 Commons Chamber

[Tom Randall (Gedling) (Con)]

13. What recent discussions he has had with Cabinet colleagues on the effect of the Government’s energy security strategy on Scotland.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

Our recently published energy security strategy will ensure clean, affordable and secure power for generations to come. The strategy sets out how Great Britain will accelerate the deployment of wind, nuclear, solar and hydrogen, while continuing to support the production of domestic oil and gas in the near term.

[Saqib Bhatti]

Nuclear power has proven to be a safe, cleaner and more efficient source of energy. With the Government’s plans for new modular nuclear reactors, nuclear will play an important role in our energy mix and reduce household energy bills. Does my hon. Friend share my disappointment that the Scottish Government dug their heels in and refused to get behind the UK Government’s drive for greater nuclear energy capacity?

[Iain Stewart]

My hon. Friend makes a very important point. Nuclear energy is a safe, clean and reliable source of power and it will play an important role in the UK’s energy mix and transition. In particular, the new technology of small modular reactors offers huge opportunities. Scotland has a long tradition of nuclear power and we hope that the Scottish Government will be open-minded about working with us on it.

[Tom Randall]

Putin’s illegal war in Ukraine has highlighted Europe’s dependence on Russian hydrocarbons. Does my hon. Friend agree that Scotland and her access to North sea oil and gas will play a crucial role in safeguarding the United Kingdom’s energy security as we transition to a greener future?

[Iain Stewart]

I agree that we must do all we can to end Europe’s dependence on Russian oil and gas. The North sea has a crucial role to play in that as we transition to cleaner energy sources in the longer run. The Government remain committed to the domestic offshore oil and gas sector, which will continue to keep people warm and strengthen the security of supply.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

Scotland has a quarter of Europe’s marine energy potential, but generators in the north of Scotland are charged 15 times the rate to put electricity into the national grid. When will this team, supposedly defending Scotland’s interests, actually get that sorted?

[Iain Stewart]

As the hon. Lady knows, that is a matter for Ofgem, which is currently conducting a review into that.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Too often, key Scottish energy projects, such as the Acorn Project in the north-east, get overlooked by this UK Government. If we look further east, the port of Nigg will provide the UK’s only offshore wind turbine manufacturing facility. It is expanding to be a major energy hub, including green hydrogen production and floating offshore wind assembly. Will the Scottish Secretary and the Secretary of State for Business, Energy and Industrial Strategy visit the port of Nigg to see the massive opportunities there?

[Iain Stewart]

We are committed to developing the renewable energy sector in a whole range of ways. For example, I recently visited the CoRE—Community Renewable Energy—project in the hon. Gentleman’s constituency. We are funding that directly through the city and growth deal project. I am more than happy to visit Nigg and any other centre in Scotland that is developing that technology. We are standing four-square behind it.

[Robin Millar (Aberconwy) (Con)]

4. What recent discussions he has had with Cabinet colleagues on improving Union connectivity.

--- Later in debate ---

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

5. What recent discussions he has had with the Scottish Government on tackling rises in the cost of living.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

We have regular discussions with the Scottish Government. The Chancellor has already announced £22 billion of support measures, including a tax cut for 2.4 million Scottish workers, worth more than £330 a year for a typical employee. We are committed to financially supporting Scotland. The record block grant of about £41 billion for the next three years enables the Scottish Government to take necessary steps.

[Gavin Newlands]

While energy costs are skyrocketing under this Government, the Scottish Government are helping to decarbonise the heating of 1 million homes and saving families money while driving the net zero transition. At the same time, households are being hit by record fuel prices. Where they have powers, the Scottish Government are doing what they can by funding record investment in electric vehicle infrastructure and active travel, massively outstripping the UK Government. Why will this Government not match Scotland’s ambitions to drive the move to net zero and reduce living costs for families?

[Iain Stewart]

Let me point out to the hon. Gentleman that the measures to which he refers are in part possible because of the record funding that this Government are giving the Scottish Government. Let me also point to the measures that the Chancellor has announced to help with insulation, including the reduction in VAT on house-warming measures.

[Mr Speaker]

I now call the shadow Secretary of State, Ian Murray.

[Ian Murray (Edinburgh South) (Lab)]

Let me first join the Secretary of State in wishing Rangers football club all the very best in Seville tonight—although I wish them no luck whatsoever for the Scottish cup final on Saturday, when they will play the famous Heart of Midlothian FC.

The Cabinet was asked for ideas on how to deal with the cost of living crisis. So far, we have had “Take on more hours”, “Get a better job”, “MOT your car every two years”, “Buy supermarket branded food”, and even “Learn to cook”, but all that the Chancellor has delivered is “Give taxpayers a loan of their own money to pay their bills.” Although oil and gas company profits are more than the combined increase in everyone’s energy bills, the Government are rejecting Labour’s plan to give all households up to £600 off their energy bills with a one-off windfall tax on those profits. Can the Minister tell us what the Scotland Office team’s contribution has been to these ideas, and which of those ludicrous ideas he favours the most?

[Iain Stewart]

I should begin by saying to the hon. Gentleman that the colour of my tie in no way diminishes my support for Rangers in Seville tonight.

As I have said, the Chancellor has already announced £22 billion of support. That includes 5p off a litre of fuel, £150 council tax rebates, and the hardship fund for local authorities, which gives support to the families experiencing the most difficulties. We have made it clear that the windfall tax to which the hon. Gentleman refers is not a simple solution to every problem—we have to think carefully about what it would mean for investment and jobs, and for our transition to clean energy—and the Chancellor made it clear yesterday that he wants the oil and gas companies to invest their profits in those schemes, and if they do not do so, no option is off the table.

[Ian Murray]

That is simply not good enough from this Government. Inflation is at a 40-year high, but in reality, according to the Institute for Fiscal Studies this morning, it is much higher for most families. There is the weekly shop, the energy bill, petrol for the car, and taxes all rising to the extent that 150,000 more Scots cannot pay their bills, and today—in 2022—too many children are going to bed hungry or cold or both. The Chancellor keeps saying that he “stands ready to act”, but refuses to deliver an emergency Budget. His actions so far have raised taxes to their highest level in 70 years and dropped living standards by the largest amount since the 1950s.

Scotland has two Governments making decisions that are compounding the cost of living crisis. Can the Minister tell us what he is doing to get the Chancellor to act, if he is not acting now?

[Iain Stewart]

I should point out to the hon. Gentleman that the inflationary pressures are global, resulting from the pandemic, the war in Ukraine and other global supply chain problems. This is not an issue unique to the United Kingdom. I have already said that the Chancellor has delivered £22 billion of support for the people of this country; he is keeping a very close eye on the situation, and will intervene where necessary. I should also draw attention to his record during the pandemic, when he stepped in at the right points to support those people.

[Mhairi Black (Paisley and Renfrewshire South) (SNP)]

The Secretary of State for Environment, Food and Rural Affairs advised people in poverty to buy value products, the safeguarding Minister suggested that people should just work “more hours” or get a “better-paid job”, and the Chancellor said that it would be “silly” to help people struggling with the cost of living crisis. Does the Minister have any equally useless advice to add to that of his colleagues for the people facing destitution?

[Iain Stewart]

I have already pointed out that the Chancellor has given £22 billion-worth of support to the people of this country. He is keeping a close eye on the situation and will step in when necessary. If the hon. Lady is that concerned about the cost of living in Scotland, I would point out that her Government in Edinburgh have a higher tax rate than here in the rest of the UK.

[Mhairi Black]

Apart from the fact that that is not true, let me say that the Scottish Government have already spent over £1 billion mitigating the worst of Tory cuts. We are investing £770 million per year in the cost of living crisis, increasing Scottish benefits by 6%, doubling the Scottish child payment and mitigating the bedroom tax. Does the Minister not agree that it is about time his Department lifted a finger?

[Iain Stewart]

My Department is providing the Scottish Government with a record level of support—£41 billion. That is helping them to deliver the policies that the hon. Lady refers to. They might be able to do more if they had not wasted hundreds of millions of pounds on ferries that do not work, or on the First Minister’s independence revival tour of the United States.

[Mr Speaker]

Before we come to Prime Minister’s questions, I would like to point out the British Sign Language interpretation of the proceedings is available to watch on parliamentlive.tv.