Oral Answers to Questions

Kerry McCarthy Excerpts

Tuesday 12th July 2022 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Kerry McCarthy (Bristol East) (Lab)]

I welcome the Minister to her post. We all agree that supporting investment in new low-carbon technologies is an important part of reaching net zero—well, most of us do. In the past week, one of the candidates for Prime Minister has said that

“we need to suspend the all-consuming desire to achieve net zero by 2050.”

Another claims that it was

“wrong of us to set a target”

for net zero. The frontrunner spent two years at the Treasury blocking additional climate spend. It is all well and good for the Minister to talk about the need for investment, but how can we, and more importantly the investors out there, have any confidence that it will continue?

[Jane Hunt]

It is clearly in our manifesto that we are completely committed to net zero. I will not be commenting further on any leadership elections.

Action on Climate Change and Decarbonisation

Kerry McCarthy Excerpts

Tuesday 5th July 2022 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

I am mightily relieved to see that the Minister is still in his place. I hope he manages to hang on until 7 o’clock; he might find he is the last man standing on the Government Front Bench. If he does want to tell the House about his resignation when his time comes, rather than tweeting it, I am sure we would be delighted to be the first ones to know. There are times when we speak in this Chamber and we feel that the eyes of the world are upon us. I think it is fair to say that this is not one of those occasions, but it is an important debate, and I thank the right hon. Member for Ludlow (Philip Dunne), the Chair of the Environmental Audit Committee, for securing it.

I wish there was a bit more to discuss. As we have heard, last week the independent Climate Change Committee delivered its annual verdict on the Government’s climate strategy, or what there is of it. I think the Chair of the Select Committee let the Government off a little lightly in his quote from that report, which was an absolutely damning read. It talked about major failures in delivery programs and stated that

“we are not seeing the necessary progress”,

and

“the Government is failing in…its implementation”.

It also said that the current strategy will not deliver net zero. The committee concluded that the Government have credible plans for achieving only 39% of the emissions reductions required. This comes less than a year after COP, when we still hold the COP presidency and ought to be showing international leadership.

It is not just the Climate Change Committee saying that the Government have fallen short. The Public Accounts Committee report published at the beginning of March said that the Government still have

“no clear plan for how the transition to net Zero will be funded”,

or

“how it will…replace income from taxes such as fuel duty…and…has no reliable estimate of what the process of implementing the net zero policy is actually likely to cost British consumers, households, businesses and government itself.”

It went on to say that the Government have

“too often pursued stop-start strategies which undermine confidence for business, investors and consumers in committing to measures which would reduce carbon emissions, especially when some green alternatives are still significantly more expensive than current options.”

We heard that from a few speakers. I think the hon. Member for Hitchin and Harpenden (Bim Afolami) talked about how businesses need the confidence to be able to invest, how they need a sense of direction from the Government and how they need to know that they will be backed up.

We heard from the Chair of the Environmental Audit Committee that the global situation requires a rapid recalibration of the Government’s strategy, and that waiting for the right technology to turn up is not a strategy in itself. Again, that is a plea for a clearer sense of direction from the Government. He said—I hope I am quoting him right—that the Government prefer to delay substantive action to a future date, post election. We might find that comes a bit sooner than we were expecting when he made those comments, but let us see. I would certainly say that the time for action is now.

We have seen that day-to-day spending in BEIS has increased by 71% since the last supplementary estimate. That has mostly been driven by this increase of £11.6 billion for the energy bill support scheme. As has been said by several people, including the right hon. Member for Kingswood (Chris Skidmore) and the Chair of the Environmental Audit Committee, this is not a net zero measure unless it is linked to ending investment in fossil fuels, which we know it is not. I expect that we will shortly hear criticisms on that front. It was quite damning how the right hon. Member for Kingswood said that it was simply not true to say that this is a net zero measure. He talked about using false figures in our accounting; I thought those were strong words, but they are true. Once that figure is discounted, we see that little money is going on the most important measures that should be being put in place to deal with emissions. Several people mentioned the need to insulate and retrofit homes, which would simultaneously slash emissions and bring down energy bills. That should have been an urgent national priority as energy costs soared. As has been said, if we invested in that, it would bring down energy bills year on year.

[Chris Skidmore]

When it comes to future measures—I am conscious that some of these schemes were announced by a Chancellor who has resigned in the past half hour and is no longer here to defend them—we need to introduce the concept of conditionality. It has been done in France and other continental countries but not in the UK, and it means that an investment is made on the condition that it is seen through in future green investment.

I pointed out that the £11.6 billion is money out of the door with no consequential effect on delivering on net zero. That money—£400 a person—could have been delivered on the condition that it was later spent on green home improvement measures using a voucher scheme. We need to think carefully about how we deliver those schemes in future so that we can benefit people in a cost of gas crisis—it is not just a cost of living crisis—and see real change on the ground.

[Kerry McCarthy]

The right hon. Gentleman is correct. We should be looking at long-term solutions, not short-term fixes. When the next rise in energy bills comes in the autumn, people will quickly discount that money. They will obviously be grateful to have had some money to help towards their bills, but they will not feel as though they have benefited a lot. Insulation, however, would mean that they had something to see them through future years.

As I said, housing should have been a priority. Properly retrofitting homes would significantly reduce the 20% of UK emissions that come from buildings, as well as cutting bills. That is why Labour has pledged £6 billion a year to retrofit 90 million homes in a decade. My neighbour, my hon. Friend the Member for Bristol North West (Darren Jones), talked about a national street-by-street programme. I would welcome that, provided that it started in Bristol East rather than Bristol North West—we will work our way round to him eventually. If Bristol is getting some money for that, I want to be first in the queue.

There are other examples where the now ex-Chancellor seemed keen to claw back green spending wherever he could. The plug-in grant for electric vehicles was scrapped just weeks ago. The planned landscape recovery fund to rewild our countryside was recently gutted from £800 million a year to £50 million over three years. In these estimates, we see a £76.8 million reduction in funding for carbon capture and storage, despite the Climate Change Committee highlighting concerns last week about the Government’s support for the sector. As the Chair of the EAC said—I seem to be quoting him a lot, which is a tribute to his excellent speech—CCS is not a magic bullet. We are simply not there yet; there is huge potential, but we cannot magic it out of thin air. There has to be a strategy to get us into a position to make use of it.

There are many things that the Government could do if they were worried about the costs of going green. They could scrap the plans to provide a huge tax break for investment in fossil fuels in the upcoming Energy (Oil and Gas) Profits Levy Bill, which we will debate next. The way that that is envisaged at the moment means that the Government will provide 20 times more in taxpayer incentives for investment in fossil fuels than in renewables. Although we are flattered that the Government eventually saw sense and adopted our idea of a windfall tax, the way that they are going about it is all wrong.

The Government are simply not going far or fast enough to tackle the climate emergency. There has been no investment in the gigafactories that we desperately need to boost production of electric vehicles in the UK. That is about not just producing batteries here but ensuring that we retain the car manufacturing that is essential to many of our communities. That investment would also create 30,000 good green jobs in the process.

The installation of EV charging points is still moving at a snail’s pace, like some of the cars, with only 830 public chargers installed last month and the need for at least 270,000 more by 2030 to keep pace with demand. It is good that people are choosing to make the shift, but they need support from the Government to get from A to B; anyone who has an EV knows the perils of trying to find a public charging point when they need one. Energy intensive industries such as steel are still crying out for investment to help them to make the transition to low-carbon manufacturing.

The Government seem to be running scared of investing in climate action. They can only see the cost and they are blind to the opportunities. The Minister should remember that the Climate Change Committee estimates that even without factoring in the benefits of green growth or the impact on public health, reaching net zero will cost less than 1% of GDP. Another 0.5% of GDP could be saved by moving away from costly fossil fuels rather than fracking for more, as the Department appears determined to do. Wise investment would lead to lower bills for consumers, good green jobs and sustainable economic growth. It is not just right to tackle climate change; it will get us out of this cost of living crisis.

Labour will treat this issue with the seriousness it deserves by investing £28 billion a year to tackle the climate emergency, grow the green economy and get cheap green technologies into people’s hands. People want to upgrade their homes to bring down bills, they want to buy electric cars that will be cheaper to run as well as more environmentally friendly, and they want to make greener choices about what they consume, but the Government have to step up to support them in making this transition. That means recognising the urgency of the situation, putting climate action at the heart of every spending decision—on homes, energy, transport and more—and doing a lot better than the Government are doing now.

Energy Security Strategy

Kerry McCarthy Excerpts

Tuesday 19th April 2022 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

My hon. Friend the shadow Secretary of State visited Bristol recently to look at the ambitious projects that are going on there, including new water source heat pumps and the City Leap partnership. Is the Secretary of State aware of what is going on in Bristol, and what can he do to help cities to decarbonise?

[Kwasi Kwarteng]

I know that Bristol has a strong tradition of green, carbon-reducing policies. I should be happy to visit the city and see the great work that is being done there. It is a part of the world that I know well from Airbus and other great industrial concerns.

Oral Answers to Questions

Kerry McCarthy Excerpts

Tuesday 29th March 2022 Commons Chamber

[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.

Russian Oil Import Ban

Kerry McCarthy Excerpts

Wednesday 9th March 2022 Commons Chamber

[Kwasi Kwarteng]

My hon. Friend, like other Members across the House, is right to focus on energy efficiency, because that is clearly a big part of this conundrum. We have had some successes, but we have also done some things not as effectively as we could have done. There were elements of the green homes grant that worked, and elements that did not work as well. I am constantly trying to improve the offer on energy efficiency with the public sector.

[Kerry McCarthy (Bristol East) (Lab)]

The Minister has been asked twice now specifically about fracking and has completely avoided answering the question. Would he like to have another go?

[Kwasi Kwarteng]

I will have a go, and I will be very clear. Funnily enough, I was a Minister at the time when the written ministerial statement on hydraulic fracturing was made. The Government have always been clear that we will take a precautionary approach and support shale gas exploration if it can be done in a safe and sustainable way. That remains our position, and we will be evidence-led. That is what we wrote and said in 2019, and we are still committed to that.

Corporate Transparency and Economic Crime

Kerry McCarthy Excerpts

Monday 28th February 2022 Commons Chamber

[Kwasi Kwarteng]

I am conscious that my hon. Friend would not want me to burden people who are legitimately setting up companies. He will also appreciate that the legislation will create new criminal offences, and I am confident that this will significantly tighten the regime that we have today.

[Kerry McCarthy (Bristol East) (Lab)]

The Minister said in his statement that the new register will require anonymous foreign owners to reveal their real identity, to ensure that criminals cannot hold property behind secretive chains of shell companies. Will it also deal with the issue of beneficial ownership sometimes just being put in the name of another individual so that, on the face of it, it looks like they are the person who is entitled to beneficial ownership, but really they are not?

[Kwasi Kwarteng]

The hon. Lady is absolutely right to say that we want to have greater transparency. The example in the statement was merely that; it was an example of how people can hide ownership of assets. We want greater transparency generally.

North Sea Oil and Gas

Kerry McCarthy Excerpts

Wednesday 9th February 2022 Commons Chamber

[Greg Hands]

My right hon. Friend makes a strong point. Of course the line from the Treasury—speaking as a former Treasury Minister—is that all taxes are always under review, but I repeat the words of the Chancellor from Thursday, that a windfall tax is “superficially appealing” but probably counterproductive. He reminded us that oil and gas companies pay corporation at twice the rate of non-oil and gas companies, and that the sector has already paid some £33.7 billion in taxes since the year 2010.

[Kerry McCarthy (Bristol East) (Lab)]

In November, the COP President was reduced to tears after ambitions to phase out fossil fuels were voted down at the last minute. Three months later, the UK Government are tanking efforts to keep us to 1.5^º by approving these six new oilfields. It is not just about looking at the energy supply and demand in this country; it is about setting an example. If we are to approve this fossil fuel exploration, what is to stop other countries from following suit?

[Greg Hands]

I very much welcome the hon. Lady’s question and the chance to put on the record the brilliant job done by the COP President. At the start of the year running up to the conference, only 30% of global GDP was covered by a net zero commitment. That rose to 90% after the conference, which sets an example. I am the co-chair of the Powering Past Coal Alliance, an international group calling for the phasing out of coal—something I am proud of.

Oil and Gas Producers: Windfall Tax

Kerry McCarthy Excerpts

Tuesday 1st February 2022 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

I do not know whether any of my colleagues present listen to the “Political Thinking with Nick Robinson” podcast, but the Leader of the House was the guest on Saturday, and it was interesting to note that he referred to the cost of living crisis. He was using it as an excuse to avoid talking about Downing Street parties, but the fact that he acknowledged that we have a cost of living crisis is something he may need to go and discuss with the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for North East Derbyshire (Lee Rowley), who opened this debate.

People will know that the Leader of the House is my constituency neighbour, and he may have popped across the border to buy some fish and chips, although I think that is unlikely. If he did, he might have spoken to a fish and chip shop owner who got in touch with me recently to say that his gas and electric bill has increased fourfold in the past three months. That is simply unsustainable and he cannot pay it, so a valued business that has served the community for more than 30 years now faces closure. The same scenario is playing out across the country in people’s homes and businesses, with April’s price cap rise looming large.

Surging gas prices are a global issue, but the extent to which the consequences are allowed to crush consumer and businesses finances is a Conservative issue. While bill payers grow increasingly anxious about how they will make ends meet, UK oil and gas producers are making near-record profits, on a scale not seen since before the 2008 crash. The industry has suggested that to tax it more would deter investment in renewables, and we have heard some comments of that nature from the Government Benches today, but the fact is that the UK is one of the most profitable countries in which it operates, because of the favourable tax environment.

Despite David Cameron’s pledge to lead “the greenest Government ever”, measures introduced by his Chancellor have meant that many oil and gas companies have paid negative tax in recent years. Despite our commitments at COP, oil and gas producers are rushing to taking advantage, determined to exploit to the max what is left of our fossil fuel reserves, instead of doing as we should and keeping it in the ground. It is not just environmentalists who say this: there is a very sound business case, if we listen to people such as Lord Adair Turner.

The current regime just cannot be reconciled with our climate commitments. The long-term solution to this crisis is not churning out more fossil fuels, but switching to sustainable energy sources to avoid a reliance on volatile gas markets. That means investing now in renewable energy, insulation of homes and installation of heat pumps, rather than kicking the can down the road, as this Government have done with their net zero strategy.

The Chancellor needs to act on this issue, but until he does, oil and gas producers need to pay their fair share of tax rather than expecting energy bill payers to pick up the tab for them. If Tory MPs—I see there are only one or two left in the Chamber—care about their constituents and the cost of living crisis, they should join Labour in the Division Lobby tonight. Rather than adopting Labour’s plans to prevent millions from falling into fuel poverty, the Government, in presiding over wage stagnation, universal credit cuts and a national insurance hike, have accelerated that process.

The owners of local cafés, barbers and bakeries did not have the luxury of jetting off to California like the Chancellor did when the going got tough over the Christmas period; they were struggling to keep going despite the supply chain issues, depleted workforce and rise in inflation. Was expecting the Chancellor to be doing his job too much to ask? At least Labour is here today doing the Chancellor’s job for him. The £600 million contingency fund proposed by Labour offers tangible and immediate support to businesses and families crippled by inflation. Our plan to cut VAT on energy bills—which, incidentally, the Government used in the referendum campaign as a reason to support Brexit—and to roll out targeted support would take hundreds of pounds off most households’ monthly costs. In rejecting the windfall tax on oil and gas companies, the Government send a clear message to millions of families and business owners across the UK that when it comes to choosing which side they are on, they care more about the oil and gas producers profiting and polluting than they do about keeping pensioners warm this winter.

Oral Answers to Questions

Kerry McCarthy Excerpts

Tuesday 16th November 2021 Commons Chamber

[Lee Rowley]

My hon. Friend is absolutely right to highlight the challenges of bringing the cost down, as is the case in so many areas of the net zero strategy, but progress is being made. We are keen to support the development of new technology solutions. He will know that we have set out an ambition for 10% of the UK’s aviation fuel to be SAF by 2030. We recognise the challenge of the cost, but I know that my hon. Friend, in his capacity as Chair of the Transport Committee, has announced an inquiry into the matter; I look forward to working with him and understanding the conclusions and proposals that he puts forward.

[Kerry McCarthy (Bristol East) (Lab)]

It has just been revealed that the Transport Secretary is spending departmental money to lobby against the development of private airfields. This includes lobbying against plans to build a battery gigafactory at Coventry airport. What hope do we have of decarbonising transport when the very Cabinet member responsible for that brief is more interested in having somewhere to land his private jet? What conversations is BEIS having with the Department for Transport to ensure that it takes this matter seriously?

[Lee Rowley]

I am not sure that this is Transport questions, but it is a question in that spirit. I understand that my right hon. Friend the Secretary of State absolutely disputes the description that has just been given by the hon. Lady. On her question, there is a huge amount of work under way to try to decarbonise aviation, as demonstrated in the announcements last week at COP and the work that the Government have been doing for a number of years. We will continue to do that to ensure that we hit the net zero target by 2050.

Income Tax (Charge)

Kerry McCarthy Excerpts

Thursday 28th October 2021 Commons Chamber

[Mary Glindon (North Tyneside) (Lab)]

It is a pleasure to follow the hon. Member for Newton Abbot (Anne Marie Morris).

Today my husband Ray would have been 75, and he would have been glued to the Parliament channel, not only looking out for me on the green Benches—hopefully —but, more importantly, following the Budget debate and scrutinising the Chancellor’s announcements, because as cabinet member for finance on North Tyneside Council, he would have wanted to work out just what the Budget meant for our borough and the people of his Camperdown ward. I know that his successor, cabinet member Councillor Martin Rankin, will be doing just the same.

Having missed out on freeport status in March, I hoped to hear of some direct benefit for our green industries and other businesses on the Tyne in the Chancellor’s statement, but once again it seems that for some—known—reason, Teesside has the Chancellor’s favour. The Chancellor can be sure that I will keep banging on his door and those of his Cabinet colleagues asking for help for the Tyne’s industries to compete on a fair playing field, nationally and internationally, until we get what we need.

I congratulate those involved in the North East Homeless hub and the Whitley Bay Big Local community building, which have been granted £300,000 each from the community ownership fund. The North East chamber of commerce has commented that the Budget contains some welcome announcement for businesses in the north-east, but

“substantial longer-term strategies like the levelling up White Paper, the integrated rail plan and details on how the Shared Prosperity Fund will work, have yet to see the light of day. Without these plans it is difficult to judge how much of a long-term impact the levelling up agenda will have on our economy”.

[Kerry McCarthy (Bristol East) (Lab)]

It has taken me a while to dig out the quotation with which I wanted to intervene when my hon. Friend mentioned freeports. Bristol’s freeport bid was also rejected. According to the OBR’s document, published yesterday, the primary function of freeports is

“to alter the location rather than the volume of economic activity. So the costs have been estimated on the basis of activity being displaced from elsewhere.”

That feeds into our biggest concern about freeports—that they do not boost economic growth and performance overall. It is just a case of taking those from one area to another, and it means that areas like ours will miss out even more.

[Mary Glindon]

My hon. Friend is exactly right. That was one of the biggest fears about freeports, and it is why we so desperately needed them to be close to each other.

With inflation set to rise, taxes being increased and the cost of living soaring, there is little comfort for my constituents, especially those on the lowest incomes, who are worried about how they will manage their own budgets. Moreover, there is no certainty about what the public sector pay rise will mean in real terms. It was very worrying to learn that, this very morning, the Northumbria police and crime commissioner, Kim McGuinness, resigned from her national role negotiating pay deals for police staff in response to what she has described as the grossly unfair pay offer made to police staff and officers. She has said that if Ministers will not stand by our workers, there is no point in negotiating with this Government.

Unions across the public sector agree that the Chancellor must allocate extra money to Government Departments to fund pay rises. He must put his money where his mouth is. Data shows that real wages have fallen in every region in England over the last 10 years, by more than £23 per week on average. When we add to that the fact that more than 11,000 households in North Tyneside claimed universal credit and more than 4,700 of them were working people, only a third of whom will benefit from the taper rate, things are looking very bleak for many of my constituents.

North Tyneside Council has suffered Government funding cuts amounting to £127 million since 2011. When my Ray delivered his budget speech to the full council in February this year, he announced that the Labour Cabinet under Norma Redfearn, our elected Labour Mayor, had worked to fill the £6.3 million gap in funding and protect services, including the council’s poverty intervention fund, which has been a lifeline for many people during the pandemic. No doubt there will be many calls on the fund in the coming months.

However, the Local Government Association has pointed out that among the announcements for councils, the spending review makes no mention of whether local government will receive a three-year financial settlement, or whether and when local government reforms will be implemented. In recent years, settlements have been published in draft form very late in December, after the stated target date of 5 December. The LGA rightly says that this target should be met and that councils should receive early certainty with a three-year local government settlement.

Whether it is in public services, local government, household budgets, the environment or business support, there remain so many ifs and buts in this Budget that I am afraid we may need heavenly help if we are to get anything worth while or concrete from our Chancellor.

--- Later in debate ---

[Alex Cunningham (Stockton North) (Lab)]

I am in the same place as my right hon. Friend the Member for Doncaster North (Edward Miliband): we do not know what planet the Chancellor is living on. But we do know that he urgently needs to get back in touch with reality. In yesterday’s Budget, he kept referring to the biggest investment changes in a decade and spoke of an “age of optimism”; I remind him that the only reason his investments look even remotely positive is that the past decade was defined by the devastating cuts and under-investment from Conservative Governments who have driven public services into the ground. Even if he was talking about new money, particularly for public services, it would replace only a fraction of the huge cuts over the past 11 years.

The truth is that this Budget is an underwhelming and uninspired response to the anxiety inducing cost-of-living crisis that our constituents face. Tax cuts for champagne and domestic flights will not go far to offset the difficulties of the long hard winter ahead. Over the next five years, real household disposable income is expected to grow by only 0.8% per year—far below the historical average. It is worth repeating what Paul Johnson, the director of the IFS, said:

“This is actually awful. Yet more years of real incomes barely growing. High inflation, rising taxes, poor growth keeping living standards virtually stagnant for another half a decade”.

The rising cost of living is biting hard in my constituency and the Budget does nothing for those hit the hardest. Figures published yesterday by the financial management company Aryza showed that the average personal debt in Teesside stands at £19,345—the second highest average in England—yet a recent report from the North East Child Poverty Commission revealed that in the north-east, spending to support people in financial crisis fell by 78% in the decade from 2010 to 2020, and the number of local welfare assistance awards made in the region fell from more than 16,000 to just over 12,000.

I have seen local Conservatives spin the Budget as one that is good for the Tees valley, but that simply is not true. Once again, the Tees freeport has been trumpeted, but the actual forecasted benefits are extremely limited. As my hon. Friend the Member for Bristol East (Kerry McCarthy) mentioned, the OBR’s October fiscal outlook notes that

“given historical and international evidence, we have assumed that the main effect of the freeports will be to alter the location rather than the volume of economic activity, so the costs have been estimated on the basis of activity being displaced from elsewhere.”

We have been promised tens of thousands of jobs, but now it appears that the Government’s own Office for Budget Responsibility suggests that that is nonsense.

[Kerry McCarthy]

That point about freeports ties in with the Government’s approach, which seems to me to be that they want announcements that get them photo opportunities and good press releases, and the MP who managed to get the freeport can then put that on their leaflets. But freeports contribute nothing at all to the overall picture; they just take from one area and give to another, which is no way to run the economy and to try to stimulate economic growth. We need a strategy by which everyone is helped to level up.

[Alex Cunningham]

My hon. Friend is totally correct: the Government rely on picture opportunities and short slogans to run our country. That is not the way forward.

We have had promises of jobs in the future that simply do not materialise. We do not want other people’s jobs: we want real, new jobs, not recycled ones. If it was all as grand at the Tories tell us, we would not still have around 10,000 more people unemployed across the Tees valley than there were in March 2020 and an unemployment rate 50% higher than the national average.

There was some good news in the Budget for the Stockton borough, but for me it was tarnished. I would not deny leafy Eaglescliffe and Yarm their success in being awarded levelling-up funding, but it was disappointing to see Billingham miss out once again, especially as it is in much greater need of levelling up. It just goes to show that the Tories like to talk a good game on levelling up—it is further proof that it is just an empty slogan.

As was mentioned earlier, the Budget contained nothing to address the high costs for energy-intensive industries, even though just weeks ago the country was on the brink of being plunged into a CO₂ supply crisis when CF Fertilisers in my constituency had to cease ammonia production because it was not economical. Energy-intensive industries, like many in my constituency, face a triple whammy of unsustainable costs. The sectors have been left reeling by the combination of sky-high gas, electricity and carbon prices that is damaging their ability to compete in international markets and risks domestic supply chains. While I, of course, welcome the announcement that a deal between CF and its CO₂ customers will see production at its Billingham plant continue until January of next year at least, industries such as these need longer-term support, including urgent reforms to the short-haul gas tariffs and progress at pace on carbon capture, use and storage.

There was not much at all on energy in the Budget. Companies such as Kellas in my constituency, which I visited a couple of weeks ago, would have hoped for clarity on hydrogen production and the potential balance between blue, green and pink varieties.

Once again, we saw nothing of the support that we need to tackle the health inequalities in my area. Stockton-on-Tees is often used as a case study to highlight health inequalities in the UK. Men who live in the town centre ward are expected to live 18 years fewer than their peers just a couple of miles down the road. In every Budget speech that I have made for the past 11 years, I have called on the Government to fund the new hospital that Stockton desperately needs. I am, however, pleased that my neighbour, the hon. Member for Stockton South (Matt Vickers), seems to have joined my campaign around North Tees Hospital and has secured today’s Adjournment debate to talk about that very topic. I look forward to hearing more from the Minister later on today. I have also tried to enlist support for a new hospital from other north-of-Tees MPs, and I sincerely hope that they will lend their voices to the campaign, which would benefit all of our constituents hugely. They will have found it just as galling as I do that just a fraction of the billions of pounds wasted on a failing test and trace system could have built us a new hospital.

This Government have not spent public money wisely, and they cannot be trusted with the public purse. The Tees Valley needs systematic and long-term investment that is controlled at a local level by local people and local councils, that will make sure that families have enough to live on, and that will free our children from poverty. We also need a plan that will stop firms such as Cleveland Bridge and Engineering Company and local steel firms going bust. We need to save and retain existing jobs as we await the promises of the future to be fulfilled. Once again, the Tories have failed to deliver anything like that. The Chancellor’s small-fry solutions will do little to help working families in our areas who are facing hikes in their Bills and lower take-home pay as we head into that long, hard winter.

Yesterday, the Chancellor said that it was a tall order to complete the spending review, and that the Chief Secretary to the Treasury, the right hon. Member for Middlesbrough South and East Cleveland (Mr Clarke) was just the man for the job. Sadly, he and the Chancellor have given the people of my constituency and the entire country short shrift.