Oral Answers to Questions Debate
Full Debate: Read Full DebateLindsay Hoyle
Main Page: Lindsay Hoyle (Speaker - Chorley)Department Debates - View all Lindsay Hoyle's debates with the Department for Energy Security & Net Zero
(5 days, 22 hours ago)
Commons ChamberI congratulate the hon. Lady on reading out the Whips’ handout. No, I do not, and I will tell her why. The Chancellor’s action in the Budget to take the renewables obligation off bills and put it on to public expenditure was the biggest single cut in the cost of electricity that we have seen dating back to even the Conservatives’ time in office.
The costs of new infrastructure are a pressure on bills, as the Secretary of State knows. He deserves enormous credit for the results of the allocation round 7 auction today, in which the strike price of renewables was less than half what it would have been with new gas. What is the approach to rolling out extra grid—and, indeed, maintaining the existing grid—which is so crucial to the plans, given that there is so much to make up for following the failure to invest over the many years since privatisation?
Chris McDonald
My hon. Friend is right to champion the small manufacturers in her constituency, which I know well from the time that I spent working in south Wales. It is important to note the announcement from my right hon. Friend the Secretary of State this morning—it will shortly be the subject of a statement to the House—about allocation round 7. It demonstrates our commitment to putting on new solar farms, new onshore wind and new offshore wind. Every single one of those installations contributes to our energy security and to reducing the cost of energy for domestic consumers and industry alike.
Pippa Heylings (South Cambridgeshire) (LD)
The cost of electricity is still too high, and, as we have heard, businesses are struggling to pay their energy bills. While the Government have offered help to the energy-intensive industries, it is the small and medium-sized businesses in my constituency and around the country that still feel overlooked and forgotten. Liberal Democrat researchers have estimated that 3.1 million SMEs saw a total bill increase of £7.6 billion when the Conservative Government ended the energy bill relief scheme. When will this Government finally help SMEs—the small businesses, the backbone of our economy—to see off their crippling energy bills?
Perhaps unsurprisingly, I warmly welcome my hon. Friend’s comments. He takes seriously the issue of how we can build the infrastructure that the country needs for our energy security, but he also rightly draws attention to a fact that Opposition Members seem to ignore completely: the fact that renewables are the cheapest and quickest form of power to get on to the system. Just today, the new auction has resulted in 4.9 GW of capacity. That, taken together with the offshore wind results, makes it the most successful renewables auction in British history. The entire Opposition Front Bench used to agree with this. These renewables are 50% cheaper than the new-build gas that is now championed by the shadow Secretary of State, the right hon. Member for East Surrey (Claire Coutinho), which would add money to the bills of people throughout the country. This is the right plan for bringing down bills, for our energy security and for providing jobs throughout the country.
I do not think the Minister fully appreciates just how much communities threatened by large-scale solar up and down the country feel that they are having things done to them and not with them. The No. 1 complaint that I have heard from campaign groups represented by Stop Oversized Solar up and down the land, including some in my constituency, concerns the threat to food security. When they try to engage, they keep being given this bogus figure of 1%, but if we carry on in the direction the Government are going in, by 2035 an area the size of Greater London will be covered in solar. That is equivalent to nearly 2,000 farms capable of producing 2 billion loaves of bread. When are we going to get the truth about the threat to food security from solar?
Chris McDonald
The Government do not comment on or interfere with the carbon price. Ultimately, the price is set by the market to ensure that the ETS drives decarbonisation where it is cheapest. In this way, it can act most effectively as a financial incentive to decarbonise, without specifying the particular technology.
Thank you, Mr Speaker, and it is great to see you back on your feet.
Last week, the Labour party voted to increase the carbon tax, which increases costs for households and industry, and those costs have already doubled because of its policies. It is absolutely shameful for the Government to say that they have had no impact on the carbon tax whatsoever. It now accounts for over 10% of household electricity bills, and the rise is in effect a £5 billion a year tax on the British economy. Can the Minister explain why the Labour party wants to tax our industrial jobs out of existence, leaving Britain reliant on dirtier imports from abroad?
Order. Jim, you were not here—you have just appeared—and the problem is that I think you missed the first part of the question. [Interruption.] Do not worry, Jim—just get on with it!
I thank the Secretary of State and I know he is interested in small modular reactor schemes, which we are very interested in having in Northern Ireland. The shadow Secretary of State has also giving a commitment to them. Can I please ask the Secretary of State what discussion he has had with the Northern Ireland Assembly—Gordon Lyons, in particular—to ensure that we can also benefit?
Obviously, this is devolved to the Northern Ireland Assembly and Executive, but I think the hon. Gentleman makes an important point. Throughout the United Kingdom, there is huge potential for SMRs. This is the technology of the future, and it can play a really important role in our energy mix across the UK.
It is unusual—indeed, unheard of, in recent months anyway—for the Secretary of State and I to agree on anything on energy policy, but it is probably not the first time this week that he secretly agrees with a Scottish politician. I know he agrees that new nuclear, particularly SMRs, offer huge potential for the UK and for Scotland. This week, Trade Unionists for Safe Nuclear Energy launched a petition addressed to the First Minister of Scotland, calling on him to lift the ban on new nuclear development in Scotland. Can that group expect the Department’s support?
Perran Moon (Camborne and Redruth) (Lab)
Domestic production of clean energy infrastructure technologies insulates us from Chinese security issues. In Cornwall we are on the cusp of significant geothermal baseload energy production. Geothermal Engineering Ltd in my constituency will imminently open the UK’s first ever geothermal electricity plant, producing energy and lithium from beneath our feet. Will the Minister ensure that there will be ministerial representation at this key milestone in the UK’s clean energy transition?
Katie White
From China to Cornwall, Mr Speaker! I thank my hon. Friend for his continued championing of Cornwall, geothermal energy and critical minerals. This Government support geothermal, and we will engage constructively at any key moment.
My hon. Friend speaks with great eloquence on these issues. As she knows, that is the great thing about the Climate Change Act 2008, which was passed with the support of all parties. David Cameron—my nemesis—was a great supporter of that plan. The Act gives us the milestones that my hon. Friend talks about. On top of that, we have our clean power action plan.
Pippa Heylings (South Cambridgeshire) (LD)
Trump’s national security report made it clear that he wanted to use America’s gas to project geopolitical power. We must not replace Putin’s gas with a reliance on Trump’s gas. That is why signing the Hamburg declaration was a step in the right direction, strengthening energy co-operation with our European neighbours. We need to go further, and we should host the next North sea summit, demonstrating UK leadership. Has the Secretary of State managed to get the Treasury to see sense and agree to hosting the next summit?
Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)
Order. Mr Witherden, think about other people, not just yourself, please. We have to get more questions in.
My hon. Friend was at a Westminster Hall debate on this issue a few months ago, and what I said then remains the Government’s position: we work closely with the Welsh Government on this issue. We are content with the Welsh Government’s position that this area is already regulated and sufficient, but we obviously keep these things under review.
Chris McDonald
That was an extremely sweet question, and I would be happy to meet my hon. Friend to discuss the issue further and outline many of the initiatives that the Government are taking to support small businesses. Perhaps it would be best to do that on site, where I can get my favourite chocolate limes.
Harriet Cross (Gordon and Buchan) (Con)
Thank you, Mr Speaker.
“Our Governments seem stricken, almost delusional, in the face of onrushing disaster,”
and we are seeing
“arguably the most destructive industrial calamity in our nation’s history”.
Those are the words of the GMB’s Scotland Secretary about the Government’s determination to tax and regulate the oil and gas sector out of business. Does the Minister agree with the words of his union friend?