Oral Answers to Questions

Michael Shanks Excerpts

Tuesday 2nd June 2026 Commons Chamber

[Vikki Slade (Mid Dorset and North Poole) (LD)]

4. What assessment he has made of the adequacy of the progress of transitioning from fossil fuels to cleaner energy sources.

[The Minister for Energy (Michael Shanks)]

With that new-found consensus on the clean power mission, I am happy to report to the House that we are making good progress towards our targets. We delivered the most successful renewables auction in history through allocation round 7, securing enough home-grown power for 11 million homes, as well as delivering a record-breaking 269,000 solar installations last year, the majority of which were on rooftop sites. By moving further and faster towards electrification, we are reducing our dependency on global fossil fuel markets and delivering energy security here at home.

[Vikki Slade]

Last month, alongside other Dorset MPs, I met with the Crown Estate to discuss the Dorset Clean Energy Super Cluster. While I welcome its recognition of the area as a medium-term opportunity, it is concerning that development is likely at least a decade away, despite Dorset’s significant potential for a range of green energy initiatives. Given that net zero industries are already delivering higher wages than average and 50% greater productivity than the UK average, does the Minister agree that it is both an environmental and economic missed opportunity to delay Dorset’s potential for so long, and will he commit to reviewing this personally and consider appointing a ministerial advocate for the south-west on energy security?

[Michael Shanks]

The hon. Member is right to champion her local community. I have met with those involved in the Dorset super cluster before, and I am happy to do so again, because we do see huge potential for the clean energy transition right across the country. As she rightly says, it is also about how we create good, well-paid jobs in every community, so I am very happy to meet her to discuss it further.

[Brian Leishman (Alloa and Grangemouth) (Lab)]

Progress? Not when it comes to Scotland’s jet fuel supply, because yesterday there were fuel shortages at Scottish airports, meaning lengthy delays. Those on the Front Bench will say it was because of a tanker driver shortage—a logistics issue—and they would be absolutely right to do so. However, the fact is that 2,822 supply chain jobs were lost because of the Grangemouth oil refinery closure, leading to transport problems like the one we saw yesterday. Jet fuel shortages will happen again; what are the Government going to do to stop that happening?

[Michael Shanks]

Well, it is a basic fact that the very short-term disruption at both Glasgow and Edinburgh airport was caused by driver disruption. That has now been resolved, and flights are carrying on as normal. There is not an issue with jet fuel in the UK at all; that is just a fact, and I am happy to put that on the record.

My hon. Friend is right to say that the failure of both the previous Conservative Government and the SNP Government to plan for what was well known—the closure of Grangemouth—has meant that we lost the opportunity to build on the industries that were there. However, we have committed £200 million, so that there is an industrial future at Grangemouth. We have announced the first projects from that, and there are many more to come.

[Mr Speaker]

I call the shadow Secretary of State.

[Claire Coutinho (East Surrey) (Con)]

I have a very simple question. Everybody in this House knows we will need gas for decades to come, so for once, can the Minister give a straight answer? Which is better for the environment: going to a country 1,000 miles away, fracking the gas, freezing the gas, shipping it and reheating it, or just piping it in straight from the North sea?

[Michael Shanks]

The very simple answer is that we are continuing to use the North sea—no one is switching off what we are producing in the North sea—but the amount that we are able to extract from the North sea has been in long-term decline. The right hon. Lady knows that because she was the Secretary of State who talked a lot about the need for a transition in the North sea—she recognised then that the North sea has been in decline. We have been a net importer for more than 20 years, so this is not a short-term position. The shadow Minister, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), gave the game away a few minutes ago: the answer to this is how we build the industries that come in the future, alongside retaining oil and gas for many decades to come.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Edward Morello (West Dorset) (LD)]

The UK is home to fantastic and innovative clean technology start-ups in the energy space. However, these businesses tell me that funding for start-up and, importantly, scale-up phases in this space is falling off a cliff. The net zero innovation portfolio, which awarded more than £1.3 billion in grants and crowded in £3 for every £1 in public spend, was abolished at the last spending review, and the clean tech innovation challenge has yet to get off the ground. Will the Minister explain what his Department is doing to support clean tech start-ups in this space?

[Michael Shanks]

The hon. Member is right to highlight the enormous potential. For a very long time, the UK has not been good at growing the good innovation and spin-outs coming out of our university and innovation space. We need to nurture them, but also build on them and invest in them in the future. That is why we are investing in that early stage development, and it is also why Great British Energy is interested in what the next set of innovations are, how we can back them and, crucially, how we can keep the intellectual property here in the UK and also build the supply chains and the industry that goes along with it. It is a huge opportunity for us, and today’s report from the CBI outlines just how crucial it is to the overall British economy that we continue to grow and nurture the exact industries that he talks about.

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[Dr Al Pinkerton (Surrey Heath) (LD)]

10. What recent discussions he has had with his EU counterparts on the UK’s participation in the EU’s internal electricity market.

[The Minister for Energy (Michael Shanks)]

Co-operation with our EU counterparts is vitally important when it comes to energy security. I recently travelled to the WindEurope conference in Madrid, where I joined other European Ministers to discuss how recent global events have shown that we have to work together to deliver on our energy security. We have held constructive discussions with the EU on the internal electricity market and those continue.

[Dr Pinkerton]

At a time of intense geopolitical instability, British households remain particularly exposed to volatile global energy prices. Indeed, Ofcom has announced a 13% rise in the energy price cap from July. Given that there are interconnectors with six European countries already, does the Minister agree with a coterie of esteemed energy economists that the single greatest thing that this Government could do to strengthen our energy security, drive long-term investment in renewable energy and bring down bills would be to recouple our electricity market with that of the European Union? [Interruption.]

[Michael Shanks]

I agree with the hon. Member. We have this bizarre situation where we have chuntering from the Opposition Front Benchers about the fact that we have interconnections with Europe. We have had them for decades, and they are important to our energy security. That was the case under both Governments, and theirs is an absurd position. He is absolutely right to say that in a moment of geopolitical uncertainty, closer links with Europe are important. Our interconnectors import and export every single day to the benefit of consumers in Britain. We want to see much more efficient energy trading, and that is why we are working on those formal negotiations about the EU internal electricity market, which is important for Britain.

[Bradley Thomas (Bromsgrove) (Con)]

13. What assessment he has made of the potential implications for his policies of the use of Chinese-manufactured solar panels by Great British Energy.

[The Minister for Energy (Michael Shanks)]

The provisions under the Modern Slavery Act 2015 drive industry action via due diligence and transparency to tackle forced labour in supply chains for solar panels. All procurement conducted under Government and GBE contracts is required to meet those standards.

[Bradley Thomas]

The Xinjiang Uyghur region of China is estimated to provide 45% of the world’s solar-grade polysilicon. An estimated 68% of UK panels come from China, and two thirds of NHS trusts are dependent on Chinese solar. The Government have said that GB Energy is committed to having a supply chain free from slave labour by spring 2025, but a Politico investigation has revealed that five out of seven of the contracts that GB Energy has provided for schools cannot guarantee that they are free from forced labour. The GB solar stewardship initiative pledges to ensure that there is no slave labour, but there is no guarantee of 100% elimination of slave labour from the supply chain. What will the Government do to reduce slave labour in supply chains and wean the UK off Chinese-made infrastructure?

[Michael Shanks]

As I said during the passage of the Great British Energy Bill, I agree with the hon. Member about the importance of tackling modern slavery as a country across supply chains and across the economy. It is right that we take action. We are tackling forced labour where we find it in global supply chains, and we want to go further. GBE will be a leader in how we tackle modern slavery, and it has set up a function to look at sustainable supply chains and to ensure that they are free from modern slavery.

[Tracy Gilbert (Edinburgh North and Leith) (Lab)]

14. What steps his Department is taking to regulate heat networks.

--- Later in debate ---

[Euan Stainbank (Falkirk) (Lab)]

T3. My constituents Gillian and Ross worked at INEOS Olefins & Polymers, and started retraining in 2024, following the announcement in 2023 that the Grangemouth refinery would close. However, they were recently denied support, due to limits on the Grangemouth workers training guarantee. Will the Government, alongside the Scottish Government, review the Grangemouth workers training guarantee, so that support can be extended to workers like Gillian and Ross?

[The Minister for Energy (Michael Shanks)]

I thank my hon. Friend for all the work he has done to support the workers from Grangemouth. I wrote to him earlier this week on the case of his two constituents. The training fund was set up to provide that support. We will continue to look at it, and I am happy to meet him to discuss it further.

[Mr Speaker]

I call the shadow Secretary of State.

--- Later in debate ---

[Edward Morello (West Dorset) (LD)]

The UK should be the world leader in greenhouse gas removals, but the sector is struggling to attract funding and off-takers because of uncertainty about Government support for GGRs. Will the Government please confirm when they plan to publish their response to the independent GGRs review, and whether the Department is considering the launch of a UK buyers’ club, running along similar lines to the EU system?

[Michael Shanks]

The hon. Member is right about the ambition, and that is why we commissioned the independent review by my noble Friend Lord Whitehead. We will respond to that review in due course, and we are ambitious about the role that GGRs can play.

[Kerry McCarthy (Bristol East) (Lab)]

T6. I thank the Minister for the £13.5 million for the Temple Quarter heat network in my constituency. Where Bristol leads with City Leap, others can follow, so what are the Government doing to support other places in following our example, in order to get investment in decarbonising our cities?

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[Sir Julian Smith (Skipton and Ripon) (Con)]

T7. Small businesses across Yorkshire are really struggling with energy costs. We have talked about the local power plan, and the ability of communities to sell power to small businesses—the question just came up. That has to happen. We must do everything we can to lower the costs for rural and small businesses. Will the Minister make sure that that happens?

[Michael Shanks]

The right hon. Gentleman is absolutely right. This is a crucial aspect of the local power plan. We need to support communities in developing the project, and then creating a market in which they can sell electricity locally. We are working with Ofgem and partners to ensure that can happen, and we will say more in due course.

[Tom Hayes (Bournemouth East) (Lab)]

Had the 8.3 GW of offshore wind secured at the start of this year through allocation round 7 been in place last year, we would have seen gas generation cut by a third, and wholesale prices down by 13%. It is clear that we have to double down on the clean energy revolution. We cannot be distracted by yet more fossil fuel work. Will the Secretary of State outline how we will push forward the clean energy transition, and offshore wind in particular?

[Robin Swann (South Antrim) (UUP)]

Northern Ireland is home to some innovative carbon capture businesses with real export potential, but many UK clean technologies face a gap between successful pilot innovation and that first commercial deployment. What steps are the Government taking to ensure that high-value opportunities can be scaled, thereby supporting jobs, investment and growth? Will the Secretary of State accept an invitation to visit Nuada?

[Michael Shanks]

The hon. Gentleman is right to highlight this issue. We have provided funding to support the development of carbon capture projects in Northern Ireland, such as Catagen’s biohydrogen reactor in Belfast. We welcome engagement on further carbon capture, usage and storage projects. It is a really important part of decarbonisation, and I am happy to engage on it further.

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[Ben Obese-Jecty (Huntingdon) (Con)]

By now, the Secretary of State will be well aware of my opposition to the 1,900 acre East Park Energy solar farm in my constituency. We are now at the business end of the planning process; the application is before the Planning Inspectorate, ahead of a decision by the Secretary of State later this year. Will he outline roughly when he expects to have to take a decision on the application? Ahead of that, will he meet me and my hon. Friend the Member for North Bedfordshire (Richard Fuller) to discuss our concern that it is not the right solution for our area and our constituents?

[Michael Shanks]

I thank the hon. Gentleman for his question, but because it is a live planning application under independent examination, it is not possible for me to comment further. I obviously encourage him and his constituents to register with the Planning Inspectorate, if they have not done so already, so that they can share their views.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

I welcome the contracts for difference for geothermal and the fact that the Secretary of State has been down to see deep geothermal in Cornwall. A policy indication from the Government that deep geothermal could form part of our energy mix would be useful to grow confidence in the industry.

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[Mr Andrew Snowden (Fylde) (Con)]

I thank the Secretary of State for not approving the Morgan and Morecambe wind farm cable corridor and for deferring the decision for six months for further consultation. I know how much he wants to achieve his target, so I know how difficult that decision will have been. Together with cross-party local councils, I have written to him to articulate the available alternative routes. Will he use these six months to consider those alternatives?

[Michael Shanks]

As I have said before from the Dispatch Box, it would not be appropriate for me to comment on live applications for obvious reasons. We look at every single application on its merits; even though we have ambitions for where we want to get to, individual planning applications are considered on the individual merits on which they are presented.

[John Whitby (Derbyshire Dales) (Lab)]

Peak Cluster in the Hope valley is a cement decarbonisation project looking to prevent 3 million tonnes of CO₂ from entering the atmosphere every year. Will the Minister commit to establishing a clear route to market for industrial carbon capture projects beyond track 1 and track 2 clusters, which would offer projects like Peak Cluster greater certainty?

[Michael Shanks]

We see carbon capture as a hugely important part of how we decarbonise, and we have supported clusters already. We are looking at what a future model could look like; equally, we need to see other projects coming forward on commercial terms to ensure that they are viable. I continue to meet with all the clusters, and I chair the CCUS taskforce to ensure that we are doing as much as we can.

[Martin Vickers (Brigg and Immingham) (Con)]

Last Saturday, I met representatives from a number of well-established hospitality businesses in my constituency, one of whom is facing an energy cost increase of £70,000 this year. That is clearly unsustainable. What are Ministers doing to prevent unchecked energy increases from happening year on year?