(5 days, 12 hours ago)
Commons ChamberWe do need to take some of the green taxes and levies off electricity bills. The problem is that if the Government keep making electricity more expensive, no one will want to use it. That is why our policy is the opposite of theirs. We believe that we should make electricity cheap by taking off green taxes and levies, and that has nothing to do with the North sea. Drilling in the North sea does not stop anyone buying an electric car. It does not stop us building nuclear, of which I am a strong advocate, and nor does it stop us building wind or solar for that matter. The Government say that drilling in the North sea leaves us tied to fossil fuels, but why? They need only look to Norway to see that that is not true. It makes the most of its own oil and gas resources, but lots of people drive electric vehicles there. Let us hear none of that argument today.
Thirdly, the Government say that drilling will not help reduce costs for ordinary people. That is economically illiterate rubbish. We are paying tens of billions of pounds to import oil and gas from Norway from the exact same basin we could be drilling ourselves. Destroying our oil and gas industry means some £25 billion in lost tax revenue for the public finances over the next decade. The Government say they are taxing the wealthy. Are they in the real world? They are taxing anybody with a pulse: pensioners, middle earners, small businesses, farmers, drivers—if they breathe, the Government are taxing them, and people are suffering. The Government could instead be getting that tax revenue from a thriving industry.
Sarah Coombes (West Bromwich) (Lab)
Is it not true that the number of jobs in the North sea oil industry halved in the last decade when the shadow Secretary of State’s party was in government?
The hon. Lady might like to know that oil and gas jobs have been stable for the past six years, but we are losing 1,000 jobs a month because of the Government’s policies. I know that because I have been to Aberdeen; perhaps she would like to do the same.
We also saw yesterday that the markets are charging us 5% for our borrowing. That is because they think we borrow too much and earn too little. There is an easy way for the country to earn some more money: we can make the most of our own resources and back the North sea, which would drive down costs for everyone. It is unfashionable at the moment to talk about balance of payments, but if we keep sending billions of pounds abroad and rack up the credit card bill, that causes costs for everybody.
Fourthly, on climate, Labour will say that drilling our own oil and gas in the North sea is “climate vandalism”—I am quoting the Secretary of State—but that is patent rubbish. Every drop of gas that we do not drill ourselves, we import from abroad instead. The liquified natural gas that we import has four times the emissions of gas that we could get from the North sea. LNG, for those who do not know, has to be frozen to minus 150ºC, shipped in diesel-chugging tankers, then heated up here. That is why it has much higher emissions overall. The Labour party says that it cares about that and that climate change is the biggest threat to our national security—its words, not mine—but it has a choice today: we can be three times more reliant on that dirtier LNG shipped across the Atlantic or shipped in from the middle east, or we could use our own gas with four times fewer emissions. Do the Government prefer virtue signalling and higher emissions under the Secretary of State, or more jobs and lower emissions under our plans to back the North sea?
Gregory Stafford
I understand that the figure is £25 billion, which is a significant injection into the Treasury however we look at it. The simple truth is this: if we increase domestic supply, we can ease pressure on prices, reduce reliance on expensive imported LNG and cut costs. That is not ideology—it is basic economics.
The idea that new licences would take too long does not survive scrutiny either. Much of the North sea’s infrastructure already exists. Pipelines and platforms have spare capacity. New fields can be tied into existing systems, accelerating production and reducing cost. What Labour presents as inevitability is in fact a political choice. In the non-statement the Chancellor made earlier today, she talked about cutting red tape. Perhaps she should think about cutting Red Ed first of all, because this choice has consequences.
The ban on new licences risks leaving 2.9 billion barrels of oil and gas in the ground and puts at risk 200,000 jobs. Those are not abstract numbers. They are skilled, well-paid jobs that have powered communities for generations. This is not transition; it is industrial retreat.
Sarah Coombes
Is it not the case that Britain’s renewable economy is growing three times faster than the rest of the economy? If we were to retract our commitments to renewable energy and net zero, the investor confidence would reduce, which would be really bad for our European economy and the brilliant jobs that have been created in this industry, yet that is exactly what the Conservatives are proposing today.
Gregory Stafford
If I were being generous, I would say merely that the hon. Member has not listened to my speech or read the motion in front of us. I have not mentioned anywhere that we will be cutting back on renewable energy.
If Labour’s position is misguided, the Liberal Democrats’ position is outright reckless. They would pile further taxes on the North sea through an expanded energy profits levy, despite clear evidence that such measures deter investment and ultimately reduce tax revenues. Some analyses suggest that scrapping the EPL could deliver an additional £25 billion to the Treasury over the next decade. At the same time, the Liberal Democrats would smother the sector in layers of environmental, social and governance reporting and regulation, slowing down investment, increasing costs and driving production overseas. And for what? They would do so to meet accelerated net zero targets that are divorced from the reality of how Britain actually uses its energy.
Here is the fundamental point: electricity accounts for only around a fifth of our total energy use. The rest still comes from oil and gas for heating, transport and industry. We are not about to replace that overnight; nor are there credible plans to do so from this Government. The choice is not between oil and gas or renewables. We need both. The real choice is whether we produce that energy here under our own environmental standards, supporting British jobs and British revenues, or whether we import it from abroad at a higher cost and with higher carbon. The British public understand this. Around three quarters say that we should produce our own oil and gas rather than rely on imports, and they are right. Our plan recognises that. It backs domestic production, cuts unnecessary net zero taxes and delivers cheaper energy while maintaining our environmental commitments. I say to Ministers: stop outsourcing our energy; stop exporting our jobs; and stop pretending that dependence is a virtue.
(4 months ago)
Commons ChamberI agreed with much—not all—of what the hon. Lady said. On her overall point about the fact that we have so many countries driving forward with action, she is absolutely right. On her point about the gap to achieving 1.5°C, she is also absolutely right. In a sense, part of what the future of these COPs will be about is each country driving others towards greater ambition, because we know we need greater ambition. It is also important to look at where the world has come from. The multilateral process has all kinds of maddening aspects to it, but it has definitely made progress. On the point about business, she is absolutely right and that is really striking. The fact of the agreement and the fact of this staying on track is an important signal to business, just as the Climate Change Act 2008 is an important signal to business here at home.
On the hon. Lady’s point about the TFFF, let me say candidly that we have a very difficult fiscal situation in this country. We have not ruled out contributing to investing in the TFFF in future. It is, as the Prime Minister said, something that we will keep under review. Overall, I thank her for her support, because we want to keep as much of the cross-party consensus as we possibly can on this really important matter.
Sarah Coombes (West Bromwich) (Lab)
I was part of that same cross-party delegation to COP in Belém. We were proud to meet parliamentarians from all over the world who are absolutely invested in the COP process and still absolutely believe in its importance. I was struck by how many conversations we had about the UK’s enduring global leadership on climate change, from our landmark Climate Change Act in 2008 under the last Labour Government to our clean energy policies today. It is not just about driving down carbon emissions and climate change; it is also about Britain’s role in the world. Will the Secretary of State commit Britain to continuing to lead the way on driving down carbon emissions and saving our planet, and continuing to make the case that this action is making life in Britain for British people safer and cheaper?
My hon. Friend is entirely right about that. With the UK at 1% of global emissions, as I said in my statement, engaging with the world is incredibly important. There is huge respect for Britain on these issues. I give credit to some of the actions taken under the previous Government by Lord Sharma and Theresa May, because the different actions we have taken have built a legacy of British leadership and it is incredibly important to build on that.
(10 months, 2 weeks ago)
Commons Chamber
Sarah Coombes (West Bromwich) (Lab)
Last year, I got elected on a Labour manifesto that pledged to make Britain a clean energy superpower that will create jobs, cut bills, boost our energy security and reduce the carbon emissions that are killing our planet. I have had so many conversations with people in West Bromwich who agree that it is a no-brainer. If we continue to rely on oil and gas from abroad, we will be at the mercy of spikes in prices, with the whims of foreign dictators affecting the energy bills of ordinary families in Britain.
Our renewable energy from solar, wind and wave power is free. We have heard passionate arguments from hon. Members who are concerned about solar farms. As an MP from an industrial urban area, it is not my job to speak for MPs representing rural communities, but I do want to challenge the idea that solar energy is somehow a threat to our countryside. In fact, solar takes up about 10 times less land than that given over to golf courses. My dad is a big golf fan, so I am not attacking the golf industry, but if solar is threatening our food security, are golf courses not doing the same? Solar is also helping to restore nature, according to research by the Royal Society for the Protection of Birds and Cambridge University, which found that solar farms contained a greater number of bird species than the surrounding arable land.
A few hon. Members have asked why we do not just put solar on rooftops. The Government are also doing that. The Black Country, which I represent, is a proud manufacturing area, and as we look out across West Bromwich and Oldbury, we can see huge numbers of factories and industrial roofs.
Bradley Thomas
The hon. Member refers to industrial activity. Does she agree that the predominant industrial activity that solar supports is far-eastern manufacturing of solar PV? What would she say in response to Sir Richard Dearlove, the former head of MI6, who said in January that by pursuing this route we are in effect ceding control over national security and resilience to foreign powers?
Sarah Coombes
The hon. Member and I have nearby constituencies. The companies in my constituency that put solar on their roofs will see their energy bills reduce, and they could put more energy back into the grid. They think this will be a big benefit to their businesses.
There are no formal estimates of the amount of factory roofs in the Black Country, but to take a local example, William King, one of West Brom’s longest running metal processing businesses, has 29,000 square metres of warehousing facilities—that is almost three hectares of rooftop that could be used to generate solar power. It has already made a start installing solar panels, and I hope that the 300 or so other manufacturing businesses in my constituency will soon follow suit. Lighting up the Black Country with solar will drive local growth, create new jobs, build new skills and power industry in our manufacturing heartlands.
There are still many challenges to the private sector making the most of the solar opportunity—many of which the Government are working to address—including upgrading the grid so that factories can give away excess energy to local schools and delivering quick new grid connections. We also need to make the business rates system even more pro-solar. At the moment, if a business installs solar panels on its roof and consumes all that electricity itself, there should be no increase to the rateable value. However, local businesses have raised concerns that if they generate excess energy through their solar panels and want to sell that back to the grid, their business rates may increase. That creates a disincentive for companies to install maximum numbers of solar panels and generate additional clean energy.
I met my hon. Friend the Minister just last week, and we had a good discussion about the full range of options at our disposal to make rooftop solar the norm and not the exception. I am excited about what unleashing the full potential of solar across the Black Country and Britain could mean. It will reduce our exposure to fossil fuels and their volatile prices, end our dependence on international markets and ultimately bring down household bills.
Across Britain, we are on the brink of a clean energy revolution. We should seize the opportunity to unleash the full potential of solar power across our country, including by lighting up the Black Country using our plentiful factory roofs.