Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to introduce a Regulated Asset Based Model for large-scale green infrastructure projects.
Answered by Kemi Badenoch - Leader of HM Official Opposition
In July 2019, the Government published a consultation on the viability of a Regulated Asset Base (RAB) model for financing new nuclear projects. The responses to this consultation were published in December 2020 alongside the Energy White Paper. At this time, the Secretary of State for Business, Energy and Industrial Strategy indicated that the RAB could help secure private investment in nuclear projects and cost consumers less in the long run. The Government is in negotiations with EDF in relation to the Sizewell C project and is continuing to explore a range of financing options, including the RAB model and the potential role of government finance during construction, provided there is clear value for money for consumers and taxpayers.
Furthermore, in August 2020, the Government published a response to the June 2019 consultation on Carbon Capture and Storage (CCUS) business models. CCUS is expected to decarbonise heavy industrial process and gas-fired power stations by capturing carbon dioxide emissions and transporting it via a network of pipelines to underwater stores. Government concluded that a RAB model would likely be the most effective way to provide value for money for taxpayers whilst also providing investors with confidence over the reliability and sustainability of a revenue stream. Government published further updates to the model in February, May and August 2021.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason nuclear energy projects are excluded from the new green savings bonds; and how his Department plans to attract private investment to support point 3 of the 10 point plan for a Green Industrial Revolution.
Answered by John Glen
The government recognises that reaching net zero emissions by 2050 will require power to be generated from low carbon sources. As set out in the Government’s Energy White Paper last autumn, nuclear power will play an important role in achieving net zero.
Some energy sources have been excluded from the UK Government Green Financing Framework, including nuclear energy. This is in line with current international market standards for sovereign green bonds, it does not represent an assessment of what the Government considers ‘green’ or affect an expenditure’s eligibility for traditional financing instruments. We will review the framework on a regular basis with the aim of adhering to best practices in the market.
In December, the Government published responses to the consultation on the proposed regulated asset base (RAB) funding model for nuclear projects, which involves an economic regulator granting a licence to a company to charge a regulated price to users of the infrastructure. The funding model could help secure private investment and cost consumers less in the long run. The Government is continuing to explore a range of financing options, including the RAB model and the potential role of government finance during construction, provided there is clear value for money for consumers and taxpayers.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will (a) take steps to ensure parity of funding for Freeports for England and Wales and (b) allocate £25 million for a Freeport in Wales to match the funding allocated to each of the eight Freeports in England.
Answered by Steve Barclay
Freeports will regenerate communities across the UK by attracting new businesses, spreading jobs, investment and opportunity to towns and cities up and down the country. The UK Government remains committed to establishing at least one Freeport in Wales and I’d welcome the support of the Welsh Government to ensure Freeports are introduced in Wales as soon as possible.
The Welsh Government is due to receive Barnett in the usual way and it should be for the Welsh Government to decide how much seed funding to provide to a Freeport in Wales. It is also important to recognise that the seed funding is only one part of the offer available to ports and businesses. There are a variety of benefits from Freeports, including on tax, customs, planning and innovation, many of these which will be delivered by the UK Government.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of designating Anglesey a Freeport on the ability to (a) resolve the issue of reduced trade flows in the central corridor and (b) use the central corridor to facilitate the implementation of the Northern Ireland Protocol.
Answered by Steve Barclay
Freeports will be national hubs for international trade, innovation and commerce, regenerating communities across the UK by attracting new businesses, spreading jobs, investment and opportunity to towns and cities up and down the country.
We want to ensure that the whole of the UK can benefit, which is why we remain committed to establishing a Freeport in Wales as soon as possible.
Any Freeport in Wales will be allocated by a fair and open process. The government will not be analysing the merits of any specific locations in advance of that.
We have reiterated our commitment to ensure Freeports policy upholds our obligations under the Northern Ireland Protocol.