Energy (oil and gas) profits levy

Wendy Chamberlain Excerpts

Tuesday 22nd November 2022 Commons Chamber

[Wendy Chamberlain (North East Fife) (LD)]

Thank you, Madam Deputy Speaker, and apologies; you are stuck with me. This is our third Government and our fourth Chancellor this year, and we do not get our Advent calendars until next week. The right hon. Member for North Somerset (Dr Fox), who is no longer in his place, said that Opposition Members failed to recognise the issues and potentially gave Putin a foot in the door by criticising what the Government announced last week. I am an Opposition MP. It is my job to oppose the Government where I do not agree with them—that is a fundamental part of my job. I do not think anybody can say that Members across the House have not been unanimous in our support for Ukraine. These global events have been developing over the last three years, so why is there such a difference between this autumn statement and the plan for growth eight weeks ago?

The right hon. Member for Epsom and Ewell (Chris Grayling) and the hon. Members for Bolsover (Mark Fletcher) and for Newcastle-under-Lyme (Aaron Bell) talked about mistakes being made, and that is the fundamental point. This is about trust, and the Government have damaged not only the trust of the public—the hon. Member for Newbury (Laura Farris) said that the Conservatives were trusted more than any other party; she is clearly looking at different polling from me—but the trust of the markets, because we saw a direct impact on people’s mortgages and the repayments of Government debt as a result of the plan for growth eight weeks ago.

I would like to touch on a few parts of the statement that my constituents are particularly interested in. The first is the support for off-grid households, which several Members have mentioned. A number of my constituents in North East Fife are off-grid. They had the miserly support of £100. That has now been increased to £200, but it barely touches the sides. We know that off-grid households are facing an average increase of over £1,000 in heating costs, as the cost of oil has almost doubled in the past two months, and some of my small communities who work collectively as a group with brokers to buy oil in bulk are really seeing the impact.

Practically, it is still not clear how the Government are planning to make that payment to households. The relevant gov.uk webpage, which has not been updated since last week’s statement, tells off-grid households that they will receive the payment either through their electricity bill, which many of those households will not have, or via a fund that is yet to be designed.

When we think about the poverty premium for those living in rural communities, from the increased cost of transport to having to go to shops where people pay a premium, as opposed to being able to access some of the bigger discounting shops, we realise that is a real hardship for families who are struggling to make ends meet. I hope that the Minister will be able to set out what form the fund will take, how it will reach my constituents who need it, and when it will become operational. I also hope for more detail on how we can ensure that residents in park homes and with other energy provision, such as district heating schemes, will receive support and how we can ensure that that support is being passed on by anybody involved in those schemes.

I am sure that the Minister will be aware that during last week’s statement I raised the support that businesses receive for energy, and I wrote to the Chancellor yesterday. Businesses in my constituency are very concerned about the current economic outlook. The purpose of my letter was to say that they are keen to engage directly with the ongoing review of the energy relief scheme. They want to demonstrate the vitalness of their operations and what they are already doing to reduce their energy costs, because they are struggling to see how they can reduce their costs. Given that it was said last week that we expect the review to set a high bar for support, some of them are beginning to look at their future operating plans.

From the Chancellor’s response to me last week, I believe that the review will be done before Christmas, but it is vital for businesses to have that certainty. At this point, we simply do not know which businesses in our communities will have support from April, how much it will be and what form it will take. That will be make or break for some.

Meanwhile, the Government have imposed stealth taxes that will take money out of the pockets of businesses. The decision to freeze the registration threshold for VAT means that businesses will have to charge their customers more or potentially reduce their already small profit margins. I am proud of the number of small businesses that operate across North East Fife, from Leven to Newport and from St Andrews to Cupar. Despite the current outlook, the diversity is increasing, which is great and those entrepreneurs are to be celebrated, but I am concerned that hurting the high street hurts commerce, growth, customers and communities.

I hope that the Minister will therefore clarify what consultation or engagement there will be with businesses on energy, particularly those in critical industries such as food production and social care, and that the Minister will reassure them that a base level of support will remain in place to prevent businesses failing. I urge the Minister to rethink imposing VAT on smaller businesses that need help, not harm, over the coming difficult years; businesses that do not exist cannot grow.

My constituents really care about our place in the world. We have a world-leading university in the University of St Andrews, which was previously involved in international development funding and project delivery. There is no doubt, however, that the 0.7% official development assistance target cut has had an impact on that. Indeed, it was confirmed to me yesterday that those projects are no longer running.

The Chancellor spoke about this being an autumn statement with compassion, but I am concerned that 34.5 million HIV/AIDS, TB and malaria transmissions may become more likely as a result of those cuts. Where is the compassion in taking support away from women and girls around the world who are disproportionately affected by those diseases? We rightly focus on the conflict in Ukraine, but I hope to join students at St Andrews this Sunday as part of the rallies marking the march for freedom for Afghan women and girls. An ask of that campaign is to maintain the development budget for Afghanistan, particularly for women and girls. That is the least we can do.

The Foreign Secretary’s written statement today confirms that the 0.7% test that the Government set is not being met and will not be reinstated, but I welcome the pause on ODA spending being lifted, which is a positive step. If part of the reason we are here is difficult global issues, it is even more important that our place in the world is clear.

I am pleased that the Government made up their mind and did the right thing by uprating benefits and the state pension, which is a huge relief to many. It was clear in the recent Opposition day debate that there was support for the triple lock on both sides of the House. I reiterate what I said then: for all generations, the security of a sustainable state pension is very important. Despite that, pensioners have not yet caught up, given that the triple lock was dropped last year.

On benefits, we know how far behind people on benefits are, because we know that the removal of the £20 uplift for universal credit and the failure ever to uprate legacy benefits have had a devastating impact.

Finally, I hope that Members across the House are aware that I have a private Member’s Bill on carer’s leave. I am working closely with Carers UK on that, and I just want to bring to the Minister’s attention a letter sent last week by Carers UK, along with organisations supporting carers and people with disabilities from around the country. They ask for a top-up payment to be made to unpaid carers who are entitled to carer’s allowance without receiving universal credit. They ask that the Government raise the earnings limit for carer’s allowance to £199.50 per week, to allow people to work more—we have all talked about people who are economically inactive, and surely we want to put in place measures that will help people to work more. They also ask for a review to be carried out of all relevant benefits, to ensure that unpaid carers do not fall into poverty as a result of their role. Indeed, we will all know of many cases where that is already the case.

I have made this plea before. Almost all of us will either give or receive unpaid care at some point in our lives. That experience is unique to each person, but it is also universal. The simple step of allowing carers to work more would not even be adding to the Government’s budget, so I really do hope that the Treasury will consider those reforms.