Climate Change

Wera Hobhouse Excerpts

Monday 24th June 2019 Commons Chamber

[Chris Skidmore]

I will get back to my speech in a moment. It is important that the Government are able to set out a pathway for considering the range of responsibilities across society, and that will encourage a range of individual actions. The Committee on Climate Change is the lead independent committee whose advice the Government have taken in order to legislate today. It has set out a range of future possibilities to reach net zero, many of which include individual actions for reaching the final 4%, but this is about system change and decarbonising our energy and heating systems, both domestically and industrially. There are a large number of areas where we will need to take action across society, and we need to be able to take that action now.

[Wera Hobhouse (Bath) (LD)]

rose—

[Chris Skidmore]

I have been generous in taking interventions—

--- Later in debate ---

[Dr Whitehead]

If one is trying to get a zero-emissions outcome, trying to get a lot more high carbon fuel out of the ground using some of the most difficult ways possible does not exactly seem to be in line with that target.

[Wera Hobhouse]

Can we encourage the Minister to acknowledge—I wish he would listen—that as the 80% target now needs to be 100% by 2050, now is the perfect time to say we no longer support fracking?

[Dr Whitehead]

That is one of many things we will have to do in the very near future as we address how properly to sort out the new target. As I will come on to say, there is a big list of challenging things we need to do, and that is just one of them. There are many, many new policy guidelines that we need to get into place to get us to that target.

The Committee on Climate Change, established under the Act as the guardian of science in our proceedings on climate change in the UK, reported strongly, as has been outlined, that we need to move to net zero and that we could do it by 2050, within the cost parameters established in the original target, if we put in place the very challenging policies it outlined. We strongly support that small change that means so much.

As the Minister will know, however, that is not the end of the matter. In fact, it is barely the beginning. I therefore want to ask the Minister for some points of clarification and some further information when he comes to respond to this short debate. There are, essentially, four points to consider.

First, the Minister will know all about the carbon budgets, which were admirably and clearly established under the Climate Change Act. They are designed to keep us on track for a steady reduction in emissions and to put in place measures to keep emissions decline on track. It set out three budgets from the 2008 start date, established in total size by the Committee on Climate Change, and required a Government plan to be put into place on how to meet each budget. The Minister will know that while we have done well by international standards in reducing our emissions by 47%—it is much less in consumption emissions, if we look at it that way—that is not a sufficient trajectory for net zero carbon targets. Our current performance, and likely achievements on known policies right now, place us in a disadvantageous position as we seek to adhere to the budgets that will drive emissions down to net zero by 2050.

The carbon budgets are designed—all five of them, to date—to put us on a path for an 80% reduction and 2°, not net zero 1.5°. It is shocking that we are currently failing to get to grips with the later budgets, budgets four and five, even under the circumstances of 2°. We have exceeded our earlier budgets only partially because of policy and partially because of economic circumstances, meeting or exceeding the first two budgets and probably the third.

After that, however, it gets very sketchy. Indeed, the latest updated emissions projections from the Department for Business, Energy and Industrial Strategy show us badly off target: over by 139 megatonnes of carbon dioxide equivalent for the fourth carbon budget, or 7% over on central estimates; and 245 megatonnes of carbon dioxide equivalent, or 13% over the central estimate for the fifth carbon budget. This is at a time when we will need to introduce a radically reduced sixth carbon budget, and subsequent budgets, to meet our new challenges. We are failing even to get to grips with the old targets, which will make our work so much harder when the later budgets come upon us.

What urgent steps are the Minister and the Government taking to get us back on track for the fourth and fifth carbon budgets, on which we are currently failing so badly? I can make an offer to the Minister: if he wants to sit down and sort out a raft of new policies, extended commitments to policy programmes, and extensions of the urgency of existing programmes, we will happily jointly draft those with him, so that there is solid buy-in across the House for that vital initial effort.

Secondly, we received the alarming news recently that the Government seemingly intend to roll over historical surpluses—some 88 megatonnes of carbon dioxide saved from the second carbon budget—to ease the passage of the third carbon budget, thus creating a higher starting point for the fourth and fifth carbon budgets. That move is not completely illegitimate in terms of the construction of the Act, but the Committee on Climate change has always recommended that that should not be done, and that banking and borrowing on future budgets would gravely distort the safe progression downwards of carbon dioxide emissions. Similarly, we should not seek to offset our own account through international emissions allowances, as the Government seem intent on doing.

Will the Minister explain why the Government have moved to set aside emission surpluses from earlier budgets? Will he say now that he will unwind that intention and not use them to inflate future budgets? Will he confirm that international offsets will have no place in future budget setting? We note in the explanatory memorandum to the order that despite the committee’s recommendation in the report that the UK legislate as soon as possible to reach net zero greenhouse gas emissions by 2050, with the target of a 100% reduction in greenhouse gases from 1990 covering all sectors of the economy including aviation and shipping, the Government have, for the time being, merely left headroom in the budgets for international aviation and shipping. Shipping and aviation currently make up 3.2% and 2.1% of global emissions, but this could rise to over 30% if action is not taken alongside other greenhouse gas reductions. What is the Government’s intention with regard to aviation and shipping coming properly and fully into carbon budgets, and why are they continuing to delay what we all know is an essential inclusion if those targets are to be meaningful for the future?

Thirdly, does the Minister recognise, as I am sure he does, that net zero is the practical outcome of the legislation to require a 100% reduction in the UK’s net carbon account? Net zero means that in addition to developing low carbon policies, as we were for the 80% target, we have to develop policies that are essentially carbon negative—that put carbon back into the ground in one way or another to compensate for the remaining positive carbon elements of our overall account. This means that techniques such as BECCS—bio-energy with carbon capture and storage—extended carbon capture and storage, carbon capture from the air and radical afforestation are all important policies for the future target. What plans do the Government have—[Interruption.]

--- Later in debate ---

[Wera Hobhouse (Bath) (LD)]

The Government’s commitment to the 2050 target is welcome, but we must ensure that that general commitment today is turned into clear interim targets and legislation. There has been a fantastic rise in public awareness of the climate crisis in recent months, and young people have played a vital part in that. It is their future and this is a wake-up call for all of us, with difficult choices ahead. We need to get widespread public buy-in for climate change action. Citizens assemblies are one method that the Liberal Democrats believe could help to achieve that.

Secondly, we need to take a positive co-operative approach when working with the business community, but we must not be complacent. We are relying on business to find innovative solutions to many of the problems we need to solve. We need to replace jet fuel with a carbon-zero fuel, for example. Natural gas, petrol and diesel have no place in our energy future, but we should not be naive about the realities of tackling vested interests. The fossil fuel lobby will probably disagree with our approach.

[Matt Western]

Does the hon. Lady agree that France and Germany are showing ambition on electric vehicle charging points? France has four times the number that were introduced here in the past year, and Germany has 150% more than the UK.

--- Later in debate ---

[Wera Hobhouse]

I totally agree that we need to look at the progress being made by countries, because we have not made the progress that the Government are so complacently spouting about.

The current Government have effectively banned onshore wind which, as we have just heard, is the cheapest form of renewable energy. They slashed subsidies for solar power and scrapped zero carbon homes. They ended the green deal, which was there to improve energy efficiency. They have set meaningless targets for the phasing out of petrol and diesel cars. They continue to support fracking, which involves a fossil fuel, and airport expansion, with no plan for research into jet fuel.

Most importantly, transitioning to net zero risks placing an unfair burden on those who can least afford it. Energy and power is likely to cost more for the next 20 years, so we must ensure that the costs are fairly shared. We do not want to end up slapping punitive costs and taxes on the most vulnerable, so we must not ignore social justice. The transition to carbon zero provides an excellent opportunity to build a fairer society. We need to turn that opportunity into reality, and I wish that Ministers would listen.

Net Zero Emissions Target

Wera Hobhouse Excerpts

Wednesday 12th June 2019 Commons Chamber

[Greg Clark]

I will indeed do that. Let me give the example of the offshore wind sector deal, where one of the major commitments between the industry and government was to establish the skills needed in the supply chain to be able to create those jobs and allow the industry to flourish. This does not just apply to offshore wind; it applies across the clean energy sector. That is a good model for how to proceed.

[Wera Hobhouse (Bath) (LD)]

I, too, welcome today’s announcement. However, the Liberal Democrats are setting out more ambitious targets to achieve net zero greenhouse gas emissions by 2045, together with clear interim targets to make sure that we do not kick the can down the road and avoid difficult decisions now. Does the Minister recognise that today’s announcement somewhat contradicts Government policies on, for example, fracking, which is a fossil fuel, and on withdrawal from the European Union, which undermines international co-operation?

[Greg Clark]

No, I do not. I am disappointed that the hon. Lady seems to be speaking on behalf of the Liberal Democrats in withdrawing the support for the Climate Change Act 2008, which set up the committee to give advice to the Government. The committee has been clear in saying that the ambition of 2050 is the right one for the United Kingdom. If she reads the report, she will respect the evidence on which that is based. It is always possible—and in our exchanges we have said that the Act provides for this ability—to review that progress and for the committee to give further advice. I have said that in five years’ time we will go back to the committee to ask it for an assessment of how we are doing.

Oral Answers to Questions

Wera Hobhouse Excerpts

Tuesday 11th June 2019 Commons Chamber

[Douglas Ross (Moray) (Con)]

19. What plans he has to help ensure that solar power is (a) accessible to and (b) affordable for all households.

[Wera Hobhouse (Bath) (LD)]

20. What plans he has to help ensure that solar power is (a) accessible to and (b) affordable for all households.

[The Minister for Energy and Clean Growth (Chris Skidmore)]

I am pleased to inform hon. Members that yesterday the Government launched their smart export guarantee, which will ensure that all small-scale generators are paid for the power they export to the grid. Supported by Government investment, residential solar installations are now 50% cheaper than they were in 2011 and, alongside technologies such as batteries, will help consumers to export energy to the grid when it is needed, reducing their bills and making solar more accessible and affordable than ever before.

--- Later in debate ---

[Chris Skidmore]

I thank my hon. Friend for raising those points, which reflect what the hon. Member for Norwich South (Clive Lewis) mentioned in the previous question. This obviously comes on the back of a specific European Court of Justice ruling. I understand Members’ concerns and sympathise with the industry, but I reassure the House that VAT continues to be zero rated for installations on new build housing. I will happily meet my hon. Friend to discuss the opportunities for future change.

[Wera Hobhouse]

I welcome the timely launch of the smart export guarantee yesterday, but many people will be disappointed by the decision not to set a minimum floor price to protect consumers and the domestic solar market. Under the proposals, it will be left to suppliers to set tariffs. If it becomes apparent that the market is failing to sustain fair remuneration for households that export to the grid, how swiftly can we expect the Government to intervene?

[Chris Skidmore]

The export market is clearly developing, and it is important to recognise that several suppliers are beginning to offer trial export tariffs, either in line with the wholesale price or at the same level or higher than the feed-in tariff export guarantee rate. Those suppliers include Octopus and Bulb, which have welcomed the changes. It is important that the policy can develop so that we can make sure that we see future development.

British Steel: EU Emissions Trading Compliance

Wera Hobhouse Excerpts

Wednesday 1st May 2019 Commons Chamber

[Greg Clark]

We of course make an assessment of the consequences. I think my hon. Friend will see, when he looks at the advice, that it seemed to be the right and responsible decision to ensure that this huge liability of over half a billion pounds did not suddenly crystallise in British Steel. We have a strong relationship with the steel sector. I might mention the industrial energy efficiency fund, worth £315 million. The steel sector is a prime example of how working to improve the efficiency of the technology deployed can help with our emissions reduction targets and reduce the costs of the sector. We are working with all companies in the sector to make that a reality. I know that, in his constituency capacity in south Wales, he takes a big interest in that.

[Wera Hobhouse (Bath) (LD)]

No doubt carbon credits are a useful way of managing carbon emissions, but Brexit or not we need to become carbon-zero in a very short period of time. I wonder whether the Government are actually taking that urgency seriously. What are the Government doing continuing to support the fracking industry, which is a fossil fuel industry? Surely all we do needs to go into renewable energy?

[Greg Clark]

The hon. Lady should know that we have one of the strongest records in the whole world in implementation and delivery of emissions reductions. It is important to acknowledge that mechanisms such as carbon pricing are one of the foundations of that, so it is important that the rules are respected. We are about to have a substantial debate on our next steps. I hope she will contribute to that, as am I. Perhaps we might have some further exchanges later this afternoon.

Climate Action and Extinction Rebellion

Wera Hobhouse Excerpts

Tuesday 23rd April 2019 Commons Chamber

[Claire Perry]

I did not realise the demands had got that broad. The hon. Lady is right to focus on something really important: it is the job of Governments to steward what they have for a period of time and then pass it on in a better state to the next generation. Whether it is the earth’s climate or the economy, that is what we exist to do. I do not know where the argument about the voting age sits in that. We have heard loud and clear what the next generation, and indeed grannies, grandpas, parents—all of us—need to do. We need to work together to accelerate our actions.

[Wera Hobhouse (Bath) (LD)]

I congratulate the young people in many countries across the world without whom we would not be here today having this debate. They have reminded us how urgent the climate crisis is and that we have to be very ambitious—a lot more ambitious than we have been so far. Are the Government committed to making our electricity grid 100% carbon zero before 2050? If so, when will we know about this new target?

[Claire Perry]

When I launched the offshore wind sector deal, I said that power generation would be at least 70% net carbon zero by 2030—in only 11 years—so we can extrapolate from that. There is a view among energy system modellers, however, that there will always need to be some level of thermal energy generation on the grid, because you cannot do a cold start based on current renewable and storage technology, which raises the question of how we further decarbonise our gas supply in particular.

Oral Answers to Questions

Wera Hobhouse Excerpts

Tuesday 17th July 2018 Commons Chamber

[Mr Gyimah]

The potential impact on suppliers and the supply chain is a very valid concern, given the market power that the combined entity will have, which is why my right hon. Friend the Secretary of State wrote to the CMA asking it to look at the impact on the supply chain as part of its ongoing investigation.

[Wera Hobhouse (Bath) (LD)]

14. What assessment he has made of the effect on the services sector of the Government’s negotiating position for leaving the EU agreed on 6 July 2018.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

The Government are seeking a comprehensive deal on services that will continue to allow our thriving services sector to trade with the rest of the EU, including, for example, through the mutual recognition of professional qualifications and a new economic and regulatory arrangement on financial services.

[Wera Hobhouse]

The City of London Corporation said of the Brexit White Paper

“the financial and related…services sector will be less able to create jobs, generate tax and support growth”

across the wider economy. What discussions did the Government have with the services sector before the Chequers deal was signed off?

[Greg Clark]

I and our colleagues in the Treasury have constant discussions with the services sector. It is important that our distinctive financial services sector not be subject to a set of rules in the future that might be very much against its interests. Everyone who knows the City needs to recognise that the flexibility and distinctiveness of our approach must continue.

Erasmus Plus Programme

Wera Hobhouse Excerpts

Thursday 21st June 2018 Commons Chamber

[Lloyd Russell-Moyle]

I totally agree, and I will try to touch on one case study from my local university, which says similar things.

[Wera Hobhouse (Bath) (LD)]

I have been a foreign modern languages teacher for some years, so I know that knowing a foreign language is such a huge advantage to future employment. Does the hon. Gentleman agree that the Erasmus programme is a very good vehicle for making that happen? It gives fantastic opportunities to young people for further employment in this country.

[Lloyd Russell-Moyle]

I totally agree. The biggest employer in my constituency is the headquarters of American Express Europe and the biggest problem it has is finding young people with language skills to go into that sector—the Erasmus scheme really helps with that.

Being an alumnus of the University of Sussex and having part of that university in my constituency, it would remiss of me not to mention the role it had in founding the Erasmus programme. Hywel Jones served as the director of education, training and policy at the European Commission for 20 years at the start of the programme. In a recent speech, he talked about modelling the Erasmus programme on the work he had pioneered at the University of Sussex, where it had made sure that all disciplines, not just languages, although importantly including languages, allowed a study year abroad that was part of the degree programme, not just additional to it. His vision was to get that idea recognised throughout Europe. He said:

“I was convinced that such an idea could be developed on a European-wide basis”.

Well, that idea became Erasmus, and now Erasmus+. From the University of Sussex was born an idea that has become so entrenched in the learning of so many that for many students it is now a byword for student exchange itself.

--- Later in debate ---

[Huw Merriman]

I will just finish this point.

I understand the point that there is lots more we could fund, but unfortunately we have run out of funding. We have the same issue with funding many of our own projects in this country. It is the mentality of the European Union that you can just double the budget in one period, that causes concern about our ability to continue to fund that budget.

[Wera Hobhouse]

Will the hon. Gentleman give way?

[Huw Merriman]

I seem to have stirred the hornets’ nest. I will give way to my hon. Friend first.

[Huw Merriman]

I do indeed, and without turning this into a wider universities debate, this is similar to the debate about doubling the number of students, how we fund that and how we then look students in the eye when it comes to their tuition fees. I acknowledge, of course, that these students bring funding over, so my argument is not a brilliant one, and I am sure the hon. Member for Bath (Wera Hobhouse) is about to tell me the same thing.

[Wera Hobhouse]

Does the hon. Gentleman agree, as we are all agreed here, about the huge added value of sending people abroad, and young people particularly? It exposes them to different communities and countries and allows them to gain experience. There is also the money that goes into scientific projects. The University of Bath in my constituency is involved in engineering and science projects that are funded through these streams. It is about not just the individual student being funded but wider co-operation across the European Union. For that reason, does he agree that it is money well spent?

[Huw Merriman]

I do agree. The point I am trying to make is that there is an analogy between the views in this country about the European project and costs continuing to grow. As I say, no one has any issue with costs increasing because the programme expands, but to double it from €15 billion to €30 billion at a time when money is incredibly tight not just in this country but across Europe makes me wonder whether the European Commission has quite understood what many of its citizens feel is an issue.

Let us move on because I actually wish to be positive and come to the reasons why I am not as pessimistic as the hon. Member for Brighton, Kemptown about our future participation in the scheme. Again, for me, it comes down to the numbers. It is absolutely clear that the UK is an attractive destination for the 33 participating members of and the 160 partners in Erasmus, because 30,000 students per year are coming to the UK, whereas we are sending 10,000 over in return. We are seventh in the league table of the number of students participating. Turkey—I remind the hon. Gentleman that it is not of course a member of the EU, but it is still a member of Erasmus—is one place ahead of us, in sixth place, in terms of the number of students it places. France sends 7,500 students to the UK each year. The UK sends 2,300 to France. Germany sends 5,000 to this country. We send only 1,300 to Germany. Spain sends just short of 5,000 here and we send just over 2,000 UK students to Spain.

The point I am trying to make is that this is a very attractive option for European citizens, and they will not want their right to come to study in the UK to be fettered. That was the point I was trying to make to the hon. Gentleman. There should be a great desire on the part of the European Commission and European Union members to ensure that the UK remains part of this scheme. Therefore, I dare to venture the point that we have a very good hand when it comes to the negotiations. I take the point that we should be getting on with it, but I am one of those Members who finds that point a little rich, given that MPs spend so much time in this Chamber making it very difficult for Ministers to actually get on with it and help us leave the European Union on these terms. MPs trying to make it as difficult as possible by constantly dragging their heels.

Retail Sector

Wera Hobhouse Excerpts

Wednesday 6th June 2018 Commons Chamber

[Kevin Foster (Torbay) (Con)]

It is a delight to speak in this debate. Ironically, if I was not here, I would be back in Torbay, helping to present the “Love Your High Street” awards. One recipient was the Kind Grind in Lucius Street in Torquay and another was a bar called Peaky Blinders in Winner Street in Paignton; both areas are famous for independent shops. This is a welcome opportunity to debate retail, particularly given its importance for many communities up and down the country. Given some of the campaign leaflets that I see in my constituency, it is rather odd that no Liberal Democrat Members were present for the first two hours of the debate, but I shall move on.

Let me start with our town centres, and particularly the internet’s impact on them. No one is going to be able to roll back the digital tide. Most of us have in our pockets a phone with which we could order the entire contents of a department store, a do-it-yourself store and a supermarket literally while we are sat here, if we so wished. The internet has also brought services and products into areas that in the past would have found it difficult to access them. That does, though, present a challenge to our high streets. There is no longer a need to go to the town centre and in future people will mostly go there out of choice, particularly as technology becomes more and more simple. We can heckle and make party political points, but that will not affect the change. It is therefore even more important that we look into what we can do not only to make town centres attractive places for those who still depend on them for their goods, but places to which people would go out of choice to go into a local shop and have an experience.

One thing that came out of the Tesco burger scandal was that a lot of people reconnected with the desire to know where their food comes from and what it is. A lot of local butchers had a boost that they had not had for a long time as people realised that there was something about going to a shop and speaking to a local business that could tell them almost from which cow the joint or product they were buying came.

There is a real need to look into what we can do to shape town centres as places. Rates can be a double-edged sword. They clearly have impacts on businesses, and there is a debate for the long run about how sustainable the existing business-rates model is, given that it is based on an era in which that corner on the high street was the best place to be—hence the location of a lot of Victorian buildings that became banks—and a crinkly shed on the edge of town was not very profitable at all—

[Wera Hobhouse (Bath) (LD)]

Will the hon. Gentleman give way?

[Kevin Foster]

No, I will not, because the hon. Lady was not present for almost the first two hours of the debate.

The business rates system is now not all that appropriate, even though it was appropriate for the shopping patterns of the 1950s. Of course, if we look at it the other way around, by retaining business rates and taking the growth in them, councils can fund exactly the kind of regeneration that is needed in our town centres. So there is a double-edged sword for local authorities in respect of how business rates can be used in future. The existing structure is certainly not all there.

I could not agree more with my hon. Friend the Member for Mansfield (Ben Bradley) about the need to tackle long-term derelict properties in town centres. I think particularly of one in Paignton called Crossways, which is a pretty poor example of a 1960s shopping centre. It keeps going only because of the car park there, the mobile masts on top of it and a lease that was particularly badly negotiated by one retailer, which is still paying even though it shut its shop in the centre some years ago.

The problem with the existing compulsory purchase rules is that yes, in theory a council can get hold of a property like that to push forward regeneration, but the rules are cumbersome. I fully accept that there needs to be protection for people’s private property, particularly their homes, but if commercial properties—no one’s home—have been empty for many years, there comes a point at which it would make sense to make it much simpler for councils to compulsorily purchase properties in order to deal with eyesores. That simplification could be subject to protections based on how long a property has been empty, rather than on values and costs. Some owners almost rely on the fact that their property is such an eyesore that one day someone—I am thinking particularly the taxpayer—might pay a significant amount to have it dealt with.

It is right that local authorities play their part. Torbay Council is starting to look at the future of planning for our town centres, particularly in respect of Torquay, where there is a debate about its size and what we can do to revitalise it by bringing in residences and expanding student accommodation, particularly around the language colleges. That could bring a second wave of life to the town centre. We also need to deal with older, poor-quality office accommodation which, if replaced by new accommodation, could bring jobs and employment back into the town centre and provide the stimulus of people who work in the town centre then shopping, eating and drinking in the town centre after work or on their lunch break.

There is a positive story to be told about the future of our town centres, but they will be very different from what we have seen in the past. People will not use them out of necessity, so they will need to be encouraged to use them out of choice. There will still need to be essential services, such as local post offices and a network of local banks, but we need to be conscious that just standing in the way of technological progress is a strategy that will be as successful as it was for the Luddites who tried to argue against industrialisation 200 years ago. The Government can make a difference through their business rate policy, by giving local authorities more powers and by making it clear that there is still a retail success story in the future.

--- Later in debate ---

[Craig Mackinlay (South Thanet) (Con)]

The motion before us today is somewhat rambling, dare I say. It has three parts. It is about squeezing wage growth, the condition of the retail sector, and there is a bit of Brexit put in as well—but we will have 12 hours next week to discuss that. Generally, however, what the Opposition are putting forward is that the Government should do more. They should spend more, subvert reality and revert this country to a command and control economy.

Let us look at wage growth, because we have had so much misdirection and ignorance of the truth regarding that. I think that the Opposition hope that if they say it often enough, people might believe it, but I recommend that they look at the facts. Let us look at a hypothetical, lower-paid employee. In 2010, the national minimum wage for those over 21 was just £5.80. Today, in 2018, it is £7.83; that is a 35% rise. Let us look at the income tax personal allowance. When we came into Government in 2010—we were left to pick up a lot of mess by Labour—the tax-free allowance was just £6,475. Today, in 2018-19, it is £11,850; that is an 83% rise in the tax-free band. Let us put those together. A 35-hour-a-week lower-paid employee at minimum wage in 2010 would have had take-home pay, after tax, of just £9,740, but today, the minimum wage and that huge increase in the tax-free allowance means that their take-home pay is £13,768. That is over £4,000 in real cash in the pockets of the lower paid under this Government. That represents a 41.4% increase in take-home pay.

[Wera Hobhouse]

It is, however, about the balance between the two. In relatively successful towns or very successful cities such as Bath, which I represent, shops are still doing fine but life is more expensive, so the balance of what people take home as pay and what they have to spend to live in an expensive city is much higher, too. The balance of the two, even in good, successful town centres such as Bath—and it is not that successful—is not right.

[Craig Mackinlay]

I thank the hon. Lady. Today’s debate is about the retail sector and wages. I was going to say that 41.4% over eight years is 5% a year, which is greater than any measure of inflation, no matter which one people care to mention, so there has been a real cash increase to all those working. We have the lowest unemployment since the 1970s and more people in work today than we have ever had in the history of this nation. I am afraid that we must stop listening to the misinformation from the Opposition. Their statements are simply not true. Real wages are rising.

In the retail sector, as we have heard, we have had business rates relief and changes from RPI to CPI, which will mean a reduction of over £2 billion to those who have retail stores. During this Parliament over 600,000 businesses will pay no business rates whatsoever, and in the first half of 2017, more retail units were opened than closed. There are 300,000 more in employment in the retail sector than in 2016.

That does not mean that everything is rosy on the high street, but when we consider what the Government did in 2008, when they took this country into probably the worst recession that it has ever known, in the third quarter of 2008 alone, there was a 4.2% decrease compared with the year before. That happened in just one quarter under Labour; that is what they condemned this country to.

The real debate here is the changing face of retail, and the internet is the reason for that. With spending now at £1.2 billion per week, 17% of all spending is now on internet purchases, and that is a 12% year-on-year increase. That is not unique to Britain, but is happening across the entire world.

That is the reality of life, and we are all guilty of fuelling it. If I want a shirt like the one I am wearing but in blue with a 34 inch arm and a 15½ inch collar and I want it delivered tomorrow, ordering that will take me three minutes, and it will be delivered. We are all purchasing in that way now; unfortunately, we are all fuelling the changes to the high street.

We have had debates about banking in the House, and I have taken part. Our banking landscape is changing, sadly, because we are all being encouraged on to mobile apps and mobile banking. Also, when did anyone in this House last book their flights in a high street travel agent?

--- Later in debate ---

[Wera Hobhouse]

Will the hon. Gentleman give way?

[Craig Mackinlay]

No, as we are nearly at the end of the debate.

The high street simply needs to redefine itself. High streets need to create themselves as places to go for a pleasurable afternoon—to do some browsing and shopping, but to enjoy the experience as well. That means there is a duty on councils and the retailers themselves to make the high streets clean, attractive and somewhere good to go.

My answers to this conundrum are that we should revise taxation of retail more towards the internet and warehousing-style operations, focus on making high streets places to go for an experience, and in many cases, such as in Ramsgate, high streets are too spread out and too big, and they need to be smaller to become the vibrant heart of the town. We all need to shop locally, too; that will help.

Oral Answers to Questions

Wera Hobhouse Excerpts

Tuesday 30th January 2018 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Griffiths)]

I take on board the very important question that my hon. Friend asks. The Government have invested over £2 billion to ensure that the Post Office is able to meet the needs of our constituents and the small businesses that rely on it. That means that 99% of UK personal bank accounts and 95% of small business accounts can be accessed to withdraw cash, and that customers can deposit cash over the counter or cheques in any one of the 11,600 post offices across the UK.

[Wera Hobhouse (Bath) (LD)]

T6. Investment in solar energy has fallen by 85% over the last year. Will the Minister explain why her Department believes that solar energy no longer requires public subsidy?

[Claire Perry]

I am sure that the hon. Lady will be delighted to know that I opened Britain’s first subsidy-free solar farm last year. The great success of the policy framework and the investments that we have all made through our bills means that we are able to bring forward renewable energy without substantial subsidies. I would have thought that she would welcome the idea of getting more renewable energy for less investment.

Office for Students: Appointment

Wera Hobhouse Excerpts

Monday 8th January 2018 Commons Chamber

[Joseph Johnson]

My hon. Friend makes an important point, the same one that was made a few moments ago, which is essentially that double standards are being applied here. Opposition Members should look at their use of social media—for example, the appalling slurs on Conservative candidates that are frequently levelled before a general election, and the deception targeted at students about the Labour party’s intentions on student fees and tuition debt. They should consider their record on social media before criticising others.

[Wera Hobhouse (Bath) (LD)]

Does the Minister suggest that, simply because Mr Young, under pressure, has now apologised for his dark and dangerous comments, he no longer holds the views that he has held for many years?

[Joseph Johnson]

Mr Young has apologised, as the hon. Lady said. He has said that he regrets the comments, which suggests that he has moved on. He has also committed to not repeating those comments and accepted the reality that if he does, he will no longer be publicly appointed to the Office for Students board.