Reaching Net Zero: Local Government Role

Wera Hobhouse Excerpts

Monday 5th June 2023 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

I beg to move,

That this House has considered the role of local government in reaching Net Zero.

I thank the Members across the House who supported the application, as well as the Backbench Business Committee for granting this debate today, World Environment Day.

The Government ignore at their peril the vital role of local authorities in delivering net zero. The Committee on Climate Change, the National Audit Office and the independent review of net zero all agree that the UK cannot meet its net zero targets without local authorities. The CCC shows that local authorities have influence over a third of UK emissions. The net zero strategy puts the figure at 82%.

Local authorities determine what is built in our communities, how we get from place to place, how we reduce our waste, and much more. They are best placed to understand their communities and deliver policies that fit their place. Those communities are let down by a Westminster Government who prevent local authorities from decarbonising their areas according to their need. Forty per cent of people most trust their local authority to act on climate change. That is much higher than the faith they place in central Government or in business. It is time that the Government treated local authorities as equal partners and gave them the funding and powers that they need to reach net zero.

[Caroline Lucas (Brighton, Pavilion) (Green)]

I congratulate the hon. Lady on securing this important debate. On funding, does she agree that, as well as reversing the 13 years of serious cuts that are preventing local authorities from greening elements of their areas, we need to move away from piecemeal competitive funding for specific projects? Such funding means that local authorities cannot plan for the long term and waste a huge amount of time bidding against each other, rather than getting the funding they need to roll out now.

[Wera Hobhouse]

I totally agree. The hon. Lady pre-empts what I will say later in my speech. The competitive process wastes so much time and local resources that could be spent on delivering projects.

More than 300 local authorities have set a net zero target and declared a climate emergency, and 132 councils have net zero targets of 2030 or sooner. Liberal Democrat-run councils have had remarkable successes in implementing sustainable, green policies against a backdrop of substantial barriers; they could do so much more. My Bath and North East Somerset Council has become the first in England to adopt an energy-based net zero housing policy. That ensures that any new housing development is energy self-sufficient and puts a limit on building emissions. My council is also the first in the west of England to adopt a biodiversity net gain policy. But such brave initiatives cannot survive unless central Government are truly behind such progressive policies and support rather than undermine local authorities, particularly when it comes to planning applications that go to appeal where developers get their way and do not build the green buildings that we need.

Beyond Bath, the Liberal Democrat-run Cheltenham Borough Council has implemented a green deal that has helped local businesses to invest in solar panels and heat pumps, led by the Liberal Democrat parliamentary candidate, who, I hope, will tell us all about it once we have had a general election. In Richmond, the Liberal Democrat council has been independently recognised by CDP—a global not-for-profit charity that runs disclosure systems and is regarded as the gold standard for environmental reporting—as one of 123 cities and boroughs across the globe taking bold environmental action.

In Stockport, Liberal Democrats successfully implemented the Stockport schools climate assembly. That involved young people from several schools coming together to learn about, propose, debate and vote on climate action ideas. Their first ask was to make sustainable and biodegradable period products more available in schools. The council responded by creating a programme that delivered funding and training to implement that. Stockport Council has called on the Manchester Mayor to roll out such school climate assemblies across the region. I will go further: we should have them across the UK.

[Afzal Khan (Manchester, Gorton) (Lab)]

I congratulate the hon. Member on securing the debate. Manchester City Council has prioritised reducing its impact on the climate with the ambitious target of zero carbon by 2038. Even though that great work is happening, local authorities require more support. Does she agree that, for effective and efficient net zero plans to be met, the Government must make funding more certain and long term?

[Wera Hobhouse]

I absolutely agree. We need councils to spread their wings and deliver, but they cannot if they do not have the funding, which must ultimately come from central Government. Local authorities in Manchester, Bath and Brighton—wherever we are—should have the freedom and the money to make their own decisions for their local communities.

We Liberal Democrats recognise the importance of community buy-in: we need to win hearts and minds to persuade people that net zero projects are good for their communities. Only with consent from our communities can we deliver the path to net zero. That is why empowering local authorities as much as possible is so vital. More and more power and decision making has been eroded away from local government during the last decade—that must stop and be reversed.

Local authority spending power has fallen dramatically since 2015, largely because of central Government grants being cut by more than 40% over that period. Spending per person decreased in real terms for 79% of local authorities between 2015 and 2022. The less money local authorities have to spend, the less climate action they can take. Although I welcome the Government’s recent increase in local authority funding, it is far too late. UK100 has pointed out that the funding process from central Government for net zero projects is “opaque, sparse, and competitive”. Even the new Department for Energy Security and Net Zero has admitted that it does not know how many grants there are. The competitive tendering process whereby every local council rushes for a small amount of money is completely inadequate when it comes to the enormous task to deliver net zero.

[Daisy Cooper (St Albans) (LD)]

I congratulate my hon. Friend on securing this debate. In my area, St Albans City and District Council has just won a staggering £8.5 million from a Government fund to make homes energy efficient and to reduce bills. That is the largest sum of money won by any council of our particular size, but even that will only go towards making 900 properties—about a fifth of the council’s total housing—energy efficient. Does she agree that, if councils were no longer forced to compete against each other time and again, councils such as St Albans could go further faster, because we know that our communities are champing at the bit to get this stuff done?

[Wera Hobhouse]

I congratulate my hon. Friend’s local authority on getting that amount of money, which is obviously welcome but is not enough. I think the Minister will hear from across the House that the competitive process is a real problem, because it wastes time and money—money that could be spent directly on the projects themselves.

[Rachael Maskell (York Central) (Lab/Co-op)]

The reality is that we also have to talk about scale. York wants 73,000 heat pumps and 22,000 new connections to sustainable district heat systems, and we have 44,100 homes that need retrofitting and 24,000 that need microgeneration through solar energy—all by 2040. If we do not scale up the funding, we will never reach those targets.

[Wera Hobhouse]

We all need to grasp the enormity and scale of what needs to be done. The ambition of central Government is just not big enough, whereas I find that the ambition in local authorities is very high and the will to deliver on that high ambition is much bigger in local authorities than we currently see in central Government.

In the updated net zero strategy, the Government agreed to simplify the funding process. Local authorities have spent £130 million since 2019 simply on applying for competitive funding pots—£130 million that could have gone into the projects.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

Large-scale funding is required to address the scale of the challenge facing local areas when it comes to housing and bringing homes up to decent standards, and the hon. Lady is absolutely right about ensuring that that is provided equitably across the country. If we are serious about net zero, the Government need to provide the appropriate funds to retrofit 19 million homes across the country, so that they can be up to the necessary energy performance certificate standard and provide the benefit of reduced energy costs to millions of households. That is the kind of ambition we need, but it is lacking from this Government. Does she agree that that is what the Government need urgently to do?

[Wera Hobhouse]

I agree; I could not have put it better myself.

Let me return to the grants, which are currently rigid and tied to certain areas, meaning that councils can end up with money for projects that are not right for their communities. Not only have we not got enough money; when we do have it, it is often not the right sort of money, nor what our communities need. For example, a council could receive money for additional bus lanes when increased bus services would be preferred, or they might receive money designated for e-bikes when such provision is not really right for the needs of the community. Net zero grants must be made more flexible to help local authorities to spend the money on projects that work in their area.

The Government have spent more time blocking local authorities than they have empowering them. Many councils I have spoken to said the biggest barrier they face in implementing net zero policies is central Government. Onshore wind is an example. Some 77% of people would support a new onshore wind farm in their area—people know that renewables are the solution to our energy crisis—but the Government’s effective ban on onshore wind has denied communities this investment. Housing is another example that has already been mentioned. The UK has some of the leakiest homes in Europe. Net zero will remain a pipe dream in the absence of a huge and comprehensive retrofit programme; we need to understand the scale and we need the money to retrofit.

[Caroline Lucas]

I am grateful that the hon. Lady is recognising the problems around funding, but also around regulatory frameworks. She will know that a report by UK100 has said that local authorities face what they call “Kafkaesque” barriers to pursuing net zero, one of which is in the area of transport. As she knows, the all-party parliamentary group on the green new deal undertook an inquiry on transport, concluding that we need local authorities to have the powers and the funding to modernise their own local public transport networks. Does she agree?

[Wera Hobhouse]

Indeed. Again, the hon. Lady pre-empts me; I will come to that point in a minute. Local authorities need much more control over what is happening in their local transport provision. The situation is wholly inadequate. If we really want to provide an alternative to motorised travel, we need good local transport and bus services, but we do not have them. Local communities are crying out for us to design and implement such services, but local authorities must be key partners as only they have the structure and relationships to deliver the programmes we have discussed.

Let me return to housing. We Liberal Democrats have campaigned relentlessly to get the Government to introduce higher efficiency standards for new builds and not wait until 2025. It is irresponsible to delay further and to hamstring local authorities’ ability to raise standards, and it is ridiculous that we are building homes now that will need to be retrofitted in five or 10 years’ time. That is such a waste of time. Why not regulate now to build the houses for the future? The chair of the national Climate Change Committee has called this a “stunning failure” by the Government to decarbonise homes, and I fully agree.

Planning and listed building laws also contribute to our leaky buildings. We Liberal Democrats run councils with some of the most precious historic buildings and streetscapes in the country, such as in my city of Bath. This is a blessing and a curse. We represent some of the most beautiful areas in the world, but we are often unable to retrofit and reduce the emissions of historic houses and buildings. Currently, national planning policy puts heritage concerns above climate concerns. That is counterproductive. If councils are unable to retrofit these properties and make them more energy efficient, many will become uninhabitable.

[Rachael Maskell]

Another issue that needs to be addressed is that of skills. We simply do not have the skills supply needed to retrofit—whether historic buildings or new builds—at the scale we need. It will therefore be crucial to start injecting that focus on skills, but we need to do that now to deliver in time.

[Wera Hobhouse]

Indeed. We need a Government who understand how this all fits together. We cannot retrofit homes if we do not have the supply chains or the skills, and we need to be talking to further education providers and universities so that we get the skills for the future. This all needs to come together, but there is currently a deplorable lack of plan and vision. Again, local authorities have understood that and are starting to have those conversations. Central Government should really look to local authorities and see them as equal partners.

In designing future planning policy, we need central Government to give more weight to climate concerns so that local authorities can make our beautiful buildings habitable and fit for purpose. Planning legislation must also be bound to our climate change legislation, so that climate change can take greater weight in planning decisions. The Royal Town Planning Institute argues that nothing should be planned without the idea first having been demonstrated to be fit for a net zero future. This would solve some other issues. For example, a major reason that renewable projects can wait up to 15 years to connect to the grid is that the planning approval process is not adequately focused on the urgency to deliver net zero.

Local authorities are also constrained when it comes to managing transport. Surface transport is the largest emitting sector in the UK. The benefits of supporting active travel far outweigh the cost. People walking, wheeling and cycling in 2021 took 14.6 million cars off the road, saving 2.5 million tonnes of greenhouse gas emissions and avoiding more than 29,000 early deaths. Independent modelling suggests that even if 50% of vehicle sales were electric by 2030, car mileage would still have to decrease by more than half if we are to limit global warming to 1.5°. Investment in active and sustainable travel is therefore essential.

Unfortunately, the decision to deregulate buses means that bus operators run routes primarily based on profitability, which has led to thousands of bus routes being closed. Between 2021 and 2022 alone, 1,100 bus services were cut, including 51 in the south-west region. The Government must empower local authorities to franchise bus services and simplify the franchise application system, and they must also reverse the ban on local authorities setting up their own bus companies. Only then can our bus routes be determined by the needs of local communities, rather than the need to make a profit.

Active travel is not prioritised when the Government decide what infrastructure projects to fund. Instead, the Department for Transport’s web-based transport analysis guidance model provides funding for travel schemes that have a perceived economic benefit, which means schemes that lead to higher volumes of faster traffic. Councils have been told that money for an access road to the city centre would not be awarded if traffic levels decreased due to the reduction in economic activity. They have also been told that a pedestrian crossing could not be implemented due to the cost of delays to traffic. Those decisions fly in the face of the need to really tackle the climate emergency. Active travel schemes are usually built where they do not require such appraisals by the Department for Transport, and local authorities need to have the powers and financial control to build them. Local authorities should have the power to access transport funding using alternative justifications to those of WebTAG, and WebTAG itself must be revised to increase the value assigned to active travel projects.

Looking at all the examples, it is no surprise that we are on course to overshoot our target level of greenhouse gas emissions by twofold. We need local and national Government to work together to give us the best chance of hitting net zero. We Liberal Democrats propose that the Government establish a net zero delivery authority. That body would oversee the delivery of net zero, co-ordinate cross-departmental working, and facilitate the devolution of powers and resources to local authorities. It would co-ordinate national and local strategies and provide information to central Government about how projects can be delivered on the ground.

A net zero delivery authority would work with local authorities and communities to engage with them about delivering net zero. That work would primarily be carried out by local actors, with the delivery authority providing leadership and trustworthy information about the national decarbonisation effort. A similar body was proposed in the Government-commissioned independent review of net zero, but unfortunately the Government have not responded positively to say that that is actually a very good idea. I hope that the Government will look at it again—maybe the Minister can give us a different answer from the one we heard a few months ago.

Local authorities also need a sense of direction. To start with, they need a statutory duty to deliver on climate change; unless and until that happens, the issue will remain at the mercy of local politicians. Climate change is massively underfunded within local government because it is not part of local authorities’ core duties. Giving them that statutory duty would be a game changer.

National Government and local authorities do not yet have an integrated or systematic way to discuss, support and facilitate local net zero delivery in the short or longer term. That must change, too.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Although I hesitate to interrupt the hon. Lady, I hope that she will soon be concluding, because the guidance is that she has 15 minutes for a speech such as this, and she has so far taken 20.

[Wera Hobhouse]

Thank you, Madam Deputy Speaker. I took many interventions, but I understand that you want me to come to a conclusion, and I will be finishing soon.

There needs to be a regular forum for feedback on the problems that local authorities are facing. A net zero delivery authority can help facilitate that. Local authorities up and down the country stand ready to do more to tackle the climate emergency, but often find themselves constrained by an over-centralised Government. To make the net zero transition as efficient and sustainable as possible, we must all pull in the same direction. The latest research demonstrates that, when compared with a nationally implemented programme, devolved climate action would result in £160 billion of savings and wider returns of over £400 billion.

It is time that this Government acknowledged the huge potential there is for local authorities up and down the country to deliver net zero. The Government must see local councils as true partners, and provide them with the proper resources and powers they need in our path to net zero.

[Selaine Saxby (North Devon) (Con)]

Councils are indeed well placed to help communities get to net zero, and they need to lead from the front with political leadership and genuine, tangible change. While we recognise that councils face real funding challenges at this time, the pandemic has taught us the importance of collaboration between local and national Government. Far too often, climate plans in response to councils’ declared climate emergencies are just that: a plan. I wrote about councils’ declarations of climate emergencies back in August 2021, and not much has changed in far too many councils’ responses since that time. The “Cambridge Dictionary” defines an emergency as

“something dangerous or serious, such as an accident, that happens suddenly or unexpectedly and needs fast action in order to avoid harmful results”.

By their very names, emergencies and crises invoke something of a helplessness in many, as they seem to be someone else’s problem. If we are to address climate change and achieve net zero, there is a need for everyone to feel that they can take action now, not wait for another long-winded plan.

Furthermore, our flag-waving Lib Dems who have run North Devon district council since May 2019 took a full three years even to produce a plan, and they continue to fail to reduce their own carbon emissions and energy consumption or to incentivise electric cars. To date, they have switched just one vehicle to electric, as was announced with much fanfare in their press release earlier this year, which stated:

“On Tuesday 18 April, North Devon Council took delivery of their first fully electric asset, making a significant step forward in their commitment to sustainability and reducing their carbon footprint.

The new electric asset, Eco City Sweeper 2, will be used to keep the streets of North Devon clean and tidy. It is equipped with the latest electric technology and has a working time of six hours on a single charge.”

Although I am delighted that it has arrived, I am not sure that it is going to make the largest reduction in emissions, given that it is replacing a man who did not create many. I appreciate that our hard-working council officers have been very busy with the pandemic and the projects that have fallen out since, and the staff at the council do a fantastic job, but one would hope that the lead councillor responsible for the environment could have found a way to at least install some solar panels on the new council building, or secure an electric bin lorry or two.

Time is of the essence, and we need not reinvent the wheel; we should look where solutions currently exist and work to implement them. UK100, which was referenced by the hon. Member for Bath (Wera Hobhouse)—I thank her for securing today’s excellent debate—brings together local authorities across the country to devise and, crucially, implement plans for the transition to clean energy that are ambitious and cost-effective and that garner support. I have spoken at UK100’s events and seen how effective its solutions would be. I am a big supporter and urge others to join. Its knowledge hub offers excellent ideas for how local leaders can work to hit net zero.

Declaring a climate emergency suggests that it is someone else’s problem. We need climate action, and we must work together in driving that action, rather than producing endless plans. If councils need funding to deliver those plans, they need to speak with their MPs and Government in order to detail how action will be taken. I live in a village that is full of tourists at this time of year, yet it is still many, many miles to the nearest public electric charging point. The pace of change in Devon may be marginally quicker at a county council level, but we do not have many buses, so surely we are overdue at least a single electric or hydrogen-powered one.

[Wera Hobhouse]

I hope that the hon. Lady will soon talk to the leader of her district council and get some answers, but the problem of electric charging is, of course, a central Government problem. It is a centralised grid, and grid connections are so incredibly difficult to achieve—that is the same for a local authority that wants to put in more electric charging points as it is for community energy projects. We share the concerns about those projects. Does she not agree that the problem is with the grid?

[Selaine Saxby]

I thank the hon. Lady for her intervention. While I fully acknowledge some of the concerns about the grid, living where I do, I would suggest that that is not the reason why those charging points are not going in. I have parish councils that do not believe in electric vehicles and, to be completely frank, that is holding back some of the roll-out. There is a lot more we could be doing to drive through some of this change.

Having previously led debates in this place on decarbonising rural transport and levelling up rural Britain, I fully recognise how much harder some of these challenges are in a rural environment, but some councils are leading from the front, as UK100 is testament to. I just wish that any of the rural councils in Devon were on that list. Indeed, I support UK100’s “Powers in Place” report. I very much hope that the Minister will have had a chance to look at some of its recommendations, particularly on more strategic, needs-based long-term funding in a rural environment.

The Conservative Government are a world leader in fighting climate change, and we have introduced the legislative tools to enable and encourage individual leaders and businesses to take action. We as individuals, business leaders and councillors need to get on and do what we can to make change, rather than producing endless plans and PowerPoint presentations that do not in themselves solve the problem. My door is open to any of my councils who want my assistance in driving North Devon towards net zero.

--- Later in debate ---

[Sammy Wilson]

I do not want to get into the argument, because I know that you, Mr Deputy Speaker, would probably ask me to stop, but I do not agree with the association that the hon. Lady makes. I do not believe that we have any more extreme weather today than we had in the past. Of course we have had heatwaves and cold spells before, and that tends to have an impact on some people’s health, but there is no evidence that spending money on local authority projects that blight the environment will save massive amounts in healthcare.

Secondly, on the impact on individuals, let us just look at some recent Government initiatives. For example, to help local authorities that say they cannot meet their recycling targets, we now have a levy on companies and food producers that will cost £4 billion, according to the British Retail Consortium. It will add £148 a year to people’s food bills to give money to local authorities—it is really a tax on the consumer—to help them achieve their recycling targets. Is that likely to have an impact on people’s health? When we have a cost of living crisis, is that likely to be a reasonable use of resources? That is the kind of expenditure that we are getting to facilitate some of the green policies.

[Wera Hobhouse]

I do not regret sending the right hon. Gentleman an invitation to participate in the debate, because only through debate can we have these issues out. May I come back to something that he said about our having had wildfires and floods previously? Does he not look at the facts and statistics about increased wildfires, floods and weather extremes across the globe? Scientists are putting those facts down, clear for all of us to see. Does he not accept that?

[Sammy Wilson]

No, I do not, and nor does the evidence, which shows that the number of people who have died in extreme climate events has declined; it has fallen quite significantly during the past century. Even the Intergovernmental Panel on Climate Change does not claim that the suggestion made by the hon. Lady is correct.

On the effects that local authority policies have had on people, in London one cannot lift the Evening Standard without reading about the impact that the ultra low emission zone is having. That impact is not on the people who make such decisions, who are usually fairly well-off. When we make decisions in the House, many of the costs of those decisions do not impact on us, but they do impact on low-income families, such as the people who cannot afford the latest car and the people who cannot afford to pay the £12.50 per day to come into the ultra low emission zone in London. Again, we have to ask ourselves about pursuing this policy in local authorities. Nobody could argue against some of the things suggested today, but for many of the others there are issues of expenditure. It is significant how many times in this debate funding has been mentioned—funding that could be used on other priorities—and it really is a question about where our priorities lie. Who do we target the money for such services at, and what impact does it have on people?

Although many Members say they want this—indeed, the former Prime Minister, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson) used to talk about how he wanted Britain to be the leading country in the world in reducing carbon emissions and for it to become the Saudi Arabia of renewable energy—the rest of the world, sadly, is not following. That is significant, and this perhaps puts it into context: in the first quarter of this year, China’s increase in carbon emissions—not its total, but its increase in the first quarter of this year—is equal to the total yearly carbon emissions produced by the United Kingdom. When we put the fight against climate change and reaching net zero in that context, we have to ask ourselves, and I think many of our constituents will ask: why impose additional costs on us? Why interfere in the decisions that we make about how we travel, where we travel and the cost of that travel, as well as about the cost of our energy and everything else, when quite clearly those in the rest of the world, and for very good reasons, do not?

When we consider that the average wage in Africa is $1,600 per year while the average wage in the United Kingdom is £27,000 per year, can we honestly say that the African countries now burning record levels of coal—to produce electricity to obtain economic growth and provide employment for the people who every year we see coming to our shores because they are fleeing unemployment—are wrong in making those decisions? If they are not wrong, are we, by pursuing a policy obsession at every level of government of reducing CO₂—regardless of the cost for individuals, especially for the less well-off—distorting decisions?

--- Later in debate ---

[Kerry McCarthy (Bristol East) (Lab)]

We know that the Government’s plan to reach net zero is totally inadequate; that is the context for today’s debate. Thirteen years of failure has left us exposed to higher bills, energy insecurity, lost jobs and climate delay. As the Chair of the Climate Change Committee—a former Conservative Cabinet Minister—has said,

“This has been a lost decade in preparing for and adapting to the known risks that we face from climate change.”

The right hon. Member for Kingswood (Chris Skidmore) —another Conservative—found in his net zero review that the Conservatives had failed on nearly every aspect of net zero policy. How are the Government responding? They have doubled down on fossil fuels, with billions in taxpayer cash being handed out to oil and gas giants. They are blocking the cheap renewable power that Britain needs; there is a de facto onshore wind ban, and war-torn Ukraine has built more onshore turbines in the past year than the UK. There is still no response to Joe Biden’s Inflation Reduction Act. There is dither and delay. There is no ambition and no urgency.

Thankfully, as we have heard today, local councils across the country are doing their best, albeit with scarce resources. The hon. Member for Brighton, Pavilion (Caroline Lucas), my hon. Friend the Member for Manchester, Gorton (Afzal Khan), the hon. Member for St Albans (Daisy Cooper) and my hon. Friend the Member for York Central (Rachael Maskell) talked about the need for greater certainty and continuity of funding, and an end to the piecemeal, competitive approach that sets one council against another, and that can be unduly restrictive when it comes to how money can be spent. The hon. Member for Strangford (Jim Shannon) gave a wide-ranging speech, as usual, which covered everything from electric vehicle charging points to lobsters. My hon. Friend the Member for Lewisham East (Janet Daby) talked in very strong terms about the need to tackle air pollution, and set out what the Mayor of London is doing on that front.

I thank the hon. Member for Bath (Wera Hobhouse) for securing the debate. I share her pain when it comes to the cuts to bus services in our region. I would imagine that she is having the same conversations with the Mayor for the West of England as I am, about how we can subsidise non-commercial routes. It is interesting that she mentioned only Liberal Democrat councils when talking about the positive contribution that local authorities can make. I will make up for that by talking a bit about what Labour councils are doing. I do not need to say more about Wakefield, because my hon. Friend the Member for Wakefield (Simon Lightwood) did a sterling job in speaking about it.

[Wera Hobhouse]

I celebrate all local councils’ work to reach net zero. I appreciate that the hon. Lady is going to make up for my not mentioning Labour councils. I am sure that there are many good councils across the political divide that are making good progress on net zero.

[Kerry McCarthy]

I thank the hon. Lady for that, although she has eaten into about 30 seconds-worth of my saying nice things about Labour councils. In Bristol, the Labour council set up a 20-year city leap project in partnership with Ameresco—a £424 million public-private investment in green infrastructure. It is groundbreaking. It is helping Bristol to go carbon neutral by 2030—the same ambition as Wakefield. Bristol will retrofit all our housing stock by 2030, reduce our CO₂ output by 140,000 tonnes, and create over 1,000 green jobs in the process. England’s biggest wind turbine will open shortly in the constituency of my hon. Friend the Member for Bristol North West (Darren Jones). It is community-owned, will provide low-carbon electricity to 3,500 homes, and save nearly 2,000 tonnes of CO₂ per year. It will mean that energy can be sold back to the grid, and the money can be reinvested in local communities.

I turn to Hull. There was a recent event in Parliament with the aptly named “Oh Yes! Net Zero” campaign. It is a really good example of collaborative local working; it involves 150 local organisations that support the city’s efforts to reach net zero. In Oxford, the Labour-led authority has been leading the way with innovative solutions, particularly on battery technology. Redbridge is home to Europe’s most powerful electric vehicle charging hub, and a project called Energy Superhub Oxford launched in July last year with the wider aim of decarbonising the city, uses the latest in battery technology, and, for the first time in the UK, infrastructure that links directly to the national grid’s high-voltage network. I echo what was said about the need to ensure that the grid has capacity to support local innovative projects. To give one last example, in Liverpool, there is a groundbreaking project: an agreement between the Liverpool City Region Combined Authority and the Korea Water Resources Corporation to create what could be the world’s largest tidal power scheme in the Mersey.

Taking a placed-based approach to net zero is vital in ensuring that the opportunities from the transition start to finally level up the towns and cities of the UK, as opposed to letting them down as this Government have done. Around 95% of Britain’s population lives in areas where the local authorities have declared a climate emergency but, as has been said, councils and combined authorities must be given the resources and powers they need to act. As one contributor to the right hon. Member for Kingswood’s net zero review put it:

“Net Zero achievements at local government level are in spite of government, not because of it”.

That would change under a Labour Government, which would recognise and value the role local authorities can play and the immense difference local action can make. We would work in tandem with local authorities to deliver our green prosperity plan of capital investment. That would support the creation of hundreds of thousands of jobs in every corner of the UK, doubling our onshore wind capacity, tripling solar capacity and quadrupling offshore wind capacity. It would be financed by Labour’s national wealth fund, ensuring that, when investment flows into new industries, in partnership with business, the British people will own a share of that wealth, as happens in other countries.

Surprisingly, we did not talk much in the debate about retrofitting homes. We have the least energy-efficient housing in Europe. Millions of homes are going cold and premium-priced heat is escaping through roofs, windows and walls. Labour’s warm homes plan would upgrade the 19 million homes that need it, cutting bills and creating thousands of good jobs for electricians, engineers and construction workers across the country. It is important to stress that this is about economic growth. It is about a future industrial strategy. It is about jobs for the future. It is about the prosperity of our local communities. And it is about saving the planet at the same time. Local government has a key role to play in that. I just hope the Government step up and help it.

--- Later in debate ---

[Wera Hobhouse]

I thank all Members across the Chamber for their contributions. Bar one, we are all agreed that the climate emergency is real, and that local councils must become a real partner to the Westminster Government.

The Minister will not be surprised to hear that I am slightly disappointed by her response. I hope that she takes to heart what has been said this evening and persuades her Government that local authorities need more power and resources. We need a statutory duty for councils to deliver net zero. I hope that the Government will look again at our Liberal Democrat proposals to establish a net zero delivery authority.

Oral Answers to Questions

Wera Hobhouse Excerpts

Tuesday 23rd May 2023 Commons Chamber

[Amanda Solloway]

This Government have a commitment to ensure that everybody is treated fairly, especially when it comes to the discounts and relief schemes. We have legislated to make sure that landlords pass on the payments they receive; if they do not, there is a way of redressing that by going through gov.uk.

[Wera Hobhouse (Bath) (LD)]

ChargePoint, one of the largest UK charging networks, worries that the Government’s local EV infrastructure fund will replicate the mistakes of the past, where electric charge points were put into lamp posts and bollards where people with non-electric vehicles park, therefore losing valuable electric charging. Will the Government ensure that the LEVI fund is targeted at local authority assets such as swimming pools and libraries, where people will often go, therefore increasing EV charging capacity?

Energy Bill [Lords]

Wera Hobhouse Excerpts

2nd reading
Tuesday 9th May 2023 Commons Chamber

[Grant Shapps]

My right hon. Friend will know that the world’s very first civil nuclear reactor was Calder Hall in Cumbria, and we led the world, but, as he said, we switched off or stopped investing in nuclear power. That was a great shame, because we are now having to work to get back to 25%, which is our objective. He is right in another way as well, because for several decades one company has been responsible for running what are essentially small modular reactors in the nuclear Trident fleet under the water, and successfully refuelling once every 25 years. We have a certain lead in this area, and it is very important that we get on with small modular reactors. That is why we are having a very brief competition, with the results coming by October.

[Wera Hobhouse (Bath) (LD)]

The Secretary of State rightly addresses the need to decarbonise and support industries that have been high users of carbon. The Bill as currently amended includes a ban on opening new coalmines, thanks to the Liberal Democrats in the other place. What possible reason could there be for the Government not to support that?

[Grant Shapps]

Conservative Members believe in getting on and doing things, which is how we have ended up going from nearly 40% of our electricity coming from coal just 10 or 11 years ago to the position this year, when I expect that to drop to about zero. The Liberal Democrats are still fighting the battles of yesterday. They are still concerned about building more power stations for coal, but no one is doing that. The issue is already in the distant past.

--- Later in debate ---

[Wera Hobhouse (Bath) (LD)]

Our biggest task worldwide is to get to net zero. We must transform our entire energy system. The Liberal Democrats welcome many of the Bill’s proposals. However, it is simply not ambitious enough. We need bold action now to protect consumers from spiralling costs and to put us on the path to net zero.

The Government continue to protect the oil and gas giants. Typical direct debit customers have seen their annual gas and electricity bills almost double, while oil and gas giants have announced record profits. Last year, Shell forcibly installed prepayment meters in over 4,000 homes while making £32 billion in profit. UK consumers have been among the least protected in Europe. When will this Government put struggling UK citizens first?

The energy price cap is not fit for purpose. The current price cap is set at a high level to incentivise people to switch energy suppliers, but research shows that vulnerable customers who struggle to pay their energy bills are much less likely to switch suppliers. We Liberal Democrats would reform the price cap to protect these customers by bringing in a capped tariff set lower than the existing price cap. I urge the Government to consider this.

The best way to reduce energy bills is to move harder and faster towards renewables. However, a lack of grid capacity is seriously holding back renewable energy projects. Many face delays of up to 15 years. In Wokingham, for example, the Liberal Democrat council has been told that its first ground-mounted solar farm project will only be connected in October 2037, a decade later than originally promised. How can we decarbonise our power system by 2035 when ready-to-go renewable projects cannot get the grid connection they need?

Britain will have to build seven times more transmission lines in the next seven years than it has built in the last 20. This huge task will require a major change in approach by the regulator. Ofgem is not empowered to consider the benefit of long-term investment, as its remit focuses on short-term costs to consumers. This is a major reason behind the lack of grid investment. In the other place, an amendment was agreed to give Ofgem a specific statutory net zero objective. I urge the Government to keep this provision in place.

The Bill, as amended, also now contains a ban on opening new coalmines. Less than two years ago, the Government announced that they were leading an international effort to end the use of coal, yet soon afterwards they gave the greenlight to the Cumbria coalmine, a gateway to allowing more fossil fuels in the UK and flying in the face of our net zero commitments. The Government must ensure that this ban on new coalmines remains part of the Bill if they are to retain a shred of credibility on climate action. Huge changes to people’s lives will be required to get to net zero. We must bring people on board, or there is a risk that people will not accept the necessary changes, making our progress to net zero more lengthy, costly and contested.

Community energy provides cheaper, greener power and distributes benefits locally. The community energy sector has the potential to be 20 times bigger by 2030, powering 2.2 million homes and saving 2.5 million tonnes of CO₂ every year. However, community energy projects currently generate just 0.5% of the UK’s electricity. This is because the financial, technical and operational requirements involved in becoming a licensed supplier put initial costs at more than £1 million. The amendments agreed in the other place would rectify this, and they must remain part of the Bill. Ministers have said repeatedly that they want more community energy. Now is the time to show that they mean it.

Some 77% of people say that they would support a new onshore wind farm being built in their area. Our UK communities know that renewables are the solution to our energy crisis. However, this Government continue with their dogmatic opposition to onshore wind and solar. The Bill does not contain provisions to roll out solar power, and the effective ban on onshore wind remains.

Another disappointment is that the Bill does not contain provisions to cut flaring, venting and leakage of methane from gas and oil platforms. Methane is a potent greenhouse gas, with 80 times the warming effect of CO₂. It accounts for 13% of global greenhouse gas emissions. The UK has signed the global pledge to cut methane levels by 30%, and a ban on oil and gas flaring and venting in the North sea would dramatically reduce methane emissions. It is supported by the Environmental Audit Committee and the Government-commissioned independent review of net zero. We must mandate monthly leak detection and repair activities. The North Sea Transition Authority must identify and publish a league table of the best and worst performing companies, so that methane emissions can be publicly monitored. We can reduce methane waste by 72%, but the Bill is currently silent about that and needs amending. We still have much to do to protect consumers and reach net zero. The Bill, although substantially improved in the other place, still does not go far enough. As it passes through this House, we must ensure it does not become a missed opportunity.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call David Duguid.

--- Later in debate ---

[Dr Alan Whitehead (Southampton, Test) (Lab)]

We have had a good, calm and well-informed Second Reading debate. Indeed, we have heard contributions from across the House emphasising the point that the Bill is necessary but not necessarily sufficient.

My right hon. Friend the Member for Leeds Central (Hilary Benn) asked who will pay the changed levies as far as heating is concerned, and spoke about the need to undertake that properly for customers.

My hon. Friend the Member for Llanelli (Dame Nia Griffith) pointed us towards the rise of state-controlled companies’ investment in new energy arrangements, and was adamant about the Bill lifting of the ban on onshore wind.

My hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) made a strong contribution on the role of hydrogen in heating and, in particular, on the hydrogen trials that he has experienced. Perhaps we can assure him that we will certainly pursue an amendment to the Bill along the lines that he suggested.

My hon. Friend the Member for Stockton North (Alex Cunningham) spoke strongly about carbon capture and storage, about the importance of CCS in the Teesside industrial cluster, and about the importance of ensuring that the industrial clusters can play their role in CCS as they develop further,

In the spirit of general cross-party support for the Bill, I think it also worth mentioning selected contributions from hon. Members who are not on the Labour side. Unfortunately, if everyone stuck to the contributions from their own side, those of the hon. Member for Brighton, Pavilion (Caroline Lucas) would not be mentioned by anybody, but she made a strong contribution about the future of coal, about the need to support the amendment on coal tabled in the other place, and about the ludicrousness of continuing to maximise the economic production of oil, echoing many of the sentiments of my right hon. Friend the Member for Doncaster North (Edward Miliband).

The right hon. Member for Ludlow (Philip Dunne), who chairs the Environmental Audit Committee, spoke strongly about the need for security of investment in this market, and the length of arrangement that would secure those investments and confidence in markets for the future.

Finally, the right hon. Member for Kingswood (Chris Skidmore), author of the net zero report, spoke enormous sense about delays being the biggest threat to net zero in future. He supported the retention of Lords amendments to the Bill, as did many other hon. Members, on community energy changes and other things that are part of the Bill that we are debating in the Commons.

[Wera Hobhouse]

Does the hon. Gentleman think that it is important that we do something about methane flaring and venting, which I raised in my contribution?

[Dr Whitehead]

Yes, I am happy to acknowledge that that is an important issue in the transition to net zero for the oil and gas industry, and that it is ripe for further legislation to outlaw it in the not-too-distant future.

It is fair to say that hon. Members across the House went along with the theme that we have tried to establish on the Bill: it contains a great deal to support, and it is a Bill that is necessary to introduce things that are essential to the development of a low-carbon economy, to the achievement of the many targets on low-carbon energy and renewable deployment, and to the new forms of energy management that the Government have already put in place and on which they are seeking to succeed.

The Bill establishes mechanisms and business arrangements for carbon capture and storage, and for the manufacture and deployment of hydrogen as a low-carbon fuel for the future. It starts to delineate how energy systems are going to be governed and managed for the future, with the establishment of the independent system operator. For the first time, it introduces a proper system of heat network regulation, and it takes the planning and development of heat networks further. It heralds some of the essential elements of energy market reform. In short, it undertakes a great deal of what I would call necessary “green plumbing”, which has to be done now if our low-carbon energy system of the future is to work effectively.

The Opposition have some serious differences with the Government about how to go about those changes, but we acknowledge and support the generality of those “green plumbing” measures, not least because their establishment will undoubtedly help the new Labour Government greatly as we embark on our far more ambitious programme of energy decarbonisation and energy efficiency from 2024 onwards. Indeed, one of our substantial criticisms of the Bill is how long it has taken for us to get to the point of establishing the legislation that will guide the next stages of our energy decarbonisation.

As we have heard, the Bill has been with us for 10 months in its almost finalised form. Yes, the Government have sought to add amendments to the Bill in another place, and there will be further amendments in the Commons, but the measure could have been on the statute book many months ago—and time is of the essence in getting going with the next stages of decarbonisation. Instead, last autumn we were treated to the spectacle of the then Secretary of State for Business, Energy and Industrial Strategy pulling the Energy Bill from its established progress after just two sessions of debate, and sitting on it for over three months for no apparent reason while the legislative process stalled completely. That led to the remarkable situation of the Opposition writing to the new Minister during that period of stasis demanding that the Bill be recommenced as soon as possible. I know about that because I was the person who wrote the letter. [Interruption.] Indeed, I did a very good job there.

Yes, this Bill is necessary, but many Members have asked whether it is sufficient, and we think it is certainly not. There are many missed opportunities to legislate for many aspects of the green transition that are or will become necessary shortly. There are many instances where the green plumbing in the Bill looks, frankly, fairly faulty and could do with beefing up. For example, the Bill fails completely to lift onshore wind back into place as a key element of our low-carbon energy armoury. The Bill fails to redefine Ofgem’s remit to start from a low-carbon imperative. The Bill fails to address another key part of that armoury—community energy—in any sort of meaningful and enabling way.

The Bill fails to address the very real changes in regulatory machinery that will need to accompany the transition from oil and gas to a predominantly low-carbon energy environment. The Bill continues to propose soaking customers for the support of future infrastructure when we require entirely new forms of support that recognise both the breadth of the work that has to be done and the institutions that we will need to support investment and development.

There are many areas where we can say, “Yes, but” to this Bill and put forward the measures that will enable it to rise to the challenge of decarbonisation in a comprehensive way. That is why we will embark on that task as the Bill goes into Committee by tabling the amendments that will make the Bill so much more robust for the challenge of the future, and we hope the Government will be receptive to those proposals. That process has been started, with a number of very well-thought-out additions made to the Bill in the other place on Ofgem, hydrogen, coal, community energy and home retrofitting. We will seek to defend those changes in this place, and we hope the Government will see the wisdom of them and not seek to overthrow them.

This is a necessary but not sufficient Bill that we want to get on the statute book, preferably with the added heft of our proposed changes to it in Committee, so that it becomes more on the sufficient end and less just necessary. We will not seek to divide the House on Second Reading but instead will give conditional support and assistance as far as we can with an early emplacement on the statute book.

Labour has an ambitious low-carbon energy programme for government, with a fully decarbonised power system by 2030, including a doubling of present onshore wind deployment; a grid that is fit for enabling and delivering a low-carbon economy; Great British Energy, an investment company that can do so much to speed the energy transition along; a massive programme to retrofit 19 million homes over 10 years to reach our energy efficiency targets; and serious planning of the energy transition, so that it is a just transition both in the North Sea and elsewhere. All these plans will benefit from many of the measures that are in the Bill, but they could be so much more supportive, and that is why we want to see an extended and more robust version of the Bill on the statute book as soon as possible.

Oral Answers to Questions

Wera Hobhouse Excerpts

Tuesday 18th April 2023 Commons Chamber

[Graham Stuart]

My hon. Friend will be pleased to hear that we always work closely with our Treasury colleagues. We launched the floating offshore wind manufacturing investment scheme—FLOWMIS—on 30 March, which is worth up to £160 million and will support investment in port infrastructure precisely to unlock floating offshore wind investment and deployment. The spring Budget set out the Government’s plans to launch the refocused investment zones programme to catalyse 12 high-potential growth clusters across the UK.

[Wera Hobhouse (Bath) (LD)]

T3. The Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Derby North (Amanda Solloway) has just mentioned the Government’s ambitious plans for CCUS. The Petra Nova carbon capture facility in the US was meant to reduce carbon emissions by 90%, but it achieved only 7% over three years and allowed the continued extraction of fossil fuels. What will he do to ensure that UK Government investment in CCUS goes only to truly net zero projects?

[Graham Stuart]

The hon. Lady is right to highlight the technical challenges. The Labour Government said in 2003 that CCUS implementation was urgent. No one thinks there is a route to 2050 without CCUS and, as she says, it is important not only that we make the investments we are making, but that we do so in a way that is compatible with the highest possible capture percentage.

Powering Up Britain

Wera Hobhouse Excerpts

Thursday 30th March 2023 Commons Chamber

[Graham Stuart]

To decarbonise industry, we will need CCS and hydrogen. We are socialising the funding requirements across the piece to ensure that we deliver what is necessary to meet our carbon targets, at the lowest possible cost to consumers. This year we are also consulting on measures to prevent carbon leakage, ensure that we do not drive UK industry abroad, which I know my right hon. Friend is concerned about, and instead maintain our competitiveness as we move towards net zero.

[Wera Hobhouse (Bath) (LD)]

If the Government were so serious about climate action why did they need to be dragged into court and told by the High Court that their existing plans are not sufficient? Now we have a new strategy, but there is not very much new in it and still a de facto ban on onshore wind. Will the Minister commit to cancel the planned expansion of fossil fuel subsidies and instead commit to a significant increase in onshore wind?

[Graham Stuart]

I am afraid the hon. Lady may want to correct the record because she misled the House. The courts did not say our policies were insufficient; they said they wished to have more detail on them. We are responding to that technical point today, providing further detail. [Interruption.] Absolutely, it was not a reflection on the quality of those policies. We have met all our carbon budgets to date and have set out today the way we will meet our carbon budget 6, and, even though it is far ahead, we have already set out policies to cover 97% of it. As I have also said, we are looking to make sure that we come forward with more opportunities for onshore wind, but with the consent of local communities.

--- Later in debate ---

[Mr Deputy Speaker (Mr Nigel Evans)]

I thank the Minister for his statement and for responding to questions for over an hour. Could he stay in his place a little longer, as this point of order relates to him?

[Wera Hobhouse]

On a point of order, Mr Deputy Speaker. The Minister has accused me of misleading the House and asked me to correct the record. I am happy to do that. My question should read: “If the Government were serious about climate action, why did the Government need to be dragged into court and told by the High Court that their existing policies are lacking detail?” I apologise to the House that I used the word “insufficient” rather than “lacking detail.”

[Mr Deputy Speaker]

Does the Minister wish to respond?

Oral Answers to Questions

Wera Hobhouse Excerpts

Tuesday 28th February 2023 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

In its progress report last June, the Climate Change Committee noted that only about 40% of the Government’s plans for getting to net zero were credible. In some areas, including farming and industrial electrification, they had no plans at all. What are the Government doing to develop credible plans in those areas?

[Graham Stuart]

We are under a legal duty to ensure that we move to net zero, and I am delighted that we are continuing to make progress. The hon. Lady will see announcements from the Government by the end of March on our net zero plans.

Independent Review of Net Zero

Wera Hobhouse Excerpts

Thursday 9th February 2023 Commons Chamber

[Chris Skidmore]

A really important part of the report, which I will come on to in the moment, is taking a place-based approach to net zero. We will achieve net zero in a more affordable and efficient way if we allow local communities, whether they are cities or rural areas, the opportunity to be more empowered to understand how to achieve net zero in a way that suits their local communities.

In Northern Ireland, I listened to concerns about how agriculture could be decarbonised. Northern Ireland wants a whole raft of new biomethane plants. At the same time, there is a new fleet of hydrogen buses in Belfast—it is really pushing forward on fully decarbonising public transport. There was a fascinating discussion on how Northern Ireland wanted to be a leader on green hydrogen. It may not have much offshore wind, but there is a huge opportunity for onshore wind and for the use of hydrogen to drive a whole new economy. Picking up all the pieces that come together that demonstrate the opportunities in every region is exactly what the report tries to reflect.

The report sets out the new narrative that net zero is the primary economic opportunity of this century, but if we do not invest now—that investment is primarily private sector investment, but it needs certainty, clarity, consistency and continuity from the Government on policy—we will turn our backs on a potential £1 trillion of investment by 2030 and turn our backs on up to 480,000 new jobs by 2035. In a way, the net zero review is a bit of a misnomer. I was keen to look at the targets that have been set and to understand how we will realistically meet them. The worst thing one can do in politics is overpromise and underdeliver; it completely undermines confidence in the ability to deliver on our climate commitments and the energy transition.

[Wera Hobhouse (Bath) (LD)]

First, I congratulate the right hon. Gentleman on the report. It is very welcome, and was very ably chaired and put together by him, so I put my thanks to him on record. On delivery, is it not the case that some kind of delivery authority is needed—a body that combines all the quite difficult and complex strands we face on net zero?

[Chris Skidmore]

Yes. I thank the hon. Member for that point. One of the key recommendations of the report is that we have an office for net zero delivery, which will be able to join all Government Departments to ensure they speak with one voice on the policy commitments that are needed. We have the new Department for Energy Security and Net Zero. That is fantastic news. I hope it will be given the powers and the mandate to enforce an understanding of what we need to do to achieve net zero across all Departments, because it is certain that Departments are falling behind.

On net zero, I am a realist. I understand that on delivery we must be able to provide public confidence in our ability to achieve some of the ambitions that at the moment are just words on paper. The document is very much about delivery and implementation. I created a structure of six pillars to inform the report. The pillars strengthen the foundations of the pathway towards net zero by 2050, but also refer to some sub-commitments such as decarbonising power supply by 2035 and looking at our electric vehicle mandate by 2030. How will we achieve those targets if we do not get the basic under-the-bonnet issues right, such as infrastructure or grid? Delays in the planning system mean that current targets are way off beam and will not be achieved. Unless we are realistic now about what we need to do to unblock those problems and get, as I called it during the review, the debris off the tracks, we will not be able to reach our commitments in time.

Making decisions now is absolutely critical for this Administration. I include 129 recommendations in the report, but I set out 25 key recommendations for 2025, recognising that this Administration probably has about 300 legislative days left in Parliament until October 2024. That is not to say I would not urge them to take on all 129 recommendations. I understand that the Government will respond to the report by the end of March. Coincidentally, as I was taking forward the work on the review, the Government decided not to challenge the High Court judgment that their net zero strategy was illegal and they have agreed, in secondary legislation, to respond to the High Court judgment and the Committee on Climate Change by 31 March. I hope that their response to the judgment will also form part of the response to the “Mission Zero” report, but the more we can do now, the more we will reduce the costs of the transition overall. The report sets out that if we delay action on net zero by 10 years, we add on 23 base points of GDP to our public debt.

There are huge challenges to achieving net zero. I recognise that, which is why we set out in pillar 1 that securing net zero must be a priority—understanding how we will be able to have in place the materials, supply chains and skills to ensure we can deliver on time. The sooner we act, the sooner we will be able to achieve net zero in an affordable and efficient manner. Other pillars cover powering net zero. I asked each sector how it could achieve net zero in a better way. A third pillar looks at net zero and the economy, and how we could work with those hard-to-abate sectors, whether energy intensives or agriculture, to make sure they can also achieve net zero on track.

--- Later in debate ---

[Sir Edward Leigh]

Well, if I am wrong I am wrong, but I do not think there is much enthusiasm for building windmills as tall as Lincoln cathedral in urban areas. We can say that in theory we are in favour of onshore windmills, but I assure the hon. Lady that every time they are proposed, there is a gruelling process of public inquiries and fierce opposition lasting many years. How much better it would be to concentrate our resources offshore. As I have said, we are world leaders in offshore wind, and there is never any objection.

The report also refers to achieving net zero through better public transport. It talks of the importance of getting more people to use sustainable public transport rather than making individual car journeys. When I am down in London I hate using a car; I would much rather use the tube, the bus or even a Boris bike. However, it is different in rural areas such as Lincolnshire, where we have been calling for better public transport links for decades. Little has been done; indeed, the services have become worse and worse. Too often, we have fallen victim to service cuts when budgets from central Government have been reduced.

If services for people who live in less built up areas are only two-hourly, or even once a day—or indeed, in the village where I live, non-existent—those people have to rely on cars, not just to socialise but for essential activities such as working and shopping. If the Government are serious about net zero in public transport, they must radically upgrade our rural transport links, and that includes the frequency of service. However, that is never going to happen, because it is so fantastically expensive, so I am afraid we will be reliant on cars for decades, or perhaps forever in rural areas such as Lincolnshire. By all means reduce the carbon footprint of buses—put solar panels on them if you want—but a net zero bus that arrives only once a day will not be of much use to you.

It is now 2023, but the sale of all conventional cars is to be banned from 2030, and the sale of hybrids by 2035. Lincolnshire measures 2,687 square miles, or 1,719,600 acres. The Government need to make clear how they are going to roll out charging points across such a vast area, because it is simply not going to happen by 2030. Are they in touch with the energy supply companies? Have they had discussions with rural councils about the transition? I put it to the Minister, who represents a Scottish constituency, that this is simply not practical in rural counties, and we need to think very seriously about it.

The excellent report by my right hon. Friend the Member for Kingswood points out that the UK’s housing stock is much older than that of most similar nations. More than 50% of homes in England were built before 1965, and almost 20% before 1919. As the report says, that has a huge impact on energy efficiency. I live in an old house, and I know very well how difficult it is to heat such houses. Nearly 50% of low-income households in England are in homes with energy performance certificate ratings of D or lower, and on average they use 27% more gas and 18% more electricity than higher-rated homes. These are the least well-off people, but there is no point in our preaching to them about the value of heat pumps, which they cannot afford. Lower-income households simply do not have the disposable income to pay for this kind of investment, unless we are prepared to devote massive resources to helping them.

We are also paying the price of decades of failure to invest in clean nuclear energy. In the wake of OPEC and the oil crisis in the 1970s, France’s Gaullist Prime Minister Pierre Messmer realised how vulnerable his country was, and ordered a huge upscaling of French nuclear energy. As a result, France now has a cheaper, cleaner energy supply, and is selling the surplus to needy countries such as ours.

As I said, we need to approach this issue holistically. The UK’s contribution to carbon emissions is minuscule on the global scale. I am not saying that is an argument for doing nothing, but it is a fact. If we achieve net zero, the gain for the planet can be wiped out by a tiny percentage increase in China’s or India’s huge carbon emissions. These are growing developing economies. Let us be realistic about it: they look at us telling them to cut their emissions and think we are cheating them. They both have complex relationships with the west. We are very friendly with India, but we are the former colonial power there. The rise of Hindu nationalism makes that relationship even more complicated and difficult.

As for communist China, it views us with distain. Judging by China’s actions, it is not wholly convinced by environmentalism. If people view the world from a totally materialist utilitarian perspective, as a communist Government do, why would they be as environmental as we claim to be? They would see all the leading developed and industrialised nations such as ours, which were totally reckless when we were industrialising, lecturing them. Now that we are on top, we tell developing countries to toe the line and not do what we did to get to the top—that is their view. They view our preaching as hypocritical on the one hand and patronising on the other.

[Wera Hobhouse]

Will the right hon. Gentleman give way?

[Sir Edward Leigh]

I am about to finish, but I will give way to the hon. Lady.

[Wera Hobhouse]

Is the right hon. Gentleman not making an excellent argument for why we should lead by example? We cannot tell others what to do unless we show leadership ourselves.

[Sir Edward Leigh]

Yes, of course we should lead by example. I accept everything that is in the report and we must lead by example, but I hope that my right hon. Friend the Member for Kingswood, who was an excellent Minister and has written a wonderful report, accepts that some of the points I have made about being realistic, particularly in terms of rural areas, should be taken into account. That is the point I wish to emphasise.

[Wera Hobhouse (Bath) (LD)]

It is a pleasure to follow the right hon. Member for Gainsborough (Sir Edward Leigh), because it is important to hear where people’s concerns are. The report sets out the fact that we must overcome our concerns because we have no option: we need to reach net zero. The House knows how passionate I am about making sure that this country reaches its net zero targets.

While recent news has overwhelmed us with the tragedies of war and natural disasters, the climate emergency continues to threaten our global future. We have to act together, in solidarity. I welcome the independent review of net zero. It is uncompromising in its demand that the Government get a grip and actually deliver on the targets they have set themselves. Last year, the Climate Change Committee made a similar point: tangible progress now lags badly behind the country’s net zero ambitions.

We are on course to overshoot our target level of greenhouse gas emissions twofold. The CCC had previously set the Government several targets for 2022 to stay on course for net zero by 2050; only a fifth of them have been achieved. This is an unforgivable underperformance and shows that the Conservative Government’s commitment to net zero is lukewarm at best. We need to do a lot more persuasion. It is about winning hearts and minds, not just in this House but in our local communities, to persuade people that we need to get to net zero. The commitment has to be more than lukewarm: it has to be hot and passionate. We want to get to net zero.

Too many people still treat our net zero targets like a bus that we can miss and then catch another. We must understand that there will be no next time if we do not reach net zero by 2050—and that means net zero globally. Climate change is already leading to chaotic consequences in our societies. Since 1950, the global number of floods has increased by a factor of 15 and wildfires have increased by a factor of seven. We have seen droughts and famine across east Africa, floods in Pakistan and a heatwave in the UK. The dangers of missing net zero are staring us right in the face. The difference in limiting global warming to 1.5°C instead of 2° would save around 420 million people from exposure to extreme heatwaves.

Our Government should be leading by example—I say that for the third time now. We are an advanced economy. We cannot tell economies that are less advanced that they have to get to net zero but our contribution is so tiny that it does not matter. It matters that we lead by example. I am so glad we have a report that says that net zero is not only good for the planet but makes sense economically. We will miss out hugely if we do not really get to grips with this and deliver on the targets. We must set ourselves ambitious targets and be very passionate and hot about them, not just lukewarm. What message does it send to the rest of the world when our advanced economy does not meet its obligations in the global fight to keep temperature rises below 1.5°?

The independent review recognises that the Government’s tepid approach to net zero means the UK is losing out on green investment. This concern is shared by the Confederation of British Industry and many renewable energy companies, such as Equinor, SSE and Vattenfall. The USA and the EU are developing huge financial packages to encourage green investment, and China is currently the biggest investor in renewable energy, while our Government are still playing to the tune of the oil and gas giants. The UK lags behind all but one of its G7 counterparts in investment in green infrastructure and jobs. It is a massive missed opportunity.

We are in a cost of living crisis because of our reliance on gas and oil. The Government fail to recognise that the fastest and cheapest way to guarantee energy security is to phase out oil and gas rather than invest in more exploration and extraction. I welcome the fact that we now have the new Department for Energy Security and Net Zero—that the two have been put together—because so much of energy security depends on our getting to net zero and phasing out our reliance on gas and oil.

I am pleased that the net zero review recommends that the Government support the Local Electricity Bill. The lack of growth in community energy in the past seven years is a significant missed opportunity. Its major strength is its connection to people and places. It engages people in energy systems and makes that important connection so that we win hearts and minds and people see the advantages of changing. I absolutely agree that change is difficult and we need to get people behind the net zero agenda.

In my Bath constituency, Bath and West Community Energy has installed enough renewable energy to power nearly 4,500 homes. Many of the projects are installed in local school and community buildings. The energy is net zero and far cheaper than gas and oil, but the huge potential for more community energy cannot be realised because current energy market and licensing rules mean that community energy schemes face high grid-access costs.

The Local Electricity Bill would reform the energy market to empower community-owned and run schemes to sell local renewable energy directly to households and businesses. It would make new community energy businesses viable, and those businesses would keep significant additional value within local economies by bypassing large utilities. It is incomprehensible to me why the Government are dragging their feet on enacting this vital change to help an industry that has so much potential not only in reaching net zero but in doing exactly as we are doing with this debate—aiming to win hearts and minds and make people and politicians aware of how important net zero is and how deliverable and advantageous for our society it will ultimately be.

The transition to net zero must be at the heart of every Government policy if we are to hit our targets. The Climate Change Committee has criticised the lack of joined-up thinking on net zero in the Government. Last year, I spoke to a group of sub-national transport bodies that noted the lack of synergy between the Department for Transport and the Department for Levelling Up, Housing and Communities in the development of sustainable land planning principles. That is just one example of siloed thinking in the Government.

I agree with the review that there needs to be a group with actual power that can work across Government to ensure that net zero is considered in every policy decision. A net zero delivery authority, as outlined in a recent Policy Connect paper, could do exactly that. Such a public body should be placed on a statutory footing and operate at arm’s length from the Government to provide assurance to business and people about its longevity and clout. It would be tasked with monitoring and accelerating the delivery of key net zero strategies.

The Government would set the authority’s objectives, rules and principles of operation and the authority would then be responsible for delivery within that framework. I am glad that we have already discussed that this afternoon. [Interruption.] I hope the Minister is listening, because he might be involved in setting up such an authority. I am looking forward to progress with that.

A net zero delivery authority would co-ordinate the delivery of Government strategies between local and national Government. That, too, is incredibly important and has already been mentioned. The delivery of many of our net zero targets should be devolved to local areas, because local people know best, and the delivery of net zero can be so much better achieved through local authorities. The authority would gather information and understanding about local delivery from local government and businesses to inform the national strategy. It would work with partner organisations and national bodies to inform both national and local delivery strategies for decarbonisation.

However, a net zero delivery authority is not enough, which is why we, as Liberal Democrats, are proposing a net zero action plan, backed by a £150 billion public investment programme to fire up progress to net zero and help the UK become a global leader in future technologies. What a net zero delivery authority could do is avoid policy inconsistency and ensure total focus within Government on the climate emergency.

The net zero transition will impact every aspect of our lives. The evidence is clear that the costs of combating the climate emergency are dwarfed by the consequences of inaction. We must all work together to deliver the net zero transition as efficiently and sustainably as possible. If we do not do so, we risk losing the battle to preserve our climate, the future of our country and the wellbeing of our people.

[Peter Aldous (Waveney) (Con)]

My right hon. Friend the Member for Kingswood (Chris Skidmore) and his team are to be congratulated on carrying out the herculean and timely task of reviewing the UK’s legal commitment to net zero greenhouse gas emissions by 2050. Generally, I agree with his findings and recommendations, and I urge the Government to consider them carefully and to respond to them proactively. This must not be a document that gathers dust on a bookshelf, or to which occasional reference is made in preparation for debates such as this. Instead, it must mark a sea change in how we set about ensuring that the UK realises the full potential of the growth opportunities that net zero presents.

My right hon. Friend’s review calls for action on the “key 25 for 2025 recommendations”. Each of these proposals warrants a debate of its own, but what I shall briefly do is home in on one subject that is not only very important to delivering net zero, but already bringing significant job opportunities to areas such as Waveney and Lowestoft and, with the right policy framework, can deliver even more. What I am talking about is the offshore wind industry.

Offshore wind has come a long way in the past decade. At the outset, 10 years ago, there were many Doubting Thomases questioning whether the industry had a future, saying that, as a technology, it was way too expensive. However, the industry, working with Government, has proved them wrong. It is now an undoubted British success story, with everyone wanting a slice of the action. As a result, the Government have set very ambitious targets for 2030 and 2050 for the amount of electricity that offshore wind will generate.

The industry has brought significant benefits to East Anglia, with half of the nation’s offshore wind fleet anchored off the Suffolk and Norfolk coast. Its construction is being project managed from ports such as Lowestoft, where ScottishPower Renewables and SSE Renewables also have their operations and maintenance bases, and where Associated British Ports has obtained planning permission and is designing its Lowestoft Eastern Energy facility.

This success can be attributed to a combination of the ingenuity of business and the foresight of Government, who, in the Energy Act 2013, set down a policy framework that has been an undoubted success. However, times change. In many respects, offshore wind is a victim of its own success. The scale of the Government’s vision for the future of the industry means that a more strategic approach to its future development is now required. The Russian invasion of Ukraine and the ensuing global gas crisis mean that other nations, in particular the US with its Inflation Reduction Act 2022, are upping their game in developing their own renewable energy strategies. All of a sudden, the UK, which is still the No. 1 world leader in offshore wind, is at risk of being an also-ran. Energy is a globally footloose industry, and it is vital that we respond to ensure that the UK retains its pole and premier position.

I shall briefly outline how I believe this can be done. First, there is a need to streamline the planning process. A more co-ordinated and efficient planning system is required if we are to achieve the 50 GW 2030 target. The establishment of the offshore wind acceleration taskforce will help achieve that, but its reforming work does need to take place at a greater pace.

Secondly, and in the same vein, we need to speed up the development of the grid system, so that offshore wind projects can be delivered more rapidly. We require a new model of grid development where critical investments are accelerated by Ofgem and the transmission owners. To deliver this step change in grid development, the Government should reform the remit of Ofgem through an amendment to the Energy Bill, as recommended by my right hon. Friend the Member for Kingswood and his team.

Thirdly, there is a need for a stable and attractive fiscal framework that enables businesses to make what are enormous investment decisions with confidence. It would be wrong to get into a bidding war with the US, the EU and other nations, but we do need a taxation regime that encourages investment through a compelling range of capital allowances. I urge my right hon. Friend the Chancellor to introduce these in the forthcoming spring statement.

Fourthly, although the framework set down in the Energy Act 2013 has served us very well, it does need considered reform to take account of the harsh new global economic reality. Due to inflation and supply chain constraints, it is necessary for Government to adjust the parameters for future contracts for difference auctions, both with regard to their overall budget and the strike prices that are set. In the longer term, it is necessary to reform the contracts for difference allocation process so as to better balance price and supply chain considerations. In doing so, we will be able to maximise the opportunities that offshore wind presents for economic regeneration and job creation in places such as Lowestoft.

[Wera Hobhouse]

Does the hon. Member agree that one of the biggest problems that we encounter is not so much the CfDs, but the delay that is caused by grid access? The National Grid cannot develop new grid infra- structure until projects have come on board.

[Peter Aldous]

I agree with the hon. Lady. The industry faces a whole range of challenges. The contracts for difference one is very important at the moment, with developers putting forward their bids, but the grid is an important issue. As I have said, the industry has been a victim of its own success. The point-to-point approach to making connections into the grid, which we have had up until now, is, I fear, no longer sustainable and we need to move on to that more strategic approach.

My fifth and final point is that it is important that the Government act as a catalyst for investment in key infrastructure, particularly in ports. That is vital in order not to deflect investment overseas. Such leveraging could include revenue guarantee support for investors for a limited period, to overcome the risk gap at the time of final investment decisions, and looking to see what the UK Infrastructure Bank can do to crowd in private investment.

In conclusion, as I mentioned at the outset, offshore wind has come a long way over the past decade. In many respects it is now the UK’s star player in mission zero. It provides hope and opportunity for communities all around the UK. The existing partnership between business and Government, which culminated in the sector deal signed in Lowestoft nearly four years ago, has served us well. However, the regulatory and policy frameworks now urgently need reviewing if the UK industry is to retain its premier position. If we do not do that—my apologies for this metaphor, Madam Deputy Speaker—there is a risk that we will have blown it.

--- Later in debate ---

[Andrew Bowie]

This Government are committed to incentivising investment in renewables across the piece, working with the energy sector and others. In the full response to this report, which I assure Members will come later in the year, we will set out more plans in that regard. The hon. Gentleman is right; that is something we need to do.

New technology will be critical to the transition, and this comes back to the point made by the hon. Member for Bath (Wera Hobhouse) about phasing out fossil fuels. Of course we need to move away from a reliance on fossil fuels as our energy baseload. That is why we are transitioning. That is why Offshore Energies UK has its “Vision 2035” to make the North sea the first net zero basin in the world. We continue to work with the oil and gas sector as it produces the energy we require and will need for many years to come, and as it invests in the new technologies of the future, including carbon capture and storage—a technology in which there are many projects across the country.

[Wera Hobhouse]

Is the Minister not aware that the biggest investment is still in oil and gas exploration and extraction? How does that fit with what he just said?

[Andrew Bowie]

Exploration and drilling will continue. We will be reliant in some way on oil and gas for years to come. At the same time, we are working to increase our investment in renewables, as well as new technologies, including the developments in hydrogen and e-fuels that I have seen myself. This is a transition. It is not a case of simply turning off one form of energy and turning on another. We need to transition away from fossil fuels. That is why it is really important that we work with the oil and gas companies operating in the North sea to achieve that, as well as increasing our investment in new technologies being developed in this country.

We are a world leader in green and clean tech, as I saw just last week. We are delivering green and clean tech to countries across the world, but we must also work with our existing industry. The net zero research and innovation delivery plan will set out the Government’s current portfolio of research and innovation programmes that are backing Britain’s most innovative businesses to develop the next generation of technologies needed to deliver net zero. We expect to set out the next steps in a range of other critical areas, from energy efficiency to carbon capture and storage, very soon.