The Growth Plan

Debate between Wera Hobhouse and Kwasi Kwarteng

Friday 23rd September 2022 Commons Chamber

[Kwasi Kwarteng]

There are three big measures that are helping tens of millions of people up and down the country: first, the energy intervention announced by my right hon. Friend the Prime Minister last week; secondly, the reversal of the national insurance planned increase; and thirdly, the acceleration—the bringing forward—of the 1p cut in the basic rate. The hon. Gentleman should be welcoming those measures and not playing to the gallery with his tired old socialist rhetoric.

[Wera Hobhouse (Bath) (LD)]

Access to dentists has reached a catastrophic low. One in five people is resorting to DIY dentistry, and there are shocking stories from many of my Bath constituents. The only way to get a dental appointment now is to go private, which costs far more than any tax cuts will offset. How will tax cuts today offer my Bath constituents proper access to the dental care they need?

[Kwasi Kwarteng]

The growth plan will mean that, as we grow our economy, we can get more tax revenue to pay for vital public services. That is a key part and a key rationale of the plan.

Oral Answers to Questions

Debate between Wera Hobhouse and Kwasi Kwarteng

Tuesday 7th June 2022 Commons Chamber

[Mr Laurence Robertson (Tewkesbury) (Con)]

20. What steps he is taking to increase investment in renewable energy projects.

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

In April, the Government published plans for accelerating renewable energy deployment in our British energy security strategy. Of course, that is very much at the centre of our strategy to ensure sustainability, affordability and security in the long term in our energy.

[Wera Hobhouse (Bath) (LD)]

[Wera Hobhouse]

I wish Alex a happy retirement; where would we be without Hansard?

Ofgem’s remit is a real barrier to increasing grid capacity, as it is currently impossible to make anticipatory grid infrastructure investment. That is slowing the growth of renewables and pushing up household energy bills. If we had the new wind and solar farms that the Government are seeking to procure in this summer’s contacts for difference auction already on the grid, every UK household would save £100 on their energy bill this winter. So why have the Government still not reformed Ofgem’s remit?

[Kwasi Kwarteng]

I am sure that the hon. Lady paid attention to the Queen’s Speech and will have noted that it contained an energy Bill, which will precisely redefine Ofgem in order to attract the anticipatory investment to which she referred.

Energy Security Strategy

Debate between Wera Hobhouse and Kwasi Kwarteng

Tuesday 19th April 2022 Commons Chamber

[Kwasi Kwarteng]

We have a number of such schemes in existence and have trialled a number of others. We are always iterating the way in which we attract private capital to meet net zero; that is what we have been doing for the past three years, since net zero was passed into legislation.

[Wera Hobhouse (Bath) (LD)]

When fracking was halted in June 2019, Ministers said that they would not bring it back without compelling evidence. Now, however, the Government say that all options are back on the table. Where is the compelling new evidence that puts fracking back on the table?

Russian Oil Import Ban

Debate between Wera Hobhouse and Kwasi Kwarteng

Wednesday 9th March 2022 Commons Chamber

[Kwasi Kwarteng]

My hon. Friend will know that the specific issue relating to the Cumbrian coking mine is under judicial review but, as I said in my statement, we clearly want to move away from Russian hydrocarbons. That is absolutely our intention.

[Wera Hobhouse (Bath) (LD)]

Obviously, the crisis makes us all aware of consumer energy prices and how to contain them to some degree. To reduce the average energy cost for consumers, we need a replacement for the green homes grant that is far more comprehensive and that recognises that solar power, battery storage and smart metering must be part of the solution. What are the Government’s plans to roll out residential solar much more ambitiously, which, together with battery storage and smart metering, could save the average consumer up to £900 annually on their energy bill?

[Kwasi Kwarteng]

The hon. Lady will appreciate that we have done quite a lot to drive solar. I referred to the fact that we have restarted the pot one auction, which is all about onshore wind and solar. When we announce the result, there will be lots of solar projects that will hugely increase solar capacity in this country.

Corporate Transparency and Economic Crime

Debate between Wera Hobhouse and Kwasi Kwarteng

Monday 28th February 2022 Commons Chamber

[Kwasi Kwarteng]

We are making very good progress on all those cases, but I bring to the hon. Lady’s attention the fact that the reform of Companies House that we are mooting is the first time in 200 years that it has been reformed in this way. I also highlight that we have led the way in the debate on SWIFT and on transparency in the international arena. Ministers from around the world are engaging with us directly on the effective measures we are bringing about.

[Wera Hobhouse (Bath) (LD)]

Can the Secretary of State confirm that any new legislation will make the beneficial ownership of all assets in the UK openly available for view and scrutiny, in a similar way to the Land Registry?

[Kwasi Kwarteng]

As I have said, we are bringing in a Bill and there will be plenty of scope to examine it and make amendments. I look forward to the hon. Lady’s engagement on that.

Income Tax (Charge)

Debate between Wera Hobhouse and Kwasi Kwarteng

Thursday 28th October 2021 Commons Chamber

[Kwasi Kwarteng]

Let me make some progress. To intervene so soon after an intervention is unusual. I will come back to the hon. Member.

During the pandemic, people and businesses have demonstrated remarkable levels of resilience. I fully agree with the right hon. Member for Doncaster North when he says that business has been heroic and people have been heroic. I am also immensely proud of the work done by the British Business Bank, for which my Department is responsible. Its schemes supported people and our economy to the tune of £80 billion, with Government-backed finance for 1.7 million businesses. That comes to the point made by the hon. Member for Hornsey and Wood Green (Catherine West). When it comes to the fundamentals of the economy, the Government are securing our economy and getting Britain back to work.

Contrary to all the prophecies of doom and gloom that recently came from Opposition Members, the Office for Budget Responsibility now expects our recovery to be quicker and the economy to return to its pre-covid level at the turn of this coming year. As the OECD and the International Monetary Fund show, there is considerable expectation that the UK will rebound strongly. In that context, our task turns to ensuring that our people and our businesses have ability and opportunity. They will not simply look back and complain about the situation that we have come through. They are positive and forward-looking. They believe in their country—unlike many Opposition Members, dare I say. We will achieve a strong rebound not by splashing cash indiscriminately as a number of Labour Chancellors did, dare I say, but by spending taxpayers’ money wisely to foster an environment that encourages innovation and growth.

I turn to the net zero agenda. I fully appreciate that many years ago the right hon. Member for Doncaster North was Secretary of State for Energy and Climate Change—I do not think I was in the House at that time—and I know that he shares the view that net zero is absolutely one of the most important strategic objectives of any Government.

[Wera Hobhouse (Bath) (LD)]

If the climate emergency really is the most important thing for the Government, why did the Budget not mention it once?

[Kwasi Kwarteng]

It did mention a huge amount of investment in the net zero agenda. The hon. Member should know by heart the Prime Minister’s 10-point plan, and that was 100% backed by yesterday’s Budget.

Oral Answers to Questions

Debate between Wera Hobhouse and Kwasi Kwarteng

Tuesday 21st September 2021 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

May I press the Secretary of State further on blue hydrogen? The source of blue hydrogen is natural gas, which is a fossil fuel, so how can a Government committed to net zero invest millions of pounds in new technologies based on fossil fuels? The Secretary of State has said several times that it is a “transition”, but since this is not a net zero technology, a transition to what?

[Kwasi Kwarteng]

We have spoken about this issue many times in this House, and the hon. Member will appreciate that carbon capture is a key part of our net zero strategy. I think that is widely accepted, particularly by the Climate Change Committee. With her knowledge of chemistry, she will also know that carbon capture works hand in hand with the production of blue hydrogen and that blue hydrogen is not particularly carbon intensive. The reason why countries such as Germany have not pursued a blue hydrogen strategy is that they do not have the physical infrastructure in the North sea to do it.

UK Gas Market

Debate between Wera Hobhouse and Kwasi Kwarteng

Monday 20th September 2021 Commons Chamber

[Kwasi Kwarteng]

What my hon. Friend says is entirely reasonable. I pay tribute to him in his role as Under-Secretary of State in the Scotland Office, where he and I spoke about these issues almost continually, it would appear—we spoke about Acorn and we spoke about carbon capture. He will know that I am passionately committed not only to carbon capture but to ensuring that we have a decent domestic supply of natural gas.

[Wera Hobhouse (Bath) (LD)]

Natural gas is a fossil fuel, and we all know that fossil fuel extraction and consumption have to end by 2050 at the latest. What is the Government’s precise timeline—not a 10-point plan, not imprecise promises, but their precise timeline—to phase out the national gas grid and replace it with renewables, in which case we would not be here in the first place?

[Kwasi Kwarteng]

The hon. Lady will know that to answer that question we would have to have a much clearer view, in terms of the safety and applicability of hydrogen, for example, in the national gas grid. That is clearly a big part of our ability and the speed with which we can decarbonise the gas grid. She also knows that I am committed to decarbonisation; I am committed to the hydrogen strategy that was published six weeks ago, and there are ongoing trials to see whether we can use hydrogen to decarbonise the gas grid.

Electricity Generation: Local Suppliers

Debate between Wera Hobhouse and Kwasi Kwarteng

Wednesday 14th October 2020 Commons Chamber

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

Thank you, Mr Deputy Speaker; I was going to make very much the same point. I congratulate the hon. Member for Ceredigion (Ben Lake) on securing today’s debate, and I will make the same point: I have never seen an Adjournment debate with so many interventions. They were all extremely gracefully and graciously accommodated in his speech, so many congratulations to him.

The hon. Member has spoken eloquently about the need for local communities to be able to supply electricity, and I think there are strong arguments in its favour. I know that similar views have been expressed to me and the Department by many Members. I am fully aware that my hon. Friend the Member for Waveney (Peter Aldous) has also done his bit to try to drive the issue of local supply up the agenda.

I know that the hon. Member for Ceredigion supports a campaign for electricity generators to sell directly to local consumers, for all the benefits he suggested in terms of local employment. I think he or one of the many intervenors used the phrase “local buy-in”, and those arguments are fully appreciated.

In my remarks today, I will address the matter in quite a technical way and give the specific reasons why we as a Government feel that this particular provision is not something that we would adopt, but I suggest to him that local community participation has to be on the agenda. It is certainly something that I as the Energy Minister will be willing to engage with and have a discussion about.

With regard to the licensing—we will talk a little bit about that—changing the licensing framework to suit the business models identified by his campaign appears attractive, but the danger—and we always have to be mindful of dangers in government—is that it would create wider distortions elsewhere in the energy system. I will talk to those directly. Instead of the hon. Gentleman’s proposal, I would urge stakeholders and hon. and right hon. Members across the House to engage with the ongoing work that the Government are undertaking with Ofgem to support flexibility and innovation more generally. Then perhaps we can come to a view about how the local element can play its part in the solution.

[Wera Hobhouse]

Is the Minister not aware that the main problem is the lack of a level playing field? Basically, the smaller providers cannot compete with the bigger providers, and therefore we need this change.

[Kwasi Kwarteng]

I am fully aware of that, and I will come on to it. I have only 10 minutes, so I ask the hon. Lady to bear with me; I will address that point later in my remarks.

Electricity and gas supply licences, as I am sure everybody in the Chamber knows, are usually granted on a Great Britain-wide basis. However, Ofgem has powers to award supply licences for specified areas and specified types of premises, and that can allow licensees, once they have the licence, to specialise and offer more targeted and potentially innovative products and services. The holder of such a licence could supply customers only in the specified geographical area and specified types of premises, with the full terms and conditions of the licence applying otherwise. That means that there is already provision through this licence to have local provision. Electricity suppliers can apply to Ofgem for a derogation from a particular provision of the supply licence, and if it is granted, provisions of the supply licence will not apply to them. There is already some degree of flexibility.

Oral Answers to Questions

Debate between Wera Hobhouse and Kwasi Kwarteng

Tuesday 22nd October 2019 Commons Chamber

[Kwasi Kwarteng]

My desire and propensity to visit all these installations know no bounds, and I should be very happy—diary permitting, obviously—to take up my hon. Friend’s offer.

[Wera Hobhouse (Bath) (LD)]

Does the Minister agree that hydrogen should be made from renewables via electrolysis in the medium and long term?

[Kwasi Kwarteng]

The hon. Lady is right to point to the advantages of hydrogen, but, as she will understand, the issue with electrolysis is that it is currently very expensive, so the green hydrogen to which she has referred is something that we are continuing to develop.