Michael Shanks MP: speeches

Speeches

• 18 Mar 2025 · Large-scale Solar Farms · Hansard source

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  Meeting our clean power mission will require a significant increase in the deployment of both ground-mounted and rooftop solar projects. As well as consenting record amounts of ground-mounted solar, we want to see a much greater deployment of rooftop solar power. We will soon publish the solar road map—work that started under the previous Government—to bring together our next steps in this area.

• 18 Mar 2025 · Large-scale Solar Farms · Hansard source

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  I think we have rehearsed the arguments about the absolute failure of the previous Government over the past 14 years. The Conservatives have just gone further back today. On GB Energy, I was delighted to be in Aberdeen yesterday to join the board of GB Energy for its first board meeting. The Bill will soon, we hope, complete its passage through Parliament. It can then get on with delivering for the British people.

• 18 Mar 2025 · Electricity Grid Decarbonisation · Hansard source

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  Never mind long-winded answers—that was a very long-winded question. I have not revealed any secret plans, but the Conservatives have revealed their not so secret plan, and I can tell the county that it is just as disappointing as the one the country rejected seven months ago. We have been very clear that it is our commitment to bring down bills, and we are determined to deliver on that. Unlike the Conservative party, which left consumers across the country exposed to volatile fossil fuel markets—the hon. Gentleman is right to point out that bills went up and up and up when his party was in government—we will bring them down. His party wants to take us back to the fossil fuel casino but we will not do that.

• 18 Mar 2025 · Electricity Grid Decarbonisation · Hansard source

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  Our clean power mission will end our dependence on volatile fossil fuel markets, giving the British people the energy security they deserve and driving jobs and investment into our communities. We are already seeing the impact of the clean energy transition, with thousands of jobs being created across the country in CCUS—carbon capture, usage and storage—hydrogen and offshore wind, and more nationally significant solar power being approved in eight months than the previous Government managed in 14 years.

• 18 Mar 2025 · Electricity Grid Decarbonisation · Hansard source

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  Once again, we hear from Conservative Members about all these grand plans that they wish they had done in the 14 years that they were in government. They could have moved forward on undergrounding if they were so keen on it, but of course they did not. The reality is that it is for individual companies, not us, to set forward the design of individual projects, and cost estimates for undergrounding are five or 10 times more expensive. The bottom line on all of this is that the leader of the hon. Member’s party earlier today moved away from the commitments that she had made on net zero. Just a few years ago, she said that “Russia’s invasion of Ukraine has made it clear that relying on authoritarian regimes” can make it “harder…to heat our homes”. They recognised then the importance of this net zero transition; now they are running away from how we deliver on it.

• 18 Mar 2025 · Electricity Grid Decarbonisation · Hansard source

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  I am glad the hon. Gentleman draws attention to the London power tunnels. My right hon. Friend the Secretary of State and I have visited them recently and they are a fantastic example of engineering and of what we can achieve if we set ambitious targets in this area. I gently disagree with the hon. Gentleman on the wider point, however, as we are going to have to build infrastructure across the country to get the benefits of the renewable energy that we are generating, and battery storage is important for that. Of course communities have a voice through the planning system and it would be wrong for me to comment on individual applications, but the hon. Gentleman and his colleagues must remember that we cannot simply block every infrastructure project that needs to be built. We need to build for the economic growth of the country and for our energy security.

• 18 Mar 2025 · Electricity Grid Decarbonisation · Hansard source

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  I think the hon. Gentleman knows more than anyone about the work that the previous Prime Minister Theresa May did in this area—work that his party is now moving away from rapidly. The Conservatives were right then: the only way for us to bring down bills, deliver economic growth and tackle the economic opportunities is for us to be on this journey together. Conservative Members used to strongly believe in that. We will continue on that path because it is the right thing for the country to do.

• 18 Mar 2025 · Electricity Grid Decarbonisation · Hansard source

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  My hon. Friend is absolutely right. It is important to recognise that where once there was consensus in this country on how we tackle the climate crisis and, crucially, how we deliver the economic and industrial advantage, that consensus seems to have been splintered by the Conservative party. It was only two years ago that the leader of that party made an important point, which I agree with strongly, when she said “if we get our strategy wrong, we risk being left on the backfoot as other countries seize the advantage.” The Conservative party now wishes us to be on the backfoot, but we are determined that we will drive forward because that is the best policy for consumers, economic growth and energy security.

• 18 Mar 2025 · Electricity Grid Decarbonisation · Hansard source

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  The Select Committee Chair makes an important point. Along with the Minister for Energy Consumers, my hon. Friend the Member for Peckham (Miatta Fahnbulleh), I am looking at all options, because it is important that we bring down bills and that we are building an energy system that protects us from the volatile fossil fuel markets in the future. There are trade-offs to be made when rebalancing that we need to be aware of, in particular whether a diminishing number of gas customers can pay bills if we were to transfer levies, but we are looking at all options and are, of course, looking at how we review with Ofgem the wider question of standing charges to make sure we bring down bills. My hon. Friend is right to say of the journey that we are on—and that the Conservative party used to be on, and on which there used to be consensus—that our transition to net zero is important for energy security and for the climate, but also for protecting bills in the long term.

• 11 Feb 2025 · Cost of Energy · Hansard source

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  I had a segue planned in my speech that was going to get me to the hon. Gentleman’s point, but he pre-empted me, and he is quite right to do so. He is right. This is a real challenge. The switch-off is the right thing for us to do in the long term—I think that everyone agrees that as a system that is outdated—but we do need to be absolutely certain that no one is left behind. The Minister responsible for energy consumers, my hon. Friend the Member for Peckham (Miatta Fahnbulleh), has already had a number of meetings with Ofgem and with industry to make sure we speed up the roll-out. The service ends in June, as the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) said, and the taskforce that has been put in place to roll it out is now moving at pace. I think it is fair to say that it should have been moving faster up to this point, but they are very aware of the issues and we will keep that under review; it is of course essential that people are not left behind when the signal is switched off. Moving on to short-term support, we recognise that by 2030 the clean power system will be crucial to bringing down bills in the long term, and to protecting consumers from the price spikes that we have faced in recent years. However, short-term support is important for households that are struggling with their bills while we are in that transition. That is why the Government continue to deliver the warm home discount, which gives a £150 rebate off energy bills for all eligible low-income households, and it is expected to support 3 million households across the country this winter. The Minster for energy consumers has worked with energy suppliers to agree a £500 million industry support commitment to help specific customers who are struggling this winter. We also extended the household support fund until March 2026 with an extra £742 million, with additional funding for the devolved Governments as fuel poverty is devolved through the Barnett formula. A number of hon. Members raised the question of a social tariff. My hon. Friend the Member for Northampton South made a passionate case for it, and we are looking at what bill support could look like in the future, including the possibility of a social tariff. I acknowledge that there is a broad consensus on the idea of a social tariff. The challenge is that it means different things to different people. One of the challenges that we are grappling with is how we define a social tariff, and how we can reach, in a very targeted way, the people who need it the most. Part of that is the issue of data sharing, which a number of hon. Members have raised—that is, how we bring together the information that the Government have about the individual people who could most benefit from such a scheme. The Minster for energy consumers is leading that work, alongside industry bodies such as Energy UK and stakeholders. They are looking at how we can improve affordability and accessibility, and they are working with the Department for Work and Pensions on how we might be able to share some of the data that it has. The question about levies has been raised by a number of hon. Members, and I think the Conservative party is now pledging to abolish levies entirely. It is an incredibly complex subject, but it is something that we want to grapple with, and we need to be very mindful. I return to the point made by the hon. Member for Bath at the beginning of the debate. While the wholesale price will come down as we put more renewables on to the system, and as we squeeze off gas as the marginal price, if bills do not come down because levies remain high, people will not see the benefit. It is really important to bring communities with us. The truth is, it is a complex issue. I am not going to stand here and say that we can just abolish levies, or that we can just transfer them entirely on to taxation. Neither option is possible in completion, but we are considering how we look at the future of levies, and we are open to suggestions from all parties on how we do that. On the point about rebalancing—how we move electricity costs, in particular, on to gas—that is also a challenge. We want the number of people who use gas to decline in the coming years, as we decarbonise. The challenge will be making sure that we do not put charges on to a dwindling number of customers. Potentially and inadvertently, some of the poorest people in the country might be those who are the last to convert from gas to alternatives. I do not, for a second, dismiss the points that have been raised; they are incredibly important. However, I want to be very clear that we are working relentlessly in this Parliament on how we reduce the wholesale costs, and we want to make sure that it follows through on to consumers’ bills. Related to that, of course, is the point about standing charges on bills, which, as many hon. Members hear from constituents, seem to be such an unfairness because they are not based on consumption or on particular customers’ circumstances. We are committed to looking at the future of standing charges. In December, Ofgem provided an update on reform. It included quite a radical proposal for introducing a new zero standing charge option under the energy price cap, which would give consumers greater choice in how they pay for their energy bills. It is for Ofgem now to consult on that proposal, which it will do this year. The driving force behind that will be making sure that any reforms are fair to all customers. To underline that this is not straightforward and we cannot just simply abolish levies, I note that there would be unintended consequences if we were to transfer some of the costs on to other people. We could inadvertently find ourselves raising bills for some people without that being the policy intent. We are committed to reforming standing charges, but we want to do it in a way that is fair.

• 11 Feb 2025 · Cost of Energy · Hansard source

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  I was not expecting the hon. Gentleman to stop at that point. I saw him in his place earlier and knew that I would talk about community benefits. I will turn now to the points about community energy and community benefits; both are important. On community benefits, in all of this, we want to bring communities with us on this journey. That is important. We have made a very clear case that this Government intend to build the energy infrastructure we need, the transmission infrastructure we need, the homes that people need and the industry that people need to grow our economy, which is important. For far too long, this country has not built the infrastructure it needs. In doing so, we want to streamline the planning process so that applications are dealt with far more efficiently and far faster, but we want to bring communities with us. That is absolutely vital. We will be saying much more very soon about community benefits on several fronts. The first will be how we expand some of the community benefits for particular technologies. That process is already well established in Scotland, for example with onshore wind. The absurd policy of the onshore wind ban in England means that it has not developed as much, but we can look to Wales and to Scotland for advice on that. We also want to expand that to other technologies, particularly solar, which does not have the same community benefits at the moment, and to network infrastructure. I have always said that, if we build network infrastructure and a community is hosting that infrastructure that is essential for the country, it is doing a favour for the rest of the country and should feel some benefit from it. We will announce a package of community benefits shortly. On the wider point about community infrastructure, we do not only want communities to benefit—we want them to actually own the infrastructure that gives social and economic benefits as well.

• 11 Feb 2025 · Cost of Energy · Hansard source

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  The hon. Gentleman makes a very good point. Upgrading the grid is important for transmitting the clean power that we want to generate in the future, but it is already 50 or 60 years old, and it is creaking under the pressures it has operated under for a very long time. There is real need to upgrade the grid right across the country. The truth is that the previous Government recognised that that was important. They launched the idea of the great grid upgrade before we did, but they are now running away from a lot of that. That is hugely disappointing, but it will not get in the way of our moving forward to make sure that we build the grid of the future. Yes, we need to meet the demand for now, but we know that by 2050 electricity demand is likely to double in this country. If we do not build the infrastructure now, it will be the weakest part of our economic strategy in the future. It is essential we build it now, but we want to bring communities with us.

• 11 Feb 2025 · Cost of Energy · Hansard source

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  indicated assent .

• 11 Feb 2025 · Cost of Energy · Hansard source

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  Good morning; it is a pleasure to speak in this debate under your chairmanship, Mr Western. May I thank the hon. Member for Bath (Wera Hobhouse) for securing this debate and, actually, for all our engagements over the past seven months? She always helpfully challenges the Government from a place of real passion and commitment, and I appreciate her words of wisdom, even if I do not always entirely agree with them. In fact, we have had countless debates on energy policy with a number of people in this room—it is beginning to become a bit of a weekly club here in Westminster Hall—and I appreciate all the points that have been raised. May I say to the hon. Member for Strangford (Jim Shannon) that I just cannot get enough of his contributions? Having not spent enough time in the Commons yesterday, we are back again today, but I am appreciative none the less. I will come to his points about Northern Ireland later. I will start where the hon. Member for Bath started: on the public’s view about the cost of energy. She made an important point about how central energy costs are not just to the cost of living crisis that our constituents are still living through, but to their belief in the Government’s ability to change things, so it is important that we tackle these issues. As the hon. Member for Beaconsfield (Joy Morrissey) rightly said, this Government were elected on a manifesto that contained pledges on energy. I am privileged to have the job of Energy Minister, because for the first time in a very long time we have a Government with a key mission to fix the energy system in this country. The truth is that it needs to be fixed because of what we inherited from the previous Government. The energy crisis in 2022 was just the peak that highlighted how vulnerable we are to the rollercoaster of the fossil fuel markets. The cost of energy continues to have a devastating impact on our constituents and communities right across the country. Although consumers are protected to a certain degree by the energy price cap, our energy costs are determined by volatile markets outwith our control. As long as we remain exposed to that, the risk to our constituents is that we will face yet another price spike in the future. My hon. Friend the Member for Northampton South (Mike Reader) made the point well that after 14 years of Conservative Government, we have to not just turn around one bit of the energy system, but deal with the whole series of occasions on which the previous Government failed to make decisions that would grapple with the scale of the problem. That is why I announced yesterday in the main Chamber our transitional support for Drax and biomass. The truth is that we got a good deal for consumers and for sustainability, but we had to make that decision. We had no other options because the previous Government left us with no long-term plan for energy security. That is why we believe so firmly in our clean power by 2030 mission, which, by creating home-grown renewable energy, will help us to reduce our dependence on volatile fuel markets and will protect bill payers for good. Great British Energy will play a vital role in that mission by accelerating our deployment of clean energy so that Britain can become a clean energy superpower. Crucially, it will also invest in the supply chains that bring manufacturing jobs for renewable energy to our country.

• 11 Feb 2025 · Cost of Energy · Hansard source

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  I will not, because I am going to come to the point made by the hon. Member. He has made the point about a highland pricing formula in the past—he is very reasonable about the issue—and it is something we will look at. The reform to the energy market will be part of that work as well. I am afraid I do not have time to come to much detail on mitigations on radar, apart from saying that we recognise the problem and we are working on it. As always, this has been an incredibly useful debate. The passion from hon. Members is important, because this is one of the most important challenges facing our communities. We are committed to ensuring that energy is affordable for households across the country. Our clean power mission will help us deliver on that, but we have much more to do and we recognise that fact. We will work with Members from all parties, with industry and consumer groups, with charities and with individual constituents who raise these issues to make sure that we support everyone with this transition, to bring down bills in the long term and to support families with their energy costs.

• 11 Feb 2025 · Cost of Energy · Hansard source

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  Never will it be said that I enjoy criticising the former Government. I would flip what the hon. Member for Bath says on its head: that change also presents a real opportunity to look at the electricity system in a different way—I will come back to that point, particularly on community energy. It is right to say that the days of big cities with power stations right next to them are long gone, so we need to think of a different way to build our transmission system into the future. On Clean Power 2030, advice from the National Energy System Operator said that the clean power system can be cheaper than today’s system for consumers. Contrary to what some Members have said, we know that renewables are by far the cheapest to run. There is a cost to building them, but there is also a huge cost to building new gas or nuclear power stations that is often not factored into the debate. Renewables come at a cost but are then incredibly cheap to operate on our system. The hon. Member for Epsom and Ewell (Helen Maguire) spoke very passionately about climate change. That is really important. The mission we are on is about building an energy system for the future that gives us energy security, but it is also about tackling the climate crisis, which we can no longer think of as a future threat. As we look around the world, we can see from just this year alone that it is a present reality. It is increasingly difficult to read the statistics and not think that we should be taking more decisive action. I gently say to the hon. Lady, as she prods this Government for not going fast enough, that in seven months we have launched the Clean Power 2030 mission, lifted the onshore wind ban in England—which was an absurd policy—and approved more solar than the previous Government did. We have had the biggest renewables auction in history, with 131 projects, we have created the pathway to clean power by 2030 and have already delivered record investment in the supply chains that will deliver some of the infrastructure upgrades we need, including £1 billion by ScottishPower. We launched the solar taskforce and the onshore wind industry taskforce. We are also looking at the Offshore Wind Industry Council and how it can deliver more. I am not sure we could move much faster, but if the hon. Lady has some suggestions, I am happy to take them on board. Finally, on the point about the rooftop solar revolution, we agree that it needs to be not an either/or, but both. We will need ground-mounted solar, which plays a really important part, but we have rooftops right across the country—in car parks, warehouses and industrial units—that we should be covering in solar panels wherever we possibly can. We will do much more on that. We reconvened the solar taskforce, which the previous Government ran, to try and increase the ambition, and it will report in due course.

• 11 Feb 2025 · Cost of Energy · Hansard source

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  I will come to the right hon. Gentleman’s point about transmission costs later, because it is important, particularly when it comes to how we grapple with constraint costs. The truth is that we will have to build more network infrastructure. I hope he will support the construction of that, although I suspect he will not. We also want to review energy market reforms to look at how we deal with some of these issues. I will come back to the important point, which a number of hon. Members raised, of how we build an energy system for the future. The question of balance is key. We do not want a renewables-only system, although renewables will be incredibly important. We announced last week our commitment to rolling out much more nuclear to provide the baseload and the security of supply. We have the ability to place small modular reactors across the country near centres of demand, such as the data centres that we will see in the future.

• 10 Feb 2025 · Rosebank and Jackdaw Oilfields · Hansard source

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  My hon. Friend is right. We are putting in place a robust and clear process, so that applications can come forward that are in line with what the Supreme Court ruled, and can be decided on their merits. That is important. On UK production, as I have said a number of times and will keep saying, oil and gas will play an incredibly important role in the UK for many years to come. That investment is important, as are the jobs and the skills in the north-east. My hon. Friend mentions environmental standards. In my past few months in this job, I have been pleased to hear about the huge amount of work that oil and gas companies have undertaken to decarbonise their work through electrification and other means. This question is about the scope 3 emissions, however, that the Supreme Court ruled must be taken into account; that is about the end use of the hydrocarbons as well. We will put in place a process to deal with that.

• 10 Feb 2025 · Rosebank and Jackdaw Oilfields · Hansard source

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  It is important to separate the question of licences in these two cases from the consent process—licensing and consenting have always been different processes. We have said that we will absolutely respect licences that have been issued. We have no plans to and will not revoke existing licences, but neither will we issue new licences to explore new fields. As my hon. Friend rightly says, there have been licences for those fields for a very long time, and we will not revoke them. The question now is about specific consent applications for those projects. That will come before the Department when we have put in place the process to respond to the Supreme Court judgment, and when the companies, if interested, re-submit their applications.

• 10 Feb 2025 · Rosebank and Jackdaw Oilfields · Hansard source

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  It is a huge shock, but I do agree with my hon. Friend, because failing to back an £8.3 billion investment in your own constituency seems an odd approach for a Member to take, whatever election they are standing in. Let me make a broader point about other work that we are taking forward. One of the most important things we did recently was get the skills passport over the line. That is about recognising the huge skillset of offshore oil and gas workers; 90% of those skills are directly transferable into renewables and other technologies. Passporting is about ensuring that those skills and experiences are recognised, so that those skilled workers can find jobs in the renewable industry. This important work is about the transition to the jobs of the future. We announced that Aberdeen will be one of the first skills pilot areas, in recognition of the importance of that skills transition for the whole north-east of Scotland.

• 10 Feb 2025 · Rosebank and Jackdaw Oilfields · Hansard source

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  I thank the shadow Minister for his response, although I am not sure it is entirely constructive in this conversation. He knows as well as anyone that the process is live, and the companies involved in these two projects have the right to apply in future. It would be wrong for me to prejudice those applications, in the House of Commons or anywhere else, by stating an opinion—

• 10 Feb 2025 · Rosebank and Jackdaw Oilfields · Hansard source

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  To be clear, I am not suggesting that I cannot comment because of particular legal action. My Department will have responsibility for making the decisions, and it would be wrong for me to prejudice that process by giving my view on those applications in Parliament or anywhere else. That is entirely how such applications end up back in court, and that is what I am determined to avoid. We clearly outlined the question of licensing at the election: we will not issue new licences to explore new fields, existing licences will be honoured, and we will not remove licences from fields that already have a licence. However, consents—the point at which extraction takes place—must take into account climate tests, and not least the compatibility test laid down by the Supreme Court. Any applications now or in future must take account of that.

• 10 Feb 2025 · Rosebank and Jackdaw Oilfields · Hansard source

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  As my hon. Friend says, the long-term future of our energy security in this country is not in oil and gas, as important a part as it will continue to play for many years to come. The clean power mission that we are driving forward at pace is about building home-grown renewable power that will deliver energy security in the long term, although oil and gas will continue to play an important part for many years to come, not just in our energy mix but in our country’s wider economic system. We will support the jobs and industries in north-east Scotland to ensure that transition is fair and prosperous for all.

• 10 Feb 2025 · Rosebank and Jackdaw Oilfields · Hansard source

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  I gently say to the hon. Lady that it has nothing whatsoever to do with ideology— [Interruption.] It is about the Government responding to a legal judgment of a court—not just the Court of Session in this particular case, but the Supreme Court—on a decision taken by the previous Government to grant consent unlawfully. We now have to respond to that Supreme Court judgment and ensure that any future application process is robust and does not end up in the courts again—that is what we are determined to do. It will be for individual applicants to bring forward their applications. On the wider point on jobs, I am acutely aware of the importance of ensuring that there is certainty in the north-east of Scotland. I have spent a lot of time in this job making an effort to get to know not just the individual companies, but the supply chains, support companies and those on apprenticeships that work in the north-east. It is important to me, as it is to the hon. Lady, but I say to her and her whole party that we cannot move forward simply saying that oil and gas is the only future for the north-east of Scotland. They are finite resources, and we are clearly saying that the balance requires us to start investing now in the transition, so that there are good well-paid jobs for many generations to come.

• 10 Feb 2025 · Rosebank and Jackdaw Oilfields · Hansard source

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  I will find the question, Mr Speaker. My hon. Friend is right that historical transitions in key industries have left workers high and dry, instead of recognising that a transition is under way and supporting that workforce into what comes next. The coal industry devastated large parts of my constituency in Lanarkshire, and areas across England and Wales, which continues to have consequences for generations. We are determined that that will not happen with the North sea, but it requires us to plan the transition and to put it in place now, not to bury our heads in the sand and pretend everything is fine.