Michael Shanks MP: speeches 2024

Speeches

• 6 Nov 2024 · Energy Rebates: Highlands and Islands · Hansard source

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  I thank the hon. Member for Moray West, Nairn and Strathspey (Graham Leadbitter) for securing this incredibly important debate. He has the pleasure of representing one of the most beautiful parts of Scotland, to which I enjoy going on holiday often. It is great to be discussing this long-standing issue for the highlands and islands of Scotland, which, as he mentioned, was also raised by former Members. The context of this discussion is important. Energy bills are too high for too many people right across the country, not just in the highlands and islands. This Government have made it clear from the outset that we want to put in place an energy system that delivers lower bills permanently; removes the price spikes that all our constituents, including those in the highlands and islands, have faced over the past few years; and speeds up the transition to home-grown clean energy. The hon. Gentleman made the point, as have others, that the north of Scotland plays an important role in delivering clean energy at the moment. That brings us back to a conversation that we have had in this place a number of times—indeed, in the previous debate, I recruited the hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald) to help me with it—on community benefits. We need to do much more for the communities that host this nationally important energy infrastructure and the network infrastructure that goes with it to get power across the country. They should feel benefits from that in their bills and their local communities, and we are looking at that. The creation of Great British Energy, the first publicly owned energy company in this country for 70 years, is about harnessing clean energy and investing in communities, and of course it will be headquartered in Scotland. I know that the hon. Member for Moray West, Nairn and Strathspey and his SNP colleagues did not support the Great British Energy Bill, but I hope that in time they will see the benefit of Great British Energy delivering a greater quantity of cheaper energy right across the UK, which will bring down bills for everyone, wherever they are. The hon. Gentleman made an important point about locational pricing. If we were to design an energy system from scratch, we would not design the system we have at the moment, which is the legacy of electricity infrastructure being built in different places, at different times and in different ways across this country for a century. Our ambition is to deliver a lower-cost, renewables-based energy system, so we are considering what reforms to the energy market will look like to enable electricity prices to better reflect local conditions. That could have a significant impact on communities like the one the hon. Gentleman represents, recognising that there should be some relationship between where energy is generated and the price people pay for it. There are potential reforms on the table. The previous Government started the consultation and we have picked it up. Many hon. Members will be aware of the options. They include the possibility of zonal pricing, but it is important that we balance such options with potential capital investment impacts, so there is detailed work going on before we reach any decisions. Reform of the electricity market does not have to be defined simply by locational pricing; we will look at a number of other reforms to the national pricing model, and we continue to work closely with the regulator, Ofgem, and the new publicly owned National Energy System Operator to look at how they might work. The hon. Gentleman’s point about transmission and distribution costs comes up in debates inside and outside this place. It is important to recognise the difference between the two. Electricity network charges are paid for connecting to, and using, the electricity network. They are paid by consumers across the country, both industrial and domestic, through the standing charge on their energy bill. Transmission charges are based on the costs that users impose on transmission by connecting in different locations, which means that there are higher charges for those areas that require energy to be transmitted a long distance. However, as we have discussed, transmission costs are generally lower in the highlands and islands than in other parts of Great Britain because Scotland is a net exporter of energy. As the hon. Gentleman pointed out, the difficulty comes with the distribution cost, which is the cost of supplying households in each area with electricity. It is based on the complexities of how we get electricity to individual households, so places like the highlands and islands face higher distribution costs, for obvious reasons: the mountainous terrain, sparse population, distance between houses and poor weather conditions all contribute to those costs being some of the highest in the UK.

• 6 Nov 2024 · Energy Rebates: Highlands and Islands · Hansard source

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  I think that would be true if transmission charges were higher in Scotland than in other parts of the UK, but that is not the case. Distribution charges might be lower in certain parts of the rest of the UK, but the transmission charges are higher, taking into account exactly that point. We would like to get the grid into a place where we have much more generation capacity being built next to population centres, as well as the investment in the highlands and islands and the North and Celtic seas, but there is no doubt that the grid we will need to build in the future will be very different from the one where we built a gas or coal power station next to a city. We do have to wrestle with these questions of how we get power to the right place. We also have to take into account how to build in capacity for when renewables are not generating. Parts of Scotland may well generate more electricity than they can use, but not always—not 24/7, 365 days of the year—so the whole grid has to be part of the answer. As the hon. Member referred to, one solution is the hydro benefit replacement scheme. It provides annual assistance of about £112 million to reduce distribution costs for domestic and non-domestic customers in the region, which works out at around a £60 annual reduction in household bills. Many hon. Members have raised the really important point of standing charges, which are considerably higher in the highlands and islands than in many other places. The setting of standing charges is a commercial matter—they are not fixed by Government—and is regulated by Ofgem. However, the Government have taken the view, as we made clear during the election and in subsequent weeks, that the burden of standing charges on energy bills is far too high. We have had a number of conversations with Ofgem and others about that, including on the amount of variance between standing charges across the UK. We are committed to lowering standing charges overall, and we have been working constructively with Ofgem on that. In August, Ofgem published a discussion paper addressing many of the issues on standing charges. It sets out the options for how we can reduce them, including moving some supplier operational costs off the standing charge and on to the unit rate, which would rebalance some of the issues raised by the hon. Member; increasing the variety of tariffs available to consumers in the market; and, in the longer term, reviewing how system costs are allocated. That will affect consumers in many ways, but in the meantime we want to work with Ofgem on any practical steps we can take to reduce standing charges as much as possible. Before this debate, we had a debate on the wider questions around fuel poverty. I will not go over many of those points again, but I will just make the point that many aspects of fuel poverty are devolved to the Scottish Government, which in the autumn Budget last year received the biggest settlement since devolution. We have also announced £1 billion through the warm home discount, which provides an annual £150 rebate off bills for low-income households. That has a Barnett impact and there is therefore money for the Scottish Government to invest if they wish to do so. The household support fund is an England-only scheme to provide support for those most in need. Of course, it is for the devolved Governments to decide how they want to allocate the additional funding, and the Scottish Government have not implemented a like-for-like scheme, but they do have a wide range of support for households in response to the cost of living crisis. As I said, we had a very good debate just before this one on fuel poverty. The Government are committed to tackling it. Policy in this area is devolved in Scotland, but this is one of many questions about how we bring down costs for all consumers right across the UK. In our plan for clean power by 2030, we commit to delivering what will be cheaper energy—that was confirmed by the NESO this week. It will require a huge amount of effort, but as part of that we are committed to looking at the review of energy market arrangements as well. This is a complex issue with a number of layers to it. I thank the hon. Member for Moray West, Nairn and Strathspey for raising it again. The challenge of how we lower bills for all is part of the energy trilemma that we are facing around how we demonstrate climate leadership, improve our energy security and lower bills in the long term. It is one that we are tackling head on, and we are determined as a Government to ensure that we do what we can to lower bills for all households across the country—in the highlands and islands, and right across the UK. Question put and agreed to.

• 6 Nov 2024 · Fuel Poverty · Hansard source

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  I aspire to that—quite. The hon. Member for Strangford (Jim Shannon) made a number of important points, and I have to confess that I was not aware of the statistic that he cited. That puts the difference into stark contrast, so I absolutely take the point. The hon. Gentleman spoke earlier about engaging with the Northern Irish Executive. I have met both Ministers with responsibility for different parts of the energy policy—most recently, in fact, in the inter-ministerial working group across all the devolved nations. One of the key topics that we discussed was decarbonisation, particularly of such households, so we absolutely are taking that issue forward. I am conscious of time, Sir Roger, so I will just pick up on a couple of other points that hon. Members raised. The hon. Member for Wokingham (Clive Jones) tempted me to be drawn into Beveridge’s “five giants”. Actually, I think that is an important statement about where this Government have come in, because it feels to me like want, disease, ignorance, squalor and idleness are yet again the five giants that we have to tackle as a country, and we are tackling them all as quickly as we can. I take his point, but it brings into stark contrast the fact that we have come in with some really tough decisions to make. There are pressing needs in the NHS, the education system, housing and energy, and we are doing what we can to improve all those. The Budget last week was about fixing the foundations and investing in our public services again. We can undoubtedly do more, but we are moving forward as quickly as we can. I want to touch on consumer protection, which a number of Members have raised, and the point of the regulator. The ministerial team in the Department have had a number of meetings with Ofgem over a variety of issues, but there is no doubt—Ofgem shares this view—that suppliers could do much more to protect customers and provide them with a better quality of service. We are therefore looking at how we strengthen the regulator—a consultation is under way—so that it can hold companies to account for wrongdoing, require higher performance standards and ensure that there are much better levels of compensation when providers fail. Last year, Ofgem introduced much more stringent rules around the involuntary installation of prepayment meters, an issue that I raised in one of my first questions after I was elected to Parliament. That was a shocking situation, but much more stringent requirements are now in place. We continue to monitor the situation to see whether much more is required. I thank all hon. Members who have participated in the debate. There is agreement across all parties that this issue is extremely important. Progress has stalled in recent years, and we now need to make significant advances. The Government are committed to slashing fuel poverty. We will do that through the fuel poverty strategy for England, and also, we will look across the whole of the UK at what we can do with our energy system to reduce bills and provide more secure energy for everyone, and to improve home standards. We will do that by protecting low-income and vulnerable consumers and by trying to raise households out of poverty across the board. Our strategy on child poverty, the raising of the minimum wage and other factors combine to support households struggling in fuel poverty. We will no doubt return to this topic again. We do not pretend to have all the answers, so we are open to any ideas from hon. Members right across the House. Together, we can tackle this issue, but it needs concerted effort and investment, and this Government have started that.

• 6 Nov 2024 · Fuel Poverty · Hansard source

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  I thank all right hon. and hon. Members for participating in the debate. I particularly thank the right hon. Member for Orkney and Shetland (Mr Carmichael) for securing the debate and for his commitment on this issue in debates over many years. I know that it is a considerable issue in his constituency, where I think 31% of households are in fuel poverty, and he is right to raise it in this House. I always appreciate conversations with him, including our recent conversations on many of the topics that have been raised today. I agree on the importance of this debate on tackling fuel poverty, although I should say at the outset that fuel poverty is devolved across the UK. Certain things that I will speak about relate to the UK Government’s responsibility for fuel poverty, which focuses on England. In the Budget last week, a considerable amount was assigned to the devolved Administrations, including one of the biggest devolved settlements for the Scottish Government in many years. I am sure that the right hon. Gentleman will raise these issues with colleagues in the Scottish Parliament to get much-needed funding to projects in Scotland as well. On devolution, it is also important to say that we measure fuel poverty in very different ways across the country, with different metrics and targets for how we identify it. In Scotland, the metric for fuel poverty is the same as that used in England to measure energy affordability. It includes deeming a household fuel-poor if it has to spend a certain proportion of its income after housing costs on energy, which is a slightly different figure from the one used in Scotland. Nevertheless, much of what we have heard today is true across all parts of the UK. Many hon. Members made the point that the choice between heating their home and feeding their family or paying other bills is a stark one for any family. In a country as wealthy as ours, that should not be a choice that families have to make. I welcome the point made by the shadow Minister and others that we can all work together to move forward on the issue. However, we need to take more action than has been taken in the past 14 years. That is why our manifesto committed to slashing fuel poverty and delivering our warm homes plan. We have already taken the first steps in delivering that. In the Budget last week, the Chancellor committed £1.8 billion to support fuel poverty schemes, helping over 225,000 households to reduce their energy bills by over £200. We have announced that we will consult this year on increasing the minimum energy standards in the domestic private rented sector: 35% of all those in fuel poverty in England are in the private rented sector, so it is vital that we provide as much support as we can. I will pick up on several points raised during the debate, but the critical point was about trying to bring all the different policies together into a cohesive fuel poverty strategy. That is indeed what the Government have committed to publishing in due course, to ensure not only that we have a clear focus on tackling fuel poverty but that the whole Government are aligned on delivery. That is the approach that the new Government have taken on a range of issues; in my Department that includes clean power by 2030. We making sure that all Ministers, wherever they are—in whichever Department and with whichever responsibility—come together to make the situation better. I want to provide a little bit of context. I repeat that much of fuel poverty policy is devolved. In 2023, an estimated 13% of households—just over 3 million—were in fuel poverty in England, under the metric that is used here. That remains effectively unchanged since 2022. The Committee on Fuel Poverty, which advises on the effectiveness of policies and scrutinises them in England, stated that progress towards tackling fuel poverty has effectively stalled. In England, the target is to ensure that as many fuel-poor homes as possible achieve the minimum energy efficiency rating of band C by 2030, but 46% of all low-income households in England were still living in a property with a fuel poverty efficiency rating of band D or lower. That shows the sheer amount of work we have to do on the issue. We are therefore working on a number of policies. In reflecting on the point made by the hon. Member for Mid Dorset and North Poole (Vikki Slade), I accept that there is an urgency to moving forward on all these issues. We have inherited quite a lot of issues that require urgent action. I ask for just a little patience, but I absolutely recognise the point that for someone living in fuel poverty, the impending winter is a crisis. The Government are therefore moving as quickly as possible on the issue. The warm homes plan, which we announced in our manifesto and on which we are moving forward, is about transforming homes right across the country by making them cheaper and making energy clean to run, rolling out upgrades from new insulation to solar and heat pumps. We will partner with local and combined authorities, and the devolved Governments where possible, to roll out the plan. That was in the Budget speech last week, in which an initial £3.4 billion was announced towards heat decarbonisation and household energy efficiency over the next three years. That includes £1.8 billion to support fuel poverty schemes, which, as I said, will help more than 225,000 homes. The right hon. Member for Orkney and Shetland raised several points. He rightly notes that the radio teleswitch service situation will be a worry to many people, particularly in rural communities. As he said, a roundtable was held, which was important and brought together the key stakeholders. Ofgem has updated its action plan to make sure that we are pushing forward and in particular that we are putting pressure on the energy companies responsible for delivery, to make sure that the upgrades are made and that targets are in place, including some key milestones that they must meet early next year. Several hon. Members mentioned community benefits. This is a debate that we have had in this Chamber and across the House before. It is extremely important that if communities are hosting energy infrastructure such as the Viking wind farm in the right hon. Gentleman’s constituency, which I visited not long ago, there should be some benefit. We certainly do not want the communities that host vital energy infrastructure to be those that are most likely to be in fuel poverty. We are therefore doing a lot of work, building on the previous Government’s consultations, on what community benefits might look like. We want to make sure that communities and individuals get a genuine benefit, because some community benefits do not currently deliver quite the change that we would like.

• 6 Nov 2024 · Fuel Poverty · Hansard source

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  Ah! I was just going to refer to the hon. Member.

• 6 Nov 2024 · Fuel Poverty · Hansard source

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  The hon. Gentleman, as always, makes a very good point, although I noticed that he called the shadow Minister his friend but not me. But, over time, I think we will build on that and—

• 6 Nov 2024 · Fuel Poverty · Hansard source

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  I am always willing to take help from any Member. If the hon. Gentleman can take some of this work off my plate, I will be very happy to work with him. Of course, we will first have to work out the answer to the question of where God comes from, but if we can settle on the fact that it is self-evidently Rutherglen in the central belt, I will be happy to work with the hon. Gentleman. That spoils the joke I was going to make about his comparison of temperatures, which is that seeing him wear a very woolly jumper this morning in London made me wonder what he wears in Skye, but that is for another debate. Genuinely, though, we want to have an open and collaborative approach, and we want to make this work. The consultation that the previous Government carried out and the feedback we have from a number of partners show that there are really good examples of community benefits working well, along with a lot of examples where they are not working well. If we could build on that approach together, I would very much appreciate it. While we are discussing the hon. Gentleman, he made a very good point about remembering the different types of fuel that households use, and the real issue for off-grid homes—particularly in the north of Scotland, but right across the UK. Again, fuel poverty is devolved, so some of those questions are for the Scottish Government to answer—I know that the questions will be put to them—but we are aware that in England, for which the Department for Energy Security and Net Zero is responsible, 12% of rural households are in fuel poverty, and those are the ones with the largest fuel poverty gap. Tackling those particular challenges in the rural context is therefore really important.

• 29 Oct 2024 · Great British Energy Bill · Hansard source

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  I thank all Members who have made contributions to the debate, and I am grateful for all the points raised in Committee. I thank the witnesses who gave their time to the Committee, as well as the Clerks, House staff and civil servants, who put so much work into legislation such as this. I apologise to the House in advance both for the speed of my speaking and the speed with which I will have to go through the amendments—there is not a huge amount of time left. First, I want to highlight the three maiden speeches that we have heard today. My hon. Friend the Member for Bolsover (Natalie Fleet) gave an incredibly emotional speech, and spoke passionately about the importance of the state having an impact on people’s lives. I also pay tribute to my hon. Friend the Member for Erewash (Adam Thompson) for telling us, apart from anything else, how to pronounce his constituency, and to the hon. Member for Dewsbury and Batley (Iqbal Mohamed), who I am sure will at least receive a Blue Peter badge in the post for his speech. Great British Energy is at the heart of our clean power mission, and the Bill provides the statutory basis for it, enabling the Government to deliver on the ambitions that we set out during the election and that the country voted for so resoundingly just a few months ago. Let me turn to the amendments. New clause 1, in the name of the right hon. Member for East Surrey (Claire Coutinho), would create additional reporting mechanisms for Great British Energy. I agree with her that Great British Energy should be accountable, transparent and open in all its dealings and in how it delivers a return on investment. That is why we have made provision in the Bill to ensure that regular updates are given in the form of annual reports and accounts, which will be laid before Parliament for all Members to review. Of course, as a company, it will undergo external audit in the usual manner. As I outlined in Committee, my view remains that adding additional requirements at such frequent intervals is disproportionate and will stop the company from getting on with delivering its mission. On amendments 6 and 7 in the name of the right hon. Member for East Surrey, and amendment 1 in the name of the right hon. Member for Aberdeen South (Stephen Flynn), every family and business in this country has paid the price for our dependence on fossil fuels during the cost of living crisis. Speeding up the roll-out of clean energy is the only way to get our country off the rollercoaster of volatile international gas markets and to protect families from future energy shocks. That is the argument that the Conservative party used to support but that it seems increasingly to distance itself from, as it has with so many principled positions.

• 29 Oct 2024 · Great British Energy Bill · Hansard source

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  I do not have time—I have a minute in which to finish. I hope the hon. Member for South Cambridgeshire will recognise that there is really no need to put an amendment such as this one on the face of the Bill. Turning to her amendment on the topic of community energy, she will know, however, that I am passionate about community energy, as are the Government. It will form an integral part of Great British Energy’s local power plan, which will put communities at the heart of the energy transition, giving them a stake in the shift to net zero. As a member of not just the Labour party but the Co-operative party, that is at the heart of my politics and that of many of my hon. Friends. We have been advocating for community energy for decades—this is not a new idea for us—and empowering communities is critical. The hon. Lady and I share that passion and a commitment to community energy. I can assure the House that the Department is looking to take a cross-government approach—not just through Great British Energy but, crucially, on a number of the points that have been made—to ensuring that community energy projects can be delivered, with all the changes to planning and governance that are required to make that happen. I always want to work with Members across this House, and have done so throughout the passage of the Bill. We continue to engage with the Liberal Democrats and other interested parties on this important issue, exploring options to ensure the Bill has the effects they are seeking. I look forward to further such discussions in the weeks and months ahead. I hope all who have tabled or spoken to amendments today will feel reassured by what I have outlined—albeit considerably more briefly than I was expecting—and will perhaps feel able to withdraw, or not move, their amendments. This is a truly historic Bill, delivering on the Government’s promise to establish a new national, publicly owned energy champion for our country. It has been a privilege to take it through Committee, and I repeat my sincere thanks to everyone involved in that process. Great British Energy is the right idea for energy security, for bills, for jobs, and for delivering the climate leadership that the people of this country demand of their Government. It is the right idea for our time, hugely supported by the British public, and I urge all Members of the House to support it this evening.

• 29 Oct 2024 · Great British Energy Bill · Hansard source

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  I do not have time, I am afraid. We are unapologetic that Great British Energy is a long-term project for this country, as part of a sustainable, long-term plan to protect bill payers for good. I stand by that commitment today. However, I also say, as we have said about so much of the mess that we have to clean up, that we cannot simply flick a switch and turn everything around, which is why these amendments are inappropriate. Conservative Members would never have made such amendments to a Bill when they were in government. Let me turn to the amendments on jobs and industrial strategy. The Government are clear that clean energy is the economic and industrial opportunity of our time. Around the world, a race for jobs and industries of the future is speeding up, but for too long Britain has opted out and lost out. Great British Energy is at the heart of our plan to change that. It will help to rebuild the UK’s industrial heartlands through its investments across every part of the UK, and locating Great British Energy’s headquarters in Aberdeen will tap into the high-quality talent pool of Aberdeen and Scotland as a whole. We will use every tool at our disposal to win jobs for Britain. We have established the office for clean energy jobs, and are focused on developing the skills of the future, so that we have a workforce that can deliver what we need in future. Crucially, it is why the Government are, as many hon. Members have said, committed to a proper industrial strategy. The amendments tabled by the hon. Member for South Cambridgeshire (Pippa Heylings) relate to the timeline for establishing Great British Energy, to energy efficiency and to community energy. Although I welcome and, frankly, share the hon. Member’s eagerness to get Great British Energy up and running as quickly as possible, we will not be supporting amendment 3. The Government have already shown themselves to be committed to setting up Great British Energy as quickly as possible, and there will be no further delays in doing so. Indeed, of all the things that my right hon. Friend the Secretary of State could be accused of, not moving quickly is not one of them.

• 29 Oct 2024 · Great British Energy Bill · Hansard source

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  Just say it in Gaelic!

• 23 Oct 2024 · Fusion Energy · Hansard source

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  It is a pleasure to serve in this debate with you in the Chair, Mr Pritchard. I thank my hon. Friend the Member for Bassetlaw (Jo White), for securing today’s important debate, and for the passionate way in which she spoke about both this issue and her constituency. It was genuinely inspiring—particularly what she said not just about the future of her community but about its heritage. I confess that I did not know the role my hon. Friend’s constituency played in the creation of the United States, but, as I used to say to my school pupils, every day is a school day, so I thank her for that. It would have been quite a striking debate if my hon. Friend the Member for Rushcliffe (James Naish), the chair of the APPG on fusion energy, had spoken about anything other than his support for fusion, but I welcome his invitation to join his group’s visit. I would say to my hon. Friend the Member for Bassetlaw that I think there are other Ministers in the Department who might be slightly frustrated if I cut the ribbon rather than them, but I am happy to do so all the same. I share my hon. Friends’ genuine excitement for this technology, and it is worth taking a moment to think about what we are talking about. The idea that we could produce an almost inexhaustible supply of low-carbon baseload sounds almost too good to be true—particularly as an Energy Minister trying to get us to where we are going to by 2030. It sounds like a fantastic proposition, but after many, many years of a lot of hard work, it is in fact within our grasp. Fusion creates nearly 4 million times more energy for every kilogram of fuel than burning coal, oil or gas—some of the statistics are staggering, and worth taking a moment to reflect on. It has a huge potential to bolster our energy security and to create thousands of good jobs at the same time, putting it at the heart of not just one of the Prime Minister’s key missions in Government but two: kick-starting economic growth and making Britain a clean energy superpower. What is even more exciting is that this country genuinely has an opportunity to lead the world on this and to become the global home of fusion energy, with all the considerable short and long-term economic gains that come with it. I thank hon. Members for being here and for their support for this new technology. It is difficult at times, with technologies that are perhaps not so well understood and are at that nascent stage, to keep the debate on them. It is important to have more contributions and speeches like the one we heard about the importance of this technology. The UK has been at the forefront of fusion energy research and development for more than 40 years, going back to June 1983—I will not tell hon. Members my age, but at that time I was not quite born—in a quiet corner of Oxfordshire, with the world’s largest operational fusion reactor. The Joint European Torus went on to break records and then break them again, with thousands of experts from across Europe playing their part in those experiments. JET closed its doors last year and we are now focused on building a whole new generation of fusion facilities in the UK. Domestically, the economic opportunities of fusion are huge. The sector already supports thousands of jobs, and our ambitions will see it deliver many more highly skilled roles in future. As my hon. Friend the Member for Bassetlaw outlined, it can also lead to breakthroughs in other areas, particularly in medicine, supercomputing and other green technologies. That is why it is important to attract private sector investment to this project. Some $7 billion has already been raised by global private fusion companies and that figure grows year on year. It is clear that the UK’s pro-innovation, proportionate approach to fusion regulation is attracting global interest but we want to go further, developing a national policy statement for fusion facilities that provides even greater certainty, encouraging billions more in private investment, driving further growth and supporting thousands more jobs. We are also investing in unique fusion research facilities at UKAEA sites across the country that UK-based firms can access, making it the natural home for fusion development. Internationally, fusion energy could be transformational, both as a long-term solution to energy security and, in this most decisive of decades, in tackling the climate crisis. This is a low-carbon, safe and abundant source of energy, which does not require huge amounts of land or natural resources for its production. That makes it the perfect power source for nations have relied on imported fossil fuels, or that do not have the capacity to deploy renewables at the scale many will need. Those are the same countries that are most likely to be affected by climate change. In other words, as global energy demand grows—and we know that it will considerably in the decades ahead—fusion energy could be critical to keeping net zero within reach, as well as ensuring that citizens everywhere have access to power. Other major economies, including the US and China, have realised that there are huge prizes on offer to be the first to commercialise this technology, including economic growth and global environmental leadership. Estimates of that fusion energy market between 2050 and 2100 put it between £3 trillion and £12 trillion. Without the spending power of the US or China, we must be targeted in how we maintain our leadership in this ever-closer international competition. As my hon. Friend the Member for Bassetlaw outlined, that is where the STEP programme comes in. Last month, I was privileged to be at Ratcliffe-on-Soar. It might seem odd for a Minister to be privileged to be at the closure of something, but the closure of our last coal-fired power station was a real moment in our energy story—a moment for us to recognise that the transition is well under way. We are now bringing a whole new industry to that part of the world with the creation of the world’s first civil fusion power plant. The aim is for the prototype plant to reach completion by 2040, and that will demonstrate that fusion can be a viable part of our energy mix in the near future. As my hon. Friend the Member for Bassetlaw is aware, it is a hugely exciting opportunity for local people in her constituency, for the wider region and for the whole UK, delivering thousands of jobs directly and in the supply chain. My hon. Friend rightly referenced the importance of skills development in fusion energy. There is a real opportunity to develop the skills of a next generation of young people working in the energy of the future. STEP will partner with private industry early on in its journey, working closely with engineering and construction companies. The work of identifying those partners is under way at the moment, with an announcement of the shortlisted bidders due in the following weeks. This is about not only maximising our chances of success, but utilising the local skills already in my hon. Friend’s community to breathe new life into an industrial heartland. At the same time, we will establish a strong fusion skills base and domestic supply chain to support STEP and enable it to compete globally. We are also running an outreach programme to schools in the area to encourage the uptake of fusion-related education, and developing relationships and grants with universities. We want fusion to be a sector that excites and inspires young people, and now is an important moment to unlock that potential. STEP is a first-of-a-kind programme, and there will, of course, be challenges. My hon. Friend the Member for Bassetlaw mentioned a number of the logistical challenges in the local area—we will work through those things together with the local community, and I know that she was involved in the local council for many years as well—but we have a huge advantage: four decades of research, a thriving financial landscape and a world-leading plan, which means that even before a commercially viable plan is delivered, the programme will have already supported thousands of jobs, skilled development and cutting-edge research. Ultimately, whether STEP or a different design is the precise one used to commercialise fusion technology, its development will already ensure that the UK has a supply chain to provide jobs and the recognition that we are in the lead in this technology. The Government are unashamedly pro-growth, pro-business and pro-innovation, and fusion is a great example of all three. It is such an important part of our plans because it covers all those points, and is a real opportunity for us to make progress and become the global lead in a genuinely transformative technology. That could ensure our energy security, drive huge growth and combat climate change here and far beyond our shores. STEP could, in short, be the UK’s Apollo moment, and I cannot wait to see where the fusion journey takes us. My hon. Friend the Member for Bassetlaw is a passionate and enthusiastic representative of the community driving forward this technology, and it is in safe hands. I pay tribute to her commitment both to championing this technology and to her wider community. Together, we can make this one of the most exciting moments in our energy story. Question put and agreed to.

• 22 Oct 2024 · Large-scale Energy Projects and Food Security · Hansard source

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  I thank the hon. Gentleman for his intervention and for the collegiate way in which he engages in these debates. We will be saying more about the future homes standard in due course, so I will not announce that here, but his point has been heard. I want to come back to the point about balance. It is key in a lot of the contributions made today, and indeed in other debates on this subject over the past few months. We have to find a way to balance the environment and our need to protect nature with supporting local communities to make sure that we can deliver cheaper, more secure energy in the future and tackle our climate change objectives. But new energy infrastructure is important in every single one of those points, so we have to build that infrastructure. The question is how to ensure we get that balance right. That is why we have announced that we will have a land use plan—something the previous Government failed to do. But it is also why we need to plan a lot of that infrastructure much more carefully. I reflect on the point made by the hon. Member for Mid Buckinghamshire (Greg Smith) about the number of projects in particular areas, because we can take a lot from that about the cumulative impact of projects. That is why, just today, we commissioned the National Energy System Operator to carry out the first strategic spatial energy plan of the whole of Great Britain. Crucially, we recognise that if we plan new energy infrastructure much more strategically, we will avoid some of the questions that he raises. That is a really important point. Nothing we have said rides roughshod over the planning system. The planning system in this country is extremely robust. People will continue to have opportunities to engage in that process and be consulted on. No matter the size of the energy project in question, it will be subject to a rigorous planning process, and the views and interests of the local community will be taken into account. On that point, I want to reflect on another Westminster Hall debate on community benefits, which are important here as well, and which the hon. Member for Ynys Môn mentioned in her opening speech. We need to do much more on community benefits, and solar is particularly important in that discussion. We have been very clear as a Government that we want to look at whether they should be mandatory rather than voluntary, and whether we should have a much clearer set of objectives for those funds so that there can be real community benefit. Ultimately, we want to do this with communities. Communities will have to host this infrastructure—there is no getting away from that—but it is important that they benefit from it in the process. Finally, the Government recognise that food security is also national security, and we will champion British farming while protecting our natural environment. That is why we have already said that we will introduce a new deal for farmers to boost rural economic growth and strengthen Britain’s food security. I want to be clear: I do not believe for a second that the accelerated roll-out of clean energy infrastructure poses a threat to food security. There are, of course, huge competing demands on land use throughout the country, and they have to be balanced. However, taking solar as an example, even under the most ambitious plans in the country, less than 1% of the UK’s agricultural land would be occupied by solar farms. I am afraid that the rhetoric does not meet the reality. That point has been backed up by the National Farmers Union, which believes that every farm is well positioned to deliver small-scale solar, wind or battery storage, which can be used on the farm but also provides benefits for local communities. Food production is incredibly important, as is energy production. Those two are not mutually exclusive, and we can find a way for them to co-exist. I was interested in the point made by my hon. Friends the Members for York Outer (Mr Charters) and for Reading Central (Matt Rodda). I recently visited Manor Farm solar farm, which is a good example of combining an agricultural strategy with a solar farm. It also contributes to the rewilding of areas and to the managed improvement in nature in the local community, which was not being done by the mismanaged agricultural land before, so we can get real benefits from it as well. This is an important debate, and the balance is key. We have made no secret of this: we want to see the rapid development of energy infrastructure. It is important because people are paying far too much in their bills and we are exposed to volatile fossil fuel markets. For every year that we remain exposed to those markets, we remain vulnerable to the price spikes that our constituents are facing, so it is important to move at pace. I recognise the point made by the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) about the pace at which we are moving, and I am grateful for his recognition of that. This is our clean power mission. Together, we can provide energy security, reduce costs to consumers, deliver on our environmental responsibilities and ensure that we have economic growth and responsible use of land right across the country. I will close by thanking all hon. Members for participating in the debate. I hope that we will have many more of these discussions. They are important debates to have, and together we can find the balance and deliver the infrastructure and food security that the country needs.

• 22 Oct 2024 · Large-scale Energy Projects and Food Security · Hansard source

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  It is a pleasure to serve under your chairmanship, Sir Mark. I thank the hon. Member for Ynys Môn (Llinos Medi) for securing this important debate. We have been in a number of debates on topics like this over the past few weeks. It is great that her speech reflected that she is a champion of the renewable sector and the benefits that can bring to her constituency. She said that her constituency is now known as “energy island”, which is a true reflection of the powerhouse it has become in recent years. It has established technologies: solar, as she talked about, but also onshore wind and a number of other projects to come. It is also home to some of our newer technologies: tidal stream projects of around 38 MW are in the contracts for difference rounds, and we will be talking much more about that in the future. I thank hon. Members for the tone of today’s debate and for their contributions. Our starting point, which the Government have been very clear on from day one, is that we want to deliver clean power by 2030. We want to do that for a number of reasons: to protect people from the wild price spikes that they suffered because of the volatility of global fuel markets, to tackle climate change—a lot of the discussion today on the importance of agriculture misses the importance of tackling climate change, which is currently having an enormous impact on farms right across the country and, if we do not act faster now, will continue to have an even greater impact—and to deliver the energy security the country needs.That will involve a diverse range of projects and technologies We are not putting one technology forward as the answer to everything—this is about balance, as several hon. Members said today. Yes, ground-mounted solar plays a really important part, but so too does roof solar. We are not picking one or the other. Both are incredibly important, and there are huge opportunities for a rooftop solar revolution, which we will be seeing more about in the months ahead. But ground-mounted solar also has an important role to play. This is a question of balance.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  It is a pleasure to serve under your chairship, Dr Huq, and to see Committee members again. Having started the sitting with contributions from four Scottish MPs, we have gone through the greatest hits of Scottish politics, from the Thatcher Government to independence, Scotland’s wind and everything in between. It was a good way to start the Committee this morning. Amendment 3 misunderstands not only the potential of Great British Energy, but how investments are already made in renewable projects in this country. The right hon. Member for Aberdeen South made a legitimate argument about the revenues from oil and gas over the past 60 years but, as hon. Members have already said, in more recent times and much closer to home, the legacy of the future of our energy story has already been squandered. What could have been almost £1 billion for our wealth fund to invest in future projects or in the inheritance of the country has already been spent to plug day-to-day spending. There is a danger that in such a short space of time we will repeat that oil and gas legacy in Scotland. Great British Energy will invest in all four nations of the United Kingdom, and we are working closely with the devolved nations to make that a reality. Investments by Great British Energy will be made on the basis of the individual project, with decisions made at arm’s length from Government by an independent company. Clearly, with its leading role in renewables, Scotland will benefit from a great many of those investments, creating skilled, well-paid jobs in the process, with a genuine long-term investment in Scotland. That public investment is about crowding in private investment as well—and that is where I think the amendment misunderstands how the projects are delivered. As much as the right hon. Gentleman and his colleagues might talk about how it is Scotland’s wind and Scotland’s waves, the reality is that without having crowded in investment through a publicly owned energy company such as Great British Energy, every penny that has already been spent on constructing projects in Scotland to generate electricity from our natural resources has gone offshore to private companies and foreign publicly owned companies. We greatly welcome that investment in Scotland and in the UK, which will continue in the years to come, but the purpose of the Bill is to ensure that a publicly owned energy company, owned by our taxpayers, can have a stake as well. The Bill, through Great British Energy, will allow some of that wealth to be retained for the benefit of our citizens. It is our intention that the profits generated by Great British Energy will either provide a direct return to the Exchequer, benefiting the UK taxpayer, or be channelled specifically into measures that benefit the public, such as investment in more clean energy infrastructure. It is about benefiting people right across the United Kingdom, recognising that the investment came in the first place from taxpayers right across the United Kingdom. For those reasons, the Government will not support the right hon. Member’s amendment 3.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  My hon. Friend never misses an opportunity to mention Cornwall, but let us not relitigate our earlier argument. There are huge opportunities. The hon. Member for Gordon and Buchan made the important point that there are certain parts of the country, particularly in the north of Scotland, where for obvious reasons there are a number of wind projects, and we need to look at the infrastructure that comes with that. We want to ensure we build the nationally important infrastructure to deal with the connections issue that the shadow Minister rightly raises, but we also need to recognise the need for cohesion in planning to make sure that there are not some of the issues that we have seen in other parts of the UK, where a number of projects have come on stream over time rather than being planned coherently. Finally, on community involvement, the point about consent in dealings with communities is important. We want to take some of the previous Government’s work on consulting on community benefits—we will say more on this in the coming months—to make sure that there is genuine community benefit in hosting not just energy generation infrastructure, but network infrastructure, which will be critical. Nothing that we have said runs roughshod over the planning and consenting process, which will remain for communities.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  Clause 7 has fairly standard wording for a Bill of this kind and for a company of this kind. Under section 441 of the Companies Act 2006, the directors of any company—Great British Energy will of course be one such—are required to deliver annual reports and accounts. The clause simply requires that Great British Energy deliver its annual reports and accounts to the Secretary of State, in addition to filing them with Companies House, and that the Secretary of State lay a copy before Parliament in due course. It is common practice for a company to publish its annual reports and accounts on its website. They will also be available on the Companies House website in the usual way. None the less, the clause will ensure that Parliament receives the annual report and accounts directly so that it can scrutinise them and assure itself that the company is fulfilling its duties. I commend the clause to the Committee. Question put and agreed to. Clause 7 accordingly ordered to stand part of the Bill. Clause 8 Extent, commencement and short title Question proposed , That the clause stand part of the Bill.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  I know that the Conservative party is in shifting political sands at the moment, but I was not expecting this morning to lead with such a full-throated defence of Thatcher—I do not think she is in the running for the leadership of the party.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  You were once!

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  The question of balance, which I was just about to come to, is important. The right to a public inquiry can be triggered by a much smaller number of people in Scotland than in the rest of the UK, so there have been real issues: communities do not generally have a view, so individuals or campaign organisations trigger public inquiries. We are looking at the consenting regime, as I think the hon. Gentleman’s Government was, to bring balance to this. Balance is key. The Government, from the Prime Minister down, have been clear that we will need to build this infrastructure, which is nationally important for all the reasons that the shadow Minister set out. That is why the amendment is so extraordinary. The shadow Minister said that we need to tackle the huge connectivity challenge—I wrote that down—and the Bill is the mechanism for doing that. Balance is key: my hon. Friend the Member for Na h-Eileanan an Iar made it clear that we want communities to benefit from having a stake in what Great British Energy will deliver, but it is important that we get on with building this infrastructure. For those reasons, we will not support the amendment.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  I thank the shadow Minister for his attempt to add an additional clause to the Bill. I will speak briefly about why we do not support new clause 2, but I agree with him on the importance of ensuring that Great British Energy be accountable, transparent and clear about how it is delivering on its objectives. We absolutely want to see that as well. We believe that the Bill is in a strong place at the moment. It will, of course, utilise all the mechanisms already in place for other companies, including publicly owned companies, through its annual reports and accounts. It will provide regular updates on its work, meeting its objectives and the stewardship of the public funds that it is given. It is important to recognise that the reports, accounts, other information and directions that have been given will be laid before Parliament and will therefore be readily available to hon. Members. In the same way as any other company operating in the UK, Great British Energy will undergo external audit of its accounts, providing a further level of assurance. It will be expected to publish its own strategic plan on how it will deliver its objectives, which will be laid before Parliament. I do not think it proportionate to add another mechanism for an annual independent review. I note the shadow Minister’s point about the UK Infrastructure Bank, but the rhythm of independent review was that it would happen once the bank had been operating for seven years and would be repeated at intervals of no more than five years. I do not think the new clause proportionate to what was introduced in the UK Infrastructure Bank Act 2023. In the light of what my hon. Friend the Member for Whitehaven and Workington described as the shadow Minister’s secret support for the Bill—he doth protest a little too much in saying that he opposes it—I would hate to suggest that the new clause was some kind of mechanism to stymie the action of Great British Energy. However, the frequent cadence that the shadow Minister proposes for the review would considerably interrupt the work of the company in actually delivering. It would be under almost continuous review, which does not seem proportionate or effective for a company that we aim to move in a nimble and speedy way to deliver for the British people. I would rather Great British Energy got on with delivering for the British people on its important mission to deliver projects to benefit all the United Kingdom. We will not support the new clause.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  That has nothing to do with it.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  Some things are outwith even the hon. Gentleman’s powers. There are a number of reasons why we will resist amendment 20. First—I have made this point a number of times—the Bill is about making the minimum possible provisions to support the establishment of the company. Great British Energy will be operationally independent and, although directed at key points by the Secretary of State, its financial responsibilities will be the same as any other company, subject to all the regulations and laws that any company in this country has to face. The amendment would introduce unnecessary detail into the Bill. As the hon. Gentleman would have agreed in previous Bills that he was involved in, this is an unnecessary amendment, and he would be making that exact argument if he was standing where I am today. As a publicly owned company, Great British Energy will be accountable through regular reporting to the Department, and its annual accounts and reports will be laid before Parliament so that Parliament can see them in detail. As a publicly owned company, it will also be subject to HM Treasury’s value-for-money guidelines. Like all existing public finance institutions, its investments will be subject to the usual safeguards and risk assessments to minimise the risk to taxpayers. As I said in our last sitting, the purpose of clause 6 is for the Secretary of State to give direction to the company only in the most urgent or unforeseen circumstances. It is not for day-to-day operational reasons; I gave the example last time of national security issues. The power is meant to be used sparingly to ensure that Great British Energy has the space it requires to fulfil its role and deliver its strategic priorities. The amendment would change the intention of the clause, which is one reason we will resist it today. As the hon. Gentleman knows, the Secretary of State will set Great British Energy’s strategic priorities to ensure that it remains aligned to current Government policy and strategy. It is therefore appropriate that we use clause 5 to set Great British Energy’s strategic priorities and objectives, not clause 6. I assure the hon. Gentleman that the Secretary of State, rightly, has ambitions for Great British Energy—as the whole Government do and as I hope the whole House does. Those achievable objectives will be achieved through the funding envelope set for it by Parliament, backed by £8.3 billion of new money over the lifetime of this Parliament, and working in partnership with the private sector, local authorities and communities to spread skilled jobs and investment across the country. Great British Energy’s aim is to become a financially sustainable, self-financing organisation in the long term, reinvesting its profits in the Treasury or into new projects. Therefore, I assure the hon. Gentleman that Great British Energy will be held accountable for the delivery of its objectives through the usual mechanisms. For those reasons, the Government will not support his amendment today and I hope that he withdraws it.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  I am hoping that at some point someone will want to take part in a debate, to save the Committee from hearing only from me. Clause 8 sets out the extent of the Bill, which is important, and its commencement. The Act will come into force immediately on its passing, reflecting the fact that setting it up has been one of the Government’s key priorities, which is why we commenced the process and introduced the Bill to the House within our first 100 days. It is important to us that the Bill reach the full territorial extent of the United Kingdom and that it benefit citizens in England, Scotland, Wales and Northern Ireland. We have shared net zero targets across the whole UK. Clearly the devolved Administrations have different responsibilities for different aspects of energy policy—it is generally reserved, but in Northern Ireland it is transferred—so the role of Great British Energy will be slightly different in different parts of the UK, but it is important to say that the investments that Great British Energy makes can still drive deployment, create jobs, boost energy independence and ensure that taxpayers, bill payers and communities reap the benefits of clean, secure, home-grown energy across the UK. I thank the devolved Administrations, who have engaged with me since my appointment as Minister on the Bill. We have had detailed and helpful conversations with my counterparts in all the devolved Governments across the UK. I thank them for how they have engaged in our discussions: they have been supportive of Great British Energy, recognising the benefits that it brings to all parts of the UK, while clearly advocating on behalf of their own Governments. It is important that we continue that. My commitment to them and to the Committee is that we will continue the process after the Bill passes to ensure that we have a company that delivers for all the people of this United Kingdom. I thank them for their constructive and collaborative approach. I commend the clause to the Committee. Question put and agreed to. Clause 8 accordingly ordered to stand part of the Bill. New Clause 2 Review of effective delivery “(1) The Secretary of State must appoint an independent person to carry out reviews of the effectiveness of Great British Energy in— (a) delivering its objects under section 3, (b) meeting its strategic priorities under section 5, and (c) complying with any directions given under section 6. (2) After each review, the independent person must— (a) prepare a report of the review, and (b) submit the report to the Secretary of State, as soon as is reasonably practicable after the completion of the review. (3) The independent person must submit to the Secretary of State— (a) the first report under this section within the period of 12 months beginning on the day on which this Act comes into force, and (b subsequent reports at intervals of no more than 12 months thereafter. (4) On receiving the report, the Secretary of State must, as soon as is reasonably practicable in each case— (a) publish the report, (b) lay a copy of the report before Parliament, and (c) prepare and lay before Parliament a response to the report’s findings. (5) In this section, references to an ‘independent person’ are to a person who appears to the Secretary of State to be independent of— (a) the Secretary of State, and (b) Great British Energy.”— (Andrew Bowie.) Brought up, and read the First time.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  I have to say that of all the amendments before the Committee, I find this one utterly extraordinary. The shadow Minister’s amendment says that Great British Energy “must take all reasonable steps to satisfy itself at the time of any investment in…infrastructure that connection to the National Grid will be made in time for energy produced from the relevant investment asset coming onstream.” The recognition, after 14 years, that dealing with the issues with connections to the national grid should somehow be important is extraordinary. For the hon. Gentleman to wake up this morning, just a few months after leaving government, and decide that fixing this problem is a massive priority is quite something. I am genuinely concerned by some of the language that we have heard today. The shadow Minister spoke, quite rightly, about Cameronian support for the climate. I wonder whether the Conservative party, after such a short time, ever takes a look at itself and wonders whether the rhetoric that it uses about the mechanisms we are going to use to tackle the climate crisis is in the right place. I know we have some net zero sceptics in the running to lead the party, but it is quite extraordinary to say in one breath that there are huge connectivity challenges for the country and that communities are “under siege”.