Before I call the Secretary of State, I note that there is disappointment from the Opposition that the statement was not provided in time. The statement was not provided to my office in time either. I know we want to set off in the right way. I am sure that the officials will make note when they arrive that we need to make sure that statements are provided on time. That was meant to be four minutes past the hour. I am sure that the Secretary of State will want to ensure that it never happens again.
With permission, I would like to make a statement about the Government’s mission to make Britain a clean energy superpower. This Government were elected two weeks ago. Since then, we have lifted the onshore wind ban in England, which had been in place since 2015; consented more than 1.3 GW of solar projects, powering the equivalent of almost 400,000 homes; established the 2030 mission control centre in my Department under Chris Stark to plan and deliver our mission; and established under the Chancellor a national wealth fund to create good clean energy jobs across our country. We are just getting started.
We are moving at this pace for one overriding reason: the urgency of the challenges we face. We have the challenge of our energy insecurity, laid bare by Putin’s invasion of Ukraine and paid for by the British people in the worst cost of living crisis in generations. We have the challenge of an economy that does not work for working people, with too few good jobs at decent wages. We have the challenge of the climate crisis—not a future threat, but a present reality. This Government have a driving philosophy: homegrown clean energy can help us tackle all those challenges, including crucially energy security. Today the Climate Change Committee publishes its progress report to Parliament. I thank the interim chair Piers Forster and the interim chief executive James Richardson for their excellent work.
The Committee says in its report:
“British-based renewable energy is the cheapest and fastest way to reduce vulnerability to volatile global fossil fuel markets. The faster we get off fossil fuels, the more secure we become.”
It is right. That is why making Britain a clean energy superpower is one of the five missions of this Government, delivering clean power by 2030 and accelerating to net zero across the economy.
Today, the committee’s report also lays bare the truth about the last Government. Despite achievements, which I am happy to acknowledge, the report is coruscating about the lurch of recent years. It says that
“last year…the previous Government signalled a slowing of pace and reversed or delayed key policies.”
It goes on:
“the…announcements were given with the justification that they will make the transition more affordable for people, but with no evidence backing this claim.”
It concludes that
“the country is not on track”
to hit our 2030 international target of 68% emissions reductions. Indeed, it says:
“Our assessment is that only a third of the emissions reductions required...are currently covered by credible plans.”
That is our inheritance for a target to be achieved in just five years.
I would like to put on the record my disappointment not to get the statement in good time. I know that the right hon. Gentleman will want to provide us with the same courtesy that we tried to provide him when we were in government. That being said, I congratulate him on his return to government. I was sad not to see more of him during the election campaign, particularly because our ability to secure enough cheap energy will be crucial to this nation’s success in the decades ahead. I would also like to put on record my thanks to the officials he will now work with.
I wish the right hon. Gentleman well in his endeavour, but energy will be this Government’s big test. They talk a good game on growth, but the Secretary of State’s energy policy is their greatest liability. In government, we built more offshore wind than any other country bar China. We set out the largest expansion of nuclear power in 70 years. We said that, yes, we will need oil and gas in the decades ahead, as the Climate Change Committee has said, and we should use British oil and gas where needed. We are in a global race for energy, and demand will be higher in the years ahead because of data and artificial intelligence.
If the right hon. Gentleman’s plans to decarbonise the grid by 2030 are in place, we need to know what they will do to people’s energy bills, our energy security and our reliance on the current dominant player for cables, batteries and critical minerals—China. He is happy to quote the Climate Change Committee, but it also acknowledged that we will need oil and gas well into 2050. He must answer: where would he like that to come from?
When it comes to quotes, he should consider some from the business world who have commented on his policy, such as the chief executive of Mitsubishi Power, who said that his plans would require a “huge sacrifice” by the country, citing the costs of the Secretary of State’s approach. The chief executive of Ineos said that his approach to energy was “absurd”, leaving us dependent on imports of foreign fuels with higher emissions and doing nothing for the climate. Even the GMB said that his plans were “unviable” and would lead to power cuts, blackouts and enormous cost. Unite has said that the Government’s plans for the North sea would turn oil and gas workers into the coalminers of their generation.
May I start by congratulating the right hon. Lady on her recent engagement? I wish her and her fiancé all the best for the future. We may disagree on some issues, but I believe this Government and the right hon. Lady can at least share a belief in long honeymoons. [Laughter.]
On the right hon. Lady’s response, I have to say that I was disappointed. The lines were very, very familiar. That is because they were the lines she has used for the last year. And here she comes today to the House and repeats the lines as if the intervening meteorite has not hit the Conservative party: the worst election result in 200 years for her party. The truth, as sensible Conservatives know, is that the lurch she worked on a year ago with the former Prime Minister, the Leader of the Opposition, the right hon. Member for Richmond and Northallerton (Rishi Sunak), was an electoral disaster for the Conservative party—the lurch away from climate action. What we saw in her statement is the classic dilemma for the Conservative party, which we will see played out, I hope, for many long years of Opposition. The dilemma is do they go the Reform route to be climate deniers, or do they actually re-embrace climate—[Interruption.]
On the points the right hon. Lady made, there is a fundamental issue, which is that unless we drive for clean energy—this is what the Climate Change Committee said; I strongly recommend that right hon. and hon. Members read it—we will end up energy insecure. We had the worst cost of living crisis in generations because of our exposure to fossil fuels, both domestically and internationally, set and sold on the world market. Unless we drive for clean energy, we will end up paying more for energy. The House would not know that from what she said about our 2030 target. She had a target when she was in government of 95% clean power by 2030. Of course, targets did not matter for the previous Government, because they were always miles away from reaching them.
As for the North sea, we set out our manifesto position, which is not to issue licences to explore new fields but to keep existing fields for their lifetime. Here is the truth of the conversation that we must have. The fate of North sea oil and gas communities is defined by these questions. Do we drive forward the clean energy of the future? Have we a plan for carbon capture and storage? Have we a plan for hydrogen? Have we a plan for offshore wind? The Conservatives had no such plans, so we will take no lectures on just transitions from them.
The right hon. Lady had other lines that were a rehearsal of the election. Let me say this to her, on the solar question. She referred to one particular planning decision, and I do think she has a degree of brass neck. She criticised me for overturning the planning authority. I am in a quasi-judicial role, so I will be careful about what I say, but she had this in her Department for a year. She could have agreed with the planning authority and rejected the application, but she chose not to do so. That is the reality.
In my experience, when you lose a general election a period of reflection is in order, and I say to Conservative Members that they need to reflect long and hard on the signals that they sent in this election. Their climate lurch was a disaster—a disaster for them electorally, but, much more important to me, a disaster for the country. Under this Government, Britain is back, open for business and climate leadership.
It is great to see you back in the Chair, Mr Speaker. It is also great to see the Secretary of State at the Dispatch Box on this side of the House again. I welcome what he said about the jobs, lower bills, energy security and climate action that lie at the heart of this Government’s plans. That is very true in respect of the Liverpool city region, where offshore wind—as he said—will play an important and increasing role in our energy future, along with onshore wind, solar power, hydrogen, carbon capture and nuclear energy. However, we also have exciting plans for tidal energy in the region, and I hope he can confirm that it will form a part of what he wants to achieve through the plans that he has announced.
My hon. Friend has long been an eloquent advocate for the role that business can play in generating the clean energy of our future and generating prosperity. I can absolutely confirm that we want to embrace the widest range of technologies. Obviously we must ensure that that gives value for money, but what I always say on these occasions is that the climate crisis and the energy security challenge are so big for us as a country that we must embrace every form of technology at our disposal, because that is the only way in which we will succeed.
Order. May I just gently say that these exchanges must finish at 1 pm? I hope we can help each other along the way, but first I call the Liberal Democrat spokesperson.
I welcome the new Secretary of State to his place. I share his passion for climate action. Let me add, however, that next time he makes a statement we will need our copies in better time than was the case today.
There is no doubt that the best route to affordable energy is renewables, but under the former Government renewable projects faced long delays and costs have skyrocketed. Indeed, that Government’s record on renewables was absolutely miserable. Our electricity demand is expected to double by 2050, and we must make upgrading our grid infrastructure a major priority. The Government will know that one of the biggest challenges will be to bring communities behind hosting the big infrastructure changes needed for the grid expansion, and to cope with the huge landscape transformation. How will they secure public consent?
As the Secretary of State said, to achieve our legally binding targets we also need a “rooftop solar revolution”, which will include introducing stronger incentives for households to install solar panels and ensuring a fair price for energy that they sell back to the grid. Will the Government work on those incentives with the Liberal Democrats?
We Liberal Democrats acknowledge the new approach taken by this new Government, and I look forward to working constructively with the Secretary of State to achieve our very ambitious targets.
May I welcome you to the Chair, Madam Deputy Speaker?
I welcome the hon. Lady’s questions; we worked together on these issues when we were in opposition. Let me deal with her two substantive points. On the question of public consent, this is absolutely something that we need to do, and I see it in three ways. First, communities need a say. Secondly, communities need benefit. Communities are providing a service to the country when they host clean energy infrastructure, so there needs to be benefit for those communities. Thirdly, this is a debate that we will have to have, and I am afraid the last Government did not grasp the nettle on this issue.
We are going through a massive change in our economy. If we do not build the grid or roll out solar, we will be poorer as a country and we will absolutely expose ourselves to future cost of living crises. I look forward to receiving as much support as possible from the Liberal Democrats, and indeed from all Members of this House, in making the case to people. We have to go out and make the case, as I think happened in the 1950s when we will built the grid. If we do not make the case, we will leave ourselves exposed as a country, and it is the British people who will pay the price. I completely concur with the hon. Lady on rooftop solar.
I welcome my right hon. Friend back to his position on the Front Bench, and I particularly welcome his reference to hydrogen. I know he has been to visit ITM Power in my constituency. When will an announcement be made about the chosen two technologies to pursue with small modular reactors? Will he give an assurance that whichever firms are picked, they will have to ensure that a very high percentage of the SMRs are built in this country by UK firms, such as Sheffield Forgemasters in my constituency? That will create well-paid jobs as well as clean energy.
I definitely concur with what my hon. Friend says about ITM Power—an incredibly impressive company that I have visited. I also concur with him on the SMR programme. Our manifesto made it clear that we support new nuclear, including at Sizewell, and we also support the SMR programme. Part of our challenge is to examine the legacy left to us by the last Government, but he should be in no doubt about my absolute support for the SMR programme. It is important, and we will strive to keep to the timetable set out.
I welcome the Secretary of State to his role, but he has been quite political in his replies. I gently point out that in West Worcestershire, fewer people voted Labour in this election than in the last election or the one before. I wonder whether he has ever visited the beautiful landscapes of West Worcestershire. The Malvern hills and Bredon hill are some of the most treasured landscapes in our land. What parameters is he going to put around the building of pylons, wind farms and solar farms across that beautiful landscape?
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I will respond formally to the committee in the autumn and, as part of that, I have asked my Department to provide me with a thorough analysis of its findings, but I can tell the House today that we will hold fast to our 2030 clean power mission and our nationally determined contribution, because it is the right thing to do for our country.
Today, I set out our next steps. First, onshore wind is one of the cheapest sources of power that we have. To those in the House who claimed they were protecting communities with the onshore wind ban, let us be clear: they have undermined our energy security and set back the fight against the climate crisis. That is why in the first 72 hours of this Government we lifted the ban, which today I confirm formally to the House. Under the onshore wind ban, the pipeline of projects in England shrank by 90%.
Over a year ago, the last Government’s net zero tsar Chris Skidmore, whom I pay tribute to, made a recommendation of an onshore wind taskforce to drive forward projects. The last Government ignored it; we will implement it. The taskforce will work with developers to rebuild the pipeline of projects.
Secondly, solar power is among the cheapest forms of power that we have. My right hon. Friend the Deputy Prime Minister and I are determined that we have a rooftop revolution. We must use the rooftops of our country for solar far better than we do at the moment. That is why the Deputy Prime Minister and I are clear that rooftop solar should play an important role, where appropriate, as part of the future standards for homes and buildings. The solar road map—we have been waiting for it for 18 months—will be published soon, with greater ambition. I have reconvened the solar taskforce to deliver that objective.
As we face up to the challenge of the energy transition, we must also plan for how we use land in this country to ensure a proper balance between food security, nature preservation and clean energy. After dither and delay under the previous Government, the Environment, Food and Rural Affairs Secretary will publish a land use framework working in tandem with our spatial energy plan.
I also assure the House that communities will continue to have a say on any proposals in their area. It is important for this Government that where communities host clean energy infrastructure, they should directly benefit from it. But we will not carry on with a position where the clean energy we need does not get built and the British people pay the price.
Credible external estimates suggest that ground-mounted solar used just 0.1% of our land in 2022. The biggest threat to nature and food security and to our rural communities is not solar panels or onshore wind; it is the climate crisis, which threatens our best farmland, food production and the livelihoods of farmers. The Government will proceed not on the basis of myth and false information, but on evidence. Every time, the previous Government ducked, delayed and denied the difficult decisions needed for clean energy, that made us less secure, raised bills and undermined climate action. No more.
Thirdly, offshore wind will be the backbone of our clean energy mission. Allocation round 5, overseen by the last Government, was a catastrophe for the industry, with no offshore wind contracts awarded. The upcoming round is a critical test. We will get this crucial industry back on its feet. By the beginning of August, I will report back on the budget for AR6 to ensure that as much clean, home-grown energy as possible gets built while ensuring value for money.
Our fourth step is the Great British Energy Bill announced in the Gracious Speech. I am extremely proud that this is the first Bill for decades that will enable us to establish a UK-wide publicly owned energy generation company. The truth is that there is already widespread public ownership of energy in Britain, but by foreign Governments. We have offshore wind farms in the UK owned by the Governments of Denmark, France, Norway and Sweden through state-owned companies. Those Governments know that a publicly owned national champion is part of a modern industrial strategy and generates a return for taxpayers, crowding in, not crowding out, private investment. For too long, Britain has opted out and lost out. Today, we say: no more.
Great British Energy, headquartered in Scotland, will invest in home-grown clean energy to increase our energy independence, create good jobs with strong trade unions and tackle the climate crisis. It will invest in technologies such as nuclear, offshore wind, tidal, hydrogen and carbon capture, and ensure a just transition for our oil and gas communities. GB Energy will also oversee the biggest expansion of community energy in British history through our local power plan. The Government believe in the ownership of British assets by the British people, for the benefit of the British people. Following the people’s verdict at the general election, I hope that this is a patriotic mission that the whole House can get behind.
I have seen 19 years of debates on climate and energy in this House. The clean energy transition represents the biggest transformation of our economy for 200 years, and it is massively challenging. We have been at our best as a country, and as a House, when we have worked together for the sake of the national interest. I pay tribute to people of all parties who have been champions of this agenda over the past 14 years: Baroness May, who legislated for net zero; the right hon. Member for Kingston and Surbiton (Ed Davey), who oversaw the growth of offshore wind; Caroline Lucas; and on the Labour Benches, my friend Alan Whitehead.
One of my early decisions was to re-establish the role of the Secretary of State as the lead climate negotiator in my Department, because we can only protect future generations with strong action at home and leadership abroad. Next week in London I will host the President of this year’s COP29 in Azerbaijan. He will be joined by the Presidents of COP28 and COP30. I have invited the President of COP 26, Lord Sharma, who presided with such distinction, to join our discussions. This is a sign of how I intend to go on—working with people of all parties and none in this national endeavour. That is what the British people have a right to expect of us. As the Prime Minister rightly says, “Country first, party second.” That is more true on this issue than any other. This Government will act at pace and work with anyone who shares our mission. I commend this statement to the House.
The right hon. Gentleman must answer why he would like to import gas with much higher emissions. How many jobs will be lost from his plans? How much investment into the new technologies of the future, such as hydrogen, carbon capture and offshore wind, will be lost? Will he meet those workers and explain to them what will happen to their livelihoods?
During the election, the right hon. Gentleman claimed that he would lower bills and save families £300. However, those numbers are already in the savings, and no one on his side can set out the cost of his plans to decarbonise the grid by 2030. Who will pay for those network costs? What will they do to people’s standing charges, which were already too high?
The right hon. Gentleman also, I think, commented on having a say in terms of communities. The energy infrastructure he will need, and the fact that he wants to go further and faster, will have a huge impact on rural communities. Their concerns must be addressed. As I set out, the plans for our energy cannot come at the expense of our food or national security.
In his statement, the right hon. Gentleman accused me of dither, but as he will know from his officials, in at least one of the cases he has signed off I had already instructed some time ago that I was minded to reject it, and that paperwork was being prepared. He must set out urgently what his criteria will be. In one case, he overturned an expert examining authority. In another case, he signed off a solar farm which will be 40% on our best and most versatile agricultural land. Did he know that was the case? If so, what was his basis for finding that acceptable? Will he continue our efforts to build more solar on rooftops? I think he mentioned that he would reconvene the solar taskforce. I hate to tell him, but it had never been disbanded and we were due to publish that work. So, I would like to know what date he will be able to publish that work.
In conclusion, the Secretary of State’s party won the election and promised change, but he was not on show during that campaign to answer these critical questions of how he was going to provide that change and what it will mean for the country. What will his plans mean for the price of electricity? What will they mean for our ability to keep the lights on? What will they mean for struggling families’ bills, for our economy, and for the livelihoods of oil and gas workers? What will they mean for our reliance on China? For all that the Labour Government talk about growth, they will not be able to deliver on that with the Secretary of State’s plans for energy. I hope that in the months ahead he will set out some of that detail to be examined.