- I inform the House that Mr Speaker has selected amendment (i) in the name of the Leader of the Opposition. I call the shadow Secretary of State for Energy Security and Net Zero.
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- I beg to move amendment (i), at the end of the Question to add:“but respectfully regret that the Gracious Speech commits to banning the issuance of licences to explore new oil and gas fields; recognise that this proposal will have a particularly negative impact on Aberdeen, the North East of Scotland and the wider UK economy; believe instead the Government must approve the Rosebank oil field and the Jackdaw gas field, which would boost UK energy security; urge the Government to drop its opposition to new oil and gas licences and instead legislate for a presumption in favour of approving new licences, and permit the exporting of oil and gas technology overseas; further regret the cancellation of a third large-scale nuclear power plant at Wylfa; and further urge the Government to abolish the ‘carbon tax’ regime to avoid more refinery closures, protect the domestic supply of refined products, and reduce the tax burden on UK industry.”This may be our last meeting across the Dispatch Box, because the Secretary of State is once again on manoeuvres. Considering that he is gunning for a promotion, let us review his record, shall we? He promised in the election that he would cut everybody’s energy bills by £300. What has he delivered? Energy bills are up by £200 thanks to his plans. He said that he would protect pensioners, but weeks into office he axed the winter fuel payment—a policy that many Labour MPs have cited as their worst political decision in power.The Secretary of State promised that Great British Energy would lead to a mind-blowing reduction in bills. Yet, two years in, it has not taken a penny off household bills, but has given a six-figure salary to one of his mates. Now, we learn that Great British Energy has been putting solar panels, made by Chinese slave labour, on British primary schools—something that the Secretary of State promised to this House that he would not do. What is next? Oh, that’s right: the Secretary of State said that he could control the price of wind. However, his botched wind auction signed us up to the highest prices in a decade—way more than the cost of electricity that he inherited.
- The shadow Secretary of State said that for energy independence we need our own oil and gas, rather than investing in renewables. She will know that her Government paid £44 billion to subsidise our energy during the time of the Ukraine price spike. Will she tell us by how much our bills were reduced as a result of having our own oil and gas when the Ukraine crisis happened?
- First, let me say to the hon. Gentleman that bills came down £500 under me; they have gone up by £200 because of the Secretary of State’s plans. Secondly, let me tell him another hard truth. He should listen to this; he might learn something. Cutting off production in the North sea does not mean that we use any less oil and gas. Production is not linked to consumption. All it means is that we will import more of that gas from abroad. That is weaker and it makes us more reliant on imports.
- rose—
- He used up his chance; he should have asked a better question.There are some parts of this work that I welcome. The Fingleton review is impressive. I thank those involved and, as I have made clear before, we will support that work going forward. Nuclear is the only form of energy that can provide round-the-clock, totally clean power, and I will always support policies that make it as easy as possible to build.There is a catch, however. The Secretary of State says he wants to ease nuclear regulations while, at the very same time, he has cancelled the project that they would be used on. By cancelling the third large-scale nuclear power station that I signed off, he has killed the nuclear pipeline. He is repeating his own mistakes. We are set to have yet another Labour Government who fail to start a single new large-scale nuclear power plant, and now we hear that Natural England is adding yet more delays to Hinkley Point C for little environmental gain. Is he fighting that? No. He is defending the status quo.By the end of this Parliament we will still be waiting for a decision as to whether small modular reactors will go ahead, by 2030 there will be less nuclear online than there is now, and in 2035, which is 10 years away, the Government still will not have started any new large-scale nuclear power plants in this country. That is the same old stop-start approach that killed the industry to begin with. If that is what the Secretary of State calls being ambitious for nuclear, he needs to give his head a wobble.
- My constituency has the Heysham 1 and Heysham 2 power plants. The reason why nuclear power will possibly go down is because plants are coming to the end of their lives and the right hon. Lady’s Government did nothing about that for 14 years. Why did she not deliver when she was in government?
- Let me tell the hon. Lady. Under the last Labour Government, which the Energy Secretary was part of—[Interruption.] Let me explain. Not a single new nuclear power plant was started. When we came into power in 2015 and got control of the energy brief, there was one nuclear welder left in the country. It is the stop-start approach that kills the nuclear industry. Here is the problem: the Government have killed the pipeline again. These are the same old mistakes, and I am raising them because we are getting into the same trouble again—[Interruption.] The Ministers say that those were not mistakes and that it was not a mistake not to start a single new nuclear power plant. That is what they think, on the record.On to the North Sea. Andy Burnham, who is hoping to be Labour leader, talked yesterday about reindustrialisation. Meanwhile, today the Secretary of State is asking his Back Benchers to vote to shut down the North sea. This is the single greatest act of industrial self-harm we have seen in a generation. Only a complete wacko would respond to a supply shortage by shutting down their own oil and gas industry. We are in the absurd position of the Labour Chancellor thanking Canada and Norway for increasing their oil and gas production while her own Government are shutting down British production. And why? It is so we can be more reliant on higher-emission gas from Qatar or the US and so we can send billions of pounds to Norway to import gas from the very same basin that we could be drilling ourselves. The Government are calling this energy independence. Have they lost their mind?
- The right hon. Lady talks of absurd positions. I did a little research before the debate today. I went back to 21 May 2024, just before the last general election, and in this House, in her capacity as Secretary of State, she said that she believed in net zero. She said:“We are on track to reach net zero by 2050, and we will do so in a way that brings the public with us.”—[Official Report, 21 May 2024; Vol. 750, c. 724.]Her position now is that she does not believe in net zero, and does not believe that it is desirable or achievable. Is that not absurd?
- People change their minds when they look at facts—[Interruption.] I am not hiding from this. I think the hon. Gentleman needs to look at the overall record of the things I said in government. The first thing I said when I went into position was that we cannot impoverish ourselves in the name of net zero. I started a true costing of renewables in the Department, because we did not have a proper costing of energy. Who cancelled that work? It was the Secretary of State. I backed the North sea; I signed off Rosebank; I legislated to protect those North sea licences. Who is turning all of that around? The Secretary of State. We all know the real reason that he is doing it. He is shutting down British oil and gas to show climate leadership. He put that in the King’s Speech. Let us be crystal clear, though. What he is saying is that he is willing to turn his back on British industry, even though we will not need any less energy. We will rely on higher-emission imports from abroad because he cares more about the climate bureaucrats than about the jobs of British workers. That is what climate leadership means to him.Where exactly is this meant to be leading us—bankruptcy? Where does it end—cheering as the lights go out as the last factory in Britain closes? That is what the Secretary of State’s North sea and carbon tax policies are doing. They are simply offshoring British emissions to the coal-powered refineries of India, the diesel tankers bringing us gas from the US and Qatar, and the factories in Trinidad from where we are now getting our ammonia. That does not help the climate and it does not help British workers.
- Businesses in Bognor Regis and Littlehampton need stable and affordable energy to grow and invest, so does my right hon. Friend agree that our “get Britain drilling” Bill is vital not just for energy security but for our future economic security?
- The North sea is a vital part of our industry. It provides us not only with the gas that we need for energy security but with the feedstock that feeds into our chemicals and plastics industries. There is a whole supply chain of other industries that rely on the North sea and on our having a successful industrial base. If we lose just one of those foundational industries, it is like dominoes: the rest will go. If we keep offshoring British emissions, it will not help the climate and it will not help British workers. Do the Government understand how bad it looks when they make speeches patting themselves on the back here in Westminster while hard-working Brits out there lose their jobs so that we can import more goods with higher emissions from abroad? That is why the vote on the North sea today should be a litmus test for them. Do they reject decarbonisation by deindustrialisation or not?
- Will the right hon. Lady give way?
- I will just make a bit of progress.Now let us talk about electricity. A key part of the Secretary of State’s plan is to make us more reliant on electricity imports. He does not like to talk about it, but at the height of winter, when we need it most, we will be importing twice as much electricity by 2030 as we did when this Government came into office. What does that mean? It means relying on the goodwill of France and Norway to keep the lights on in Britain. I remind the House that we are now in a situation where France is on the edge of a debt crisis, with the National Rally topping the polls. Does the House really think it prudent to hand over the keys to our electricity security to Marine Le Pen? Let us be honest, that is the Secretary of State’s plan. Whichever way we look at it, this is not an energy independence Bill. It is an energy dependence Bill that makes Britain beholden to Marine Le Pen for our electricity, to Xi Jinping for our solar panels and to Donald Trump for our gas. The Government’s plan is for energy scarcity, but what we need is energy abundance. That is why our plan would be to double down on nuclear, to axe the carbon tax to save British industry, to get Britain drilling and to make electricity cheap.
- The right hon. Lady paints a picture of the stark consequences of the Labour party’s policy for a total proscription on new oil and gas licences. Can she advise us what the future will look like for the United Kingdom without access to oil and gas from the North sea basin?
- I know that the hon. Gentleman’s party has changed position on this recently, and I welcome that change. As I have said, the North sea is a foundational industry. It is not just about the oil and gas it provides. It is not just about the tax revenues. It is not just about the jobs that exist within that industry. It is about all those other industries it supports, including the chemicals and plastics industries. By the way, even the renewables industry supports more drilling in the North sea, because it needs the specialist rigs, the undersea technologies and the exact same workers. There are so many industries and wider economies that the Government are killing just because of the ideological bent of this Secretary of State.
- Will the right hon. Lady give way?
- I will make a bit more progress.Here is the fundamental bind that the Labour party is in. It does not matter who its next leader is—they will all fail. Its supposedly popular leadership contenders will become unpopular very quickly when they cannot keep their promises. It happened to us in government. It is happening to Labour now. It is happening to Reform at council level. It will happen to whoever is in government next unless they face up to the trade-offs that get us better growth.Growth is the antidote to so many of our problems, but to deliver it, we need two things: cheap, abundant energy and economic freedom. By shutting down the North sea, cancelling nuclear projects and keeping a distorted electricity market in place, the Government are making energy scarce and expensive. Being part of the EU does not solve that problem. The EU leaders themselves rail against their own energy policy. Reindustrialisation is just a meaningless slogan unless we back the North sea, axe the carbon taxes that are killing British industry and cut the cost of energy. If none of Labour’s contenders has the courage to say anything about these issues, nothing will change.Alongside cheap, abundant energy, the most important ingredient for growth is economic freedom, but the Labour party openly stands for more state control, more tax and spend, more red tape on employing people, more expensive energy, less AI, fewer profits and more subsidies. It has been on this path for two years now, and what do we have to show for it? Higher inflation, weaker growth and soaring unemployment. Why would anyone want more of this? Families are working harder and harder and getting less and less at the end of the month. And if people want full-fat socialism, why would they choose Labour when they have the boob whisperer offering them bigger and better?Our whole system is flooded with caution. Nobody is incentivised to take any risks.
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