Before we proceed, I think it is fitting and right to say that I was desperately sad to hear that the hon. Member for Erdington had passed away last week. It is particularly ironic in that he was on the original draft of today’s Order Paper, fighting for his constituents as a dedicated public servant who always took a keen interest in the work of our Department.
I know that households and businesses are deeply concerned about the effect of rising energy prices across the next few months. We already provide £4.2 billion-worth of support for the most vulnerable. I am working closely, as many people know, with energy companies, Ofgem and ministerial colleagues across the Government to mitigate the impact of further price rises.
May I echo the sentiments in regards to my late good friend and fellow trade unionist, the Member for Erdington?
Energy-intensive industries such as Tata Chemicals in my patch, and the Daresbury labs on the Sci-Tech site that the Secretary of State will be familiar with, need support and they need it now. Why does he not swallow his pride, support the windfall tax that Labour is proposing, plus the VAT measures, and help companies such as Tata and indeed British Steel?
My understanding of the Labour proposal—I might have got it wrong—was that the windfall tax would not be directed to companies; it was, as I read it, directed to consumers. He will know that I, as Secretary of State, have always engaged with energy-intensive users and companies, and I am looking at the moment to try to get a solution to this problem with colleagues across Government.
T2. I commend BEIS Ministers for their enlightened decision to locate part of their team in Darlington. At the same time as we level up with more jobs in Darlington, LNER is planning to reduce services to Darlington, which will have a detrimental effect on connectivity. What steps is my hon. Friend, in collaboration with colleagues, taking to protect connectivity vital to businesses in Darlington and right across the country?
As my hon. Friend knows, a decision has not yet been taken on the outcome of the timetable consultation. Transport connectivity is largely an issue for other Departments, none the less we appreciate the importance of connectivity and infrastructure. We know that my hon. Friend will be an absolute champion of that—he has done a huge amount in his short time in this location.
I welcome the tribute that the Secretary of State just paid to our friend Jack Dromey, who was a great champion of British industry and of British workers and simply an all-round great man.
Over the last decade, Conservative Ministers cancelled the zero-carbon homes programme, banned onshore wind development, launched the eco-insulation programme and tore it up within one year. They reduced the UK’s gas storage capacity and at one particularly silly moment, the current Foreign Secretary claimed that solar panels were a risk to domestic food production. All those decisions have made this country more dependent on volatile wholesale energy prices than we otherwise would be. We know that means that there is an extremely difficult situation for British households, but it also risks making large swathes of British industry uncompetitive. The Secretary of State says that he is working hard, so what is his plan?
I am delighted to see the hon. Gentleman take his place. I remember him being a prominent member of the economic team under the right hon. Member for Islington North (Jeremy Corbyn). I am glad to see that there is life after death and that he is here today. My only regret is that the right hon. Member for Doncaster North (Edward Miliband) is not here. I am afraid that the split of net zero from business shows that Labour is not serious about the energy crisis. It is not serious about placing net zero in the context of business and growth and it is completely off the pace in terms of driving clean—
Order. I call Jonathan Reynolds. [Interruption.] Sorry, sit down and I will just explain once again. These are topical questions. They are not meant to have a “War and Peace” answer. I want to get Back Benchers on both sides of the House in. You are taking their time.
There was a lot of talk from the Secretary of State, but no answer. However, let us take up the point that he made. Earlier, one of his Ministers gave me an answer about UK steel production. The Secretary of State talks about net zero, but that cannot be achieved by exporting UK industry and jobs. We have pledged £3 billion of investment in steel, which would match fund pilots in hydrogen in place of coal and joint fund investment in electric arc furnaces. Domestic steel is essential to net zero; it is relevant to levelling up because it provides the jobs and the wages in many parts of the country; and it relates to Brexit because our producers now pay higher tariffs than companies in the EU to export to the US. Net zero, levelling up and Brexit amount to the Government’s entire agenda, so Secretary of State, again—
Order. Do you not both understand? Your Back Benchers are desperate to get in. If the shadow Secretary of State wants to come in, he should be brief. If not, he should come in early when he has got more time. Secretary of State, briefly.
Very briefly, we have reduced carbon emissions by 45% since 1990, more than any other country in the world. We have grown the economy by 80%. We think that net zero and economic growth go hand in hand; the Labour party does not.
T4. Storengy is a company in my constituency that provides gas storage. It tells me that levels of storage in this country have been decreasing. Can the Minister tell me how many days’ worth of gas storage there is now on a cold day, as defined by the National Grid, and whether he thinks that is sufficient?
I am happy to meet my right hon. Friend and potentially the company, but let us be absolutely clear: the issue with gas is not supply or storage, but price. Storing more expensive gas would not lower the cost of gas. We have excellent security of supply in this country—50% from our continental shelf and 30% from Norway. The issue is very much price, not storage.
T3. Energy bills are crushing families in the cost of living crisis that this UK Government are presiding over. One million more UK households could fall into fuel poverty this year, but that is not inevitable. Will the Secretary of State ask the Chancellor to act by cutting VAT on energy, increasing the warm homes discount for vulnerable households, providing support to energy companies so that they can help consumers, making an emergency energy support payment and restoring the universal credit uplift? Will he also revisit the Department’s recent position and consider freezing the energy price cap?
The hon. Lady will know that I have extensive conversations with my right hon. Friend the Chancellor about that very issue. That is why we have kept to the energy price cap, increased the warm homes discount and got a winter fuel payment. The issue is squarely at the heart of our concerns as a Government.
Ruth Edwards (Rushcliffe) (Con)
T8. Will my hon. Friend join me and my hon. Friend the Member for Loughborough (Jane Hunt) in backing Intelligent Energy’s bid for investment from the automotive transformation fund, which will bring a hydrogen fuel cell gigafactory and highly skilled green jobs to Rushcliffe and the wider east midlands? Will he accept my invitation to visit Rushcliffe to learn more about those exciting plans?
I know that my hon. Friend is a huge advocate. I obviously cannot comment on individual applications. I am happy to come and visit and her support is noted.
T5. A recent survey showed that 91% of Wandsworth businesses are suffering negative effects from new Brexit regulations. Will the Minister commit to a region-by-region impact assessment of how businesses are adapting to the Government’s Brexit deal or are the Government leaving businesses to sink or swim?