Andrew Griffith is the Conservative MP for Arundel and South Downs.
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The Government’s policy on zero emission vehicles is a jobs killer. They say they have been talking since July, so why this panicked U-turn today, when it is already too late? The last Government acknowledged that the previous vehicle mandate was too stringent. We took the decision to push it back, recognising the impact that it would have on industry. We listened to Unite the union on this. The Secretary of State’s party unilaterally reversed those changes and brought the deadline forward to 2030. Instead of listening to Unite, he listened to the Member for climate central, the right hon. Member for Doncaster North (Ed Miliband).
This is indeed a hard day for Luton. I welcome what the Secretary of State shared with the House, and the review of the zero emission mandate that he announced. In that review, I hope that he looks again at the perversities of the regime that he inherited, which could involve petrol engine makers in this country transferring credits to companies like Elon Musk’s Tesla, and to Chinese EV makers. If we really want to ensure a level playing field, why do we not reverse the decision of the last Secretary of State, follow the EU Commission and launch anti-subsidy investigations into Chinese EV makers? The Trade Remedies Authority is ready to go—it just needs the Secretary of State to give the green light.
I am grateful to the Chair of the Select Committee, including for the exchanges that we had in the Committee evidence session yesterday. He is right that because of the position we inherited—the issues with the flexibilities in the policy and the fact that no domestic producer is on track—the transfer he described is effectively the problem. That is why I say that decarbonisation cannot mean deindustrialisation. It is precisely what we inherited that we are critiquing. We do not want to undermine the transition in the way the previous Prime Minister did—anyone in industry in the sector could tell Conservative Members how disastrous that was—but we need to give a breathing space, and ensure that the policy has none of the perverse incentives that he described.
Closing the Luton site will damage our local economy, with 600 more jobs at risk in the supply chain and workers and families receiving this devastating news just before Christmas. I welcome the comments of the Secretary of State that decarbonisation must not mean deindustrialisation and the decimation of good, skilled jobs. Will his announcement today move the dial in discussions with Stellantis to help protect the Luton site? I also welcome his tone—he is taking this seriously, compared with Opposition Members—so will he join me in visiting workers and their trade union representatives at the Luton site to listen to their concerns?
The Electric Vehicle Association says that 14 non-governmental organisations, think-tanks and campaign groups are advocating for upholding the ZEV mandate. We have just seen the most devastating storms, which have been dangerously accelerated by climate change. I know that the Government know that net zero is not negotiable. The previous Government persistently undermined the motor manufacturing industry. Will this Government listen to the Electric Vehicle Association, which, after all, is supporting this Government in their ambition to get to net zero?
The previous Government were warned before the election, including multiple times in this Chamber, about the damage they were doing to the car industry. The constant changes of policy on net zero, missing targets on the roll-out of charge points and the failure to even allocate the rapid charging fund have all undermined consumer confidence. Will my right hon. Friend make sure that, as soon as possible after his review, he balances the needs of manufacturers of cars and vans with the needs of consumers?
Let us be honest: these job losses are a direct result of net zero and the previous Government’s electric vehicle targets. Is the Secretary of State aware that car manufacturers across Europe are losing fortunes on EV production? They are trying to delay targets, and what we are witnessing is just the beginning of the slow, agonising, painful and tragic destruction of hundreds of thousands of direct and indirect jobs in the UK automotive industry.
I cannot make an announcement on the plug-in grant as that is not covered by the Department for Business and Trade, but I confirm to the hon. Member that across the Government, whether in the Treasury, the Department for Transport or the Department for Energy Security and Net Zero, we are all united in wanting to make the transition a success, and we are willing to listen to hon. Members like herself and to industry about the policies that are necessary to do that.
The Secretary of State was robust in his criticism of the previous Government and their approach to the zero emission vehicle mandate, but was he one of the 141 Labour MPs who voted for the ZEV mandate?
Full debate: Stellantis Luton
The Government are investing around £4.2 billion in net zero research and innovation over the current spending review period, including through UK Research and Innovation and other Government Departments.
Full debate: Oral Answers to Questions
I thank the hon. Lady for her question, and look forward to working collaboratively with her. I absolutely share my predecessor’s determination to drive forward British science, including the all-important work on net zero.
Full debate: Oral Answers to Questions
Teesside is a wonderful net zero powerhouse, and I commend the green steel project. That is one reason why Teesside was chosen to pilot the Innovate UK programme of launchpads, each of which will receive up to £7.5 million.
Full debate: Oral Answers to Questions
I will now set out the Government’s response to the non-Government amendments made in the Lords. The Bill introduces a new regulatory principle requiring the regulators to have regard to the Government’s net zero emissions target. Lords amendment 7 seeks to add conservation and the enhancement of the natural environment and other targets to this regulatory principle. The Government cannot accept the amendment as drafted, which is very broad and open to interpretation. The regulators must balance their objectives carefully, and they have a very important job to do. At a time when the Bank of England is rightly occupied by getting a grip on inflation, and the FCA is dealing with a range of challenges including working with lenders to ensure that there is support in place for those experiencing increases in mortgage interest rates, we must not overburden them with other considerations, particularly when they are vague or of uncertain relevance.
I give my right hon. Friend that assurance. This is not about a different destination; the Government have a proud record of action on net zero, on nature and, as we will come on to talk about, on deforestation. This is simply the best mechanism by which we can get from here to there. It builds upon the well-defined targets set in the groundbreaking Environment Act 2021, and in so doing produces something that we think regulators can advance while giving the right clarity to those objectives.
Full debate: Financial Services and Markets Bill
On the slightly out-of-scope point from the hon. Member for Birmingham, Perry Barr about a national development bank—I understand that this was his opportunity to raise that important topic—we have made, as he will know, a number of interventions that support businesses at every point on the spectrum, from the good work done by the British Business Bank and its many different schemes to provide finance and liquidity, to the UK Infrastructure Bank, which has a specific remit in respect of net zero and levelling up. Rather than detain the Committee, let me say that I am always content to meet Members to explain the work we are doing and seek challenge if they would like us to look at additional work.
Full debate: Draft Amendments of the Law (Resolution of Silicon Valley Bank UK Limited) (No. 2) Order 2023
“Where the generating undertaking is a generator of renewable energy, determine the amount of relevant investment expenditure and also subtract that amount.”
This amendment, together with Amendments 8, 10 and 11 would allow generators of renewable energy to offset money re-invested in renewable projects against the levy.
“a “generator of renewable energy” means—
“relevant investment expenditure” means any profits of a generator of renewable energy that have been re-invested in renewable projects;”
“(1) The Chancellor of the Exchequer must, within six months of this Act coming into force, publish an assessment of the impact of the electricity generator levy on investment in renewable energy in the UK.
(a) the target for 2050 set out in section 1 of the Climate Change Act 2008, and
(b) the duty under section 4 of the Climate Change Act 2008 to ensure that the net UK carbon account for a budgetary period does not exceed the carbon budget.”
This new clause would require the Government to conduct an assessment of the impact of the Electricity Generator Levy on investment in renewables and the delivery of the UK’s climate targets, including a comparative assessment of the impact of the Energy Profits Levy and the investment allowance, on investment in oil and gas production .
Full debate: Finance (No. 2) Bill
I thank hon. Members for their contributions to this Bill. I am pleased that, on such an important Bill, we have reached consensus. UKIB has transformative potential, which I know is recognised and supported on all sides of the House, and the changes made to the Bill show how effective Parliament is in scrutinising legislation. This Bill is the final stage in establishing the bank as a long-lasting institution, establishing in statute its key objectives of tackling climate change and supporting regional and local economic growth.
I just have a small point. The SNP supports this Bill and the intention to create the UK Infrastructure Bank, with its objective to help tackle climate change. However, it is worth putting on record very briefly that both the original Government amendment 3 and amendment 3B in lieu from the other place—while the latter does keep “nature-based solutions” in the wording of the Bill—seek to remove
from the infrastructure that the Bill is designed to support in its objectives of tackling climate change and meeting the target for 2050.
I am sure people interested in such matters will look rather askance at that. How on earth can we have a UK Infrastructure Bank Bill, with highly laudable objectives to tackle climate change and meet the Government’s own targets, only then to have both the Government and the other place actively remove investment in infra-structure to support the circular economy—which, for goodness sake, must be part of the solution—from the Bill? We are not going to oppose the amendment, because the Lords amendment is marginally better than the original Government amendment, but it is worth putting on record that the removal of the words
On behalf of this House, we wish the institution well as we put it on a statutory footing. We in this House all look forward to hearing how it fulfils its objectives of levelling up and adding to the transition to net zero.
Full debate: UK Infrastructure Bank Bill [Lords]
New clause 1 would insert a provision to prevent the sale of the bank. I understand the concern that has been expressed by Members in the past, but I can reassure them that the bank is intended to be a long-lasting institution. I have detected a strong degree of consensus about the importance of this, both in Committee and here in the Chamber, just as our commitment to net zero is long-lasting and a subject of consensus. We intend the bank to be permanent; it is an essential part of the Government’s infrastructure strategy. Moreover, the new clause is simply not necessary. In the event that any future Government considered a sale of the bank—and that is not my expectation—it would require primary legislation at the time. The new clause cannot bind the House on a future occasion, and in any event it is not necessary, so I ask for it not to be pressed to a vote.
I am not so sure about that, but I know that my hon. Friend has a lot of reading to get through. As he obviously knows, part of what is inherent in the net zero objectives is the fact that there will be an increase in supply chain resilience.
It is obviously delightful to have another Devon MP who cares passionately about the environment, as did his predecessor. I cannot help but wonder whether, if the Liberal Democrats were serious about this, the Secretary of State for Energy and Climate Change from 2012 to 2015 might have implemented some of these things. Does my hon. Friend the Minister agree that there seems to be a trend of creating opportunities for dodgy graphics and social media content, rather than making serious changes to legislation?
This is an incredibly important milestone and moment in establishing a new national institution that will deliver real social purpose and make an enormous difference to the lives of our fellow citizens across the United Kingdom. Establishing it today in statute will give the market greater certainty and confidence, and encourage significant private sector investment in all of the bank’s priority sectors. By partnering with the private sector—by mobilising the life force of private capital, the ferocious, problem-solving power of business—in areas that might otherwise struggle to get the investment they require, we will help speed up the transition to net zero and level up the UK. With the exception of amendment 4, which I have indicated the Government will not oppose, I hope Members understand the reasoning—even if they do not agree—that I have set out as to why we cannot accept the amendments and new clauses and that they respect the time of the House and agree not to press them to a vote.
Full debate: UK Infrastructure Bank Bill [Lords]
(a) climate change mitigation and adaptation,
The climate safety objective is: facilitating the net UK carbon emissions target in section 1 of the Climate Change Act 2008, and the 1.5 degrees temperature goal of the Paris Agreement.
(c) the ways in which the PRA and FCA have supported the Secretary of State’s ability to meet the duty set out is section 1 of the Climate Change Act 2008.
(2) For the purposes of this section, “green finance” means financial products or services which aim to reduce emissions, and enhance sinks of greenhouse gases, and aim to reduce vulnerability of, and maintain and increase the resilience of, human and ecological systems to negative climate change impacts.’
(c) environmental, social and governance risks and opportunities (including, but not limited to, climate change),
Full debate: Financial Services and Markets Bill
The Government are committed to reaching net zero greenhouse gas emissions by 2025. The Bill underlines that commitment by introducing measures under which the financial regulators must consider the need to achieve compliance with the net zero emissions target as they advance their objectives.
We published the green finance strategy back in 2019, and “Greening Finance: A Roadmap to Sustainable Investing” in 2021. Since then, because of the changes to the economic and political landscape, the Government have commissioned my right hon. Friend the Member for Kingswood (Chris Skidmore) to lead a rapid review of how the Government approach delivering their net zero targets in the appropriate way. In addition, a call for evidence was launched on 11 May this year, and closed on 22 June. That consultation will inform the uptake of the green finance strategy and the Government are currently reviewing the responses they received. It is a big piece of work and the Government’s intention is to publish an update to the green finance strategy within the timelines that the hon. Member for Hampstead and Kilburn asks for in her new clause.
The hon. Member also mentioned specific policy issues relating to the green taxonomy and sustainable disclosure requirements, on which I hope I can give some reassurance. On the green taxonomy, the Government will be engaging with the market on the design of a framework to guide investors on how they can best support the transition to net zero. That includes the important role for SMEs that we heard about from my hon. Friend the Member for West Bromwich West.
Full debate: Financial Services and Markets Bill (Tenth sitting)
I congratulate my hon. Friend, who has a strong reputation on the Conservative Benches as a champion of the many excellent businesses in his constituency, including Sterling Thermal Technology, whose products are not just sold around the world, contributing to the path to net zero, but used, I note, in our own Hinkley Point C. One of the benefits of leaving the European Union is that we can now tailor trade deals to suit the needs of British businesses as well as prioritising the markets that are of most interest to exporters.
Full debate: Oral Answers to Questions
If the authors of a recent report on climate change—another very serious topic—are to be believed, the South Downs wine harvest will only grow. Today, just 0.4% of agricultural land is currently used for viticulture, whereas the report estimates that up to 34% of land could be suitable in the future. This potential is already apparent in the wider country, as 2021 has seen 1.4 million vines planted, and over 5,000 acres have been planted over the past five years.
Full debate: English Wine Week
What steps his Department is taking to increase renewable energy production. ( 900545 )
Full debate: Clean Energy
Let me conclude on a subject that Her Majesty mentioned that I am very passionate about. We can all be proud that Britain is a world leader on climate action. While some Opposition Members talk about the climate emergency, we are getting on and solving it. We were the first to put a 2050 net zero target into law, and our target of a 68% reduction on our 1990 emissions is one of the most ambitious of any country on the planet.
We have the fastest growth in renewable energy of any G20 nation and some of the most ambitious targets. By contrast, a German child born today will be leaving school before her country stops burning coal, in the year 2038. It is not just energy; we are an automotive green leader in the world. The last combustion engine in the UK will be sold in 2030, while across the channel our French friends will be rolling out combustion-engine-driven vehicles for another 10 years, until 2040.
The reason we can make so much progress so quickly is that we Conservatives believe in the ferocious problem-solving power of free enterprise and free markets—that human ingenuity and innovation are the answer, not delaying ambulances with street protests or blockading a free press. With the right frameworks, business is the solution not the problem, and just as global capitalism has lifted billions out of poverty and transformed the length of human life, and just as we have seen with the vaccine development, so too will it be business that actually solves the climate crisis.
Full debate: Better Jobs and a Fair Deal at Work
Recycling is one way in which we can all individually tackle the climate crisis. Will my right hon. Friend join me in congratulating West Sussex County Council on recycling 53% of its household waste—almost double the level of neighbouring Brighton and Hove City Council? ( 914537 )
Full debate: Oral Answers to Questions
In the year in which the UK hosts the UN climate summit, let me conclude by welcoming two measures in the Bill that help us move towards a low carbon future. The first is part 2, which introduces a plastic packaging tax from next April. We should tax things we wish to have less of, and on that basis this is an excellent piece of legislation that will provide a clear economic incentive to use recycled material in the manufacture of plastic packaging. It is estimated that as a result, the use of recycled plastic could increase by around 40%, equal to carbon savings of nearly 200,000 tonnes a year and saving a lot of plastic from ending up in landfill and incineration. We only have one planet, so as soon as this useful measure is on the statute book, I encourage my Treasury colleagues to look at increasing the rate and lowering the exemption threshold.
Full debate: Finance (No. 2) Bill
As net zero champion, I see examples daily of entrepreneurs and investors pursuing opportunities in the expanding clean growth sector. British-based firms are exporting electrolysers to Europe and fuel cells to Asia. The City of London is a world-leading hub for green finance, while our airports and airlines are the same in sustainable aviation. Elsewhere, similar opportunities exist in artificial intelligence, quantum computing, the life sciences, satellites, aerospace and FinTech, where the UK science and research base positions us very strongly. It is not just rhetoric; economists rightly forecast that UK growth this year will outstrip the US, Japan and the EU.
Full debate: National Security and Investment Bill
Foreign investors in the UK create more exports and spend more on research and development than our domestic businesses, giving the lie to some of the things that we have heard from Opposition Members this afternoon. Let us remember that every doctor, nurse and careworker who has looked after us during the pandemic is paid for directly from the product of the economic growth that results from being one of the most open economies in the world. That is one reason why I congratulate the Government on recently establishing the new Office for Investment, with my noble Friend Lord Grimstone and No. 10 working together to bring high-value opportunities to the UK, such as on net zero, as well as investment in infrastructure and advancing research and development.
Full debate: National Security and Investment Bill
Last week, the Prime Minister outlined how we can build back better by investing in areas such as hydrogen, green energy and electric mobility. Does the Minister agree that, while it is an opportunity for the whole United Kingdom, we should particularly put Wales at the heart of that green revolution?
Full debate: Oral Answers to Questions
I requested that the House discuss this important issue back in July, as my constituents in Arundel and South Downs were already feeling the strain of a planning system that had the unique quality of pleasing absolutely no one. I suspect that I make common cause with the Minister when I say that the planning system we have today is too slow, too adversarial and too expensive, and yet still manages to create huge amounts of blight and burden on communities without delivering the volume, quality or even type of homes that we need. Planning permissions are already in place for more than 1 million homes, enough to satisfy the nation’s needs for years to come, but those homes are not being built. Labour’s tax raid on pensions channelled savings instead into buy-to-let property, and we have a legal commitment to net zero, but we are building homes in the middle of nowhere whose occupants wholly reliant on a car to go anywhere.
Full debate: Housing Developments: West Sussex
The Centre for Cities says that, with imagination, we can easily accommodate all the new dwellings that we need within the existing curtilage of our cities. I agree, and as we focus on sustainability, food supply chains and achieving net zero, which we have baked into law, we have the opportunity, once and for all, to make it clear that precious woodland, countryside, agricultural land and rural flood plains must never be developed for housing, thus putting an end to the long-term planning blight suffered by my constituents around Adversane, West Grinstead and the 17 parishes around Henfield.
Full debate: Business and Planning Bill
I commend the support that the Minister’s Department is already giving to genomics, artificial intelligence, space, fusion, zero-emission mobility and quantum computing. With the National Physical Laboratory, the Stevenage Bioscience Catalyst, the Faraday Institution and the Culham Centre for Fusion Energy, it is no exaggeration to say that the UK is genuinely world-leading in each of those areas. UK-based companies are at the heart of the technology that the Solar Orbiter satellite probe, which blasted off into space last month, will carry all the way to the sun. When quantum physicists the world over want lasers with the purest light, they come here.
Full debate: Government Support for Business