Jeremy Hunt is the Conservative MP for Godalming and Ash.
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People are painfully aware that Conservative chaos has real-life consequences. Interest rates were sent soaring, and millions of people saw their mortgage payments increase by hundreds of pounds a month. That is why, more than ever, we need to foster economic stability to draw a line under the uncertainty of the last few years. An important step in rebuilding confidence in our economy is the setting up of a long-term industrial strategy. That will help to unlock vital investment, create good jobs, and help us to tackle the climate emergency. Will the Chancellor reassure the House that the Government will start work on such a strategy as soon as practically possible?
The Chancellor committed to long-term planning for capital expenditure. Last March, the then Chancellor committed £20 billion to carbon capture, usage and storage, without which a net zero future cannot be delivered. In the light of the right hon. Lady’s review, can she set out for the House what commitment this Government will make to investment, including to that £20 billion for CCUS?
Full debate: Public Spending: Inheritance
We listen very carefully to what the Climate Change Committee says, and we are absolutely committed to net zero. In fact, a Conservative Government passed the law requiring Governments to commit to net zero. The hon. Gentleman will know that we have just become the first major industrialised country to decarbonise by more than 50% since 1990. As well as the costs, we are also mindful of the economic opportunities, which is why we are investing billions of pounds in our clean energy transformation.
Full debate: Oral Answers to Questions
We also meet our second fiscal rule—for public sector borrowing to be below 3% of GDP—three years early. Borrowing falls from 4.2% of GDP in 2023-24 to 3.1%, then 2.7%, 2.3%, 1.6%, and 1.2% in 2028-29. By the end of the forecast, borrowing is at its lowest level of GDP since 2001. None of that, of course, would be possible if Labour implemented its pledge to decarbonise the grid five years early, by 2030; by its own calculations, that costs £28 billion a year to do. Last month, after flip-flopping for months, Labour said that it is not going to spend the £28 billion after all, but will somehow meet its pledge. “Somehow” can only mean one thing: tax rises on working families. Same old Labour!
I now turn to our other growth industries, starting with clean energy. We want nuclear to provide up to a quarter of our electricity by 2050. As part of that, I want the UK to lead the global race in developing cutting-edge nuclear technologies. I can therefore announce that Great British Nuclear will begin the next phase of the small modular reactor selection process, with companies now having until June to submit their initial tender responses. Our brilliant Secretary of State for Energy Security and Net Zero will also allocate up to £120 million more to the green industries growth accelerator, to build supply chains for new technology, ranging from offshore wind to carbon capture and storage. By January next year, as promised in the autumn statement, we will have a new, faster connections process to the grid up and running. In advanced manufacturing we have announced a further £270 million of investment into innovative new automotive and aerospace research and development projects, building the UK’s capabilities in zero-emission vehicle and clean aviation technologies.
Full debate: Financial Statement and Budget Report
I am sure the hon. Lady understands that I cannot talk about what will be in the Budget ahead of the Budget because no decisions have been made. I celebrate with her that the UK recently became the first major economy in the world to decarbonise by more than 50%, ahead of France, Germany, Japan and the United States.
Full debate: Oral Answers to Questions
In today’s autumn statement for growth our choice is not big government, high spending and high tax, because we know that that leads to less growth, not more. Instead, we reduce debt, cut taxes and reward work. We deliver world-class education, we build domestic sustainable energy, and we back British business with 110 growth measures. Do not worry; I am not going to go through them all— [ Interruption. ] Well, I will if you like! In summary, they remove planning red tape, speed up access to the national grid, support entrepreneurs raising capital, get behind our fastest-growing industries, unlock foreign direct investment, boost productivity, reform welfare, level up opportunity to every corner of the country, and cut business taxes.
International investors say that the biggest thing we could do for our advanced manufacturing and green energy sectors is announce a longer-term strategy for their industries, so with the Secretaries of State for Business and Trade and for Energy Security and Net Zero, I am today publishing those plans. I confirm that we will make available £4.5 billion of support over the five years to 2030 to attract investment into strategic manufacturing sectors. That includes: £2 billion of support for zero-emission investments in the automotive sector, which has been warmly welcomed by Nissan and Toyota; £975 million for aerospace, building on decades of success from firms such as Airbus and Rolls-Royce; and £520 million for life sciences, building on the strength of world-class British pharma companies such as AstraZeneca and GSK. We will also provide £960 million for the new green industries growth accelerator, focused on offshore wind; electricity networks; nuclear; carbon capture, utilisation and storage; and hydrogen. Those targeted investments will ensure that the UK remains competitive in sectors where we are already leaders, and innovative in sectors where we are not. Taken together, that support will attract an estimated £2 billion of additional investment across our fastest-growing innovation sectors every year over the next decade.
Full debate: Autumn Statement
The first big infrastructure decision that I took was on nuclear, when I assigned £700 million to Sizewell C. I completely agree with the hon. Member about the potential of SMR. That is why we set up a competition, and with the previous Energy Secretary I stipulated that it should finish by the end of this calendar year so that we can proceed as quickly as possible on SMR, because it could be an important part of our net zero future.
On investment in renewable energy, EY has confirmed today that the UK has slipped further back on the attractiveness index, so it is now behind India, China and Australia. On offshore wind, the Chancellor knows that allocation round 5 was a disaster. What will he do to rectify that? On nuclear, he talks about SMRs being the future, but they are not. There is not a successful SMR anywhere in the world, and NuScale in the United States has just been abandoned after rising to an estimated cost of $9 billion.
On top of all the measures in the autumn statement, we will have the Bills from the King’s Speech, including a trade Bill that will confirm our membership of the comprehensive and progressive agreement for trans-Pacific partnership, making us part of a group that wields a combined GDP of £12 trillion and a presence in the Indo-Pacific, where the majority of global growth will be. The Automated Vehicles Bill, which the shadow Chancellor mocked, will make the UK one of the first countries in the world to have a legal structure to allow driverless cars. The Digital Markets, Competition and Consumers Bill will modernise our digital laws to boost online shopping by making it safer. The Offshore Petroleum Licensing Bill will secure our energy independence by replacing imported oil and gas with domestically produced fuel as we transition to net zero.
Full debate: Economic Growth
To increase the UK’s resilience to future energy price shocks, the Government are committed to transitioning to clean energy sources and is working to deliver tangible progress while bringing down energy bills. Between 1990 and 2021, the UK has cut emissions by 48% whilst growing the economy and decarbonising faster than any other country in the G7. The Government committed £30 billion of domestic public investment for the green industrial revolution at spending review 2021, as well as £6 billion for energy efficiency at autumn statement 2022 for the next spending review, and up to £20 billion for carbon capture usage and storage announced at spring Budget 2023. Over 80,000 green jobs across the UK economy are currently being supported or are in the pipeline as a result of new Government policies and spending since November 2020. What really matters is not just public investment, but total public and private investment. Since 2010, public and private investment alongside consumer levies has seen investment of £198 billion in our green industries. The Government have set out detail on the policies and programmes to reach net zero, including via the net zero strategy 2021, the net zero growth plan 2023, and specific sectoral strategies.
Full debate: Fiscal Risks and Sustainability Report 2023
We are interested in giving support to all forms of renewable energy, and the Exchequer Secretary to the Treasury is very happy to meet the hon. Gentleman to discuss those issues further.
Full debate: Oral Answers to Questions
Our film and TV industry has become Europe’s largest, with our creative industries growing at twice the rate of the economy; our advanced manufacturing industries produce around half the world’s large civil aircraft wings; and thanks to a clean energy miracle, we have become a world leader in offshore wind. Other parties talk about a green energy revolution, so I gently remind them that nearly 90% of our solar power was installed in the last 13 years—showing it is the Conservatives who fix the roof when the sun is shining.
An enterprise economy needs low taxes, but it also needs cheap and reliable energy. We have already announced billions of support to help businesses reduce their energy bills through the energy bills relief scheme and the energy bills discount scheme. We have appointed Dame Alison Rose, chief executive of NatWest, to co-chair our national energy efficiency taskforce and help deliver our national ambition to reduce energy use by 15%. To support her efforts, I will extend the climate change agreement scheme for two years to allow eligible businesses £600 million of tax relief on energy efficiency measures. But the long-term solution is not subsidy, but security. That means investing in domestic sources of energy that fall outside Putin’s or any autocrat’s control. We are world leaders in renewable energy, so today I want to develop another plank of our green economy: carbon capture usage and storage. I am allocating up to £20 billion of support for the early development of CCUS, starting with projects from our east coast to Merseyside to north Wales, paving the way for CCUS everywhere across the UK as we approach 2050. That will support up to 50,000 jobs, attract private sector investment and help capture 20 to 30 million tonnes of carbon dioxide per year by 2030.
We have increased the proportion of electricity generated from renewables from under 10% when we came into office to nearly 40%, but because the wind does not always blow and the sun does not always shine—even under the Conservatives—we will need another critical source of cheap and reliable energy, and that is nuclear. There have been no more powerful advocates for this than my hon. Friends the Members for Ynys Môn (Virginia Crosbie), for Copeland (Trudy Harrison), for Hartlepool (Jill Mortimer) and for Workington (Mark Jenkinson). They rightly say that increasing nuclear capacity is vital to meet our net zero obligations. To encourage private sector investment into our nuclear programme, I today confirm that, subject to consultation, nuclear power will be classed as environmentally sustainable in our green taxonomy, giving it access to the same investment incentives as renewable energy.
Full debate: Financial Statement and Budget Report
The Government are ensuring that the financial system plays a major role in the delivery of the UK’s net zero target, and are acting to secure the UK as the best place in the world for responsible and sustainable investment. The UK is the world’s premier financial centre for sustainable finance.
The Government are acting to ensure the UK retains global leadership in this rapidly growing sector. To deliver on their commitment to align the financial services sector with net zero and to support the sector to unlock the necessary private financing, the Government:
Full debate: Financial Services
The United Kingdom has also been a global leader on climate change, cutting emissions by more than any other G20 country. But with the existential vulnerability we face, now would be the wrong time to step back from our international climate responsibilities, so I also confirm that, despite the economic pressures, we remain fully committed to the historic Glasgow climate pact agreed at COP26, including a 68% reduction in our own emissions by 2030.
Britain is a global leader in renewable energy. Last year, nearly 40% of our electricity came from offshore wind, solar and other renewables. Since 2010, our renewable energy production has grown faster than any other large country in Europe. But we need to go even further, with a major acceleration of home-grown technologies like offshore wind, carbon capture and storage, and, above all, nuclear. This will deliver new jobs, industries and export opportunities, and secure the clean, affordable energy we need to power our future economy and reach net zero. So today I can announce the Government will proceed with the new nuclear power plant at Sizewell C.
Full debate: Autumn Statement
Lord Deben speaks extremely wisely on environmental and climate change issues, and we would always take what he says with the utmost seriousness.
Full debate: Topical Questions
The FCO is playing a leading role in promoting international co-operation on climate change, maintaining the momentum generated by the Paris agreement, and raising ambition, as indicated by our new net zero 2050 target.
Full debate: Climate Change
We are very direct with President Trump. We do not agree with him on climate change, which is why we continue to uphold the Paris accord and why we are championing a UK bid to host the next big climate change conference, COP 26. We want it to be held in London at the end of next year, and if we are successful, it will tell the whole world how seriously we take the issue.
Full debate: Climate Change
My hon. Friend is absolutely right that we need to focus on young people, and I am sure there will be a youth event if we are successful in our bid to host COP 26, but in some ways I want to have an oldies event as well, because I want young people to see that older generations really do take this issue seriously. Their concern is that we are not as committed to it as they are, and we must prove them wrong.
Full debate: Climate Change
I think we are making progress, despite the setback of not having the United States on board. As for exactly what the Foreign and Commonwealth Office is doing, we have 299 people across the world whose job is entirely or partly to advocate on climate change. We are using our diplomatic network to its fullest effect.
Full debate: Climate Change
I recognise the fairness of the hon. Lady’s point. There will, of course, be legislation to follow relating to our net zero 2050 target and that will be the moment to have that debate.
Full debate: Climate Change
I just point out to the hon. Lady that the person who is coming to this country for a state visit is the Head of State of the United States of America. There is no free pass for policies on which we disagree with the Trump Administration—climate change is one, and the Iran nuclear deal is another. We discuss all of them the whole time, but that does not mean that we should not respect the office or the country.
Full debate: President Trump: State Visit
We share the concerns of the hon. Member for North East Fife (Stephen Gethins) about what happened at the Arctic Council. This is an area where we have a number of disagreements with the approach taken by the US Administration. That is one reason why we think it is important that the UK win its bid to host COP 26—the big climate change conference that is due to take place next year—to demonstrate European unity on this issue.
Full debate: President Trump: State Visit
I thank my hon. Friend for that question. The honest answer to the demonstrations organised by Greta Thunberg and others is that while we have done more than many countries on climate change, we have not done enough. The biggest single thing we can do is to host a really impactful COP 26—the next big climate change conference—in 2020 to demonstrate global leadership on this very important issue.
Full debate: Topical Questions
I very much welcome young people being involved in climate change issues; I do not welcome quite so much their missing school to do so. I would say that we are making a lot of progress in this country—in fact, I think we have done more than anyone else in the G20 on climate change—but it is not enough. As a global community, we still need to do more, which is why we want to host COP 26 and galvanise the world to take more action.
Full debate: Topical Questions
We have been investing a huge amount in our global leadership on climate change, and we are the G20 country that has the biggest drop in emissions per unit of GDP. We are also bidding to host COP 26, which will be the next big climate change conference on the fifth anniversary of the Paris conference. We have a different view from that of the Trump Administration, and we are very open about that with them. It is all the more important that the countries that do not share their view and that think we have a responsibility to future generations should stand proud in our support for this vital agenda.
Full debate: Oral Answers to Questions
To build a more sustainable Commonwealth, the UK is delivering on the Commonwealth Blue Charter by helping member states protect and sustainably develop the ocean. Twenty-three Commonwealth countries have signed up to the UK and Vanuatu-led ‘Commonwealth Clean Oceans Alliance’ (CCOA) to tackle marine plastic pollution. Two of these countries joined the Alliance at the first CCOA Ministerial Meeting chaired by my noble Friend Lord Ahmad of Wimbledon, Minister of State for the Commonwealth, in the margins of the Sustainable Blue Economy Conference in Nairobi in November. During her visit to Kenya, my right hon Friend the Prime Minister also announced a Young Leaders’ Plastic Challenge Badge to help an estimated 100,000 young people in the Commonwealth become leaders in raising awareness about reducing plastic consumption. In response to the challenge of climate change, the UK and New Zealand are also providing support for the establishment of a Regional Pacific Nationally Determined Contribution (NDC) hub, which will help Pacific Island countries implement the Paris agreement.
Full debate: Commonwealth Heads of Government Meeting: Update
I completely agree with my hon. Friend about the importance of zero emissions, and Britain can certainly play a leading role.
Full debate: Topical Questions
a new global envoy for dementia innovation, following in the footsteps of global envoys on HIV and Aids and on climate change—the global envoy will bring together international expertise to stimulate innovation and co-ordinate international efforts to attract new sources of finance, including exploring the possibility of a new private and philanthropic fund to support global dementia innovation;
Full debate: G8 Dementia Summit
Is it not convenient that this absent Prime Minister has been able to dodge the real questions—what did he know about criminal activities from Murdoch, when did he know it, and is it not time, based upon the British public’s reaction, that we sent this non-tax-paying Murdoch back whence he came and, for the final humiliation, got the Secretary of State for Energy and Climate Change to drive him to the airport? [Laughter.]
Full debate: Phone Hacking and the Media