Olly Glover is the Liberal Democrat MP for Didcot and Wantage.
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Let me start with the good news that there is considerable consensus in the room, despite a couple of testy exchanges. Members from across the House have agreed that decarbonising our electricity generation is critical to meeting the UK’s contribution to tackling global climate change. A less centralised and more distributed electricity network is also essential for economic growth, and to ensure that our various businesses and homes continue to have power.
The hon. Members for East Thanet (Ms Billington), for Ipswich (Jack Abbott), for Cramlington and Killingworth (Emma Foody), and for Waveney Valley (Adrian Ramsay), as well as the hon. Member for Harwich and North Essex, have all articulated the decarbonisation challenge very well. Members have also agreed on the need for a planning system that strikes the right balance between national needs and local voices. That recurring challenge comes up in so many debates in the House, and I will say more about it shortly.
It is in all our interests that they succeed, particularly, as the hon. Member for Harwich and North Essex conceded, in the context of the previous Conservative Government not acting with anything close to the speed or ambition that the challenge demands. But as we have seen with past goals, such as the previous Government’s original goal to end the sale of full combustion engine cars by 2030, aspirations will remain lofty ideas without a solid plan to achieve them. In that context, around 40% of projects face a connection wait of at least a year, according to National Grid’s figures. Indeed, according to Electrical Review , 75% of energy sector experts identified timely grid connections as the principal obstacle impeding the growth of renewable energy in the UK.
It is therefore essential that the Government show the leadership that is needed not just to upgrade our electricity grid, enabling its decarbonisation and providing greater value for money for consumers, but to tackle in a sensitive and inclusive way the recurring challenge regarding the balance between listening to the voices of local communities and achieving national objectives. The hon. Member articulately highlighted the role of community consent and engagement in delivering the infrastructure that we need, although I would assert that his figures on the cost of buried versus overhead cables are somewhat disputed by a number of sources.
The Liberal Democrats also want to see the electricity grid network reformed to support businesses’ transition to renewable energy sources and to permit local energy grids to supply power to communities who need it most. We support the expansion of the grid network through a strategic land and sea use framework to facilitate an optimum balance between electricity generation, food production and nature recovery. The right hon. Member for South Holland and The Deepings (Sir John Hayes) and the hon. Member for Waveney Valley have articulated the challenge of ensuring that we balance the demands on our land and use it appropriately.
Full debate: Electricity Grid Upgrades
It is on transport policy that the Budget most disappoints. Perhaps, given the proposed increase in the bus fare cap and the above-inflation increases to rail fares, the Government are under the impression that working families only use cars. A season ticket from Didcot in my constituency to London, plus travelcard, already costs around £7,000 a year. Those policies undermine the Government’s stated objectives on economic growth, climate change and reducing congestion. I also regret that there is no commitment to local rail schemes in my constituency, such as a new station at Wantage and Grove, and electrification between Didcot and Oxford.
Full debate: Budget Resolutions
It is important that we remember the context and seriousness of the climate change challenge, but as hon. Members have said, we need to bring people and communities with us, particularly where there are changes to their local landscape and area and where land is given over to solar generation before opportunities to use building roofs have been fully explored and exploited.
Renewable energy is essential to the decarbonisation of our electricity grid. My hon. Friend’s proposal of a 5% levy on gross revenue for community benefit would go a long way towards ensuring that communities, as well as businesses and investors, enjoy the advantages of investment in renewables. Revenue from such schemes could benefit my constituents in so many ways, not least by helping to plug the gap that our planning system has caused between the housing that has gone into the area and the supporting infrastructure. Such benefits would include more youth service provision—in some cases that means any youth service provision—in the largest communities of Grove, Wantage, Didcot and Wallingford; local road, walking and cycling improvements; a contribution to the proposed new railway station serving Grove and Wantage; the realisation of more opportunities for local healthcare improvements; and home insulation projects.
When we consider how best to combat climate change, the policies that most resonate with people are those that benefit planet, people and economy. Local electricity generation is one of the best examples. The proposed levy would ensure that people, as well as planet and economy, will benefit.
Full debate: Renewable Energy Projects: Community Benefits
To start my remarks, I will reflect on why this is such an important topic for discussion. Clearly the major consideration, and one of the biggest threats facing us, is climate change and the need to decarbonise, but the beauty of improving environmental standards for new housing is in the many other benefits besides. Investing in insulation, heat pumps and solar-panel fitments for new homes would create jobs and stimulate supply chains, with the subsequent benefit of making it far easier to develop the capability to retrofit existing homes.
A significant benefit of such a policy of getting it right would accrue to those on lower incomes, insulating them not just from the cold, but from energy and fuel market price fluctuations and the global effects on those prices. Dare I suggest that had we been building new homes to good environmental standards for the past 15 years, the Government would perhaps have avoided the winter fuel allowance backlash that is dominating my constituency postbag. This is a great example of a policy that benefits not only the planet, but people and the economy. Many people feel that climate change is an abstract topic, something that is preached at them, and we need to consider more policies that achieve that holy trinity of benefit for planet, people and economy.
I read that the logic of the last Conservative Government, in delaying solar panel mandates for new homes, was optimism about a fully decarbonised electricity grid, which was indeed too much optimism. We also need to work quickly to create a new electricity grid with good storage capability, so that we can capitalise on surpluses of locally generated solar and wind power.
My constituency has seen some of the fastest housing growth in the country, with 8,000 new houses built between 2011 and 2021, at Didcot Great Western Park, Wantage Kingsgrove, Wallingford Highcroft and Grove Wellington Gate, among others. My constituents are baffled by the fact that these houses have been built—and continue to be built—without solar panels, heat pumps or similar. Another development under construction at the moment, Valley Park near Didcot, of more than 4,000 homes, will also not be so equipped. That is despite the efforts of our Lib Dem-led Vale of White Horse and South Oxfordshire district councils, who have done what they can within the current rules to promote positive environmental measures. They do not have the powers to compel developers to meet net zero requirements as part of the scrutiny of planning applications. That also needs to change, all the more so if there is going to be further delay in implementing national environmental standards and effective requirements.
We need to make climate change action meaningful and beneficial for people. Designing new homes to the right standards has the potential to have universal appeal, and rather than solar panels’ only being accessible to those on high incomes, it could benefit people across income ranges. Investing in solar, heat pumps and insulation will make that difference, and stimulate the economy. As the hon. Member for North Herefordshire said, we also need to think about designs that will keep our homes cool in the hotter weather expected in the future.
If we do not create the homes of the future now, there is a risk that we will need to retrofit the homes built now in only a decade or two’s time, at much greater expense, in order to reach our net zero targets. We cannot wait any longer. I hope the new Government will treat the issue with the urgency it deserves, to help planet, people and economy.
Full debate: New Housing: Environmental Standards