VoteClimate: Budget Resolutions - 12th March 2024

Budget Resolutions - 12th March 2024

Here are the climate-related sections of speeches by MPs during the Commons debate Budget Resolutions.

Full text: https://hansard.parliament.uk/Commons/2024-03-12/debates/FA2C3C82-15F6-40D1-8464-276A963FEAD9/BudgetResolutions

13:21 Laura Trott (Conservative)

Sadly, the Labour party is putting this in jeopardy. Labour Members have no plan to cut taxes, and cannot name a single one that they would cut. Instead, they are trying to pull the wool over the public’s eyes by pretending that they have refinanced their £28 billion a year plan to decarbonise. They themselves have said that their pledge costs £28 billion a year, and they are apparently not scaling their promises down. We all know what that means: more taxes for hard-working families. What the public and the House need to know is this: which tax will they raise to pay for the plan, and, if they are in government after the general election, will they stick to our spending plans as set out in the Budget? The British public deserve to know.

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14:00 Richard Thomson (Gordon) (SNP)

I can say without fear of contradiction that the UK faces three big challenges economically and socially: we have an energy security crisis, we have a climate crisis and we still have a cost of living crisis that needs to be tackled. This Budget barely changed course on any of those three measures.

Finally, we are all quite bored with weak leadership, but does leadership get any weaker than a party taking its one and only identifiable policy—investing £28 billion in renewable energy—and throwing it on the fire because its leader is absolutely terrified of losing political ground to the weakest and worst Conservative Government any of us have the misfortune to remember in our lifetime?

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14:16 Mr Barry Sheerman (Huddersfield) (Lab/Co-op)

However, I do not want to talk about that; I want to talk about the two big issues that were not even mentioned. The most important things for all human beings on this planet are global warming and climate change. The Chancellor did not mention the words climate change in his whole speech. There was nothing in that Budget that would give hope to those of us who have been campaigning for years to stop the global warming that will destroy human life on this planet. Nothing in this Budget will help us to meet that terrible existential challenge.

People in this country are not short-termists, although they want a better life and lower taxes, and to drive greater productivity. We all remember the productivity driver, George Osborne, so I say to Government Members: do not talk to us about productivity failures. The fact of the matter is that there is nothing in the Budget about getting manufacturing going again or about linking our wonderful university researchers with small businesses to tackle climate change, develop hydrogen power and look at the ways in which clever human beings can and will ensure that this planet is safe to live on.

We should be ashamed if we do not talk about those two issues in the Budget debates and if the Government do not make the wherewithal available, first, to confront climate change and global warming and, secondly, to secure the defence of our country.

As I say, this will be my last Budget speech. I have loved speaking in this House. Everyone knows that I love interjecting at Question Time. These are serious times, and I hope we all remember that the big issues—climate change, the future of our planet and the defence of our country—are hard to tackle because they are expensive. Some on the Labour Benches sometimes do not grapple with that fact, but we must be honest: if we want this country to be secure and have great defence, we have to pay for it. All of us in this House must learn that lesson.

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14:36 Derek Thomas (St Ives) (Con)

To support aspiration, we also need to support skills. Wherever we look, we see a shortage of the skills we need: in food and farming, renewables, house building and retrofitting, engineering and manufacturing, health and social care, tourism and hospitality, education, and many more areas. I listened carefully to the speech made by the hon. Member for Huddersfield (Mr Sheerman), including his comments about climate change. Addressing climate change is about changing the way we do and make things, so the Chancellor was right to announce in his Budget a further £120 million to support the expansion of low-carbon manufacturing, which will support the creation of jobs and skills that have not even been invented yet for our school leavers. Also, to further address the climate change issue, the Chancellor has committed £427 million to support investment in agriculture, productivity and innovation. That will secure a farming sector that has provided skilled and local jobs to people across Cornwall and on Scilly for generations, and will continue to do so.

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15:08 Ronnie Cowan (Inverclyde) (SNP)

In my constituency of Inverclyde, with the help of Clyde Muirshiel park, local farmers and the Yearn Stane project are re-establishing peatland, which will reduce flooding, create an environment for nature to flourish, and be accessible for people to walk and cycle. This is being done by helping nature to do what it does best, and undoing the damage that was caused by draining the land for grouse shooting all those years ago. Under the heading “Green industries”—paragraph 4.51 of the Red Book—the Government are throwing some sizeable chunks of money at lowering carbon emissions, but there are two errors in this rather small section. First, it mentions nuclear as a “critical part” of the Government’s plan to decarbonise power. It is worth noting that building Sizewell C will create 6.24 million tonnes of carbon equivalent CO2; that is one hell of a price to pay for a build that is not needed.

Secondly, if we want to decarbonise our energy sector, stimulate agriculture, reduce plastic waste, reduce landfill, improve our environment and increase agricultural yield, why is there absolutely no mention whatsoever of hemp? This is where my speech starts to sound familiar, but I was told very early in my time here that there is nothing wrong with repetition. I want this Government to help an industry that employs local people, could generate huge profits, pay its taxes to the Exchequer and help to offset the environmental damage that we are doing to our precious planet. That industry would be a win-win-win scenario. What better way to grow an economy and help the local community, if not by creating jobs so that people have a disposable income to spend locally, and benefit the local community and all associated supply chains?

The Government should be leading the charge, not cowering in the corner. They should be promoting the fact that hemp absorbs 22 tonnes per hectare of atmospheric carbon during its four-month growing cycle, and produces four times the biomass of the same sized area of forest, making it a far more sustainable source material. Hemp does not need pesticides, insecticides or fertiliser to grow in the UK, and it has natural antimicrobial properties, so it passively cleans the air in buildings. Hemp has high capacity for moisture absorption, allowing for a controlled atmosphere within buildings, and hemp construction materials act as a long-term carbon sink. A £60 million investment would create a facility capable of growing 32,000 acres per year. That would sequester over 207,000 tonnes of CO2 per annum: that is the CO2 photosynthesised by the hemp in its four-month growth; it does not include the carbon sequestered into the soil, or the net effect of replacing high embodied carbon products from international supply chains and their emissions. As a bonus for farmers, hemp regenerates the soil it grows in, so it would work well in crop rotation. It increases winter wheat and spring barley yields by 16% to 18% when they follow hemp in rotation, and it cleans groundwater.

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15:15 Richard Drax (South Dorset) (Con)

I regretfully say that it comes to a pretty pass when a Conservative Government have to plunder the Opposition’s policies in a Budget. I am talking about scrapping the non-dom tax status and extending the windfall tax on oil and gas companies. The latter is especially nonsensical for a number of reasons, not least because we want to reduce our reliance on foreign imports. If I am correct, the tax amounts to about 70%. Which company is going to bid for a licence when it is simply punished for providing the country’s energy? All this when only today the Government announced that they are to build new gas power stations in order to keep the lights on. Net zero is an admirable aim, but it risks impoverishing the country; we need a pragmatic approach to the change.

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15:53 Peter Aldous (Waveney) (Con)

In almost every Budget, it is important to be wary of and to guard against unintended consequences, and there are two that I will briefly highlight from last Wednesday. First, I understand the rationale for extending the sunset clause on the energy profits levy, but there is real concern that this will deflect and deter investment for the industries of tomorrow: offshore wind, carbon capture, and hydrogen. These industries are vital to enhancing our energy security, bringing jobs to coastal communities and delivering our net zero targets, and I am concerned that, as the levy proposals stand, they could deter that vital investment. For my part, I shall be studying closely the provisions of the spring Finance Bill, and I would urge the Government to re-engage with industry at every opportunity.

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16:07 Steve Double (St Austell and Newquay) (Con)

Productivity is an ongoing challenge in Cornwall. Our wages are typically about 30% below the national average and our productivity reflects that. There are some understandable reasons relating to our geography and demographics, but there are also some huge opportunities for us to become less reliant on seasonal jobs and businesses. There are opportunities in the space sector, lithium extraction and renewable energy. I came into politics to try to create good career opportunities for young people growing up in Cornwall. This exciting opportunity to create well-paid jobs, to raise the average wages available in Cornwall and to give those young people the careers of the future is something that we need to grasp. I urge the Government, who have already done much to support these sectors in Cornwall, to continue to ensure that we provide those job opportunities to enable young people in Cornwall to aspire to a good career in the sectors of the future. We need to close the challenging productivity gap that we face and make the most of creating the well-paid jobs of the future.

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16:14 Yvonne Fovargue (Makerfield) (Lab)

Of course, we need to prevent people from falling into debt in the first place, so we must look at the issues more holistically. The causes and solutions are complex. Many people affected by debt have multiple categories of debt, spanning lots of regulatory regimes. That complexity is replicated across Government and Whitehall, and laws and regulations span several Departments. For example, the regulation of “buy now, pay later” firms, which is far too delayed—I was really sorry to see that it appears to have been kicked into the long grass—is the preserve of the Treasury. Bailiff fees are an issue for the Ministry of Justice, and prepayment meters are the responsibility of the Department for Energy Security and Net Zero. The Department for Work and Pensions looks after deductions from universal credit, and rent arrears are dealt with the Department for Levelling Up, Housing and Communities—and that is not a complete list. Actually, all those Departments need to work together, and any policies need to have a financial inclusion impact assessment. That would stop many of the policies that are pushing people into more hardship and debt.

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17:16 Preet Gill (Labour)

At a stroke, the Prime Minister’s decision to attack Britain’s net zero targets trashed Britain’s reputation as a place to invest in developing the clean energy of tomorrow. The outcry from industry shows how self-defeating this was.

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17:27 Stephen Doughty (Labour)

I am very clear about what Cardiff South and Penarth needs from what my constituents tell me. We need investment in our green transition. Places such as Sully and Dinas Powys have already seen the impact of flooding and climate change. A response is needed to that not only locally, but nationally and internationally. That is exactly why I am proud of the Labour plan to invest in our green transition, in green steel, in renewables, in nuclear, and of course in the high technology and green solutions that are being generated by our fantastic higher education sector. I am very proud of our university in Cardiff, which is doing fantastic work on this and putting some of those green ideas into action for our country.

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17:48 Beth Winter (Cynon Valley) (Lab)

Cuts for Wales, cuts to services, cuts to pay and cuts to living standards, and absolutely no mention in the Budget of the most pervasive threat and greatest existential crisis facing every one of us—the climate crisis—all to fund giveaways to a few of the Government’s friends at the top. There was absolutely nothing in this Budget for Cymru—for Wales. The Welsh Government, backed by the Senedd, called last week for greater fiscal flexibilities. They sought investment in coal tip safety and the allocation of the billions of pounds owed to us in consequentials from HS2, but the Chancellor chose to ignore those requests.

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17:59 Alan Brown (Kilmarnock and Loudoun) (SNP)

Of course, it is no coincidence that the US has its Inflation Reduction Act or that the eurozone is covered by the EU’s green deal industrial plan. It is no coincidence either that the UK has the lowest levels of investment in the G7—further proof that the Government should be providing schemes and investment to counter the EU and US measures. Instead we heard from UK Ministers at the time the blasé attitude that these other countries were simply playing catch-up with the UK. It was blinkered British exceptionalism at its worst. Indeed, the Government still do not recognise that they have fallen further behind; not only that, but they failed to listen to renewable energy developers about the strike rate for offshore wind being too low in the last contracts for difference auction, which has lost investment in renewable energy and thrown the 2030 deployment targets into doubt.

Until the failure of auction round 5 for offshore wind, the contracts for difference process was at least a success for deployment of renewable energy. However, it still represented missed opportunities for UK-based supply chain development, for investment to be targeted at UK manufacturing and for increased UK productivity. Instead, the UK Government made it a race to the bottom in terms of price, so we saw billions of pounds of investment offshored in that process. The Government hid behind EU directives but now, post Brexit, the procurement strategy still does not sufficiently incentivise local content.

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18:05 Sarah Edwards (Labour)

Local charities know that there are people who are homeless in Tamworth. Some are sleeping in their cars, some in local churches, and others are sofa surfing with no fixed abode. For many, the Government’s poor stewardship of our economy has pushed the dream of getting on the housing ladder even further away. I speak daily with parents who still have an adult child living at home because even with good wages and a deposit saved there are no affordable homes in their communities. Of the houses that are being built in Tamworth, many are on the floodplains and therefore at risk when it comes to flooding incidents. The track record is getting worse and worse. The Government have slashed the Environment Agency’s resources by two thirds since 2010 while one in six homes is now at risk of flooding and climate change is on the march.

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18:16 Fleur Anderson (Labour)

The theme of this debate is productivity, which is fundamental for our competitiveness, wage growth, ability to attract investment and overall future economic wellbeing —in fact, our wellbeing as a whole. Without growth, we cannot have the hope for the future, the hope for our young people and the boost for our economy that we need. I will focus on one area of under-investment which has meant a chronic lack of productivity across the UK, an area of investment that is essential to tackle the climate crisis, boost our economy and give young people hope: green skills.

I was disappointed to hear in the Budget that there were no new policies to help boost the roll-out of low-carbon technologies such as electric vehicles or heat pumps. There is a clear need for better alignment between net zero investments and the skills and employment system. That is the problem that leads to our poor productivity at the moment. Solar Energy UK called the Budget “virtually nude” of anything to bolster that sector. We cannot begin to move in the right direction on green productivity without having the processes in place to embed green skills within our economic infrastructure, but we need a whole industry and skills approach. There is a massive shortage of heat pump engineers. We currently have 3,000, but we will need 27,000 by 2028. Offshore wind industry engineer numbers need to triple to just over 104,000 to meet our current targets, let alone our future ones.

Political choices have led to that under-investment and under-skilling. The Institute for Public Policy Research found that the UK employs fewer people in renewable energy as a proportion of the working age population than most other European countries. It does not have to be that way. In my constituency, South Thames College offers courses in green skills and solar panel fitting. It is taking proactive steps, responding to the wide range of green jobs arising across the economy. By helping students to move into apprenticeships or jobs, South Thames College shows that it is ahead of the curve in adopting a joined-up approach. Also in my constituency is Treadlighter, a solar energy company in Southfields. It is booming, but it cannot keep up with demand because it needs more skilled trainees and staff to fit panels.

Matching skills with green businesses is essential, but Government inaction is currently holding back productivity. A whole new approach is needed throughout the economy to secure a seamless transition between training, education, manufacturing, supply and services, but we do not see any of that in the Budget. We see no new boost, and nothing about the new revolution in green skills that would be so exciting for our economy and would give us hope. The Government’s green jobs delivery group has been meeting for a year and plans to publish its green jobs plan soon, but the Budget has given nothing to the green energy industry, so I have no high hopes for that plan.

We in the Labour party know how important to our success investing for the future will be, which is why we have committed ourselves to spending £23.5 billion during our first Parliament in government in order to deliver green power by 2030. Green British Energy, a publicly owned energy company, will invest in green energy projects including offshore wind, hydrogen, carbon capture, tidal and nuclear. If we can match that with the green skills revolution, we really will have the productivity that we need to change the amount of money in the pockets of people across my constituency.

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