12:39 Rachel Reeves (Labour)

We will look closely at the detail of today’s announcements. Of course, most of them seem to be written by us, but so far we have seen nothing to suggest that this Conservative Government have the ideas or the energy to tackle the challenges we face as a country. A Labour Government would have addressed the underlying weaknesses in our economy, so that we can stop this spiral of inflation, lift wages and provide greater security for families and for our country. The truth is that the Conservatives are running our economy, and people’s living standards, into the ground. We are forecast to have the slowest growth and the highest inflation in the G7. This Government have weakened the foundations of our economy, leaving us exposed to shocks as we lurch from crisis to crisis, and still they refuse to come forward with a real plan to fix our broken system and provide the security we need to face the future with confidence. That means boosting our energy security too. We need to do much more to reduce our reliance on imported oil and gas. That is why Labour’s energy security plan includes a programme of home insulation, to reduce bills not just for one year, but for years to come and to get us all the way to net zero. It is why we have urged the Government to double onshore wind capacity and to end the delay on nuclear power. [Interruption.] And while we are at it, why did this Tory Government get rid of our gas storage —[Interruption.]

I have two questions. Can my right hon. Friend provide assurance that that charge will be applied to excess profits and that those will be distinguished from the increase in profits that would be expected in the natural cycle since the downturn of the past 12 years? Will he also commit to continuing the constructive dialogue with the industry that has been evident from this Government, in the interests of energy security and the transition to net zero?

It will come as no surprise to the House that I have had my concerns about the implementation of a windfall tax on the oil and gas industry, so I thank the Chancellor for his engagement with me and colleagues, including my hon. Friend the Member for Banff and Buchan (David Duguid), and for resisting the ideologically driven smash-and-grab raid proposed by Labour. I also thank him for doubling the investment allowance to encourage people to invest in the North sea. There is still worry in the industry and in my constituency, so will the Chancellor commit to come to the north-east of Scotland to meet me and industry leaders to ensure that we retain the higher skill, high-wage jobs in my part of the world and ensure that we invest in an industry that is driving us towards net zero and making us more energy independent.

My hon. Friend is a champion for the industry and is right to be so. I am happy to come and meet him and representatives from the sector, because I share his view that the industry is an important part of our economy and of our future. As he said, it helps us transition to net zero and improve our energy supply.

I welcome the measures, although I sense that my right hon. Friend will need to keep the situation under constant review with further measures possibly required, such as a social tariff and support for those on prepayment meters, as well as initiatives to trigger significant investment in energy efficiency. Transitioning and renewable energy in the North sea is bringing good long-term jobs to coastal communities such as Waveney. I urge him to work with energy companies, as he has indicated that he will, to ensure that their investment is maximised and not undermined.

By doubling onshore wind capacity, £6 billion could be saved on household bills. It would also reduce our dependence on imported energy, contribute to our net zero targets and create thousands of jobs. Is the Chancellor still blocking the development of onshore wind?

The Chancellor is slowing one crisis while accelerating another: the climate crisis. Why is he investing in hydrocarbons, which should be staying in the ground, instead of investing in retrofitting properties, which would ultimately save energy costs, as Labour has proposed, and would make a real difference to people’s energy bills?

Unlike the Labour party, we believe in the North sea and in our domestic energy industry. It employs hundreds of thousands of people, and it will help us to increase our energy security, and to transition to net zero. That is why it is wrong to stigmatise it and absolutely right to support it, and to support its investment ambitions as we do.

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