17:56 Kirsty Blackman (SNP)

The Chancellor has been clear that the biggest losers from the Budget are oil and gas. Let us say that that was on the basis of the Conservatives’ really strong commitment to reducing climate change. It is not, by the way, but let us say for a moment that what they are doing is about ensuring that climate change targets are met and that we are getting closer to net zero. In that case, there would be a see-saw and a balance. They would be increasing the tax on oil and gas and increasing the investment in renewables, which is incredibly important. If we are to have a tax raid on the North sea, which impacts on communities such as mine in Aberdeen that are heavily reliant on oil and gas jobs, we need green investment, such as long-term funding decisions on carbon capture, usage and storage, which would bring in £30 billion of private investment.

The UK Government, however, are for some reason—possibly because it will be a big pre-election gimmick—refusing to make those decisions right now. They are refusing to put in the £28 billion a year that we need to secure jobs in a green future and to get that bonanza. We have such huge potential in renewable technologies, and we are failing to get there because the UK Government fail over and over again to put their money where their mouth is and make commitments. In fact, their mouth is in the wrong place on this as well. Now they are talking about cutting the green crap; they seem to have reverted to type on that. Their investment is at the lowest levels in the G7. It is shocking that the UK Government are refusing, and failing, to tackle the biggest issue of our time, which is climate change.

In Scotland, we have a focus on wellbeing: our decision-making processes go through a wellbeing lens. We do not just say, “Right, in our budget we are going to focus on GDP growth because that is the most important thing.” The most important thing is the wellbeing of our population. We ensure that people are better off and mentally and physically happier as a result of our decision making. For example, we ensure that our climate change targets are met so that their children and their children’s children have a planet to grow up on. We ensure they can afford to live. That is why we have things such as the Scottish child payment, free school meals for P1 to P5, baby boxes and free bus travel for under-22s. I do not know how many Members remember being under 22 and being totally frustrated at how much transport costs. People are able to make their way around Scotland, or even just get to school or uni, more cheaply than they could before because under-22s, eligible disabled people and those aged 60 and above in Scotland have free bus travel. That makes a real difference to people’s lives day in, day out, especially given that the cost of buses in Aberdeen is something like £5.10 a day at the moment.

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18:13 Philip Dunne (Ludlow) (Con)

In the remaining moments I have, I want to touch briefly on how the work of the Environmental Audit Committee relates to the Budget. I was very pleased that the Government have committed to the sixth round of the contracts for difference for renewable energy projects getting the largest funding allocation to date—more than £1 billion. I am pleased to see the Minister for Energy Security and Net Zero, my right hon. Friend the Member for Beverley and Holderness (Graham Stuart), in his place. The Government have clearly learned lessons from the previous round, and have recognised that prevailing market conditions will inject commercial realism into the UK’s approach to this increasingly competitive global market.

Although support for renewable energy production is welcome on the path to decarbonising the economy, it cannot happen in isolation. It is clear from our Committee’s current inquiry into enabling sustainable electrification of the UK economy that electricity infrastructure, including transmission, distribution and storage, will also have to increase materially to handle the increased generation capacity that will be required to meet the increased demand. It was good to see that recognised in the Budget, which builds on the energy system announcements last autumn to reform grid access. Since November, more than 40 GW of energy projects have been offered earlier grid connection dates, accelerating and modernising the system to allow more renewable energy projects to connect more quickly. I do not wish to pre-empt the conclusions of our inquiry, but the Government are bringing forward measures to remove barriers to infrastructure investment, and are developing important guidance to encourage better community benefit for those affected.

Finally, I welcome the further clarity on the carbon border adjustment mechanism—first confirmed in December—which will be introduced from January 2027. Our Committee did a significant amount in laying the groundwork for that policy, which I hope the Minister might recognise. By giving a date to which the industry can plan, it will have the confidence to invest in decarbonisation efforts; it will know that a carbon border adjustment mechanism will mean that less environmentally harmful products will be manufactured here and that we can reduce imports, so that the investments of UK manufacturers in decarbonising cannot be undercut through weaker environmental standards.

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18:26 Mr John Baron (Basildon and Billericay) (Con)

Investors are shying away from investment companies, discounts are widening and no new money is going into sectors such as renewable energy and infrastructure. Previously, sector investment trusts raised tens of billions of pounds for these valuable sectors. Even worse, companies are having to buy back their own shares, withdrawing investment from those industries. This is nonsense. Investment companies have a long and proud track record of helping investors to channel money into much-needed sectors. Being close-ended—and, because their shares are traded, not the assets, the share price already reflects the company’s cost, in my view—there should be no costings at all. The Financial Conduct Authority has gone as far as it believes it can without a change in the law. We have had conversations with the Government—with the Chancellor and the Economic Secretary—and a draft statutory instrument is before us. The consultation response has seen over 300 industry stakeholders and investment houses calling for investment trusts to be excluded as a constituent composite investment, which would solve the problem. Another SI is on the way, and discussions are ongoing.

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18:40 Damian Green (Ashford) (Con)

As I said, I am overwhelmingly positive about the Budget, but I wish to enter two caveats about issues that I hope can be addressed in future Budget. The first is about helping rural communities that want to decarbonise their heating. Four million people live in oil-heated homes in rural communities, and are off the gas grid. They want to do their bit for the environment, but they are disincentivised from adopting renewable liquid fuels. Those fuels have lower carbon emissions, but are taxed, while fossil-fuel heating oil is not. Scrapping the tax on renewable liquid fuels in the Budget would have reduced their cost and made them a viable alternative to fossil fuels; I hope that in future Budgets, my right hon. Friend the Chancellor will look to do that.

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18:57 Cherilyn Mackrory (Truro and Falmouth) (Con)

We have life sciences. Phytome, for example, is spearheading the evolution of plant-based medicine. Of course, we have also got our traditional industries of fishing and farming. In fishing, every one job at sea is reliant on 15 more on land—that is 8,000 jobs in Cornwall that rely on fishing. In farming, we have not just traditional farming—of course, we are protecting our farmers in that—but agritech. We have a fantastic company called Bennamann that specialises in methane capture: it cleans it, processes it and upgrades it to generate a better-than-net-zero gas to power the farming industry.

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20:40 Jack Brereton (Stoke-on-Trent South) (Con)

The only time the previous Labour Government reduced debt was when they initially stuck to Conservative spending plans before turning on the taps a couple of years later, creating false growth and an all-too-real and deep recession. Stoke-on-Trent lost some of the largest potteries on Earth as a result of Labour’s mismanagement and self-inflicted crisis. In contrast, under the Conservatives the gross value added of the ceramics sector has doubled in real terms. We must not jeopardise that with an emissions trading scheme that threatens similar damage to Labour’s climate change levy, from which ceramics was rightly exempted by George Osborne. We should not offshore the ceramics industry’s emissions and skilled jobs to countries with worse environmental standards, but that is exactly what happens when taxes and regulation are too onerous here. I hope the Government will seriously consider exempting the ceramics industry from the ETS.

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20:52 Alex Sobel (Labour)

What we saw last week was a Budget with no vision, no plan for getting us to net zero, no plan to drive investment in renewables and low-emission technology, no plan to boost the roll-out of electric vehicles, and no plan for retrofitting homes. The British people deserve better than that.

The windfall tax on oil and gas profits that the Government extended by one year until 2029 will raise an additional £1.5 billion, according to the Chancellor, as the tax, introduced in May 2022, raised £2.6 billion in its first year. Think what those billions could do if they were properly directed towards our net zero goal. The funds from the windfall tax could be ringfenced for renewable energy, fixing our grid, green skills training and securing the well-paid jobs of the future—our green transition—but they just disappear into a Treasury black hole.

When will the Government end the absurd practice of subsidies for industrial-scale wood burning? We heard nothing about this in the Budget last week. Drax power station burns wood pellets imported from north America to produce energy. It has had a subsidy of £11 billion of taxpayers’ money, and it is considered a renewable energy power station. Drax depends on Government subsidies for its support. When Drax was a coal power plant, it emitted 10 million tonnes of carbon. In 2022, Drax, now burning wood, emitted 12 million tonnes of carbon. Drax is the UK’s biggest emitter of CO 2 . The funds that subsidise Drax could be redirected to funding genuinely green and renewable technology, but under this Government, these funds are fuelling the climate crisis.

We Labour Members have a vision for Britain of a green sustainable energy future, and we have a plan to deliver it. Labour will introduce a proper windfall tax on the massive profits of oil and gas companies. In government, Labour will go further than the Conservatives and raise the windfall tax on oil and gas profits from 75% to 78% until 2029. A Labour Government will create a new national wealth fund, with £7.3 billion to be invested in the jobs that can rebuild Britain’s industrial strength. We will crowd in private investments in our ports, gigafactories and hydrogen, and protect our steel industry, which the Government have allowed to fail.

Labour will create Great British Energy, a new publicly owned energy company that will champion green energy to give us real energy independence. Great British Energy will invest in and deliver projects in partnership with the private sector. With our commitment to an ambitious £8.3 billion capitalisation of Great British Energy, we will invest in clean, home-grown power, which will cut Britain’s energy bills. Great British Energy will invest in leading-edge clean energy technologies, such as floating offshore wind, hydrogen and tidal. Labour is committed to clean power by 2030, and will pioneer offshore tidal by fast-tracking at least 5 GW of capacity, more than doubling our onshore wind capacity to 35 GW, more than tripling solar power to 50 GW, and quadrupling offshore wind; our ambition is for 55 GW. We will also double the Government’s target on green hydrogen, so that there is 10 GW particularly for use in the steel industry.

After 14 years of Conservative failure on climate change, Labour is ready to invest in Britain’s clean energy future. We are ready to make Britain a world leader on climate change, drive investment in renewables and low-emission technologies, transform our energy sector to lower our power bills, and create good clean energy jobs for Britain’s future.

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21:11 Alison Thewliss (Glasgow Central) (SNP)

There needs to be a lot more support for public services and infrastructure, greater cost of living measures and a just transition. The OBR points out that there is

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21:18 Jim Shannon (DUP)

The Government can still ensure that off-grid households can decarbonise in an affordable manner by delivering the renewable liquid heating fuel obligation consultation. Assurances were given by Ministers during the Report stage of the Energy Bill that the Government would move to a consultation in “the next few months”. That was over six months ago. I figure that a “few months” is less than six months. Therefore, I suggest that we should have some indication of what is happening. Perhaps the Minister could explain why this was a missed opportunity in the spring Budget. Will he also provide assurances on when the RLHFO consultation will be publicised and we will have an idea about what exactly it will mean?

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21:40 Gareth Davies (Conservative)

I would genuinely like to congratulate all Members from across the House on their contributions this evening, but I particularly appreciated the brass-necked wind-up from the official Opposition. Let us never forget that in 2010 Labour left office with fewer people in work, more debt to pay off and a deficit ballooning out of control. Let us contrast that with the UK in 2024, where, despite having to deal with the worst pandemic in 100 years, the worst war in mainland Europe since 1945 and the highest energy spike since the 1970s, this year we will have: inflation back to target; unemployment at record lows; wages rising; taxes on work falling; 4 million more people on a payroll since 2010; 3 million fewer people paying any income tax at all; the fastest decarbonisation in the G7; the highest state pension we have ever seen; and total departmental spending up 7% in cash terms this Parliament. The last thing this country needs now is five years’ hard Labour. For it is the Conservatives who will push people up who want to succeed, not pull them down when they do succeed; who believe in the dignity of work, which best delivers prosperity; and who know that growth cannot and should not solely come from the Floor of this House of Commons, but instead should come from the thermal insulation factory floors of Darlington and the ceramics factory floors of Stoke-on-Trent. The workers and businesses will drive our growth. This is a Budget for them, and I commend it to the House.

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