13:01 John McDonnell (Labour)

The Government are also putting the livelihoods of future generations at risk. A few weeks ago the world’s leading authority on climate change said that avoiding dangerous climate change would require “rapid, far-reaching and unprecedented” action. What did we get yesterday? We got no mention of climate change, no reversal of cuts to renewable energy, and no significant environmental policy.

Because it was not on a scale that would have had sufficient impact. I welcome interventions, but I think we should have a rule that when Members intervene they should describe their background, in this case as advisor to George Osborne, who cut back on the solar energy industry, who undermined wind power in this country, and who set us back so that we will never meet our climate change targets.

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13:56 Kirsty Blackman (SNP)

The other part of the jigsaw that is missing is a commitment to reducing the harmful climate change effects of the use of fossil fuels. In 2015, the UK Government cancelled their £1 billion carbon capture and storage competition, just six months before it was due to be awarded, after spending £100 million on it. That left Peterhead—a key candidate for support—behind. After three years of research and development, we have missed out on this vital industry of the future. The UK Government need to make an unequivocal commitment to supporting the development of CCS.

My hon. Friend makes a powerful point about carbon capture, and about the betrayal of the £1 billion project at Peterhead. Does she agree that, if the UK Government are serious about meeting the climate change targets under the Paris agreement, spending £100 million now, when we are behind the pace after abandoning a three-year £1 billion project, is just not good enough?

Absolutely. The potential benefits of CCS are unquestionable and, as my hon. Friend says, we need to get ahead of the curve again. We need the UK Government to commit to putting the money in now. That is especially important because their pulling the plug means there is now a lack of trust among the companies that are developing CCS. The UK Government need to make a clear and unequivocal commitment.

Lastly, in order to reduce climate change and to increase the use of healthier methods of transport, this Budget was an opportunity to reduce VAT on bikes. Just as we would like to see VAT removed from digital books, reducing VAT on bikes would make them cheaper for all and would be a real statement of intent from the Government on reducing climate change.

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14:23 Mr Barry Sheerman (Huddersfield) (Lab/Co-op)

The House of Commons Library tells me that I have listened to Budgets in the House 44 times, so I hope I am an experienced Budget evaluator. I always come to the Chamber to listen to the Budget, and I base my evaluation of its quality on two criteria. The first is the great global issues that we face, which for me are always the fragile planet, the environment, climate change and global warming, and the fact that the planet’s burgeoning population has to be fed, and fed sustainably. We also face the challenge of keeping the peace. Many of us thought that that could be taken for granted, but in the current global circumstances, keeping the peace has become a great concern for us all.

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16:07 Ed Davey (Liberal Democrat)

I refer the House to my entry in the Register of Members’ Financial Interests, especially with respect to renewable energy.

Not only did the Government get the short-term spending decisions wrong but they got the long-term spending decisions and strategy wrong. Where was the investment to tackle climate change? What about the opportunity in green growth—in our renewable energy? There are huge opportunities there, but there was nothing on that in the Budget. As for social justice, it was good to see some recognition that universal credit is causing pain out there, but the Budget did not go anywhere near enough. We are going to have to revisit this as a House if we are going to make sure that the poorest people in our country share in any future prosperity.

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16:45 Alex Cunningham (Stockton North) (Lab)

The financial health of industry in my area is absolutely critical. The attempts yesterday by the Chancellor to bury the bad news for industry, in particular energy-intensive industries, did not help at all. He did not mention it, but he did not bury the news very deep either: it is there for all to see on page 47 of the Red Book. If the changes in carbon taxes materialise in response to Brexit, it will cost individual firms millions of pounds. The carbon emissions tax is significantly higher than the average emissions trading scheme price over the past 12 months, which was just £12.30. This would increase the cost of carbon for UK installations across the country, currently covered by ETS, by 30%.

The Chancellor acknowledges the increasing high total carbon price, but proposes to freeze it at £18 a tonne of carbon dioxide for 2021. He might think that that is an ambitious move, but these plans come with little notice and a particularly high cost for industry. Firms like CF Fertilisers in Stockton are significantly exposed to the additional extra costs. The EU energy trading scheme is a market-based instrument for which companies had developed a strategy over time to ensure they were able to comply. Now, on top of the perfect storm of high electricity and gas prices, this carbon tax, coupled with the doubling of the gas climate change levy, is a very real issue for energy-intensive industries.

The Chancellor could have helped an industry facing such a dilemma by giving some indication of Government support for carbon capture, use and storage, but he did not. As I have said on numerous occasions, Teesside is ripe for investment in carbon capture, use and storage. The industry needs some indication that the Government are capable of making the right call on this matter. Perhaps once the task group on CCS reports we will hear something more positive from the Chancellor in the new year.

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18:22 Alex Sobel (Labour)

After the Government have been taken to court and lost three times over air quality, and following the Intergovernmental Panel on Climate Change report stating that we have just 12 years to avert climate change catastrophe, I expected this Budget to deliver the investment we need in clean, green infrastructure for our lungs and our planet. In a quest to bring down costs, the Chancellor has not looked to capitalise on the opportunities that a modern, green economy would bring to the UK. Instead, he has focused on miserly cost-cutting measures. This is a Budget of abject complacency in the face of climate catastrophe. As usual, the Government’s obsession with low-cost public services and their lack of any serious investment have left our environment, the water we drink and the air we breathe off the agenda.

The UK needs to lead the fight for cleaner air and carbon reduction. To do that, we need to incentivise a just transition for health, jobs and the environment. Why, then, has the Chancellor cut subsidies for plug-in hybrid and electric vehicles? How does he expect British drivers to make the switch from petrol and diesel cars if they are not encouraged to do so? Why does a Nissan Leaf have the same VAT rate as a Hummer? Should clean cars not be VAT-exempt? Where is the investment in the electric vehicle infrastructure that we so desperately need? In my constituency there is not a single public charge point; this is fourth time I have raised this issue in the House, and there are still no charge points. There are very few rapid charge points on British motorways, too. That does not build confidence in the new technology, and it leaves EV drivers with charge anxiety. There is no point in encouraging people to buy electric or hybrid vehicles if we do not provide the necessary infrastructure. The Government must do their bit. We need charge points in every community, rapid charge points across our road network and real investment in EV infrastructure and affordability.

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