Carbon Budget Delivery Plan
I call Sureena Brackenridge —you have two minutes.
Showing every spoken contribution, including 5,750 under 12 words. Hide short remarks
I call Sureena Brackenridge —you have two minutes.
Well done for keeping to time. I am calling the Front Benchers at 5.28 pm. I call Jim Shannon—you have a minute and a half.
Thank you, Minister; that leaves a moment or two for Abtisam Mohamed to complete our discussion.
Can the Secretary of State confirm whether the Prime Minister, or anyone acting on his authority, declared his conflict of interest before Mr Kogan was asked to reinstate his withdrawn application? If a conflict of interest was declared, who declared it, and when?
It is not my style to attack the integrity of any Member of Parliament, so may I just ask a general question about the whole process of securing public confidence? Can we now consider tightening the ministerial code, and indeed the whole process, so that at the beginning of the process civil servants check on whether a Minister has received any donations, and if that is the case, the Minister recuses himself or herself at the very start?
Does my right hon. Friend agree that the real downfall of the Government dates from when they did not face down their own Back Benchers and deal with the rocketing benefits bill? Frankly, the country is going broke and the Government must have the courage to deal with millions of people who are not contributing to society.
No, it was definitely the Korean war!
Order. The hon. Gentleman arrived late. He has made an intervention already and is now making a very long intervention. He should have some regard for other Members who have been here throughout the debate.
I call Luke Akehurst, who I am afraid has been left with only a couple of minutes.
Order. Unfortunately, we have reached 11 o’clock, and although the next debate has been withdrawn, I do not have the discretion to extend this debate. That is something that we might consider on the Modernisation Committee, so that we have a bit more flexibility than we had today. Motion lapsed (Standing Order No. 10(6)).
My right hon. Friend is making a very able speech explaining why the clean power 2030 action plan is so ruinous for consumers. What she has not mentioned is that trying to connect up this very dispersed array of wind farms across the North sea requires an enormous amount of new infrastructure. We now know that the load factors are being reduced, so we will require 30% more wind turbines to create the same net zero effect. The wind farm investors themselves do not have to pay the full infrastructure costs for connecting all that up; it is the consumers who pick up the bill. So, there is another hidden subsidy for wind power that is not reflected in the guaranteed prices that are already being paid.
The Minister will let me explain why, in the Alice in Wonderland world of the Government’s net zero policies, it is right to import liquefied natural gas, which for some reason does not count in our carbon footprint, instead of producing our own gas, which would count but which would be cheaper, far easier and more carbon-efficient to produce in our own country. Why are the Government pursuing that ludicrous policy, which is self-harming the economy, making our trade deficit worse and losing tax revenues for the Government because we are not exploiting our natural resources?
On that point, will the hon. Gentleman give way?
Will the Minister give way?
Would my hon. Friend agree that what has actually changed is the inability of the Prime Minister and the Chancellor to control their Back Benchers, who now feel free to demand whatever public expenditure they think is convenient?
During the general election, the Labour party said that it would not increase income tax, national insurance or VAT. It repeated that it would not increase taxes on working people. In its manifesto, it said it would increase spending by only £9.5 billion and that that was to be paid for by £7.3 billion in extra taxes and £3.5 billion in extra borrowing. That was a modest plan with a prudent margin. It was a plan put forward to the electorate to show that the party could be trusted with the public finances. My constituents might be surprised to learn, however, that if they now look on the Labour party website, that manifesto is rather more difficult to find than it was a couple of months ago. It is fair to say that we Conservatives did not believe them, so we were not entirely surprised when, within weeks of moving into Downing Street, the Chancellor told the country that she would have to raise taxes after all. She had apparently found a magical £22 billion black hole. I say “magical” because nobody other than the Government seemed able to locate it—certainly, the Office for Budget Responsibility could not find it. It was, of course, a fiction to give the Chancellor cover for what she always intended to do, which was a massive increase in taxes, borrowing and spending, because that is what Labour does. Dogs bark, cats miaow and Labour increases taxes, borrowing and debt. In her first Budget last year, the Chancellor did not raise taxes by the £7.3 billion promised in the manifesto. She increased taxes by £40 billion. She increased borrowing not by the promised £3.5 billion, but by £32 billion. And believe it or not, she did not increase spending by the promised £9.5 billion. She increased it by £72 billion. The Chancellor imposed £40 billion of extra taxes on our economy. She increased employer national insurance, stamp duty and capital gains tax and she imposed extra taxes on family businesses and family farms, then she pretended that none of those were taxes on working people.
The hon. Gentleman will know that the Liberal Democrats joined a coalition Government in 2010 with the Conservatives. We inherited a deficit of £156 billion in 2010—11% of GDP—and it took 10 years, to 2020, to reduce that steadily to 2% of GDP. For all the moaning and whining from the Labour Benches about austerity, what we were trying to do—as a coalition Government for five years and as a Conservative Government for the remainder—was to live within our means, and that is tough. That is really difficult. It is about improving public services, but without necessarily hosing money at them. We see that most successfully in the field of education. In England we have seen a dramatic increase in reading standards and the standards of examination of English pupils caused by genuine reforms. That compares very favourably with what has happened in Scotland and Wales, where those reforms did not take place. The skill of government is in improving public services without always spending more money. The Liberal Democrats used to have a few Members who were called “Orange Book” Members. It is a shame there are so few of them left. Who does the Chancellor think she is kidding when she says she has not increased taxes on working people? Try telling the farmers in my constituency that they are not working people, or the young family where both parents work and are saving to pay the stamp duty on their first home. As Labour Members will recall, that first Budget was not well received, so to draw a line under her broken promises, the Chancellor said: “We’ve now wiped the slate clean. It’s now on us. We’ve put everything out into the open, we’ve set the spending envelope for the course of this Parliament. We don’t need to come back for more.” Except we know that that is not true. She is coming back for more. She is now set to break that promise again by putting up taxes again.
I would suggest two reasons. First, our economy has slowed down as a result of the very tax increases that the Chancellor has imposed. Secondly, the feral Labour Back Benchers have made them lose their nerve. The Prime Minister and the Chancellor therefore cannot control public expenditure in any way at all. The British people are already paying the highest tax burden in 70 years and Labour wants to increase it further. It is sad to say that this Government have no clue as to how the economy works. I genuinely believe that their Front Benchers want to reduce unemployment, but have they ever considered that if they increase employer national insurance charges and the cost of employing labour, businesses might use less of it? If they pass an Employment Rights Bill that increases the cost of labour, might businesses use less labour? Might that be why unemployment has increased every month since they took office? Is that why unemployment increases under every Labour Government? Labour is just as ignorant on the effects of taxes and spending. If the Government tax entrepreneurs, there will be less enterprise. If they increase benefits, they should not be surprised if it becomes more attractive to claim them. Unfortunately, Labour’s answer to every question is more spending because, of course, it is what they do best: spending other people’s money. We never hear about its plans to improve efficiency or get better value for the taxpayer because there are no such plans. Labour’s higher taxes and borrowing are leading to higher unemployment and lower growth. We are in a doom loop created by the Chancellor, and if we are to revitalise our economy, the first step is for the Government to control public expenditure. That is why we have outlined our plans to reduce expenditure by £47 billion. We will reduce welfare spending by £23 billion. Unlike the Liberal Democrats, Reform UK and other high-spending left-wing parties, we would keep the two-child benefit cap. We would reduce the size of the civil service to where it was in 2016, saving £8 billion, and reduce overseas aid by a further £7 billion. We would use those savings to cut both borrowing and taxes to bring about a new spirit of enterprise and confidence in our country. It is ironic that it is the Conservatives calling today for the Government to stick to their manifesto promise not to increase taxes. The British people will notice if they break that promise for a second time.
Does my hon. Friend agree that this very long lead-in period for the Budget has caused enormous uncertainty for businesses, which have faced a string of briefings in the media about every possible tax rise, and that the very date that the Chancellor has chosen for her Budget is itself causing more uncertainty and delaying investment decisions?
It is a pleasure to serve under your chairmanship, Sir John, and to speak in this important debate. I thank the hon. and learned Member for Folkestone and Hythe (Tony Vaughan) for securing it and for his opening remarks, and I am grateful to all Members who have contributed constructively. This is not the first time that the Minister and I have discussed SEND in the House, and I suspect it will not be the last. It is hugely important. Every Member who has spoken has set out their experience of similar SEND issues, and our inboxes are inundated with messages about them, especially from parents who need our support. Providing for children with special educational needs is one of the most complex issues facing the country today. Before I talk about SEND in Kent in depth, I want to put on the record my concerns about the way that Kent county council is being run. It is now under Reform’s control, and it is clearly a blueprint for what will happen wherever Reform is in charge. We should not forget that senior members of Reform UK have claimed that SEND is being “hijacked by…parents who are abusing the system”. As I have said before in this Chamber, that is hugely disrespectful, and I believe apologies are necessary. Issues such as SEND are of profound concern to all our constituents, and such remarks are far from serious; they suggest that there is no real thinking going on in Reform about how to deal with one of modern Britain’s most important issues. Kent county council is yet to set out a clear plan for meeting residents’ needs, and that has been the case since Reform took over earlier this year. Families are understandably anxious, given that the council is failing to provide certainty on vital services. We should focus on that seriously, because the pattern could be replicated right across the country if Reform takes charge of more councils. The pattern is already being replicated in other Reform-run councils. Closest to my constituency, the Reform leader of Warwickshire county council recently declared an emergency over SEND funding. I worry about the council’s approach to education, because the council leader recently suggested that children as young as eight should have to walk more than 5 miles to school. Clearly, that is not a serious way to look at our approach to education, or to cut costs, if that is the intention. In their campaigns last year, many Reform candidates said they wanted to cut council tax, but they have now discovered what we already knew: that a huge amount is spent on special educational needs. They have no credible plan for cutting council tax. In fact, many Reform-led councils are touting council tax rises of about 10%, so we should focus on that and hold them to account. The hon. and learned Member for Folkestone and Hythe said explicitly that residents will face higher taxes. It is no secret that many local authorities, including Kent, face significant pressure in meeting rising SEND needs. To put it in perspective, Kent spends more on SEND than the England and south-east averages, and more than the 10 nearest comparable councils. In 2021-22, SEND pressure resulted in a £97 million overspend. In government, we recognised the seriousness of the challenge, not just for Kent but across the board, and introduced the safety valve programme to ensure that councils were not left to face the crisis alone. In Kent, that programme made great progress, which shows that the Department for Education and local authorities can work together. The agreement with the then Conservative-led Kent county council was backed by £140 million from the Department for Education and £82 million from the council. It set out a longer-term plan to expand specialist provision, strengthen mainstream support, review EHCP processes and improve preparation for adulthood. Under the Conservatives, Kent submitted the required monitoring reports. The Department accepted them, and every scheduled payment was released. That shows that Kent county council was starting to deliver on its side of the agreement in challenging circumstances.
I did not have the education portfolio at that time, so my remarks on that will be limited. We can agree that the system is and was under great strain; that is no secret. That is why I have said previously that it requires a cross-party solution. We will have to work together, because the challenges we faced will also be faced by the Reform council and the Labour Government. The hon. Lady will recognise that the circumstances were challenging and that Government money was put forward. I want to ask the Minister, in the same vein that the hon. Lady put that point to me, whether she can provide clarity on what the Government will do to ensure that local authorities remain solvent and are not forced into section 114 notices as they look at SEND reform. Will the Government extend the statutory override, which is due to expire in 2026, to give councils certainty? As progress is made in the SEND field, there is real concern about the delivery of special free schools. I will highlight those in Swanley and Whitstable, where families were promised places. It is clear from Kent county council’s response to the recent inquiry by the shadow Secretary of State for Education, my right hon. Friend the Member for Sevenoaks (Laura Trott), that the hold-up lies with the Department for Education. If we are to support children with SEND, and the Government say that is a priority, why are they not acting on that? We have a similar instance in Solihull borough that I am told is also being held up at the Department. Can the Minister give a cast-iron guarantee that the Swanley school will open by 2027? Is she in a position today to issue a clear timetable on that? If not, I am happy for her to write to me. She knows that I will certainly write to her to chase answers to those questions. Those promises were made to children and their families, and anything short of that would be a betrayal. In Kent and local authority areas across the country, the issue of SEND continues to cause deep stress and anxiety. The demand for SEND provision in Kent has been rising, especially in the post-covid world. Many families are already facing long delays, so parents are understandably anxious about proposed changes that might affect their children. The Minister knows that because her first outing was at a well-attended SEND debate. According to official DFE data, there are 54,497 pupils with SEND in Kent—that includes EHCP and non-EHCP special educational needs—and more than 6,600 of them are pupils in the independent sector. That means that 10.8% of SEND pupils in Kent are in independent schools. The Minister knows that I have been very vocal on the Education Secretary’s vindictive decision to impose an education tax on our constituents. Has the Minister considered the consequences of that for SEND pupils who are forced to leave the independent sector if independent schools are forced to close? I hope she has some data on that. The point was made by the hon. Member for Ashford (Sojan Joseph) that parents should not feel blindsided. As the Government come forward with plans, communication is really important. There is also concern about the scrapping of EHCPs. Those are not just legal documents; they are lifelines that provide tailored support and set out binding commitments from schools, health services and care providers. Sixty per cent of children with an EHCP in England are in mainstream schools, yet Ministers have failed to clarify whether they will receive full support under the reforms. This is really important and I encourage the Minister to answer that point. Unfortunately, anxieties have been further exacerbated by the delay in the SEND White Paper, which has been pushed to the new year. We know that SEND is not a new problem; we are holding debates and tabling parliamentary questions on the matter. Can the Minister today confirm a specific date for publication of the schools White Paper, and does she have any update on the future of EHCPs and how SEND will be provided for in future? As I said, parents and students in Kent deserve answers. They are clearly not getting leadership from the Reform-led council. I ask the Minister to commit to changing course and giving parents the clarity they deserve.
My right hon. Friend is making an excellent speech. I am really worried about my constituents who will face higher bills going into winter and beyond. The message is clear, is it not? This Labour Government have the power to get bills down, but they are making a choice not to do so.
The hon. Member is making the argument for exploiting our home resources so we do not have to import such resources from elsewhere, but that is exactly the argument when it comes to North sea oil, is it not?
I have not had time to go on my hon. Friend’s website, but I hear it is a good read. The fact of the matter is that he puts forward a policy that will cut energy bills—the opposite of what the Government are doing—create jobs in the North sea and ensure economic growth. Is that not the case?
Q12. I would like to ask the Prime Minister for his help. It has been over six months since the Supreme Court ruling on the meaning of sex. Yet public institutions are still knowingly and intentionally breaching the law. HMP Downview, a women’s prison in Banstead, has five biological males in it. If that was not bad enough, those males are mixing with the women in the daytime without adequate supervision. Will the Prime Minister ensure that biological males are moved out of women’s prisons immediately?
More people are now recognising that all is not well with the current approach to energy policy or net zero. That matters because the cost of energy is deeply tied to the cost of living, the cost of doing business, and the security and resilience of our country. It therefore follows that any energy policy which sees us spend £250 million per month to import energy from Europe because our own production cannot meet demand can only be called a failure and a security risk. The country urgently requires an energy policy that is realistic, reliable and rooted in the pursuit of prosperity, yet what successive Governments have legislated for has been anything but. The net zero agenda is not working and it is time we were honest about that fact. The target may have been well-intentioned, but the current pathway is unaffordable and unworkable. What many people will be wondering is, how did we get to this point? To address that, we must look back to the Climate Change Act 2008. When the Act was passed, it was the first legislation in the world to set a legally binding national framework for reducing greenhouse gas emissions, but it applies only to territorial emissions; that is, emissions that occur within the UK’s borders. This means that while it can be made to look as though we are meeting our climate targets, with a reported 54% reduction in territorial emissions since 1990, we are in fact exporting an increasing share of our emissions elsewhere. This phenomenon, known as carbon leakage, occurs when UK-based industries shut down or relocate overseas to avoid high carbon costs, only for the UK to continue importing the very same goods, often with higher embedded emissions. Net zero by 2050 may lower UK emissions on paper, but perversely, it is also driving up global emissions in real terms as we become more reliant on imports. Several forces contribute to this situation. First, UK electricity prices are now among the highest in the developed world, driven in no small part by net zero policies. Secondly, under the UK emissions trading scheme, firms in energy-intensive sectors must buy allowances for every tonne of carbon dioxide they emit—a cost their foreign competitors may not face. Thirdly, the rise of green finance regulations such as mandatory environmental, social and governance disclosure and climate stress testing has constrained domestic investment into high-emissions sectors, even as our competitors around the world forge ahead without similar constraints.
I am going to continue, but thanks for the offer. The economic consequences are now plain to see. Since 2021, the output of UK energy-intensive industries has fallen by around 35%. In sectors such as steel, petrochemicals and fertilisers, this trend is not theoretical, and the damage already done to once-proud industries is plain to see. At Grangemouth in Scotland, INEOS recently announced the closure of its ethanol production facility. Its founder, Sir Jim Ratcliffe, issued a stark warning at the time, saying that Britain is offshoring its emissions and onshoring virtue—we close plants here, import the same products from abroad, and claim we are greener. Nowhere is this more apparent than in the decision to reduce North sea oil and gas output in favour of increased imports. On paper, this slashes the UK’s territorial emissions, but in reality, it leaves us more reliant on volatile overseas markets, increases our net carbon footprint and surrenders billions in domestic tax revenue and thousands of skilled British jobs. We appear to have confused decarbonisation with deindustrialisation. What do we have to show for years of adherence to the Climate Change Act and everything that came with it? We now have the second highest domestic energy prices and the highest industrial electricity prices in the world, with 12 million families struggling to pay their energy bills. I defy anyone to try to sell that as any kind of success. The old orthodoxy has been tried and found wanting, and we now need a better way forward. That is what we are offering today with our cheap power plan, which delivers on energy security, supports economic growth and protects the public from unaffordable green extremism.
This is a little parochial to London, but can we ensure that local authorities in London are consulted, along with the Mayor of London, so that their power to decide is not usurped by the mayor?
On a point of order, Madam Deputy Speaker. Earlier today we had an urgent question on the process for appointing the Independent Football Regulator. In her response, the Secretary of State for Culture, Media and Sport was unable to give crystal clear answers about the involvement of the Prime Minister in that process. This evening we learned from No. 10 that the Prime Minister did sign off on the appointment of David Kogan, who donated to the Prime Minister’s campaign—an involvement that the Prime Minister’s ethics adviser has called regrettable. Can you advise if the Prime Minister will make a statement? What alternative mechanisms are there for him to inform the House and update the record?
It is a pleasure to serve under you, Mr Turner, and I am pleased to respond to the regulations on behalf of the Opposition. Increasing the immigration skills charge is a welcome move, and my party has no objection to the legislation. Our priority must be to ensure that every British citizen has the opportunity to gain the right skills and find good work. When an employer hires from abroad, it is only fair that they should pay their share towards investing in our own people. That sound principle was established by my party in government. However, the regulations alone will not achieve the transformation that we need in our immigration system. The Home Secretary has said that the Government “will do whatever it takes to secure our borders”, and the Minister said just now that net migration remains too high and must come down, but tough words have not led to a real plan for cutting immigration yet. Ministers have tried to claim some credit for the almost 50% fall in net migration triggered by the visa changes introduced at the end of the last Parliament. I want to be clear that my party believes that even that leaves immigration unacceptably high. The Government’s impact assessment forecast an absurdly tiny reduction—of only 14,000—in net migration through the measures in the immigration White Paper, which the immigration Minister mentioned. Where the Government have acted, they have announced several proposals to make it easier for people—such as Afghan dependants—to come to the country and even to create a new scheme for Gazans and their dependants. The Government said that they would “smash the gangs” and stop the crossings, but the deal with France has already failed. It is not even one in, one out and back again. Ninety-four people have been sent back to France but more than 12,000 have come here since the deal came into effect. On the training of British workers, the Government have defunded level 7 apprenticeships for anybody over the age of 22. Pumping the economy with cheap foreign workers has harmed our productivity, undercut wages and changed the social fabric of our country. We have a short-termist economic model that prioritises consumption over investment and imported labour over British workers. My party’s position is clear: net migration must be brought down drastically, but we must also have a robust and ambitious post-16 education system that gives young people in this country the chance to thrive in the trades and industries of the future.
Is the number of channel crossings up or down in the last year?
I inform the House that Mr Speaker has selected amendment (b), in the name of the Prime Minister. I call the shadow Secretary of State to move the motion.
For the record, I have never been a fungi.
Order. Before Matt Rodda makes his intervention, I want to be clear that the language we use also means that we do not accuse each other of falsehoods.
Order. The Minister will be aware that many people hope to contribute, so I hope he will come to a conclusion shortly.
Order. Before I call the Liberal Democrat spokesperson, to ensure that most people can get in, Back Benchers will be on a four-minute speaking limit.
Order. Back-Bench speeches are already limited to four minutes. If interventions are long, the limit will drop further. Please be mindful of that.
Order.
Order. I have not changed; I am still here.
Order. Martin Wrigley has agreed to do three short minutes before we go to the Front Benchers.