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Conservative and Unionist Party

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  1. ParliamentDr Luke Evans

    Taxes

    We on the Conservative Benches have been struggling to get an answer on the question of the 50% reduction in integrated care boards, for which the expected redundancy bill is about £1 billion. Today, the Government have issued a press release that says that they have dealt with that. Yet in response to my written question on the subject, the Health Department said that it could not provide an answer because it does not know the numbers, so I have received a holding answer. How much will the redundancy payments cost, and will it come from the Health budget or the Treasury budget?

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  2. ParliamentDr Luke Evans

    Taxes

    The hon. Gentleman talks about the trading union, but if we were to go back into the EU, one of the things we would have to take is freedom of movement. How does that tally with the Lib Dems’ position on dealing with immigration?

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  3. ParliamentDr Luke Evans

    Taxes

    The hon. Gentleman has missed something from his list: the Government’s own assessment shows that when winter fuel payments are cut, it puts 50,000 people into absolute poverty and 100,000 people into relative poverty. A 2017 report by the hon. Member for Chipping Barnet (Dan Tomlinson), now the Exchequer Secretary to the Treasury, said that cuts to the payment would kill 4,000 people. Was that factored into the hon. Gentleman’s assessment when he went through the Lobby to vote on the measure?

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  4. ParliamentDr Luke Evans

    Taxes

    This toxic concoction creates a cumulative cycle. The pubs that do survive have to reduce staffing and hours. In rural areas, that might increase loneliness and reduce opportunities for young people to get jobs. That cyclical nature means a spiral into decline. I am concerned about that in my area. Does my hon. Friend share that concern for his area?

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  5. ParliamentDr Luke Evans

    Taxes

    My hon. Friend is making an excellent speech about what happened a year ago. Another problem is that all the kite flying in the Treasury at the moment means that people are now making decisions to withdraw their pensions schemes, not employ people and not invest. Is my hon. Friend seeing that in her constituency, as I am in mine? All that kite flying has real-world consequences, even before we get to the Budget in three weeks’ time.

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  6. ParliamentDr Luke Evans

    Energy

    We saw this in the health service, with the private finance initiative; £13 billion of investment became £80 billion of public debt to pay back. Does my right hon. Friend worry that Labour seems to be following exactly the same principle by locking in these high future costs for our children and for the country?

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  7. ParliamentDr Luke Evans

  8. ParliamentDr Luke Evans

    Energy

    In the previous debate, we talked about tax, and the funding that the hon. Gentleman mentions was also being used to deal with the tax burden on the high street. Will he explain the Liberal Democrat policy? How would they levy these taxes on social media giants and big banks, and where would that money go? It seems as if they are spending it twice in one afternoon.

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  9. ParliamentDr Kieran Mullan

    Draft Victims and Prisoners Act 2024 (Permitted Disclosures) Regulations 2025

    It is a pleasure to serve under your chairship, Mr Dowd. I join the Minister in paying tribute to Baroness Helen Newlove, somebody I had the pleasure of getting to know and working with over the past 12 months. She was a fierce advocate for victims and their families, and her direct experience of an appalling crime made her credible and impactful in all the work she did. I remember discussing the changes that were being made in Committee to the Victims’ Commissioner and using her as an example of someone who made the most of the power she already had. She would have made even more use of the new legislation that strengthens the Victims’ Commissioner. As the Minister said, we are considering delegated legislation to make an addition to section 17 of the Victims and Prisoners Act 2024, which was passed by the previous Government. I am delighted that my right hon. Friend the Member for Melton and Syston—the original sponsoring Minister for that legislation—is with us on the Committee. That Act rightly ensured that victims can never be prevented from reporting crimes to the police and other bodies because of non-disclosure agreements. We can be proud of introducing that measure. It was passed with a clear mechanism for extending the bodies to which a disclosure could be made. Today, we are making use of that power, to enable victims who have signed NDAs to disclose information to the Criminal Injuries Compensation Authority when making a claim for compensation, and to the courts or tribunals that deal with any related proceedings. That will ensure that the CICA has a full picture of the circumstances that it should properly consider before deciding what, if any, award should be made to a victim. At present, victims are unable to tell it whether any compensation has already been received, which is a matter it should be able to consider. The regulations also extend the definition of a qualified lawyer to include registered foreign lawyers. That practical step will allow victims to seek appropriate advice wherever they are based. As I am sure the Minister will confirm, the original legislation was carefully considered and had various checks and balances in place. As she said, the wholesale recasting of those mechanisms in the Victims and Courts Bill was part of a relatively late amendment that did not have the full and detailed consideration that the House would have been able to give it in Committee. She will therefore understand why we want to see further debate, discussion and consideration of this new approach as the Bill progresses through the House.

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  10. ParliamentDr Kieran Mullan

    Independent Football Regulator

    I thank the Secretary of State for explaining, and I am sure that people are glad to hear about the involvement of a sponsoring Department and a sponsoring Minister in a public appointment. In answering my question, she need not revisit the points made about her role—we all understand them, and she has explained them clearly. She will know that when a Secretary of State has made a provisional appointment, it is not unusual for it to go to No. 10 for further review. Putting aside her role, can she confirm whether anybody in No. 10 was involved in any way, shape or form in this appointment?

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  11. ParliamentDr Ben Spencer

    Broadband Coverage

    Increased gigabit coverage means more people accessing essential services online and an increasing need for cyber-security measures and a strong, open UK market for cloud services. Following recent outages, what assessment has the Minister made of the risk to Government digital services due to their refusal to diversify supply away from US big tech and instead support UK small and medium-sized enterprises?

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  12. ParliamentDr Ben Spencer

    Taxes

    The Minister just said at the Dispatch Box that national insurance contributions for employers were raised “to support the NHS”. Was that hypothecated or not?

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  13. ParliamentDr Ben Spencer

  14. ParliamentDr Ben Spencer

    Taxes

    The Minister has just talked about the Chancellor’s fiscal rules. Who was it who changed the fiscal rules?

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  15. ParliamentDr Ben Spencer

    Taxes

    Tax collection and working for HMRC are important jobs. Obviously the tax collector gets a bad rap in popular culture, but I wish to thank the hon. Gentleman’s parents and family for what they do.

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  16. ParliamentDr Ben Spencer

    Taxes

    The hon. Gentleman is making an interesting argument. As I understand what he is saying, does he stick to the manifesto promises on which he was elected?

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  17. ParliamentDr Ben Spencer

    Taxes

    One of the striking features of this debate is how much time the Government Benchers have spent discussing our record in Government and our future plans. It is almost as if they are lingering, cheering on, and desperately in need of a change of Prime Minister. Will they facilitate that?

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  18. ParliamentDr Ben Spencer

    Taxes

    One thing that this Government are really good at is creating a feeling of fear and worry, particularly among my constituents. They are looking at what has happened to them as a consequence of decisions that were taken in the last Budget. I am talking about people from all walks of life, across the board—people who employ people, people who are employed, people who work in hospitality and people who work in the charities sector, who have had to make very difficult decisions as a consequence of the impact of the last Budget.

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  19. ParliamentDr Ben Spencer

    Taxes

    I thank my hon. Friend for his intervention. That was pretty much what I was going on to say. We are seeing this constant kite-flying about various different potential taxes or cooked up schemes that could affect different walks of life, as the Government are trying to keep meeting their burgeoning and ever-growing spending commitments. That is making people lose confidence, and it has a real impact on the decisions they are making here and now, even without the policies having been enacted. Like it or not, the Budget on the 26th is already here and operating. It is operating through the media, and people are making decisions now that are having a real impact, particularly in my patch.

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  20. ParliamentDr Ben Spencer

    Taxes

    We were hoping that this debate would clarify the inability of the Prime Minister to answer the question asked by the Leader of the Opposition only two weeks ago: about whether he would repeat the manifesto commitment not to raise the big three taxes. We are in a period of uncertainty that we are trying to resolve, and it has been created by this ongoing kite flying.

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  21. ParliamentDr Ben Spencer

    Taxes

    I thank my constituency neighbour, and of course I am always happy to take interventions.

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  22. ParliamentDr Ben Spencer

    Taxes

    I thank the hon. Gentleman for his clarity. Labour Members have been keen to talk about the past, so I am glad that he brought up Gordon Brown, who sold the gold at record levels, which led to a mess that we had to clean up. Homeowners are concerned, particularly in my constituency, where many people are asset rich but cash poor. Many pensioners are worried about pension tax. People who do the right thing—make responsible decisions that we encourage, whether investing in pensions or saving for the future—are seen as targets, or potential targets, by this Government when it comes to paying for the profligate spending being offered. Those people are desperately worried. The truth is that we have to stop spending money that is not ours to spend.

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  23. ParliamentDr Ben Spencer

    Taxes

    I have to say that I am getting a bit exhausted by this “14 years” narrative and this recurrent chewing over the past. I want to talk about the future and decisions now. I want to talk about bringing hope for the future again. If the hon. Gentleman wants to talk about the past, we can talk about the past—the dodgy private finance initiative deals under the previous Labour Government, or Gordon Brown selling the gold. We can talk about the International Monetary Fund bailout. I might go back to the future, but if the hon. Gentleman wants me to continue in the past, I can do so. I am happy to take an intervention.

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  24. ParliamentDr Ben Spencer

    Taxes

    My hon. Friend is absolutely spot on. Our constituents are hurting. They are in a difficult situation and very worried about what is going to happen in two weeks’ time. They look at this place and see Government Members just wanting to talk about the past over and over again.

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  25. ParliamentDr Ben Spencer

    Taxes

    I have to apologise to the hon. Member. I came into the House in 2019, and it strikes me that this debate is probably better suited to 2018, before I was elected. On the situation that we find ourselves in, many Labour Members have spoken about the Chancellor or the Government bringing in free this and free that. The Government do not have money and the Chancellor does not have money. It is not even just taxpayers’ money that they are pledging to spend; it is our children’s money. That goes to the core of the problem that we face. The decisions that the Government are taking to keep on and not cut spending and to keep on borrowing and borrowing are not on my head. They are not on the heads of anyone in this room. Those decisions are on the heads of our children. Families know how to budget, and this is the equivalent of a parent saying, “We fancy going on holiday to—I do not know—Lanzarote this year and we are going to borrow money to do it. I am not going to borrow it on me, though; I am going to borrow it on my kids. They will take out the loan and they can pay it back in future.” It is fundamentally and morally unacceptable that we are in this position and that the Government do not have an approach to try and drive down the deficit and pay back the debt. That is why I am so pleased that the Leader of the Opposition announced the golden rule for making sure that policies going forward recognise that we cannot keep on spending money that we do not have. In the last Government, from 2010 onwards, we worked really hard on driving down debt, and we had almost got there, in terms of reducing the deficit, when covid kicked off. Can people imagine the situation we would have been in if covid had kicked off without the work we had done to balance the books and without the fiscal firepower that we had to get through it? I remember the debates that we had around covid, and I remember well the first year—I am sure everyone in this Chamber does, whether they were a Member or not. I remember early on being desperately worried that the shadow of covid would loom long and loom hard, and that, over the next decade, we would see the impact of turning off the economy for two years.

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  26. ParliamentDr Andrew Murrison

    Taxes

    So far, Labour Members do not appear to have mentioned covid. We reduced the deficit by 80%, which enabled us to spend £373 billion to support households and businesses during those years. I have businesses in my constituency that would no longer be in business had it not been for that support. What does the shadow Chancellor think would happen if, God forbid, we had a similar event right now? The answer is, as I suspect he is about to tell me, that the Government simply would not be able to sustain households and the economy in the way that we did.

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  27. ParliamentDr Andrew Murrison

    Energy

    Would my right hon. Friend agree that the Government could at least be consistent in their management of contracts for difference and auctions? Does she share my bemusement at the fact that they have dismissed one way of providing about 7% of our grid requirements in fairly short order, which is accepting the interconnector between Morocco and the UK? That would bring reliable solar and wind-powered energy to the UK.

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  28. ParliamentDr Andrew Murrison

    Energy

    The Minister’s constituents, like mine, are worried about their electricity prices right now—not in 10 years’ time or 20 years’ time, but right now. They are paying the highest electricity prices, bar one, in the world and the industries and businesses on which they rely are paying the highest electricity prices. A third of the wholesale price of electricity is the carbon tax. There is a solution here, is there not? It is to reduce this ridiculous carbon levy.

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  29. ParliamentDame Caroline Dinenage

    Independent Football Regulator

    I want the independent regulator to succeed—not least because of clubs like mine, Portsmouth football club, whose fans had to step in and buy it after it had gone into administration twice—but we need transparency and trust in public appointments. The Secretary of State has said repeatedly that the Culture, Media and Sport Committee found Mr Kogan appointable, and that is correct; we did so under the remit with which we were asked to work. However, we did so taking the unprecedented step of including a recommendation for him to take “concrete steps to reassure the football community” of his neutrality, because it was Mr Kogan—not the Department, and not the Secretary of State—who told the Committee about the donations, at the very meeting that was held to decide whether or not he was appointable. The commissioner’s report points to a wider issue relating to the Department’s public appointments process. All but one of the last 10 public appointments involving parliamentary scrutiny have featured problems with the candidate or the process at some point, which are undermining the organisations concerned and the people who are picked to lead them. Does the Secretary of State accept that the Department must do better when it comes to public appointments, and may I ask her what concrete steps it is taking to achieve that?

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  30. ParliamentDame Caroline Dinenage

    Taxes

    I apologise—I may be a little hard of hearing. Could I ask the hon. Member once more for a quick yes-or-no answer? Would he vote to get rid of the two-child benefit cap?

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  31. ParliamentDame Caroline Dinenage

    Taxes

    It is a pleasure to follow the hon. Member for Harlow (Chris Vince). I thank him for cantering us through his mother’s career at HMRC—on behalf of the whole House, I thank her for her service, and I ask him to pass on our very best wishes. Madam Deputy Speaker, as a near neighbour to my constituency, I am sure that you will know that the history of Gosport has always been umbilically linked to the fortunes of our armed forces. The town was effectively nationalised by the Royal Navy two or three centuries ago. As the size and structure of our defence base changed, with that, over many decades, went many of the jobs and livelihoods that depended on it. Job density on the Gosport peninsula is almost 50% lower than in the wider south-east region, which is an issue that I have spent 15 years as an MP trying to help drive solutions for. There is nothing more important to an area like mine than maintaining the conditions that give businesses the confidence to invest, employ and grow, but the overwhelming foundation stone for growth, and for the innovation and investment that will solve the productivity puzzle that the UK is facing, is that businesses need to be able to make long-term decisions and plan for the future. Employers in my constituency, both large ones like StandardAero, QinetiQ and STS Defence and the numerous small and growing businesses, need to be able to rely on stable borrowing costs and to know that the cost of materials will not rise unsustainably in order to have the confidence to take on new staff and start apprenticeship programmes. Investors like those who took the plunge and moved to the Solent enterprise zone at Daedalus airfield, creating hundreds of local jobs in the process, need to know that if they put their capital at risk by investing, the Government will not reach in on a whim to take a large slice of any reward. The fact is that employer tax rises put all of that at risk. That is what we have seen since last year’s Budget and why local people are nervous about this year’s Budget too. Tax fulfils two purposes: one, which the Chancellor knows well, is to raise revenue for the Government, but I am not convinced that she has given much thought to the other, which is influencing changes in behaviour. The pessimism and growth downgrades in our economy over the past year have provided hard and fast evidence that changes to the tax regime are at least as powerful at achieving the second goal as the first. Some £40 billion of tax rises very effectively mowed down those green shoots of post-pandemic recovery, but worse than that, they incentivised businesses in my Gosport constituency to make decisions that run in direct contrast to what our area needs. There are fewer employment opportunities and fewer chances for young people to build good-quality careers. I have heard worrying stories about the impact that the employer national insurance rises announced in last year’s Budget of unintended consequences have had in my constituency. The common thread is that the national insurance change hit the businesses for which labour is the highest cost hardest, putting services that my constituents rely on every day at risk. A fifth of everyone who works in Gosport works in caring, leisure and other service occupations. Those are by far the biggest employment sectors, and account for almost three times the average for England, so my constituents felt the Chancellor’s national insurance rises the hardest.

    Hansard source
  32. ParliamentDame Caroline Dinenage

    Taxes

    My hon. Friend is 100% right to point out that people are making knee-jerk decisions because of fear about what the Chancellor will do, and they are delaying business decisions that they might otherwise have made that would have brought growth to my constituency. My constituency lies on the south coast. The stunning Solent coastline may mean that Lee-on-the-Solent, Stubbington and the wider Gosport area is a wonderful place to retire. As I often repeat, we have the largest proportion by percentage of veterans of any place in the United Kingdom, but that requires adequate health and care provision. However, care providers, whose main cost is personnel, are struggling. The Nuffield Trust has calculated that the national insurance rise costs England’s 18,000 independent adult social care providers £940 million, which has severe consequences for the elderly and vulnerable people who need the service. One local provider, who operates a 44-bed care home offering residential care for the frail elderly and those living with dementia, suggested that they had no choice but to pass those national insurance rises directly on to their customers. As a result, one constituent told me that he was seeing an increase of nearly 8% in his brother’s care home fees. At the other end of the spectrum, Hopscotch nursery, which looks after 1,900 children across our local region and provides fantastic care and support, told me that the jobs tax added £1 million to its overheads—that is a 10% increase, which means a 10% fee increase is being passed on to many of my constituents. Working parents need childcare, so working parents have to pay. What is the impact? Reduced household spending and a slower economy or, even worse, a parent dropping out of work to look after the children. Perhaps that is why we have seen growth flatline, borrowing costs rise and, this week, unemployment reach its highest level since lockdown. On 26 November, will the Chancellor demonstrate that she has learned the lesson that tax rises that hit employers’ bottom lines have serious implications for our businesses, communities and economy? I would be shocked if she has not, but we are still hearing reports that hiring costs are going to increase yet again. None of the hospitality and retail businesses in my constituency will welcome that. After all, the sector has already seen 80,000 job losses. I am particularly concerned for young people. A recent Telegraph article said that young people were giving up on Gosport because of the lack of employment opportunities. For many, a job in hospitality or retail is the first step on the route into work. Businesses in the sectors that take on so many young people across my constituency, from adult social care and childcare to hair and beauty, are telling me that they are not taking on more staff as a result of the Chancellor’s changes to national insurance contributions. In fact, the National Hair and Beauty Federation told me that, at the current rate of decline, there would be no new apprenticeships in that sector at all within the next few years. It is not a coincidence that this year my constituency saw the number of young people between 18 and 24 years old claiming unemployment-related benefits rise by 31%. So when the Government conduct their new independent review into why this is happening, they might want to start by looking in their own backyard. When the Chancellor is considering the vast array of tax measures at her disposal to fill the £30 billion black hole, will she consider the impact on the employment of young people of any proposals to further penalise retail and hospitality businesses? She might even consider taking a Conservative growth policy, and announce that business rates will be scrapped for high street businesses such as pubs. It is not only businesses that support growth. Across Gosport, Lee-on-the-Solent, Stubbington and Hill Head, many people dedicate their own time to volunteering, towards supporting sports clubs, charities, health forums and community organisations. Those groups are the backbones of our communities, but like any organisation they cost money to run. The Culture, Media, and Sport Committee, which I chair, has heard how increasing costs have impacted the ability of charities and voluntary organisations to deliver the services that local people rely on and love. We often forget that charities face employment costs too. Despite 83% of charities recording an increase in demand for their services over the past 12 months, last year’s tax hike added a combined £1.4 billion to the wage bills of more than 44,000 charities. A huge amount of pessimism is growing in the sector. A third of charities are reducing their workforce as a result of the tax rises, and a similar number think that the sector is in an unhealthy space. The increase might be easier to shoulder were it not for the parallel drop-off in funding streams. Tax rises mean less money for charitable giving, especially if the Chancellor is going to go after pensioners with her increase in income tax. I cannot stress enough how much tax rises have hurt and will continue to hurt the charitable sector, and the unintended consequences are huge. We have less charitable giving and fewer hours volunteered, as people work longer and salary sacrifice schemes are raided, while increased costs threaten jobs at national charities such as Oxfam, Scope and the National Trust, which face the loss of £50 million through restrictions on their ability to claim gift aid. Sports clubs do a fantastic job of alleviating pressure on charities and the NHS, but they can also reduce the burden on the Chancellor to pay out-of-work benefits. On current estimates, spending on working-age disability and incapacity benefits is expected to increase by £25 billion to more than £70 billion by the end of this Parliament, and an estimated 148.9 million working days were lost due to sickness or injury in 2024. Physical activity can play such a vital role in the prevention of so many conditions, and so many of our sports clubs lean in, but the tax rises in last year’s Budget mean that the sector is in a precarious position and unable to meet its potential. The facilities that teams use to practise, play and socialise need staff as well as revenue streams. Tax undermines the work being done by our sports clubs to increase the take-up of physical exercise, reduce the burden on the NHS and keep our communities together. We do not yet know what the Chancellor plans to announce at the Budget in a couple of weeks’ time. Last year we saw £40 billion-worth of tax rises. It was the highest tax-raising Budget in a generation, and I know that many people in my constituency were shocked. That was not what the Government promised when they were in opposition or at the general election. We now fear that the Chancellor will go big on tax rises, despite categorically saying last year that she had wiped the slate clean and would not be coming back for more. My concern for my constituents is that they have seen no tangible benefit from last year’s Budget, just pain, and they will undoubtedly shoulder the burden whenever new measures are announced.

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  33. ParliamentClaire Coutinho

    Energy

    I beg to move, That this House calls on the Government to introduce a plan for cheap power by cutting public expenditure to remove the ‘Carbon Tax’ (UK Emissions Trading Scheme) from electricity generation and end Renewable Obligation subsidies; notes that the UK has the highest industrial electricity prices in the world and the second highest domestic electricity prices; further notes that high power costs are holding back economic growth and making households poorer; believes that cheap energy is essential to enable economic growth, the expansion of the artificial intelligence sector and the electrification of heating and transport; further calls on the Government to stop the Allocation Round 7 auction, which will lock consumers into high energy bills for decades; also notes that three quarters of the UK’s energy needs are met by oil and gas, and recognises the vital contribution of the North Sea industry to the nation’s energy security, to skilled employment, and to the public finances through billions of pounds generated in tax revenue; notes that shutting down domestic oil and gas production would increase reliance on foreign imports with higher carbon emissions; and also calls on the Government to end the ban on new oil and gas licences and to scrap the Energy Profits Levy in order to maximise investment in that sector. Our cheap power plan would cut electricity bills for everyone by 20%, and under it, we take a common-sense approach to British energy security by backing the North sea. The plan recognises that the biggest problem the country faces is the cost of our electricity. It is a problem for living standards, for industry, for artificial intelligence and for electrification. The focus of any Government should be making electricity less expensive, not more expensive, as Labour’s plans will. They should be about making electricity cheap. Under our cheap power plan, we would axe the carbon tax—which has gone up by 70% this year under Labour, pushing up everybody’s energy bills—and scrap the renewable obligation subsidies, which result in some wind farms get three times the market price for electricity. I would like to start by thanking the Liberal Democrats, who came out this morning as backing the second part of our plan. I would also like to thank Reform, which appears to have copy and pasted the plan wholesale, and the Tony Blair Institute, which just two weeks ago said that we need to ditch Labour’s disastrous clean power plan in favour of a cheap power plan that takes off carbon taxes. That sounds familiar.

    Hansard source
  34. ParliamentClaire Coutinho

    Energy

    I thank my right hon. Friend, who is so knowledgeable on matters to do with energy. He is right: the only people who have not got the message are Labour Members, who are on the wrong side of this debate. The Secretary of State promised to cut bills by £300, but bills have gone up by £200 since the general election. I warned Labour Members over and over again that this would happen, but they did not listen. Now, under their plans, energy bills will keep on rising. They might not want to hear that from me, but they should listen to the trade unions, or to energy bosses, who came to Parliament just a few weeks ago and, in a bombshell moment, said that even if gas prices went to zero, bills would still rise because of Labour’s plans. I would hazard a guess that their view is shared by the Prime Minister, given that he tried to sack the Secretary of State at the last reshuffle. What does the Prime Minister know that these guys don’t, I wonder? Our electricity is already some of the cleanest in the world, but it is also the most expensive. If we want people to adopt electric cars or electric home heating, we need to make electricity cheap. If we want artificial intelligence or industry to succeed in this country, we need to make electricity cheap. If we want people to have a better standard of life, so that they can spend more money on their families than on their bills, we need to make electricity cheap. Our cheap power plan would cut electricity bills by 20%, and not just for a favoured few, whereas Labour is pushing up bills for 22 million families to give handouts to 6 million. Our plan would cut bills for everybody—households and businesses. It would mean £165 off the average family’s bill, but even more if they spend more—and we could do it now.

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  35. ParliamentClaire Coutinho

    Energy

    The hon. and learned Gentleman is right to raise the plight of Northern Ireland. As he knows, there is a single energy market on the island of Ireland, but we need to cut electricity costs for everybody, right across these isles. The first part of our plan would be to axe the carbon tax. The carbon tax on electricity pushes up the price of gas, wind, solar and nuclear, and it has gone up by 70% this year, thanks to the Government’s policies. We asked Labour Ministers about this, and they pretended not to know anything. We warned them not to put the tax up, and they said it was a Conservative scare story, but here we are. The Secretary of State blames gas for high bills, and I am sure the Minister will do the same in his speech, but a third of what we pay for gas is a carbon tax that the Government choose to impose. If the Secretary of State thinks that the price of gas is too high, he could take off the carbon tax and cut the price of gas by a third tomorrow. Guess what? That would make wind, solar and nuclear cheaper, too. Every time someone blames gas, it is like them complaining that their bath is overrunning when they will not turn off the taps. It is in the Government’s gift to axe the carbon tax. It has gone up because of them, so what are they waiting for? Secondly, when the wind blows, there are wind farms in this country getting three times the market price for electricity, thanks to renewables obligation subsidies. That is clearly mad. The Secretary of State doubled those subsidies when he had his last chance to ruin the energy system. We closed the scheme in office, but it is time to scrap it. Those two policies would cut people’s electricity bills by 20% now, in time for winter—and in time for us to be a world leader in AI, and to stop the crippling redundancies in the industry that are coming down the track. Instead of taking up those policies, the Labour party is doing something very different: it is intent on locking us into higher prices for longer. The results of the Secretary of State’s botched wind auction will become clear in January. When the Government promised to cut bills, the cost of electricity was £72 a megawatt-hour. Last year, they locked in a fixed rate of £82 for offshore wind, and this year they are offering up to £117. These are fixed-rate, inflation-linked contracts, and they have extended the length of those contracts, so we will be paying these prices for 20 years. Essentially, they are signing us up to a 10% fixed-rate mortgage for 20 years, because they do not want to be on a 4% variable that moves around. The problem is this: if they sign up to higher prices than the current cost of electricity—this is before we include all the extra costs of wind, such as paying to turn it off when it is too windy, and paying for back-up when it is not windy enough—how will that cut bills? There will be higher prices for longer. Those are the prices that not only you and I will pay, Madam Deputy Speaker, but that our children will pay.

    Hansard source
  36. ParliamentClaire Coutinho

    Energy

    That is exactly right, and I will come on to that point in a moment. Everyone remembers those contracts. My hon. Friend is absolutely correct; the Secretary of State is signing us up to this century’s PFI, but this time, the cost goes straight to our energy bills.

    Hansard source
  37. ParliamentClaire Coutinho

    Energy

    My right hon. Friend makes an excellent point about the reliability of electricity, which is what we need. We need electricity that will work in the winter when the sun is not shining, or when the wind is not blowing. The question I would ask is this: why is the Labour party signing up to those high prices and locking all our constituents in for 20 years? It is because the Secretary of State is in the pocket of the wind developers. These are the highest prices for wind power that we have seen in a decade. [Interruption.] Ministers might shake their heads, but that is just a fact. It is much higher than the price of electricity right now, so why would they be buying more than ever before at the highest prices in a generation and fixing those prices for 20 years? I say this to Labour Members: if their constituents are saying to them—which I am sure they are—that their bills are too high now, what will they say to them in January, when it will be the Labour party that locks them all into even higher prices for longer?

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  38. ParliamentClaire Coutinho

    Energy

    I remind the hon. Gentleman that when I was Energy Secretary, bills came down by £500. Under this Secretary of State, they have gone up by £200. What he needs to explain to his constituents is why signing up to higher prices on inflation-linked contracts for 20 years will fulfil the promise he made to those constituents to cut their bills by £300. I wish he could explain that. It is worth Labour Members listening to this. From the Tony Blair Institute to the most respected energy economist, Sir Dieter Helm, everybody has pointed out this risk to them. It has not come to them without warning, the fact that they are signing up to prices much more expensive than gas for decades. They are on the wrong side of this debate and they are on the wrong side of consumers. Come January, when the results are published, everybody will be able to see that. And they will ask them: were you warned? Did you do your job in Parliament and speak up for me and my bills? Here is the problem. Their whole position is not driven by what is best for consumers; it is driven by ideology. Nowhere is that clearer than in their war on the North sea. When Scottish Renewables says that Labour’s policy on oil and gas is damaging the transition, surely even Labour Members must realise that they are on the wrong path.

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  39. ParliamentClaire Coutinho

    Energy

    My hon. Friend is, as ever, an expert on this issue. If we look at the price cap and why it went up recently, it is those hidden costs. It was the balancing costs, paying wind farms to turn off when it is too windy. Next year, the network costs are about £100 per family. He is absolutely right that we have to look at all the extra costs that are coming down the track.

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  40. ParliamentClaire Coutinho

    Energy

    My hon. Friend is exactly right. These are political choices and the Government should reflect on them. When it comes to the North sea, we know that we will need oil and gas for decades to come—even the Climate Change Committee acknowledges that—yet thanks to the Government’s policies, we are paying Norway billions of pounds for gas from the exact same fields they are banning the British industry from drilling.

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