Peter Aldous calls for closer dialogue between the Government and the offshore oil and gas industry to rebuild the UK’s reputation as a prime destination for investment in the energy sector to ensure energy transition is home-grown not outsourced.
Peter Aldous (Waveney) (Con)
I am interested in clause 19, which sets out how the energy security investment mechanism will operate: the energy profits levy will cease if the six-month average prices for both oil and gas fall below certain thresholds. That provision follows on from the Chancellor’s announcement in his spring Budget that the energy profits levy would be extended to 2029, though it would be disapplied when energy prices return to normal. My interest in the issue stems from my role as a constituency MP—activity in the North sea energy sector is vital to the local economy—and from chairing the British offshore oil and gas industry all-party parliamentary group. I have no particular issue with the mechanisms in clause 19, though I am worried that the current short-term approach to fiscal policy for the oil and gas sector undermines other Government objectives—in particular, the objective of enhancing the UK’s energy security, which would bring new, well-paid jobs to coastal communities such as Lowestoft, and the objective of delivering our net-zero targets.
I acknowledge that the Chancellor has an unenviable role and faces a significant dilemma. He is, in many respects, between a rock and a hard place. He needs to balance the books, and to support those families who continue to struggle with the cost of living crisis. It is thus understandable that he looks to energy companies to pay more as oil and gas prices have risen. They have been at very high levels; however, it should be pointed out that they have now fallen back to long-term averages. There is a significant risk that in pursuing such a course, he could imperil the inward investment that is needed to create long-term, sustainable jobs in coastal communities for those very people who are struggling to make ends meet.
The North sea has been the UK’s economic saviour for nearly 60 years. Some might say that we are nearing the end of that particular story. That is not the case. The North sea is transitioning from being a source of fossil fuels to the long-term home of renewables. That transition needs to take place as quickly as possible, but in a smooth and seamless way. It requires a stable and long-term fiscal policy, which I am afraid we do not have at present. The decision to extend the levy for a further year was unexpected by industry and presents a significant further challenge to investor confidence.
Energy companies are making investment decisions on projects that quite often have timescales of the order of 40 to 50 years. The fact that in the UK there have been four fiscal changes in the past two years deters investment and deflects it elsewhere. Such businesses are globally footloose, and they will go to countries where the fiscal regime is favourable and has a large degree of certainty about it. In the past, the UK has ticked that particular box, but we are not doing so at present. It should also be emphasised that, as well as operating worldwide, those businesses have interests in a wide variety of energy technologies—not just oil and gas, but the low-carbon businesses of today and tomorrow: offshore wind, hydrogen, and carbon capture, usage and storage. If they find the fiscal regime unfavourable for oil and gas, they will invariably not invest in those renewables, which are so vital for our future.
The initial feedback following last month’s Budget is that those concerns are well founded: investment decisions are being delayed and funds could well be diverted elsewhere. Offshore Energies UK, which provides the secretariat for the British offshore oil and gas industry APPG, has identified that £200 billion of investment that was awaiting the green light may not now happen. Cornwall Insight concludes that prolonging the levy
“could weaken investor confidence, at a time when the UK is seeking record levels of investment to deliver the transition to net zero.”
We are at risk of imperilling the next chapter of the North sea—an ongoing story that can not only deliver economic regeneration, but provide over the remainder of this decade 50 GW of offshore wind, 10 GW of hydrogen, and four carbon capture, usage and storage clusters, as well as supporting the home-grown oil and gas industry and helping us to meet our decommissioning commitments. In short, it could unleash an enormous amount of economic activity that can cascade right around the UK. To be fair to the Government, clause 19 does seek to address those concerns, but I urge them to map out a long-term strategy for offshore energy, building on the success of the 2021 North sea transition deal. They are now adopting a similar course in the nuclear sector. We need to get back to doing the same in the North sea.
It is appropriate to comment on the Opposition’s alternative proposal to extend the windfall tax. There is a real worry in the energy industry that that could exacerbate the worries that I have underlined. Offshore Energies UK has highlighted that those proposals could lead to the loss of 42,000 jobs and the wiping out of £26 billion-worth of economic activity. A concern that I hope the Opposition will allay is that they are looking at removing the capital and investment allowances that are vital to securing inward investment.
We are where we are, and I fear that some damage has been done. However, there is work to do to rebuild the UK’s reputation as a prime destination for investment in the energy sector, and we need to get on with that task without delay. The industry has noted the Government’s commitment to honour the sunset clause, and I urge the two Ministers on the Front Bench—my hon. Friends the Members for Mid Worcestershire (Nigel Huddleston) and for Grantham and Stamford (Gareth Davies)—to provide the further reassurances that are needed to reinforce that message, both this afternoon in their responses and as the Bill progresses through Parliament.
The importance of ongoing and meaningful dialogue between the Government and industry cannot be overemphasised. In the period from 2012, after the last windfall tax, up to 2021, when the North sea transition deal was agreed, that interaction was very much taking place. It has been lost over the past three very eventful years, but it needs to be restored as quickly as possible. If it is, we can still embark on a new golden era for the North sea: an era of home-grown energy transition, not an outsourced one; of reindustrialisation, not deindustrialisation; and of enhanced energy security and economic prosperity.
Peter Aldous MP visited William Hill to place a £50 charity bet on the 2024 Grand National, with all winnings going to a good cause of their choice.
And even if the horse doesn’t win, BGC members will still donate £250 to Peter’s nominated charity, ensuring no one misses out.
The Betting and Gaming Council (BGC), the standards body for the regulated UK betting and gaming industry, invited MPs to visit either a Paddy Power, William Hill, Ladbrokes, Coral or Betfred shop in their constituency to place the free charity bet ahead of the world’s greatest steeplechase.
If the bet is successful, all winnings will go direct to the MPs’ nominated charity, and if it does not, the charity will receive a £250 donation from the BGC.
The Grand National is the most popular horserace in the world and this year takes place on Saturday, 13th April, at Aintree Racecourse. The sporting spectacular is watched by around 600 million people across 140 countries, and it’s estimated over 13 million adults in the UK will have a flutter on the outcome.
Peter Aldous MP said:
“The Grand National is one of those great sporting moments when the whole nation comes together. I was delighted to visit William Hill to meet the staff and customers, take up BGC's generous offer of a charity bet, and also discuss the incredibly important work they have been doing on safer gambling.
“Betting shops employ tens of thousands on hard-pressed high streets and support our local economy through business rates contributions. And for regulars, they provide a community. I was delighted to visit and hear more about their place in our constituency.”
Betting and Gaming Council CEO Michael Dugher, said:
“Millions of us from all different backgrounds will once again come together to watch the Grand National and have a flutter on the world’s most famous horserace.
“It is an occasion like no other and demonstrates once again sport’s unique ability to bring the whole nation together. Betting shops support tens of thousands of jobs, bring vital revenue to the UK’s hard-pressed high streets, and support the national and local economies through tax and business rates. They also provide vital community for millions of betting and gaming fans.
“I also want to say a huge thanks to all MPs, including Peter, who have made the time and effort to meet with their local constituents working in high-street shops; for supporting so many good causes and local charities and for promoting the Grand National, which remains one of Britain’s biggest and best cultural and sporting events seen around the world.”
Betting shops support 42,000 jobs on the UK’s hard-pressed high streets, contribute £800 million a year in tax to the Treasury and another £60 million in business rates to local councils.
Meanwhile, a study by ESA Retail found that 89% of betting shop customers combine their trips to the bookies with visits to other local businesses.
According to previous industry research by the Betting and Gaming Council, approximately £250 million will be staked on the Grand National. Meanwhile, a 2023 report by Liverpool Business School found the 2022 Grand National had a total economic impact of over £60 million on the local economy.
The Grand National is expected to generate a further £3 million in tax revenues for the Treasury and £2 million via the horse racing levy to support the sport.
Following the Government statement on the Ombudsman’s investigation into the way that changes to the state pension age were communicated to women born in the 1950s, Peter Aldous calls on the Government to work with Parliament to quickly agree a mechanism for remedy and points out that failure to comply with the Ombudsman’s recommendations would be unprecedented and go against our system of democratic checks and balances.
Peter Aldous (Waveney) (Con)
I am most grateful to my right hon. Friend for his statement. The Parliamentary and Health Service Ombudsman is itself WASPI, having been conceived in the 1950s. Does my right hon. Friend agree that a failure by Government to comply with its recommendations would be almost completely unprecedented over the past 70 years, and would in effect drive a coach and horses through an integral part of our system of democratic checks and balances? With that in mind, will he confirm that his Department will work in full haste with Parliament to agree a mechanism for remedy? Will he outline the work he is carrying out to address further concerns that have been raised over systematic failure by the DWP over several decades to properly communicate future pension changes?
The Secretary of State for Work and Pensions (Mel Stride)
At the heart of this matter is the imperative to ensure that we fully and carefully examine the findings contained in the report. I will not be drawn today on where we may end up in respect of those findings, but I assure my hon. Friend that we will engage fully and constructively with Parliament on these matters.
On the publication of the Parliamentary and Health Service Ombudsman’s report on women’s state pension age, Peter Aldous calls on the Government to respond quickly and put in place a mechanism, working with Parliament, to ensure that this injustice, which has gone on for many years, is remedied as quickly as possible.
Peter Aldous (Waveney) (Con)
Thank you very much, Mr Deputy Speaker. I will conclude on the point that, I think, four other Members have made, including the hon. Member for Salford and Eccles (Rebecca Long Bailey), with whom I co-chair the all-party parliamentary group on state pension inequality for women. We have had the ombudsman’s report this morning. It makes grim reading for the DWP in relation to its maladministration over many years. Its findings on recommendations for compensation may disappoint many women, but the main issue coming out of the report is the need to lay the report before Parliament due to the low confidence that the ombudsman has in the Government coming up with a quick solution.
I thank my right hon. Friend the Leader of the House for her assurance that a DWP Minister will make a statement as soon as possible. May I urge her to convey to the Department the need to go much, much further much more quickly to put in place a mechanism, working with Parliament, to ensure that this injustice, which has gone on for many years, is remedied as quickly as possible?
The Leader of the House of Commons (Penny Mordaunt)
I can certainly give my hon. Friend the assurance that I will raise this matter with the Department. Indeed, I will be doing so on behalf of all Members who have spoken about it this morning. I thank him for all the work he has done with the all-party parliamentary group and on this issue specifically. As I said in my previous answers, I am sure the Secretary of State will want to update the House at the earliest occasion.
Peter Aldous welcomes the Government’s consideration of the case to fill the funding gap in the stalled Lowestoft Tidal Barrier project which will protect property and unleash the provision of new homes and business opportunities and seeks assurance from the Secretary of State that he will leave no stone unturned in working across Government so that the project can restart.
Peter Aldous (Waveney) (Con)
T5. Lowestoft is the largest town in the UK without formal flood defences, with the tidal barrier project on hold due to cost increases. I am most grateful to Ministers for considering the compelling case to fill the funding gap that would enable a scheme to proceed that will protect property and unleash the provision of new homes and business opportunities. Will the Secretary of State assure me that he will leave no stone unturned in working across Government so that the project can restart ? (901999)
The Secretary of State for Environment, Food and Rural Affairs (Steve Barclay)
I pay tribute to the amazing campaign led by my hon. Friend on behalf of those in his constituency. Already, £80 million of support has been secured from the Department for Environment, Food and Rural Affairs for that scheme. He will be aware that the local authority has changed the scope and driven the cost, so there is a question as to what contributions are made by partners, but he is a formidable champion of the scheme and £80 million has already been allocated.
Peter Aldous backs the Government’s plan to halve inflation, grow the economy and reduce debt but highlight the need for investment in skills and infrastructure and raises concerns about extending the sunset clause on the energy profits levy which could deter investment in important local growth industries such as offshore wind, and about the impact of the abolition of the furnished letting concession in areas where holiday lets do not distort the local property market but are vital to the local economy.
Peter Aldous (Waveney) (Con)
My right hon. Friend the Chancellor of the Exchequer is quite right to focus on improving the UK’s economic activity, where, as we have heard, we should be doing much better. We have a flexible labour market, and it is vital that we do not imperil it, but we also need a long-term strategy for investments in skills and infrastructure so that our economy can move into top gear, we can compete globally with the highest-performing economies, and we can bring prosperity to all corners of the United Kingdom.
There are measures in this Budget that are particularly welcome and which will help improve our economic performance. The 2p reduction in national insurance contributions and the increase in the child benefit threshold remove barriers to work. It is also vital that we secure investment for the businesses of tomorrow. The £1 billion for the renewable electricity auction allocation round 6, the £270 million combined Government and industry investment into research and development projects in the automotive and aerospace industries, and the £120 million for the green industries growth accelerator will all help to achieve this.
In almost every Budget, it is important to be wary of and to guard against unintended consequences, and there are two that I will briefly highlight from last Wednesday. First, I understand the rationale for extending the sunset clause on the energy profits levy, but there is real concern that this will deflect and deter investment for the industries of tomorrow: offshore wind, carbon capture, and hydrogen. These industries are vital to enhancing our energy security, bringing jobs to coastal communities and delivering our net zero targets, and I am concerned that, as the levy proposals stand, they could deter that vital investment. For my part, I shall be studying closely the provisions of the spring Finance Bill, and I would urge the Government to re-engage with industry at every opportunity.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
The hon. Member’s point about offshore renewables is very important. Does he agree that we must ensure, as a nation, that we construct those floating wind turbines in the UK rather than overseas?
Peter Aldous
Yes. If we look at the offshore wind sector deal that was signed in 2019, we can see progress in building local supply chains, but I share the hon. Gentleman’s doubt to a degree. There is still a lot more work to do, and on the manufacturing side of things I would agree with him that that could take longer than for other aspects of those local supply chains.
Secondly, I likewise acknowledge why the decision has been made to abolish the furnished letting concession. There are areas of the country where holiday lets are badly distorting the local property market, as we heard from my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken), who is no longer in her place. She made that point clearly, but there are many other areas of the country where holiday lets are not distorting the local property market. They are a vital part of those local economies, which are often in rural areas where there are limited other job-creating opportunities, and restrictions and limitations on the opportunity to diversify a business. Many such properties are also subject to planning conditions that prevent them from becoming available for full-time occupation on the open market. It is therefore important to be cognisant of the full impact of this proposal before proceeding. I see that the Financial Secretary to the Treasury, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston) is listening. We need a full impact assessment of that proposal before it advances.
To remove the stubborn productivity gap, it is vital to invest in skills and infrastructure. With such initiatives as the local skills improvement plans and lifelong learning, the Government have rightly recognised the importance of providing people of all ages with the opportunity to acquire the skills that are needed for the many new and emerging industries that are coming forward. Further education colleges and trainers currently face obstacles in recruiting staff, recovering VAT and supporting those who need to catch up on their learning following covid. It is therefore disappointing that no measures to address these challenges were announced last week.
Investment in infrastructure is vital if the east of England is to realise its full potential. It is therefore vital that funds are made available straightaway so that work on the Ely and Haughley junction rail improvement can begin without further delay. There were welcome announcements on this in the autumn statement, but there is local concern that the Government might be reverse ferreting on this issue. I hope that my concerns can be allayed.
This winter, the Norfolk and Suffolk coast has taken a battering that it has not seen for a very long time. In my constituency, in Lowestoft, Pakefield and Kessingland, this has undermined investment in the town centres, the ports and the tourism industry, including its vital leisure parks and caravan parks. Schemes have been prepared to protect these people and their property, and it is vital that they get under way as quickly as possible.
The Government are right to stick to the plan to halve inflation, to grow the economy and to reduce debt. As I have said, I believe that the Budget’s welcome initiatives will help to achieve those goals, but all around the UK, and particularly in East Anglia, we need to press ahead with strategic investment in both people and infrastructure—in flesh and blood and in concrete and steel.
Peter Aldous makes interventions in a Westminster Hall debate to highlight the fact that is already accepted by the Parliamentary and Health Service Ombudsman that women were not properly advised and informed and to call on Parliament to make recommendations to Government when the ombudsman’s final report is published.
Peter Aldous (Waveney) (Con)
I thank the hon. Member for securing the debate and for the great work he is doing. Unfortunately, Sir Gary, I have to leave early, so I will not be making a speech. The hon. Member said that the so-called WASPI women “argue” that they were not properly advised and informed, but the stage 1 report produced by the Parliamentary and Health Service Ombudsman actually confirmed that they were not properly advised and informed.
Jim Shannon (Strangford) (DUP)
I thank the hon. Gentleman for that, and he is absolutely right. I will come to that point and confirm it. The issue is all about fairness and equality, but, with respect to the Minister and the Government, they have fallen down on that.
Peter Aldous
I apologise. I was hesitating before saying anything because I did not want to stop the hon. Gentleman in his flow setting out what Government need to do. Does he recognise that there is a vital and pivotal role for Parliament to play when we receive the ombudsman’s final report in considering it and making recommendations to Government, which the Government should then properly and fully respond to so as to uphold the office of the ombudsman?
Jim Shannon
I had not finished; I was giving way to the hon. Gentleman. I am almost there, by the way. I will keep to your timescale, Sir Gary, simply because everyone here deserves to give their input. I told you I would do that and I will do that.
Compensating those 3.8 million women is recognition of the place in history held by that wonderful post-war generation. I say that again because that is why I am here: to speak for those ladies who contact me in my office all the time. Those are the women who have collectively and individually played a pivotal role in shaping and inspiring change in society. We salute those women for what they have done over the years. They have contributed to the workforce and society throughout their lives, and they deserve to retire with dignity and financial security.
Peter Aldous flags up concerns that the current maths and English functional skills requirement is an obstacle to a wider range of employers taking on apprentices, and calls on the Government to consider embedding English and maths elements into the apprenticeships standards.
Peter Aldous (Waveney) (Con)
18. What steps her Department is taking to help increase the number of occupations for which apprenticeships are available. (901915)
The Secretary of State for Education (Gillian Keegan)
I join you in your comments, Mr Speaker. My thoughts are with the family of Tommy McAvoy.
Thanks to this Conservative Government, nearly 70% of all occupations are accessible via an apprenticeship. That is a far greater reach than countries admired for their technical education such as Germany and Switzerland. I am sure that many Members joined the Prime Minister, the Chancellor and more than 60 ministerial colleagues out and about during National Apprenticeship Week. I was delighted to join Harry, Chloe and other EDF Energy apprentices off the coast of Blyth, as well as apprentices who are launching exciting careers at J.P. Morgan in the City. Apprenticeships are the route to a successful career, no matter where apprentices live or what they want to do.
...
Peter Aldous
I am most grateful to my right hon. Friend for those answers. Progress is being made, though the feedback that I am receiving is that the current maths and English functional skills requirement is an obstacle to a wider range of employers taking on apprentices. To remove that barrier, will my right hon. Friend consider embedding English and maths elements into the apprenticeships standards, so that they are relevant to the job role and employers can be confident that apprentices are acquiring the skills that they need to succeed?
Gillian Keegan
The Institute for Apprenticeships and Technical Education works closely with employers to ensure that all essential skills, including English, maths and digital, are embedded into apprenticeship standards, and it will continue to do so. We are also increasing funding by 50% to help more apprentices achieve up to a level 2 English or maths qualification alongside their apprenticeship if they do not already hold one, to help them get on in work and in life.
Peter Aldous highlights the challenges facing social care in places like Suffolk, where the population is increasingly elderly, and calls on the Government to commission a long-term workforce plan for adult social care equivalent to that for the NHS.
Social Care
Peter Aldous (Waveney) (Con)
3. What progress her Department has made on reforming social care. (901797)
The Minister for Social Care (Helen Whately)
We are making great progress on our 10-year vision for adult social care reform. We have introduced the first ever national career structure for care workers, and we have introduced new assessments by the Care Quality Commission, which will shine a light on how well councils are delivering their social care duties.
Peter Aldous
I am most grateful to my hon. Friend for that reply. In Suffolk, where the population is increasingly elderly, social care is under enormous pressure, and it is a significant challenge to recruit carers, pay them fairly and provide them with a proper career path. Therefore, I heard what my hon. Friend said, but will she consider commissioning a long-term workforce plan for adult social care equivalent to that for the NHS?
Helen Whately
My hon. Friend is right about the importance of the social care workforce: social care is its workforce. I can assure him that we already have a plan for the care workforce, set out in the “People at the Heart of Care” White Paper, and now we are putting it into practice. Our care workforce pathway is already being implemented, our new accredited qualification for care workers will be launched later this year, and we are backing social care with up to £8.6 billion in extra available funding.
Peter Aldous co-signs a letter from MPs calling on the Chancellor to increase funding to enable local councils to provide quality special educational needs and disabilities (SEND) support.
Peter said:
"It is really important that local authorities have the resources they need to be able to provide quality SEND support in our schools. I have no hesitation in supporting calls for the Chancellor to increase SEND funding in the Budget."
