Peter Aldous highlights the importance for the UK to secure high, sustained economic growth across the country which can be achieved by addressing the cost of living crisis, building more houses, investing in new jobs in the renewables sector, investing in infrastructure, recognising net zero as an opportunity to revitalise coastal communities and revitalising town centres.
Peter Aldous (Waveney) (Con)
It is imperative that we secure high, sustained economic growth right across the UK. Some welcome policies are already being implemented and there are some good initiatives in the King’s Speech, although we face enormous challenges. The focus of my comments will be on coastal communities and on East Anglia.
I suggest that to deliver enduring economic growth, we need to address six issues. First, there is the cost of living crisis. Covid has a long and vicious tail, the cost of living crisis is still very much with us and this winter is likely to be very tough for many people. The household support grant has been successful and must continue, and other measures such as an increase in the local housing allowance must be given full consideration. Welfare reform must provide a clear and supported pathway for those who are some distance from the workplace.
Secondly, we must build more houses, particularly for social rent. The vehicles of delivery are primarily the housing associations, many of which are currently facing significant challenges, and Homes England. The recent announcement of funding to redevelop the former Sanyo site in Lowestoft is particularly welcome.
Thirdly, in coastal Britain, in places such as Lowestoft, there are exciting new jobs emerging in the renewables sector. Last week’s announcement of funding for local skills improvement plans, including for Norfolk and Suffolk, was welcome, but we need to ensure that trainers and colleges such as East Coast College in Lowestoft receive realistic revenue funding settlements. Progress has been made in recent years, but further education still receives a raw deal.
Fourthly, investment in infrastructure right across the UK is vital—in Lowestoft, construction of the Gull Wing bridge is well advanced—and there now needs to be an emphasis on improving regional connectivity, whether road, rail or the digital highway. Around the UK, to encourage investment and to protect homes, coastal communities must be made secure from the more prevalent extreme weather conditions we are now experiencing. With an eye to the opportunities arising from offshore energy and sustainable fishing, there must be fiscal incentives to encourage investment in port infrastructure.
Fifthly, net zero must be seen as an opportunity to revitalise coastal communities all around the UK. I can understand, and I support, the rationale for the Offshore Petroleum Licensing Bill, but it must be part of a long-term strategy up to 2050 and beyond, to maximise private sector investment. Energy policy must be set in a 30-year, not a five-year, framework.
Sixthly and finally, we need to revitalise our towns, which for centuries have been hubs of economic activity all around the UK. Town deals, of which Lowestoft is a recipient, are welcome, as is the recently announced long-term plan for towns, but those initiatives can provide financial support for only a limited number of centres, and we need to put in place a growth framework for all towns that promotes their revitalisation and ensures they remain honeypots for setting up SMEs. That framework could include making it easier to set up banking hubs—at present, there is a very high bar to setting them up—and continuing the reform of business rates. We made a start in the Non-Domestic Rating Act 2023, which received Royal Assent last month, but it was only a timid move towards getting the business rates multiplier back down to between 30p and 35p in the pound. That is needed to ensure that businesses can plan with some certainty, rather than having to wait each year for the cliff edge of whether the Chancellor will extend business rates relief.
We should also consider the zero-rating of VAT for redevelopment in and around our town centres. Town centres across the UK have an awful lot of heritage that, properly realised and embraced, could help to promote them and get them back to being magnets and catalysts for economic growth.
Peter Aldous welcomes the Non-Domestic Rating Bill but stresses this must only be the start of business rates reform which must be more radical and carried out more quickly, particularly the uniform business rate multiplier must be reduced to an affordable level, the complex myriad of reliefs removed and annual valuations introduced.
Peter Aldous (Waveney) (Con)
This Bill, unlike the Levelling-up and Regeneration Bill, on which we considered a further round of Lords amendments yesterday, has progressed through Parliament quickly. Second Reading in this place took place on 24 April, and the Bill will complete its passage today or tomorrow. It was a 2019 Conservative manifesto commitment to carry out a fundamental review of the business rates system. This Bill is the start of that process, but it does not mark its completion, and on its own it cannot be described as fundamental.
The amendments before us are straightforward. Lords amendment 3 is a drafting correction to omit a requirement relating to Wales that is now obsolete. Lords amendments 1 and 2 relate to the new duty to notify. They cap the level of, and increase the burden of proof required for, penalties that will be applied for not complying with the obligation to give required information to the Valuation Office Agency. They are to be welcomed, but as highlighted on Report, this burden should have been much reduced and there should be reciprocal penalties on the VOA.
As I have mentioned, this Bill must mark the beginning of the reform of business rates, not the completion of the task. Business rates remain a heavy and uncertain burden on many businesses. They act as a brake on growth, disincentivise capital investments and are a barrier to levelling up. Reform must be more radical and must be carried out much more quickly.
I urge the Government to strive towards achieving the following goals. First, the uniform business rate multiplier must be reduced to an affordable level. The UBR currently sits at 51p in the pound. At such a high level, it deters investment and ultimately reduces the tax base. It should be reduced to the order of 34p, the level at which it was first introduced in 1990. Lowering the UBR would have the long-term effect of expanding the tax base. A failure to do this will ultimately see the Government increasing the UBR on an ever-shrinking tax base, and in doing so, threatening a vital source of local government revenue.
Secondly, as important as they are to so many businesses, we ultimately need to remove the myriad sticking plaster reliefs that are invariably lobbied for and announced at every spring Budget and autumn statement. They are an implicit admission that the UBR is too high. The Government have been forced to offer many of these reliefs as many businesses are unable to pay a UBR of 51p. By removing these reliefs and reducing the UBR, the Government would simplify the system and reduce the administrative burden on both ratepayers and the VOA. Instead of the annual cliff edges, as businesses lobby for and then nervously wait for a relief to be extended, such a reform would introduce an element of long-term certainty, which would encourage investment.
Finally, while the Government have taken a welcome step in the right direction by moving to three-year revaluations, they must keep going towards the ultimate goal of annual valuations. Shorter valuations are necessary to ensure that business rates respond to the dynamic and increasingly volatile movements of the market. It is vital that rateable values are assessed as frequently as possible to ensure that ratepayers are paying a fair amount.
My last point is to express regret at the curtailment in the definition of a “material change of circumstances”. This is a provision that gives ratepayers recourse to pursue a relief on their business rates bills when circumstances outside their control hinder their ability to run their businesses. Despite the Government’s protestations, the Bill in effect disapplies many common situations of material change that up to now have been acknowledged as such and are even described in the VOA’s own guidance.
In conclusion, this is the start of the reform of business rates, but it is not the finish. There is some way to go before we reach that Magnus Magnusson moment. I thank my hon. Friend the Minister for listening to my concerns during the passage of this Bill, and I am grateful to him for meeting me last month to discuss the situation. I have subsequently written to my hon. Friend the Financial Secretary to the Treasury setting out some ideas as to how this reform process can be continued. I would be grateful if he and she committed to completing the task of the fundamental review of business rates that is so vital for businesses large and small all around the UK.
Speaking in a Westminster Hall debate on the future of horseracing, Peter Aldous highlights the importance of the supply chain which extends from racecourses to the countryside and on to licenced betting offices employing people on high streets everywhere around the country.
Peter Aldous (Waveney) (Con)
I have a confession to make: Fakenham was the first racecourse I ever went to. When I went, it had a chase course that went out beyond the point. Would my hon. Friend agree that the supply chain for British racing extends out of training centres and the courses we know about, into the countryside and studs? Its tentacles go right through towns in this country into those licenced betting offices that are features of all our towns. There are people employed in that wider industry on high streets everywhere around this country.
Jerome Mayhew
I am grateful to my hon. Friend. He is quite right. It is not just about the betting offices in towns, but the restaurants and hotels that are supported by Fakenham race days.
In Prime Minister’s Questions, Peter Aldous highlights the ongoing national crisis in NHS dentistry and asks when the dental recovery plan will be published and seeks assurances that funding will be ringfenced to deal with emergencies and to help clear the backlog.
Peter Aldous (Waveney) (Con)
Q13. With the ongoing national crisis in NHS dentistry being raised here most weeks, can my right hon. Friend advise as to when the dentistry plan produced by the Department of Health and Social Care will be published? Can he ensure that any clawed-back unspent funds are ringfenced for NHS dentistry, so as to deal with emergencies and to help clear the backlog? (906726)
The Prime Minister (Rishi Sunak)
We are investing £3 billion in NHS dentistry, and the reformed dental contract is helping to improve NHS access for patients. I am pleased to say that NHS dental activity in the past year increased by almost a quarter compared with the year before, but the forthcoming dental recovery plan, which will be out shortly, will include action to incentivise dentists to deliver even more NHS care.
As the Bill comes back before the House of Commons from the Lords, Peter Aldous urges the Government to consider the Lords’ pragmatic and conciliatory position in respect of allowing local authorities to hold virtual meetings, and welcomes the Government proposed amendment on addressing climate change mitigation in planning policies.
Peter Aldous (Waveney) (Con)
I supported the two amendments that the other place has returned to us in their previous guise last week, when I urged the Government to accept them. It is welcome that we have the opportunity to consider these two important issues again.
With regard to the holding of virtual meetings by councils, I prefer the original Lords amendment 22, which provided local authorities with the local discretion to pursue a common-sense and pragmatic approach on the form and conduct of their meetings. That said, the amendment in lieu tabled by my right hon. and noble Friend, Baroness McIntosh, is pragmatic, conciliatory and takes into account the Government’s concerns about council meetings being held solely online. I urge the Government to consider it in the spirit in which it has been put forward.
I also re-emphasise other considerations that were raised in last week’s debate. Set in the overall context of a Bill that gives local communities and local councils greater discretion and greater autonomy and looks to devolve powers away from Whitehall, it is perverse that the Government are dictating to local authorities how they conduct themselves. There is, as we heard last week, 90% to 95% support from local councils, clerks and their representative bodies for this provision. They understand best the challenges that they face, and they are responsible people who will use wisely any discretion with which they are provided. The provision will strengthen local democracy and will make it easier for such groups as the disabled, parents with young children, carers and those in full-time employment to participate in decision making in their own local communities. For those local authorities that cover large geographical areas, such as Suffolk County Council and the Broads Authority, it is sensible to hold some meetings virtually, rather than insisting that councillors—some of whom are elderly—travel long distances, often in inclement weather, such as we had last week.
When we debated this issue last Tuesday, there was widespread disquiet on the Government Benches about the straitjacket approach that the Government are pursuing. I would be grateful if in her summing up my hon. Friend could outline the strategy that the Government will be putting in place to address those concerns, if they reject the sensible and conciliatory amendment 22B.
In the wake of Storm Babet, the Lords have asked us to look again at amendment 45. The weekend’s events highlighted the need for climate change mitigation to be fully and deeply embedded in local and national planning policy. Although the Government are proposing again to reject the amendment, they have proposed their own alternative, which is to be welcomed. It is necessary to consider, first, whether that will help deliver a more consistent alignment of planning policy and development management with the existing framework for tackling climate change and, secondly, whether it will provide the certainty, consistency and clarity required to deliver the enormous amount of private sector funding required to achieve our net-zero obligations.
I would be grateful if my hon. Friend answered the following questions in her summing up. Will the Government’s amendment bridge the gap in planning policy due to the delay in the review of the national planning policy framework? Will she give an assurance that the review will start as soon as possible, and ideally provide a timescale?
Secondly, there is presently an inconsistency in that a local planning authority’s well thought-through and bespoke climate change mitigation policies can be overturned by either the Secretary of State or the Planning Inspectorate. In that context, will my hon. Friend advise whether the Government’s amendment in lieu removes that contradiction, which undermines proactive and bespoke local planning?
I am grateful to you for your time, Mr Deputy Speaker. It is welcome that the Lords have provided us with a further opportunity to improve the Bill. While the two amendments are in many respects very different, they both give local communities a full opportunity to shape the future of the places where they live and work and, in doing so, achieve meaningful regeneration and levelling up.
Peter Aldous calls on the Department for Education to back a campaign for more significant investment in SEN and to look at how we can reduce the reliance on education, health and care plans, which are a barrier to so many young people getting the education they need.
SEND Provision
Peter Aldous (Waveney) (Con)
10. What steps her Department is taking to improve provision for children with special educational needs and disabilities. (906631)
The Parliamentary Under-Secretary of State for Education (David Johnston)
In March, we published our improvement plan to transform support for children with special educational needs, and last month we launched nine regional change programme partnerships to drive reform. By 2024-25, we will have increased high needs funding by 60% since 2019-20, and we have approved the opening of 78 special free schools.
Peter Aldous
I was one of 31 MPs from across the Chamber who signed the f40 letter to my right hon. Friend the Chancellor urging significant investment in SEN. Will my hon. Friend, behind the scenes at least, endorse that campaign and also look at how we can reduce the reliance on education, health and care plans, which are a barrier to so many young people getting the education they need?
David Johnston
It is probably worth saying that I am an f40 MP myself, and I met the group just last week to hear its concerns. On my hon. Friend’s point about EHCPs, through the reform plan we are working to get parents the support they need for their child at an earlier stage so that they do not always need an EHCP to get that support.
Peter Aldous attended an event calling on the Government to implement the long-promised legislation that would ban live animal exports and end puppy and kitten smuggling.
Peter Aldous highlights the success of contracts for difference (CfDs) in supporting the UK's offshore wind industry, but following the failure of auction round 5 he calls on the Government to learn from the mistakes made so that the scheme can be adapted to changing market conditions and rounds 6 and 7 are successful so the industry continues to thrive.
Peter Aldous (Waveney) (Con)
It is a pleasure to serve with you in the Chair, Dame Angela. I congratulate the hon. Member for Strangford (Jim Shannon) on securing the debate. His case was very much location-specific, and I thought he made it well. I will not dwell on it any longer, and I will wait with interest to hear the response from my right hon. Friend the Minister. The debate is timely, because it comes in the wake of a disappointing and unsuccessful auction round 5, and ahead of the publication next month of the draft allocation framework for auction round 6.
Contracts for difference have been around for a very long time. They were originally developed in the UK in 1974 as a way to leverage gold. The context in which we are considering them today is their use as a means of supporting new low-carbon electricity generation, as introduced by the Energy Act 2013. Over the past decade, they have been remarkably successful. They have enabled the UK to become a global leader in the offshore wind sector, which will be the focus of my attention over the course of the next few minutes.
CfDs have been the foundation stone for securing significant inward investment into coastal communities all around the UK, including Lowestoft in my constituency, and the first four allocation rounds were remarkably successful. Unfortunately, this undefeated run came to an end with round 5, when no offshore wind bids were submitted, as the core parameters did not take into account the changed geopolitical situation in the light of covid and the war in Ukraine, and the uncertain and inflationary global economic outlook that has ensued.
It is vital that lessons are learned and that we get back on track ahead of allocation round 6. The work to do this should be set in the context of the UK providing a response to the US’s Inflation Reduction Act, and I suggest that that should come in the Chancellor’s autumn statement next month. I shall say a few words about that later, as the energy industry is globally footloose. Although the UK has been very attractive to investors—in many respects, it has been the come-to place—we cannot rest on our laurels, and we are now in danger of being overtaken. As Keith Anderson, the chief executive of Scottish Power, has said of the US:
“We can’t possibly hope to outspend them. What we can do is outsmart and outpace them.”
After the failure of auction round 5, it is vital that auction rounds 6 and 7 are successes. One failure is a blip, but two risk setting a trend that will send a negative signal to developers and investors, and the situation could then become very difficult to retrieve. This is particularly important for the continued development of the offshore wind industry off the East Anglian coast, with ScottishPower Renewables and Vattenfall’s forthcoming projects in mind. The parameters that the Government should take into account are as follows. First, there is a need to provide more clarity, consistency and certainty with regard to the longer-term pipeline of projects. That will give developers, supply chain businesses and infrastructure providers the confidence to invest, often way ahead of demand. A clear pipeline will help to deliver long-term apprenticeship initiatives, optimise the cost profile of development and better facilitate strategic investment in the national grid.
We also need to improve the way we incentivise developers to commit to invest in UK infrastructure and supply chains. This can be achieved through non-price factors in the CfDs, provisions in seabed auctions and improved collaboration in supply chain plan delivery. Dusting off and reviewing the offshore wind sector deal, which was originally signed in Lowestoft in 2019, would be very welcome.
The feedback I am receiving, which is welcome, is that ahead of the draft allocation framework for allocation round 6 being published next month, there is positive and ongoing engagement between the Department, trade associations and developers. I would suggest that the key points that need to be addressed are as follows. First, the administrative strike price must be set at a level that takes account of market pressures, so that this time, developers do actually bid. Secondly, so as to give certainty to the market, there should be a ringfenced pot for offshore wind. That is vital, taking into account the targets that Government have set for offshore wind delivery. Thirdly, taking into account the missed opportunity with allocation round 5, the pot budget and parameters should be set so as to reflect the pipeline that is now available in order to secure maximum capacity through allocation round 6.
Work along those lines is necessary so as to correct the mistakes that were made in allocation round 5. However, at the same time, we cannot ignore the new world order. As I have mentioned, we cannot and should not get into a subsidy race to the bottom with the likes of the US, but what we can do is work faster and smarter, building on the foundations that have been laid over the past decade.
In the upcoming autumn statement, our energy policy framework should be adjusted to include the following initiatives: first, expanding reforms to capital allowances and introducing new tax incentives and grants; secondly, supporting the UK supply chain through multi-year co-funding for the industrial growth plan; and finally, as we discussed yesterday in the Westminster Hall debate led by my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb), we need policies that unlock private investment in port infrastructure.
We invariably herald offshore wind as a great British success story, and indeed, the way that the industry has developed over the last decade has been remarkable. Contracts for difference have been the cornerstone on which this success has been built. They have the advantage that they are flexible and can be adapted. Unfortunately, that did not happen for allocation round 5. It is important that this mistake is not repeated in round 6, and I hope that the Minister will provide the assurances that the industry is seeking. It is vital that he does, as offshore wind is bringing significant benefits to coastal communities such as Lowestoft, and it is imperative that it continues to do so.
Peter Aldous
I was listening with interest to what my right hon. Friend was saying. To a degree, I hear what he says, but does he not agree that with offshore wind not being successful in AR5, the costs go up in future allocation rounds? It was ready to go, and there were economies of scale that it was ready to take full advantage of, but it was not able to go. The feedback that I am getting from industry is that these things cannot take place in a vacuum, ignoring what is going on throughout the world. Does my right hon. Friend not agree with me that it would have been much better if offshore wind had been successful in AR5?
The Minister for Energy Security and Net Zero (Graham Stuart)
Having been chided, my hon. Friend is of course—quite rightly, and characteristically—straining to justify his position, and I have a lot of sympathy with it. I have said that we would ideally have got the window in a way that better matched that reality. But there are reasons for having the annual auction. We always come up with a window that industry says is not enough. We have managed to bring down the costs by 70%. It is hard to overestimate the importance of this. This country, the CfD mechanism and, I have to say, this Government have transformed the economics of offshore wind—not just to the betterment of UK consumers, but to the benefit of the whole world. It is only because of what has happened here with this approach, which every year is in a state of tension with industry, that we have been able to show and reveal these prices. We are now able to export our expertise to the north-east of the United States, to the Gulf, to Taiwan—all over the world—as a result of this process.
At their #LoveOurColleges Parliamentary event, Peter Aldous met with David Hughes, Chief Executive of the Association of Colleges, to discuss his long-term campaigning for better funding for the country’s FE colleges.
Speaking in a debate on ports and green energy, Peter Aldous highlights Lowestoft’s success as a hub for low carbon energy and calls on the Government to address the challenges in attracting investment, in to port infrastructure.
Peter Aldous (Waveney) (Con)
It is a pleasure to see you in the Chair, Mrs Cummins. I congratulate my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) on securing this debate. He is right to highlight the opportunities in the Celtic sea. I shall briefly provide some geographical balance and complete our tour of coastal Britain by showcasing the work that is taking place in the southern North sea, off the East Anglia coast. With the right investment in ports such as Lowestoft, so much more could be achieved that would not only enhance our energy security and propel us down the road to net zero, but help to deliver long-term economic growth.
Lowestoft port, which is likewise part of the ABP fleet, has a good story to tell. SSE has run its operations and maintenance base in the outer harbour since 2012, and ScottishPower Renewables has done likewise since 2019. ABP is progressing plans for the Lowestoft eastern energy facility. There will also be a direct air carbon capture demonstrator site in the inner harbour, which is being progressed by ABP in conjunction with Sizewell C. Lowestoft and Ipswich ports will also play important roles in delivering materials to the Sizewell C nuclear power station.
A good start has been made, but there are challenges immediately ahead that need to be addressed if we are to make the most of this once-in-a-lifetime opportunity. There is a global race for green investment. The UK should not and cannot get into a subsidy race to the bottom with the likes of the United States. Instead, we should work faster and smarter, building flexibly on what we have already achieved.
In his April report, UK offshore wind champion Tim Pick highlighted a variety of risks that have limited UK port investment. Some of those relate to the contracts for difference mechanism. I will not go into those in detail, as many of us will be back here tomorrow to take part in the debate on the subject led by the hon. Member for Strangford (Jim Shannon). The report highlighted a variety of obstacles that need to be addressed. There are some interesting recommendations, which I will briefly highlight: an industrial growth plan; a support framework for offshore wind ports targeted at the risks that they face; and a recommendation that the Government should give offshore wind ports priority, just as they do to offshore wind farms, in the national policy statements. I would be most grateful if, in summing up, my right hon. Friend the Minister advised us how he and the Government will respond to Tim Pick’s report, with specific regard to promoting investment in port infrastructure.
In conclusion, over the past decade offshore wind has been a great British success story. We put in place a mechanism that has worked very well. However, due to geopolitical and inflationary pressures, it needs recalibrating. As part of that process, leading up to the autumn statement, we need to review the way we promote investment in port infrastructure. Ports such as Lowestoft are honeypots not only for decarbonisation but for job creation and regeneration. They are the link between offshore electricity regeneration and onshore supply chains. Nurture them properly and the dividends will be significant.
Peter Aldous
Offshore wind champion Tim Pick has highlighted some of the obstacles that need to be overcome for the industry to realise its full potential. Some of that focuses on ports. Will the Minister provide a bit more detail on the Government’s response to his proposals and recommendations?
The Minister for Energy Security and Net Zero (Graham Stuart)
We are working with industry through the Offshore Wind Industry Council, of which I am a co-chair, to consider Tim Pick’s wide-ranging recommendations, including developing an industry growth plan. Again, this is to do with supporting the development of the UK supply chain and, as we do this massive deployment, trying to ensure that as much as possible of the industrial heft of that can be delivered through the UK and UK jobs. That work is ongoing, and we will keep going.