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Estimates Day
05 July 2023
Lead MP
Stephen Crabb
Debate Type
General Debate
Tags
EconomyClimateEnergy
Other Contributors: 55
At a Glance
Stephen Crabb raised concerns about estimates day in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The debate focuses on the importance of energy infrastructure for sustaining living standards and basic security, especially considering the challenges posed by climate change and global energy supply threats. The Government's strategies, such as 'Powering up Britain', aim to diversify and decarbonise UK energy production through investments in renewables and nuclear energy. Crabb highlights Wales' unique position as both a consumer and producer of energy, emphasising its potential for economic growth from renewable and nuclear developments.
Jim Shannon
DUP
Strangford
Shannon commends the debate's focus on collective benefits for all UK regions. He suggests that strategies should consider opportunities in Northern Ireland, including tidal energy projects.
MacNeil addresses the issue of 'zombie projects' clogging up the system and hindering progress in delivering necessary grid enhancements.
Caroline Lucas
Green
Brighton, Pavilion
Lucas raises concerns about the high costs and slow pace of new nuclear developments, questioning their feasibility to meet decarbonisation targets by 2035.
Brown echoes Lucas' concerns, particularly regarding small modular reactors (SMRs) as future technologies, emphasising the need for cost estimates and timelines.
Wera Hobhouse
Lib Dem
Bath
Hobhouse questions the rationale behind pursuing nuclear technology when it is potentially the most expensive option, suggesting an emphasis on less costly clean energy alternatives.
Bridgen counters that SMRs are not revolutionary but rather established submarine engine technology and could be operational within five years with a clear order from Rolls-Royce.
Lia Nici
Lab
Leicester East
Nici agrees on the importance of contracts for difference in supporting offshore wind projects, citing positive impacts on local economies and global technological leadership.
Angus MacNeil
SNP
Na h-Eileanan an Iar
Mr. MacNeil emphasised the need for a skilled workforce and international collaboration to meet energy demands, noting the significant volume of work ahead as outlined by the National Grid's plans for 2030. He advocated for support from the Home Office and Ofgem in this context. Mr. MacNeil highlighted challenges such as resource extraction, planning difficulties, and the need for innovative community benefits. Additionally, he discussed the potential role of smart metres and demand management to improve energy efficiency and support vulnerable consumers.
Nicola Richards
Con
West Bromwich East
The Government's flagship energy bills support scheme and the subsequent energy price guarantee have provided substantial relief to households, capping bills at £3,000. However, Nicola Richards highlights concerns about unchanged standing charges, which Martin Lewis argues unfairly impacts low-usage households more than high-usage ones under the reduced price cap. She also mentions businesses like Robert Hopkins Environmental facing unjustifiably high standing charges and calls for Ofgem to ensure fair treatment of business customers. Additionally, she supports the reduction in VAT for installing energy-efficient systems but suggests further streamlining processes like planning permissions. Richards commends initiatives such as Enfinium's new energy-from-waste facility, expected to create 400 jobs and process significant waste volumes, alongside other recycling projects in the region.
Emma Hardy
Lab
Kingston upon Hull West and Haltemprice
Ms Hardy emphasises the importance of carbon capture and storage (CCS) for meeting net zero targets, expressing severe concerns about the pace and scale of investment into CCS, particularly in the Humber industrial cluster. She highlights that despite being the largest carbon emitter, no projects were approved by the Government. She warns of the risk to £15 billion of private investment and potential job losses if certainty is not provided. Ms Hardy also stresses the need for clarity on the Government's plans for track 2 decisions and the confirmation that the pipeline will run from the Endurance aquifer to the Humber.
Virginia Crosbie
Con
Ynys Môn
Crosbie congratulates her colleague for initiating the debate on energy and net zero infrastructure. She acknowledges the Department's pledge of an additional £790 million towards the budget for net zero, highlighting its importance in cutting emissions and fostering a low-carbon, high-growth economy. Crosbie emphasises that Wales exemplifies opportunities brought by the energy transition with projects like Morlais wave project, Holyhead hydrogen hub, Minesto, BP Morgan and Mona offshore wind farms, Lightsource BP solar farm proposals, and the Wylfa nuclear power station. She advocates for new nuclear at Wylfa to ensure secure electricity supplies and praises the UK's commitment to Great British Nuclear. Crosbie also highlights the significance of Anglesey’s freeport, expected to bring substantial jobs and investment. However, she raises concerns over grid infrastructure limitations and lengthy planning processes which may hinder energy transition efforts, urging for more efficient grid connections and modernisation through Ofgem duties.
Wera Hobhouse
Lib Dem
Bath
The pace at which the UK is moving towards net zero emissions is too slow, as highlighted by the Climate Change Committee. The Government's current approach is described as 'worryingly slow', leading to a loss of confidence in meeting the 2050 target for carbon emission reduction. Emphasising the importance of staying within the 1.5°C temperature limit, Hobhouse points out that territorial emissions must be reduced by 68% from 1990 levels. The CCC's report indicates only nine out of fifty indicators are on track, with issues such as grid capacity delays and a lack of Government action in deploying renewable energy projects like wind and solar power being highlighted. She criticises the Government's laissez-faire attitude towards net zero challenges and points to international examples like the US Inflation Reduction Act and the EU’s Net-Zero Industry Act which are incentivizing huge investments. The UK needs to increase investment significantly, with a Liberal Democrat proposal for £150 billion public investment programme aimed at supporting renewable projects.
Paul Beresford
Con
Midsomer Norton and Batheaston
The UK must embrace nuclear power, given its current dependency on non-renewable sources. Mr Beresford notes that while New Zealand can rely heavily on renewable energy due to natural resources and smaller population, the UK needs a significant contribution from nuclear power, potentially up to 40%. Currently, only 19% of demand is met by nuclear power, with most reactors set to close by 2030. He supports the Government's approach towards small modular reactors and advanced modular reactors (AMRs) as potential solutions to address the impending gap in energy supply. Beresford also highlights the importance of fusion research at Culham Centre for Fusion Energy near Oxford, considering it a key area where Britain leads global efforts. However, he raises concerns about retaining specialised staff due to pay scale anomalies within the United Kingdom Atomic Energy Authority.
Alex Cunningham
Lab
Stockton North
I draw attention to my entry in the Register of Members’ Financial Interests, as I chair the all-party parliamentary group on carbon capture, utilisation and storage. My concern is that the Government may be short-changing not just the potential project on Teesside but potential projects across the country. The rapid expansion of offshore wind in recent years is something we can be pleased about, but it was due to the right decisions at the right time to provide necessary financial protections and business environment. What we need now is similar action by Government to create a similar environment to unlock private sector investment in CCUS facilities. At Billingham in my constituency, several hundred jobs are at risk with the loss of the Mitsubishi Cassel works and CF Fertilisers has ceased ammonia production due to increased energy costs and current carbon costs. The proposed Teesside CCUS project may not connect businesses like CF Fertilisers and Kellas or pass by the proposed Alfanar sustainable aviation fuel plant, causing concern about insufficient resources for the project. Confidence in the Government’s commitment is waning as announcements missed many projects and we need assurance to unlock potential of CCUS. We also have concerns over North sea saline aquifer capacity and investment delays due to uncertainty.
Paul Bristow
Con
Peterborough
Mr. Bristow discussed the opportunity for Peterborough to develop a high-growth energy cluster on its new university campus, aimed at transforming the local economy towards a greener, low-carbon future. He outlined the plan to establish a global innovation centre for energy transition which would attract large global energy production companies and domestic industrial firms. The proposed R&D programme is worth £150 million and could create over 300 direct and indirect jobs in Peterborough. Mr. Bristow highlighted that this initiative can address challenges such as hydrogen embrittlement in steel pipes and the need for new transmission networks, while also enhancing local skills and attracting higher education participation.
Ben Lake
PC
Ceredigion Preseli
Welsh coastline has significant potential for tidal, wave, and offshore floating wind energy. This can address the trend of young people leaving Wales due to lack of job opportunities, offering well-paid jobs and enhancing energy security. There is a golden opportunity for first-mover advantage in offshore floating wind technology which could transform the south Wales economy by bringing new careers and securing industries like steel production through green methods. The Welsh Affairs Committee has recommended setting targets for floating offshore wind up to 2045, using contracts for difference to ensure local benefits, and significant anticipatory investment in grid strengthening. There is a need to counter scepticism about the transition costs by highlighting economic development potential. Developing robust supply chains and coordination between different governments are crucial. The management of the Crown Estate could be explored for allocating proceeds from leasing and licensing to benefit future generations through a wealth fund approach similar to Norway or Qatar’s oil funds. Lastly, generating solar power from rooftops and car parks has significant potential, as research by UCL suggests up to 117 GW could be generated by 2050.
Selaine Saxby
Con
North Devon
The UK needs to accelerate its efforts on developing floating offshore wind projects, particularly in the Celtic sea, to meet net zero targets. The potential economic benefits include job creation and substantial investment. However, delays in auction rounds could jeopardize these opportunities, leading to a loss of global competitiveness.
Andrew Bridgen
Con
Hazel Grove
The debate on climate science is important but often overlooks practical concerns such as energy security during winter months. The UK's voluntary rejection of established industries for unproven technologies could harm economic growth and public well-being, leading to higher costs and less freedom.
Siobhan Baillie
Con
Gloucestershire East
The speaker emphasised the importance of nuclear energy as a zero-emission clean-energy source and highlighted the Severn Edge nuclear site in Berkeley, which has been heavily involved in decommissioning activities. She stressed the potential for future development at this site, including the possibility of hosting a small modular reactor. The speaker also discussed her campaign for hydrogen internal combustion engines and the need for Government investment to accelerate regulatory clarity for Great British Nuclear. Additionally, she advocated for incorporating magnetic filtration into energy efficiency campaigns as it can improve boiler efficiency and reduce carbon emissions.
Lia Nici
Con
Grimsby
The Humber region, especially the south Humber area, is a significant industrial hub with substantial carbon dioxide emissions due to its energy-intensive industries. However, it also hosts large-scale renewable projects such as offshore wind farms and green hydrogen initiatives that are crucial for achieving net zero goals. There are two bids in this region for carbon capture, utilisation and storage (CCUS) which needs urgent support to meet the UK’s targets. The Government plans to update track 1 CCUS extension by September with allocations by quarter 4.
Alan Brown
SNP
Central Ayrshire
While there is cross-party consensus on deploying renewable energy and improving grid infrastructure, the SNP opposes new nuclear projects due to their high costs and environmental impacts. The speaker questions the £1 billion annual surcharge added by post-Brexit trading arrangements for energy bills and urges the Government to remove this cost burden. He also criticises Hinkley Point C's over-budgeting and delayed timeline while highlighting alternatives like pumped storage hydro and tidal stream technologies that can provide reliable baseload power.
Alan Whitehead
Lab
Glenrothes
The hon. Member congratulates the right hon. Member for Preseli Pembrokeshire on securing the debate and acknowledges the Climate Change Committee’s recent report which criticises the Government for a lack of urgency in pursuing net zero targets. He emphasises that the committee urges prioritising pace over perfection, urging action to be taken immediately rather than delaying due to perfectionism. The hon. Member discusses several key issues such as grid infrastructure, nuclear energy, and floating wind development, highlighting delays and inefficiencies that hinder progress towards achieving these targets. He also mentions concerns regarding carbon capture and storage (CCS) and the competition between clusters for CCS and hydrogen development, suggesting a need for a more collaborative approach to ensure timely progress.
Andrew Bowie
Con
West Aberdeenshire and Kincardine
Closed the debate for the Government. Acknowledged contributions from Members who discussed the challenges of transforming the UK's energy infrastructure towards net zero, including skills development, hydrogen production, nuclear power, carbon capture, usage and storage, and fusion. Emphasised the importance of new transmission network infrastructure and green growth opportunities.
Emma Hardy
Lab
Kingston upon Hull West and Haltemprice
Asked the Minister to emphasise the need for two pipelines in the Humber region, one at Easington and another at the south, as well as the importance of the Viking project for meeting net zero targets.
Alan Brown
SNP
Kilmarnock and Loudoun
Asked to intervene but no specific contribution mentioned in the provided text.
Matt Rodda
Lab
Reading Central
Supports the importance of part-time mature university students benefiting from this type of learning.
Welcomes the Government's lifelong learning entitlement, which aims to reduce benefit strain and public purse pressure by getting adults back into sustainable work.
Robin Walker
Con
Worcester
Welcomed the debate and praised the work of FE colleges and community education sector. He highlighted the increased Department for Education funding, but noted a real-terms decline in funding per student since 2015. Emphasised the importance of FE in social mobility and preparation for academic/vocational qualifications. Called for a three-year funding settlement for community learning at the next spending review. Raised concerns over workforce retention issues, especially regarding maths teachers. Supported the recommendations from the Education Committee for a wholesale review of 16-19 funding and moratorium on defunding advanced general qualifications until T-levels are proven.
Darren Henry
Con
Broxtowe
Stressed the importance of FE facilities in developing skills, unlocking careers, and training people for new industries. Raised concerns over losing main FE provider in his constituency due to Nottingham College moving out.
Acknowledged the high performance of East Sussex College as a social mobility engine but highlighted its financial struggles and competitive field for workforce recruitment between schools, higher education, and colleges.
Flick Drummond
Con
Stroud
Suggested that roll-out of T-levels may limit places for people doing advanced general qualifications due to non-coverage of certain subjects. Raised concerns over vulnerable groups missing out on pathways to success if AGQs are defunded.
Toby Perkins
Lab
Chesterfield
Agreed with the call for a moratorium on defunding advanced general qualifications and supported it, indicating Labour’s commitment to this issue.
Gill Furniss
Lab
Sheffield Brightside and Hillsborough
The UK workforce faces significant challenges due to a skills shortage, with almost 80% of businesses experiencing reduced output or profitability. A report by the CBI indicates that nine in ten people will need reskilling this decade. The further education sector is vital for addressing these issues but has been severely impacted by cuts since 2010. Spending per student aged 16 to 18 fell by 14% during this period, and adult participation in learning dropped to its lowest level in 22 years. Despite additional funding announced in recent spending reviews, overall spending remains below pre-2010 levels. The cost of living crisis adds further pressure with no extra funding provided for further education in the autumn statement despite high inflation and energy bills. Investment is crucial to levelling up areas like Sheffield, and the further education system stands ready to help meet future technological challenges such as AI.
Wendy Morton
Con
Aldridge-Brownhills
The debate focuses on funding for adult education, post-16 education, further education and colleges. The skills shortage is a significant issue, with three quarters of medium-sized business leaders reporting it as problematic due to the potential impact on growth. By 2030, a shortfall of 2.5 million highly skilled workers could cost the country £120 billion. Local businesses in Morton's constituency face skill shortages, particularly for technicians and mechanics. Investment in further education is necessary not only for addressing current skills gaps but also to prepare for future demands such as technology advancements including robotics and AI. The west midlands plan for growth involves collaboration between public, private, and university partners to allocate resources efficiently and overcome barriers. Morton requests the government increase industry hours during T-level programmes and ensure adequate funding for the further education sector.
Andrew Western
Lab
Stretford and Urmston
I congratulate my hon. Friend on securing this discussion... The Government’s real-term cuts to further education are: “not a set of priorities consistent with a long term growth strategy. Or indeed levelling up.” In contrast, the Labour party sees how a thriving further education sector is essential to growth.
Navendu Mishra
Lab
Stockport
I thank my hon. Friend and neighbour from Greater Manchester for an excellent speech... Does he agree that the Government are simply failing on pay for that sector?
Edward Timpson
Con
Eddisbury
Acknowledges the work of FE colleges and focuses on Reaseheath College. Emphasises its significance in upskilling the nation, highlighting its recent achievements such as 97% success rate for students gaining jobs or progressing further. Advocates for addressing issues like technical lecturers shortage for T-levels, funding constraints due to clawback thresholds, withdrawal of capacity and delivery fund, lack of capital funding for specialist colleges, and staff recruitment and retention challenges. Requests the Minister's intervention to address these concerns.
Neil Hudson
Con
Epping Forest
Intervenes to support Edward Timpson's points about the need for flexibility in approach to protect specialist courses that are crucial for animal health and welfare, agricultural industry, and food security.
Munira Wilson
Lib Dem
Twickenham
Ms Wilson congratulated the hon. Members for securing an important debate on funding for further education and sixth form colleges, which she believes has been long overdue due to underfunding by successive Governments. She highlighted that despite expecting all children to remain in education or training until age 18, spending per pupil aged 16 to 18 is lower than in secondary schools. Further education faces challenges such as a population bulge moving into further education and the premature scrapping of level 3 qualifications to make way for T-levels. She emphasised that the funding crisis has led to an unprecedented situation where colleges cannot afford to offer fair pay offers to teachers, resulting in high staff turnover. The Open University's survey shows almost three-quarters of UK organisations are experiencing skills shortages, yet the Government seem uninterested in addressing these issues. Ms Wilson called for support targeted at those with the most to gain from post-16 education and suggested repurposing apprenticeship levy funding as a potential solution. She criticised the scrapping of BTECs and other qualifications that provide valuable routes into university and employment, particularly for under-represented students. She also addressed issues related to childcare course defunding and VAT relief for colleges. Lastly, she proposed extending the pupil premium to age 18 and suggested creating a skills wallet to fund adult education.
David Evennett
Con
Bexleyheath and Crayford
I am pleased to participate in this important estimates debate on post-16 education, as I am a great advocate and strong supporter of FE colleges. The challenges for the Government are enormous, but colleges play a vital role developing skills required for the future and addressing productivity problems. I strongly welcome the Government’s Lifelong Learning (Higher Education Fee Limits) Bill which will increase opportunities to develop skills at all stages of careers. The Government have invested £1.34 billion in education and skills training for adults through the adult education budget, but more needs to be done. Recruitment and retention of FE lecturers is a major challenge; 25% of college lecturers leave after one year compared with 15% of schoolteachers, which is unacceptable given their specialist roles.
South Ribble
My right hon. Friend highlights the importance of FE colleges in preparing young people for a changing economy and supporting local industries like engineering through new investments such as the £3 million Buttermere building at Runshaw College.
Neil Hudson
Con
Epping Forest
We ask our young people to be in training or education until they are 18, but local authorities are not mandated to provide transport. I have had to campaign and put pressure on the local council to free up half a million pounds for bursaries so that young people can reach their next stage of training.
Paul Howell
Con
Sedgefield
The issue is not just getting students to colleges, but also making sure that colleges do outreach work in local communities and provide educational opportunities at parish halls and other secure places where transport infrastructure may be lacking.
Hayes and Harlington
Mr McDonnell thanked the alliance between Wirral and Worcester for organising this debate, cautioning his hon. Friend about potential alignment with militant trade unionists due to recent support by the Member for Worcester for industrial action by the National Union of Journalists. He acknowledged that these debates serve multiple roles: they allow MPs to report their constituency experiences, help in holding recalcitrant Ministers accountable and bolster co-operative ones during negotiations with the Treasury. Emphasising the upcoming autumn financial statement, Budget next year, and pre-election considerations, he highlighted the potential for increased economic investment to create a feel-good factor before elections. He advocated for a national education service free from cradle to grave, noting the current spending on education is below OECD average. Concerning FE funding, he cited IFS figures showing per-student spending was lower than secondary schools and adult skills funding still below 2009 levels despite recent increases. He underlined the fragility of the college sector due to funding cuts and uncertainties, calling for fair pay settlements to address recruitment difficulties. Mr McDonnell also mentioned apprenticeship funding decline and university funding withdrawal by the state, highlighting stark differences in public investment compared to other OECD countries. He criticised the high pay of vice-chancellors while staff face low wages, urging cross-party support for increased education investment.
Paul Howell
Con
Sleaford and North Hykeham
Supports the emphasis on attracting people into the childcare sector by improving vocabulary used to describe essential skills such as resilience and teamwork. Suggests these areas would be valued by those looking for a career change.
Lia Nici
Lab
Grimsby
The speaker emphasises the importance of further education and its role in providing adult, community, and vocational training. She highlights issues with funding, teacher salaries, recruitment challenges, and the difficulty in delivering functional skills such as maths due to a lack of qualified teachers. She also points out that further education cannot address all structural issues within one year or two years of study. The speaker commends institutions like Grimsby Institute and Franklin College for their innovative approaches but stresses the need for more flexibility and creativity in addressing current challenges, including apprenticeships complexity and T-level limitations.
Peter Aldous
Con
Woodford Constituency
Congratulates hon. Members for Wirral West and Worcester on their efforts to secure the debate, and emphasises the role of further education in bridging school and workplace opportunities for young people from diverse backgrounds. He highlights East Coast College's work in preparing students for careers in renewable energy sectors such as offshore wind power and Sizewell C. Aldous also addresses the funding challenges faced by FE colleges, including a workforce crisis due to underfunding compared to other industries. He advocates for a five-point plan to address these issues, which includes raising 2023-24 funding rates in line with inflation, allowing VAT reclaim, spending more of the apprenticeship levy on young apprentices, providing larger skills funds for high-priority areas, and collecting evidence on college pay.
Jane Hunt
Con
Loughborough
Thanked the Chair of the Education Committee and another hon. Member for initiating the debate, emphasising the importance of further education colleges in local communities. She highlighted Loughborough College as an example of a college that tailors its courses to meet local needs and praised the flexibility shown by the principal of Loughborough College in responding quickly to business demands. Jane Hunt also mentioned the significance of T-level centres at Loughborough College, funded through town deal funding. She expressed pride in the developments such as the Institute of Technology being built with university partners. Furthermore, she stressed the need for additional funding and better VAT treatment to ensure that FE colleges can attract and retain qualified staff necessary to address skills shortages and foster economic growth.
Robin Walker
Con
Worcester
Inquired about ensuring parity in treatment for VAT purposes across the education sector, including early years settings and colleges, similar to schools.
Toby Perkins
Lab
Chesterfield
Thanked colleagues for initiating the debate, emphasised the underfunding of adult education and further education by the Government. Mentioned the significant reduction in funding over the past decade leading to a staff crisis within FE institutions. Highlighted the impact on economic growth due to lack of investment in skills training. Called for reforms such as pausing defunding of level 3 courses, introducing a flexible growth and skills levy, and creating Skills England to coordinate regional policies. Stressed the importance of aligning skills policy with evidence-based regional strategies.
Robert Halfon
Con
Southend West
Responded to the debate initiated by the Member for Worcester. Acknowledged the importance of adult education and community learning, noting an increase in participation rates despite challenges. Highlighted significant government spending on skills programmes such as T-levels, institutes of technology, apprenticeships, and Multiply. Emphasised the need for employer-led qualifications and discussed concerns regarding BTECs, T-level transitions, and early years training.
Walker
Con
Worcester
Initiated the debate on further education funding and policies. Noted the importance of FE funding but did not provide specific details in the provided transcript.
Toby Perkins
Lab
Chesterfield
Asked the Minister about T-levels, noting that currently only 10,000 out of 230,000 students are taking them and questioned whether a moratorium should be considered.
Hayes and Harlington
Asked the Minister about industrial action in further education if there is no realistic offer for pay and working conditions, referencing the University and College Union’s upcoming ballot.
Expressed support for a national education service from cradle to grave and highlighted issues such as adult education cuts, workforce crises in technical staff recruitment, and the importance of funding non-vocational education.
Government Response
Summarised contributions from Members, emphasised the importance of nuclear power, hydrogen production, carbon capture, and fusion. Announced plans for launching Great British Nuclear to down-select small modular reactor technologies.
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Assessment & feedback
Summary accuracy
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