Commons Sense

House of Commons · Ministers' Questions

Inflation Reduction Act and Low Carbon Industries

Tuesday 28 November 2023 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Nick Smith questioned the government on the impact of the US Inflation Reduction Act on UK low carbon industries and investment levels.
  • The government stated they have taken steps to support renewable energy and are planning to unlock supply chains with a new fund.
  • Stephen Crabb inquired if the Global Investment Summit was a distraction given the current business and export challenges.

Topics (select to filter)

Questions & Answers

Q1 Nick Smith Lab Blaenau Gwent and Rhymney
Economy Climate
Context

The MP asked about the impact of President Biden's plan to use America's industrial might for renewable energy projects.

Question

What recent assessment has been made of the impact of the US Inflation Reduction Act on levels of investment in low carbon industries in the UK? Given that we need to turbocharge the green economy, why will the Government's response not come into effect until 2025?

Answer from Claire Coutinho

We have taken many steps already, including setting out new plans for auction round 6 of renewable energy and for permanent economy-wide full expensing. We changed planning and are unlocking the grid. The fund mentioned will unlock supply chains across the UK. It has been welcomed by Scottish Renewables as a 'shot in the arm for the sector', the Offshore Wind Industry Council, Make UK, Energy UK, and many other businesses.

Partly answered

Not addressed: Why the government's response will not come into effect until 2025

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Q2 Nick Smith Lab Blaenau Gwent and Rhymney
Climate Energy
Context

The MP inquired about the Chancellor's autumn statement commitment on legislation for the Crown Estate's powers.

Question

When are the Government likely to bring forward legislation to modernise the Crown Estate's investment and borrowing powers, which is a vital step for deploying 16 GW of floating offshore wind in the Celtic sea?

Answer from Claire Coutinho

We have a commitment to unlock an additional 12 GW of wind power in the Celtic sea. The right hon. Friend has been a doughty champion for the Celtic sea, and we will bring forward the legislation in due course.

Partly answered

Not addressed: Specific timeline or date for bringing forward the legislation

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Q3 Stephen Crabb Con
Economy Business & Trade
Context

The MP questioned the effectiveness of the Government's global investment summit in boosting UK economy.

Question

Was the global investment summit not just a distraction from the same old fundamentals—business confidence is down, exports are down, and growth forecasts are down after 13 years of instability and uncertainty? Does the Secretary of State think that lack of business confidence is because her Government trashed the economy last year?

Answer from Claire Coutinho

What we saw yesterday was £7 billion from Iberdrola for UK electricity networks and renewables, and £300 million from Aira. In the last couple of weeks, we have had investments from Sea Wind, Nissan, and Siemens Gamesa. The difference between what the Government offers (£29 billion) and what Labour offers (£28 billion) is important.

Not addressed: Effectiveness of the global investment summit in addressing economic challenges

How: Discussed Other Recent Investments Instead

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Q4 Sarah Jones Lab Croydon West
Economy Climate
Context

The MP inquired about the impact of President Biden's plan to use America's industrial might for renewable energy projects.

Question

What recent assessment has been made of the impact of the US Inflation Reduction Act on levels of investment in low carbon industries in the UK? Given that we need to turbocharge the green economy, why will the Government's response not come into effect until 2025?

Answer from Claire Coutinho

We have taken many steps already, including setting out new plans for auction round 6 of renewable energy and for permanent economy-wide full expensing. We changed planning and are unlocking the grid. The fund mentioned will unlock supply chains across the UK. It has been welcomed by Scottish Renewables as a 'shot in the arm for the sector', the Offshore Wind Industry Council, Make UK, Energy UK, and many other businesses.

Partly answered

Not addressed: Specific timeline or date for bringing forward the legislation

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How accurate was this summary? (1 = poor, 5 = spot on)