Contribution
I thank the Minister for giving me advance sight of the statement, although I really have to take issue with the Prime Minister’s earlier comments, taking credit for Ofgem’s decision to lower the energy price cap. That decision was taken not by the Government, but by Ofgem using a Conservative mechanism, and it was in fact taken weeks before the current crisis began. But why let the facts get in the way of this Government’s spin?
I am glad to see that the Government have today taken steps to support those households across Great Britain and Northern Ireland that rely on heating oil—steps that those of us on this side of the House called for when prices began to rise weeks ago. Those households are, as the Minister has highlighted, acutely exposed to price shocks, and the stories we have heard from consumers across the country are very concerning indeed. Just this morning, I heard from a constituent who faces a lump sum bill of over £1,000. These consumers are often served by a single local supplier, meaning that there is no realistic competition.
Let us be under no illusions: this announcement has come about only after the pressure put on the Government by the Opposition. The Leader of the Opposition and my right hon. Friend the Member for East Surrey (Claire Coutinho) called for these actions almost two weeks ago. Like everything with this Government, they end up doing the right thing only after weeks of dither, delay and inaction—but today’s announcement will be welcome news for rural households, and nowhere is that more apparent than in Northern Ireland, where over 60% of homes rely on oil for heat.
Although I welcome the announcement, I would be grateful if the Minister could provide some clarification. First, can he explain what, if any, support will be made available to those who heat their homes with liquid petroleum gas? Furthermore, it appears that the allocation of funding for Scotland, Wales and Northern Ireland is to go directly to the devolved Administrations and not directly to local authorities. Considering that the Minister represents a Scottish constituency, he understands just as well as I that handing over a cheque to the Scottish Government does not guarantee that money will be spent where it was intended to be spent. Can he therefore outline how this Government will ensure that those in Scotland, Wales and Northern Ireland get the support they need, and that this funding is not siphoned off for other priorities determined by devolved Ministers? Why was this money not awarded directly to local authorities in those nations as it is being delivered across England?
It is also my understanding that this funding is inclusive of Barnett consequentials. Could the Minister confirm whether that is the case? If it is, will he confirm that Scotland is being short-changed due to the higher proportion of households on heating oil than the Barnett formula would account for?
The Government could go further and heed our calls to deliver a 20% cut to everyone’s energy bills—and I mean everyone’s—through the Conservative’s cheap power plan by axing the carbon tax and the rip-off wind subsidies now. That cut would be worth around £165 to the average family. The Government should also bring about another one of their famed U-turns and cancel their planned fuel duty rise later this year—a rise that will add £156 to struggling families’ bills, because Labour’s plans always lead to more costs for families and businesses.
Let us take today’s announcement as an example. We cannot ignore that this support will be funded through Labour’s tax rises on working people. Why? Because this Government have made a choice—a political choice—to shut down the North sea and forgo £25 billion of tax receipts that an attractive, investable and successful North sea oil and gas industry would, and still could, provide. Backing the UK’s oil and gas industry is about driving the economic growth that we so desperately need, which in turn would deliver greater tax receipts than the current regime. It is about becoming more energy secure. One hundred per cent of all the gas produced in the British North sea is used in the British gas grid. The less we use from British waters, the more we have to import—at a higher cost and with a bigger carbon footprint—from Qatar, the USA and Norway, which continue to explore in the same sea in which we are prevented from exploring.
Backing the UK’s oil and gas industry would support a vitally important skilled workforce—a workforce that right now is packing up and going overseas. What will it take for this Government to change course—revenue, investment, job security? What is it that this Government do not get? Just today, the CEO of RenewableUK joined the chorus of voices calling for an overhaul of this disastrous act of economic self-harm being inflicted by this Labour Government. We read in The Times at the weekend that we are currently led by the “least intellectually curious” Prime Minister of all time, so it is no surprise that the Secretary of State has been given free rein to inflict his myopic vision of a future—[Interruption.] Those are not my words; they are the words of people in the Cabinet today! Surely at this time of such global instability, the case for a thriving oil and gas industry is clearer than ever.
We welcome the action announced today on heating oil, but there are serious questions—not just from me but from the industry, the renewables sector, the trade unions, and, frankly, everyone other than those sitting on the Labour Benches—over wider Government energy policy that need to be answered, and answered soon.