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Tag: 2023

  • PRESS RELEASE : Government introduces laws to mitigate the disruption of strikes on the public [January 2023]

    PRESS RELEASE : Government introduces laws to mitigate the disruption of strikes on the public [January 2023]

    The press release issued by the Department for Business, Energy and Industrial Strategy on 10 January 2023.

    • New laws will allow government to set minimum levels of service which must be met during strikes to ensure the safety of the public and their access to public services
    • the Strikes (Minimum Service Levels) Bill will ensure crucial public services such as rail, ambulances, and fire services maintain a minimum service during industrial action, reducing risk to life and ensuring the public can still get to work
    • Business Secretary Grant Shapps said in Parliament today: “We do not want to have to use this legislation unless we have to, but we must ensure the safety of the British public.”

    Millions of hard-working people across the UK will be protected from disruptive strikes thanks to new laws introduced today, which will allow employers in critical public sectors to maintain minimum levels of service during strikes.

    The government is introducing this legislation to ensure that striking workers don’t put the public’s lives at risk and prevent people getting to work, accessing healthcare, and safely going about their daily lives.

    The government will first consult on minimum service levels for fire, ambulance, and rail services, recognising the severe disruption that the public faces when these services are impacted by strikes, especially the immediate risk to public safety when blue light services are disrupted.

    The government hopes to not have to use these powers for other sectors included in the Bill, such as education, other transport services, border security, other health services and nuclear decommissioning.

    The government expects parties in these sectors to reach a sensible and voluntary agreement between each other on delivering a reasonable level of service when there is strike action. This will, however, be kept under review and the Bill gives the government the power to step in and set minimum service levels should that become necessary.

    Business Secretary Grant Shapps said:

    The first job of any government is to keep the public safe. Because whilst we absolutely believe in the ability to strike, we are duty-bound to protect the lives and livelihoods of the British people.

    I am introducing a bill that will give government the power to ensure that vital public services will have to maintain a basic function, by delivering minimum safety levels ensuring that lives and livelihoods are not lost.

    We do not want to have to use this legislation unless we have to, but we must ensure the safety of the British public.

    The sectors the legislation includes are:

    • health services
    • education services
    • fire and rescue services
    • transport services
    • decommissioning of nuclear installations and management of radioactive waste and spent fuel
    • border security

    This principle is already recognised in many countries across the world, such as Italy and Spain, where systems for applying minimum levels during strikes are in place for services the public depend on.

    As is the case currently a union will lose its legal protection from damages if it does not comply with the obligations set for them within the legislation.

    Today’s reforms come as government ministers are meeting trade unions to discuss fair and affordable public sector pay settlements for 2023 to 2024.

  • Alan Brown – 2023 Parliamentary Question on Energy Costs for the Struther Farmhouse Tea Room

    Alan Brown – 2023 Parliamentary Question on Energy Costs for the Struther Farmhouse Tea Room

    The parliamentary question asked by Alan Brown, the SNP MP for Kilmarnock and Loudoun, in the House of Commons on 9 January 2023.

    Alan Brown (Kilmarnock and Loudoun) (SNP)

    The energy profits levy measures are predicted to bring in £56 billion and most of that money is coming from Scotland, yet businesses across Scotland are left struggling, particularly in the hospitality trade. The Struther Farmhouse Tea Room in my constituency is facing a 500% increase in its gas bill, with its gas and electricity up by £25,000 in a year. Despite what the Minister says, these businesses are now reaching a cliff edge because Government support is estimated to be a maximum of £2,000 against these increases. How many small businesses and jobs does he think will be lost under the guise of Government fiscal prudence?

    James Cartlidge

    I know that the Scottish National party struggles to understand the basic concept of fiscal prudence, but let me just explain this to the hon. Gentleman. When he talks about the £56 billion, it is not just for the energy profits levy; it also includes the energy generator levy, and we see that money as coming into the UK Treasury from across the UK to support the United Kingdom. It will support businesses in Northern Ireland, as we said earlier, as well as businesses in England, Scotland and Wales. Scotland has benefited from huge support, not just in the pandemic but through the increase in energy costs that has been seen across the United Kingdom. It has benefited from the fact that we are stronger together as a Union supporting every part of our Union.

  • Fleur Anderson – 2023 Parliamentary Question on Energy Costs for Post Offices

    Fleur Anderson – 2023 Parliamentary Question on Energy Costs for Post Offices

    The parliamentary question asked by Fleur Anderson, the Labour MP for Putney, in the House of Commons on 9 January 2023.

    Fleur Anderson (Putney) (Lab)

    The delay in this statement has already left several businesses in Putney to go under. I am now concerned about the post office in Southfields, where the sub-postmistress thinks they will be unable to continue operating. There will be a community cost if post offices across the country go under as a result of the increase in bills. Has the Minister assessed the impact of the energy crisis on post offices? Can he confirm whether they will be included in the cut-back scheme after March? Could he consider a community impact criteria in the scheme so that there will not be a high cost for our communities in Southfields and beyond?

    James Cartlidge

    On the point of going under as a result of the delayed announcement of the results of the review, we were due to announce on the last sitting day before recess, and we have announced on the first sitting day—it is a delay, but not a huge one. In that time, those businesses, whatever they are, will have been benefiting from the current support running until the end of March. We have now given them certainty for the next 12 months with a scheme that remains generous and universal. It is not as generous as before but I can confirm that it will include the sub-post office.

  • Stephen Kinnock – 2023 Parliamentary Question on German and UK Energy Prices

    Stephen Kinnock – 2023 Parliamentary Question on German and UK Energy Prices

    The parliamentary question asked by Stephen Kinnock, the Labour MP for Aberavon, in the House of Commons on 9 January 2023.

    Stephen Kinnock (Aberavon) (Lab)

    I am sure the Minister would agree that a key aim of the support scheme must be to ensure that our steel industry can compete internationally on a level playing field. The German Government have guaranteed their steel industry an electricity price of €130 per megawatt hour for 2023. In contrast, what the Minister has announced today only provides our steel industry with a discount on electricity prices above £185 per megawatt per hour. That leaves UK steel producers to pay an estimated 63% more than their German counterparts. Why are the Government once again letting down our steel industry and forcing our steelworkers to compete with one hand tied behind their back?

    James Cartlidge

    I do not agree about the level of support. I cannot speak for what is happening in Germany, but this remains significantly more generous support for the energy and trade-intensive industries. The hon. Gentleman is right about the figures for this country: the price threshold for the scheme is £99 per megawatt hour for gas and £185 per megawatt per hour for electricity. To be clear, about 60% of the up to £5.5 billion that we have allocated for this scheme would be for the energy and trade-intensive industries. That is more than half of all the funding. It is a significant commitment and includes major manufacturing sectors such as steel.

  • Mike Amesbury – 2023 Parliamentary Question on Businesses Such as the Bulls Head in Frodsham

    Mike Amesbury – 2023 Parliamentary Question on Businesses Such as the Bulls Head in Frodsham

    The parliamentary question asked by Mike Amesbury, the Labour MP for Weaver Vale, in the House of Commons on 9 January 2023.

    Mike Amesbury (Weaver Vale) (Lab)

    What would the Minister say to Mr Uppall, who runs a vital service—a post office—in Hartford, in my constituency? What would he say to the likes of Alison, the landlady of the Bulls Head in Frodsham, also in my constituency, about his rationale and that of the Government in reducing vital support at this particular time?

    James Cartlidge

    The hon. Gentleman is absolutely right to raise the points made by his constituents. As I said to the hon. Member for Brighton, Pavilion (Caroline Lucas), we do understand that the way in which prices have risen has caused great anxiety. In Government, however, we have a duty to consider not only what support we can provide, but the cost to the Exchequer. We have to take that balanced approach. The £18 billion six-month scheme that is currently operational is extremely expensive, and, as I said earlier, stakeholders to whom I have spoken, including those in our major industrial lobbying organisations, did not expect support to remain at its former level because of the huge cost. We have to balance this continued support—which will help the businesses and institutions to which the hon. Gentleman has referred—with the need for fiscal prudence.

  • Jonathan Gullis – 2023 Comments on Energy Bills for the Ceramics Industry

    Jonathan Gullis – 2023 Comments on Energy Bills for the Ceramics Industry

    The comments made by Jonathan Gullis, the Conservative MP for Stoke on Trent North, in the House of Commons on 9 January 2023.

    Jonathan Gullis (Stoke-on-Trent North) (Con)

    The statement will be welcomed by many ceramics manufacturers in Stoke-on-Trent North, Kidsgrove and Talke, but they also want to ensure that they are all eligible. The support to date has meant that £4 million has been saved for one of them, but, sadly, hidden clauses, never used before, are being exploited by some energy suppliers that are trying to smack companies such as Churchill China and Steelite with millions of pounds’ worth of costs on the basis of a past spot price. Will the Minister meet me, other Stoke-on-Trent Members of Parliament and Rob Flello, the chief executive of the British Ceramic Confederation, to look at those examples and hold to account the energy companies which are trying to exploit the Potteries?

    James Cartlidge

    Like my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton), my hon. Friend is a champion for that incredibly important industry in his constituency, and he is right to stress the importance of energy support. I entirely understand that there has been great anxiety about the prevailing level of energy costs, and we hope that this package will provide vital help. According to a message that I have received on WhatsApp, ceramics are dealt with in SIC codes 23.1, 23.2, 23.3 and 23.4 and, I think, one more. As for my hon. Friend’s other request, of course I would be happy to meet him to see what more we can do, because this is an important sector for him and, indeed, for the rest of the United Kingdom.

  • PRESS RELEASE : Sir John Armitt reappointed as Chair of the National Infrastructure Commission [January 2023]

    PRESS RELEASE : Sir John Armitt reappointed as Chair of the National Infrastructure Commission [January 2023]

    The press release issued by HM Treasury on 10 January 2023.

    Sir John Armitt has been reappointed as Chair of the National Infrastructure Commission (NIC) for a further two years while Julia Prescot has been appointed Deputy Chair, following consultation with the Chair. This will ensure continuity as the organisation prepares the next National Infrastructure Assessment.

    Sir John Armitt has served as the Chair of the NIC since 2018, prior to which he was Deputy Chair and a commissioner since the NIC was established in 2015.

    With a background in engineering, Sir John’s expertise in infrastructure and major project delivery is extensive. He has a proven track record of working at the forefront of UK infrastructure in positions that included the Chief Executive of Network Rail, President of the Institution of Civil Engineers and Chairman of the Olympic Delivery Authority, where he played a key role in coordinating the 2012 London Olympics. He was awarded a CBE in 1996 for his contribution to the rail industry and a knighthood in 2012 for his work in engineering and construction.

    Julia Prescot has served as a commissioner since 2017.

    She is a co-founder and Chief Strategy Officer of Meridiam, a leading global investor and asset manager specialising in public infrastructure, and has been involved in long-term infrastructure development and investment in the UK, Europe, North America and Africa. Julia is an Honorary Professor at the Bartlett School of Construction and Project Management, University College London. She also serves as Deputy Chair of the Port of Tyne.

    The NIC was established to provide impartial, expert advice to government on major long-term economic infrastructure challenges. In autumn 2023, the NIC is due to publish the second National Infrastructure Assessment. This will analyse the UK’s long term economic infrastructure needs, outlining a strategic vision over the next thirty years, and setting out recommendations for how identified needs should be met.

    Chancellor of the Exchequer Jeremy Hunt said:

    “I am very pleased to reappoint Sir John Armitt as Chair of the National Infrastructure Commission. Sir John’s extensive engineering and major project delivery expertise is hugely valuable, and I look forward to continuing to work with him to deliver sustainable economic growth across the UK.

    “I am also very happy that Sir John will be joined by Julia Prescot, who has been appointed as Deputy Chair, to jointly lead the organisation as they prepare for the next National Infrastructure Assessment.”

    Sir John Armitt said:

    “Chairing the Commission is both a great privilege and a serious responsibility, offering impartial, expert advice to government on the role of infrastructure in helping solve some of the UK’s biggest economic and environmental challenges.

    “I welcome Julia’s appointment as Deputy Chair which will assist our preparations for the next National Infrastructure Assessment in particular. Together, we and our fellow Commissioners look forward to presenting the Assessment to ministers and working with them, alongside others in the public and private sectors, to ensure our infrastructure is ready to face the future.”

    Sir John’s new appointment period will end in January 2025 and Julia Prescot’s term as Deputy Chair will end in April 2027.

    In addition to these appointments, the Chancellor intends to launch a competition to appoint a new commissioner to the NIC as a successor to Bridget Rosewell. Further details on this will follow shortly.

  • Jack Brereton – 2023 Comments on Energy Bills for the Ceramics Industry

    Jack Brereton – 2023 Comments on Energy Bills for the Ceramics Industry

    The comments made by Jack Brereton, the Conservative MP for Stoke-on-Trent South, in the House of Commons on 9 January 2023.

    Jack Brereton (Stoke-on-Trent South) (Con)

    Energy-intensive industries, particularly the ceramics industry in Stoke-on-Trent, have been most exposed to global energy price shocks, as they have to fire their wares at over 1,000°C. Many of those businesses have not been eligible for the support received by other energy-intensive sectors. Can the Minister reassure me that all ceramics producers in Stoke-on-Trent will receive the additional support that they need?

    James Cartlidge

    My hon. Friend is a champion for the ceramics sector, and I know how important it is to the Potteries and to his constituency. If he looks at SIC code 23 in the list of sectors, he will see a range of ceramics industries that are covered. It is worth looking at that list, because there are a great many specific types. Obviously we want to support business as far as possible. As I have said, the qualification for support is for the sector in question to be above the 80th percentile for energy intensity and the 60th percentile for trade intensity, and that is likely to cover much of the ceramics sector.

  • Joanna Cherry – 2023 Comments on Gorgie City Farm and Energy Bills

    Joanna Cherry – 2023 Comments on Gorgie City Farm and Energy Bills

    The comments made by Joanna Cherry, the SNP MP for Edinburgh South West, in the House of Commons on 9 January 2023.

    Joanna Cherry (Edinburgh South West) (SNP)

    A much-loved institution in my constituency, Gorgie city farm, is facing closure. Its energy bills for 18 months were previously £17,000, but its last bill for just eight months was £27,000—an increase of over 300%. Can the Minister not see that what he is offering is a drop in the ocean for charities like Gorgie city farm? How does he expect fantastic community institutions, such as the city farm in my constituency, to survive crippling costs when what is on offer is such a drastically reduced package?

    James Cartlidge

    I am grateful to the hon. and learned Lady for mentioning the charity in her constituency. As I said, I appreciate that the energy increase has been a challenge for every type of SME, charity and institution up and down the country. I am sorry to hear about the challenges for Gorgie city farm, which I have not had the pleasure of visiting but it sounds fascinating. Charities have shown huge resilience over the past two years and will continue to receive support with their energy bills from the latest iteration of the discount scheme. I emphasise that there is wider support to help them with their costs, including a reduction in VAT from 20% to 5% and an exclusion from the main rates of the climate change levy on some of the energy they use. The key point is that we are announcing a scheme that is still universal in nature and still includes charities. It is not as generous as before, but when we engaged with stakeholders about the £18 billion six-month scheme, what was interesting was the number of them who remarked that they had not expected that scheme to continue at that level of generosity. They could see the issue about sustainability for the taxpayer, which we all have to understand and address. It is in all our interests, and in the interests of every single business and charity, that this country has sustainable public finances.

  • Greg Smith – 2023 Comments on Padbury Meats and Energy Bills

    Greg Smith – 2023 Comments on Padbury Meats and Energy Bills

    The comments made by Greg Smith, the Conservative MP for Buckingham, in the House of Commons on 9 January 2023.

    Greg Smith (Buckingham) (Con)

    I very much welcome the package of support announced this afternoon and the enormity of the total support package, but may I push my hon. Friend a little on what is energy intensive? Padbury Meats, a butcher in my constituency, wrote to me over the weekend. It is a healthy business with a huge gross income per annum, it employs six staff and has no borrowings. Thanks to careful decisions, it managed to buy a freehold and therefore pays no rent, but it has seen a fourfold increase in its energy bills since the invasion of Ukraine and is not making a profit. The owner is personally subsidising the business through their own savings, which is not sustainable. Instead of looking at specific energy-intensive industries, will he look at the proportionality of energy bills to total revenue to determine which businesses, such as butchers who have huge fridges and walk-in freezers, need support?

    James Cartlidge

    My hon. Friend makes an important point. The first part of my answer may disappoint him, but I want to be clear. The additional support, particularly for manufacturing, is not just about energy intensity but trade intensity. There are two measures that determine if sectors are entitled to support: whether they are above the 80th percentile for energy intensity and the 60th percentile for trade intensity. So, it may be that the sector does not fit in that category. But that is why—I appreciate the support is less generous, but it is still significant—alongside the additional support for the intensive users, there will still be a universal scheme offering a discount from April this year to March next year.