Tag: James Cartlidge

James Cartlidge – 2023 Speech to the Navy Leaders’ Combined Naval Event

The speech made by James Cartlidge, the Minister for Defence Procurement, at Farnborough International Conference Centre on 23 May 2023.

It’s a pleasure to be here at the tenth Navy Leaders’ Combined Naval Event.

It’s very pleasing to see so many international partners from around the world. I was just talking to the Peruvian delegation. And just want to emphasise this point about the importance of international partnership as being key to our collective defence.

On Friday, I had the great privilege of attending the Hebrides range, Benbecula, for the NATO exercise there were I think, 13 countries, 4,000 personnel. We had senior officers, Americans, Italians, Norway, and so on. And we must all remember that there’s nothing more powerful than the signal it sends to our adversaries to see how many of us there are in a coalition and how strong is our collective determination.

So, I also had, some of you may have been there, the pleasure to address the First Sea Lord Sea Power conference last Wednesday, in London and again, representation all around the world.

So, as I say, in the job for a month, I hope I have already shown that while the ministers do change from time to time, our consistent recognition of the importance of the maritime domain remains unchanged.

And as I am a new minister, just by way of background, so some of you will know the Minister of Defence Procurement is actually typically not someone who served the military but with a commercial or legal background. So, I’ve taken over from a lawyer, Alex Chalk, who is now the Justice Secretary, and Lord Chancellor.

My background is in business I ran an SME, and although not in the defence sector, participated in public procurement so I have a lot of sympathy for those companies. The SMEs, which I see as a key stakeholder in defence, but previously was a minister in the Treasury.

So, you may say, SME background, Treasury minister, perfect for defence procurement in some respects, but I will just say this, it’s not just about that angle of value for money. It’s about growth.

So, for me, it is about the contribution of defence and the UK defence industry to our domestic growth, but in particular to the export potential. And I do personally feel passionately that this country can go even further as a leader in defence exports. And that will be a particular priority for me that I’ll be setting out more in the coming weeks.

I spoke about the importance of the maritime domain. More than 90% of global trade is still carried over the oceans, tens of thousands of miles of underwater cables carry global financial transactions worth trillions of dollars between continents everyday as well as more than 95% of international data. So, in other words, the contemporary global system depends on a well-functioning maritime sector.

But with dependency inevitably comes vulnerability and today we are facing some of the most profound challenges to the domain that we’ve seen for decades.

Whether it’s Russia is barbaric invasion of Ukraine, subsequent blocking of the vital trade routes into the Black Sea, or China’s increasing belligerence as it expands its presence across the world. Something our refreshed integrated review calls an epoch defining threat.

Then there is the all-encompassing threat posed by climate change, raising the stakes in the high north as melting ice caps reveal natural resources, and potential trade routes.

The reality is that our Navies are being pulled in every single direction with events in the Indo Pacific directly impacting the Euro Atlantic, and vice versa. And we’re being forced to meet these ever-increasing demands under ever tighter budgets.

But it is far from all doom and gloom. This weekend, we’ll celebrate the 80th anniversary of the Allied victory in the Battle of the Atlantic. And just as in 1943, today, we still have one thing our adversaries lack, that is partners we can trust.

Here in Farnborough, we have representatives from 50 countries, including all 30 NATO nations, here because as we all know that in this era of constant global competition, we can only succeed if we work together which is very much the spirit I saw up in the Outer Hebrides.

Not just on operations and in exercises but in the factories and the shipyards. And as you might expect from a procurement minister, it’s the industrial side of things that I want to focus on today.

The crucial component of regalvanising our industrial capacity, as while our navies might travel around the world, it’s the industrial sector back home that powers their success. In recent years, the UK shipbuilding industry has been transforming itself so it can do more business with you.

But why would you want to work with us?

Here are three key reasons.

First of all, we’ve got the skills.

For centuries British shipyards were a byword for quality.

During the Battle of the Atlantic the likes of Rosyth, Belfast and Devonport built their legends churning out mighty steel leviathans at a rate of knots.

Today we’re witnessing a renaissance in great British shipbuilding as those same yards construct the next generation of world-class vessels. And we’re working in tandem with our suppliers to strengthen their hand.

We’ve put in place a 30-year pipeline of Government orders – spanning frigates, destroyers, and support ships for the Navy, as well as a whole host of vessels for other government departments. And that’s giving industry the baseline demand they need to invest and upskill.

We’re also simplifying the procurement process by cutting out unnecessary regulation and process.

But as well as building for today, our industrial sector is laying the foundations for future success too.

Not just by constructing world-class facilities, from the carbon-neutral Carrier Logistics Centre under construction in Portsmouth, to the new shipbuilding hall at Govan.

But by training thousands of new maritime engineers and project planners, on apprentice and graduate schemes, ensuring we have the onshore skills base required to stay at the cutting edge of this industry for decades to come.

Secondly, the UK is an innovation nation.

80 years ago, it was ground-breaking radar and SONAR technology that swung the Battle of the Atlantic our way. Today our maritime industry is again at the forefront of new technologies and concepts.

And while a former sailor and Farnborough alumnus Patrick Blackett once conducted crucial operations research during the Second World War, today Patrick Blackett lends his name to our unique experimental vessel for testing these new technologies.

Operated by NavyX, the Patrick Blackett helps the team bring new kit and concepts from the drawing board to the frontline as quickly as possible.

At the moment they’re testing a quantum accelerator in partnership with Imperial College. This particular quantum accelerator provides a cutting-edge navigational system, meaning we can still operate if our access to satellites is cut off, even if others cannot.

And that’s just one example of the innovation driving our Navy.

In the past year, we’ve also been trialling uncrewed minehunters on operations in the Gulf and investing in autonomous helicopters which can track adversary submarines. As well as fitting the Mk 41 missile launcher to our Type-26 and Type-31 frigates – enabling them to use a whole range of next-generation weaponry.

And we’ve also just announced a deal with Thales for a £70 million combat mission system for the Type-31s. But we’re not just focusing on today’s technology. We’re preparing for the breakthroughs that haven’t even reach the concept yet; those ‘Dreadnought’ moments of tomorrow; those advanced vessels that make anything that came before obsolete.

Thirdly and finally, we want you to work with us because we share fundamental values.

In a world where our way of life is constantly being undermined by rogue actors both state and non-state, it’s important to have partners you can trust.

Partners united by a firm belief in freedom and the international rule of law. And partners with whom we are working ever more closely to protect our values.

I am delighted that over the past year, our ships have been working with your navies right across the world.

Whether supporting and leading NATO exercises in Eastern Europe and training Ukrainian sailors in mine clearance.

Whether operating in the High North alongside partners in the Joint Expeditionary Force (JEF).

Whether safeguarding strategic chokepoints on busy shipping lanes around the Malacca Strait, the Strait of Hormuz, and the Suez Canal.

We’ve shown that when we come together, cliche as it is, we can be greater than the sum of our parts.

And that’s as much the case in our factories and shipyards as it is on operations and exercises.

As I said earlier, the UK’s shipbuilding industry has taken significant steps to becoming a stronger partner.

We’re now designing our next-generation ships with exportability at their heart.

And we’re already seeing some of the huge benefits of industrial collaboration.

Take our Type-26 frigate – the global combat ship.

The likes of Australia and Canada are already investing in this world-beating design because they recognise how much it can do for their own navies.

Then there’s our Type-31 frigate – which, as well as being one of the most adaptable ships around, is helping form a new kind of partnership.

One which isn’t just about buying and selling. But about sharing skills, learning from each other, and helping partner nations to build up their own indigenous shipbuilding industry.

That’s something we are seeing right now in Poland, thanks to the support of the Navy and Babcock. And I look forward to seeing other nations join the Type-31 club in the coming months and years.

Yet perhaps the best example of this partnership in principle is AUKUS.

It’s not just strengthening our industrial bases and creating thousands of highly skilled jobs in the UK, US, and Australia.

And it’s not just turbocharging innovation, with all three nations pooling their best and brightest brains to break new ground in underwater technology.

But it’s uniting three allies at a time when our adversaries are trying to drive us further apart.

AUKUS, therefore, provides a model for the way we seek to work with our friends in future.

And I’m here today because I want us to seize the opportunities on offer to bolster our bonds and extend our associations.

So, I do hope this will be the start of a stronger relationship with all your navies and industries.

The UK’s shipbuilding sector is energised. The engines are pumping, the propellers are turning and we’re setting sail for success. By the time I’ve been in the job for a few months, I’ll come up with some better puns than that!

So, let’s do more together, let’s learn from each other and let’s find new ways to share our industrial burden.

And as we celebrate the 80th anniversary of that victory in the Battle of the Atlantic this weekend, with allied navies convening on the Mersey for three days of commemorations, let’s remember that in our darkest days we found strength and solace in great partnerships.

By reinvigorating those partnerships today, we can pave the way for an even more successful tomorrow.

Thank you very much.

June 2, 2023
James Cartlidge – 2023 Speech at the Sea Power Conference

The speech made by James Cartlidge, the Minister for Defence Procurement, at the Sea Power Conference held at Lancaster House in London on 16 May 2023.

It’s a great pleasure to be here and even to those like me with no naval background, Sir Henry Leach needs no introduction.

It is a great honour to have been asked to deliver this lecture in his name, especially with his daughter Henrietta here in the audience.

With many distinguished guests, colleagues and of course senior chiefs and indeed from our many allies around the world – it’s a great pleasure to meet and see all of you.

During the Falklands conflict, as Prime Minister Margaret Thatcher’s so-called “knight in shining gold braid”, Sir Henry played a pivotal role in ensuring the Iron Lady stuck to her guns and secured freedom for the islanders.

Yet as we prepare to mark the 80th anniversary of the end of the Battle of the Atlantic next weekend, we shouldn’t forget that Sir Henry’s early years were spent as a midshipman and later First Lieutenant in the stormy seas of the Second World War.

Indeed, he had been assigned to serve on HMS Prince of Wales until his father Captain John Leach was given command of the ship.

Tragically, Captain John went down with his ship just two days after the pair had enjoyed a gin sling and swim together.

Despite such tragedy, Sir Henry distinguished himself in the war and as a junior lieutenant, was in charge of one of the 14-inch gun turrets in the battleship Duke of York which helped sink the German battlecruiser Scharnhorst off the North Cape in December 1943.

There can be little doubt that such formative experiences helped shape the character and resilience of the man who went onto become First Sea Lord.

A man who, when asked for his view on whether or not to send a taskforce to the Falklands, replied firmly: “It is not my business to say whether we should or not, but if we do not, if we pussyfoot in our actions and do not achieve complete success, in another few months we shall be living in a different country whose word counts for little.”

On the surface 2023 appears to have very little in common with 1943.

Yet, as Royal Navy and Allied warships sail to the Mersey ahead of three days of Battle of the Atlantic commemorations, it is striking how many of those challenges from Leach’s early wartime experiences remain relevant for us.

We might not be at war but we find ourselves once more having to confront the resurgence of state-based dangers.

President Putin is blockading trade in the Black Sea, threatening the undersea cables which support everyday life and increasing activity in the South Atlantic.

And just as in the Second World War, the threats are truly global.

We see, for example, in the South Pacific, that China is continuing to expand its Navy while using its military and economic might to intimidate its neighbours.

Again, much like the Battle of the Atlantic, we know these maritime challenges – coupled with the diverse dangers of terrorism and global criminal networks – will unfortunately endure.

Because the world is more dependent than ever on the oceans.

Global financial markets dependent upon tens of thousands of miles of underwater cabling.

90% of UK trade is carried by sea.

And climate change is expected to raise the stakes – resulting in new sea lanes and accessible natural resources in the High North as temperatures rise and ice caps melt.

So, Sir Henry would not be surprised to find his beloved Royal Navy more in demand than ever.

Over the last year, our ships have been all over the world.

Supporting NATO in Eastern Europe, leading exercises and training Ukrainian sailors in mine clearance.

Operating in the High North alongside partners in the Joint Expeditionary Force (JEF).

And conducting numerous weapons and drugs busts in the Gulf region.

All the while, demonstrating the very best of naval soft power around the globe with HMS Tamar and Spey visiting some 15 countries, delivering medical support to Pitcairn and emergency support to Tonga after the devastating volcano.

And who could forget the poignant role they have played at home? With 140 naval ratings pulling the Queen’s coffin through Westminster on the day of her funeral.

As well as those who marched through the streets of London in the King’s coronation processions earlier this month.

So to those of you here today – and indeed all those who couldn’t make it – thank you for doing your duty for our country.

However, the Sea Power Conference is not an arena for self-congratulation.

As you all know our challenge now is to move our thinking on from the past and present to the future.

None of us has a crystal ball. But here’s what we do know.

We know the threats are growing.

We know that rising demand is colliding with tighter budgets.

And we know, in Sir Henry’s words, that, “effective deterrence involves maintaining a high state of readiness, being well equipped and trained, and deploying wherever and whenever the situation demands.”

How, then, can we reconcile these competing objectives?

To my mind we must borrow three lessons from the Battle of the Atlantic.

Lesson one is about strengthening that key stakeholder our industrial base.

In the Second World War, our force depended on the enormous power of our sovereign industries.

With great yards on the Clyde, Mersey and Tyne churning out mighty warships at a rate of knots.

Now, we’re determined to reinvigorate the famous British maritime sector.

Not just so we can produce the hard power required to succeed in this more dangerous era.

But so the sector itself becomes a kind of soft power deterrent – showing our adversaries that our small island has the capability to keep making battle-winning ships for as long as it takes.

And we’re going to achieve that by providing industry with a clear demand signal – with a fresh pipeline of cutting-edge vessels coming in over the next 30 years including Dreadnoughts, Astutes, SSN-AUKUS, Fleet Solid Support ships and next-generation frigates.

By working much more closely with suppliers, giving them the confidence to invest and upskill in the right areas.

And by helping them win commercial and export orders in major new global markets.

The totality overall demand or demand signal is something I’ve thought about and will do much more in future as Procurement Minister.

We’re also supporting the next generation of shipwrights by investing in training programmes and skills academies.

With the likes of Babcock, BAE and others as they put apprentices and graduates through their paces around the country.

Ensuring we have a powerful on-shore advanced manufacturing skills base for decades to come, so that the Royal Navy always has the firepower it needs to carry out its plans.

Lesson two is about encouraging innovation across the sector.

The advent of radar and sonar helped swing the Battle of the Atlantic our way in days gone by.

But today, technologies are advancing at a frightening pace.

AI, for example, is already revolutionising the way data and satellite imagery is informing decision-making in battle, while also enabling forces to carry out dangerous missions with uncrewed aircraft, vehicles and ships.

If we don’t stay ahead of the curve there is a risk that vessels designed in 2023 could be obsolete in ten years’ time frankly a lot less.

Part of that is about integrating new technologies onto existing platforms.

And this is where NavyX comes in, the team with the mission to get new technologies from the drawing board to the frontline as quickly as possible.

And to help them do that, they’ve got the new and unique Experimental Vessel Patrick Blackett.

Named after the former sailor and Nobel Prize winning scientist, Patrick Blackett provides the safe environment we need to test all the game-changing ideas coming over the horizon.

Now we just need to make the most of it.

By working with the regulator to unlock the maximum potential of Patrick Blackett and future technology.

While adapting our existing platforms in the here and now, to ensure we stay one step ahead of our adversaries.

Which brings me onto my third and final lesson. The importance of partnerships.

Sir Henry wouldn’t have got far in the Battle of the Atlantic without the support of allies like France and later the US and Canada.

As we are seeing today in Ukraine, great partnerships are still a great capability in their own right.

And this year we’re also celebrating the 60th anniversary of the Polaris Sales Agreement.

A major part of one of the most enduring bilateral relationships in history, it saw the US supplying us with our very first nuclear missiles, heralding the start of the ultimate deterrent which has kept us safe from the most extreme threats ever since.

The truth is that while our adversaries lack allies they can trust, we are part of a large family united by values we’ve fought and died to protect – Freedom, justice and a commitment to democracy.

And as the dangers around us grow, we’re seeing a renewed commitment to NATO across the board.

That’s why, here in the UK, the Navy is making a substantial commitment to NATO’s New Force Model – including our Carrier Strike Group – in addition to regular contributions to NATO operations.

But we’re also operating on a smaller multi-lateral level, ramping up our collaboration with our partners in the Joint Expeditionary Force (JEF) which is the 10-nation coalition aiming to preserve peace in Northern Europe.

Over the last year, the JEF has been at the forefront of providing military, economic and humanitarian aid to Ukraine.

Joint patrols, led by the British Type 23 frigate HMS Richmond, have been joined by Lithuanian, Latvian, Estonian, and Danish ships, supported by Swedish and Danish fighter aircraft.

And last year we held Exercise Cold Response near Norway, one of the biggest exercises in Europe since the end of the Cold War.

We’re also strengthening our partnerships beyond Europe.

In the Indo-Pacific, which we all know is one of the main strategic chokepoints in the world, we are persistently operating two ships to reassure allies and partners, while helping to uphold freedom of navigation in the region.

By 2030, our five new Type-31 frigates will further enhance our global reach.

And at an industrial level, the T-26 continues to garner interest in the export market, having already been selected for the Hunter class frigate programme in Australia and the Surface Combatant programme in Canada.

But you and I know there is much more we can do.

And one of my priorities will be to make sure we get even more out of our international ties both at an operational and industrial level.

The three lessons I’ve outlined today – strengthening industry, encouraging innovation and bolstering partnerships – are embodied in what is our most powerful partnership of the last few decades – AUKUS.

AUKUS is not just creating thousands of skilled jobs here in the UK, strengthening our industrial base.

And it’s not just enabling the sharing of skills and expertise as we break new ground together on cutting-edge designs.

But, crucially, it’s uniting three great allies as we work together to protect our common interests.

That is the benchmark for the kind of deals we’re looking to make in the coming months and years.

So, as I’ve said, we’re living at a dangerous time.

A period of rising dangers.

But some things have not changed.

Our maritime power is as important as it has ever been.

So we must do everything we can to enhance Sir Henry’s great legacy through industry, through innovation and through international partnerships.

We must continue to channel his great willpower and his great belief in the values that underpin our daily lives.

Because, if we do not, the warning he gave to Mrs Thatcher still holds true; “We shall be living in a different country whose word counts for little”.

May 23, 2023
James Cartlidge – 2023 Speech on the Budget

The speech made by James Cartlidge, the Exchequer Secretary to the Treasury, in the House of Commons on 16 March 2023.

It is a real pleasure to conclude today’s debate. I am glad that the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) welcomed the measures in relation to the north-west and the Mayor. I join him in congratulating the hon. Member for West Lancashire (Ashley Dalton) on her brilliant maiden speech, which I very much enjoyed. I especially enjoyed hearing about the women of Ormskirk and their famous gingerbread. I understand that King Edward VII is rumoured to have stopped the royal train in Ormskirk to get his supply of gingerbread to take with him to Balmoral. Her speech was delivered with great passion and I was particularly pleased to hear her tribute to her predecessor, with which we all agreed.

Yesterday, the Chancellor delivered a Budget for growth —a Budget that builds on the decisions we took in the autumn to deliver stability and sound money; that provides a blueprint for prosperity that will spur on the economy and make us one of the most prosperous nations in the world; and that spreads opportunity. At the heart of the Budget is the steps we are taking to spread the opportunities of employment, to tackle labour shortage and to tear down the walls that stop people working.

Many Opposition Members said there was nothing in the Budget about public sector workers. I hope they will join me in welcoming the fantastic news we heard, less than an hour ago, that an agreement has been reached that will provide a fair and reasonable pay deal for health workers, from nurses to paramedics and midwives, thereby ending strike action across the NHS.

On the subject of workers in our brilliant NHS, we have seen today the most extraordinary U-turn yet by the Labour party. We should remember that barely six months ago the shadow Secretary of State for Health and Social Care, the hon. Member for Ilford North (Wes Streeting), told us that Labour policy was not to have a specific scheme for the NHS but to abolish the lifetime cap. Let me quote what he said six months ago:

“I’m not pretending that doing away with the cap is a particularly progressive move. But it is one that sees patients seen faster, and will inevitably save lives. I’m just being hard-headed and pragmatic about this.”

We totally agree with him.

Mr Dhesi

Perhaps the Minister would like to retract his statement, because I think he is inadvertently misleading the House. When the shadow Secretary of State said that, he referred specifically to that scheme for doctors, not for everybody. He was not talking about giving the 1% throughout our whole country—the rich—that huge tax cut.

James Cartlidge

The quote says,

“doing away with the cap”.

The removal of the cap is a tax measure that applies to all people who qualify for it. There is a really important point that Opposition Members probably want to listen to: there is a real danger in making up policy as one goes along. To be clear, our tax change will come in immediately, or as soon as we can possibly do it—it will come in on 6 April—but it is our view that a specific scheme for the NHS would take up to a year to put in place. Were we to bring forward an NHS-only scheme, the Department of Health and Social Care would have to consult on that scheme and then respond to the consultation. Only after that could it start to develop the scheme, because it could not predetermine the consultation. After that, the Department would have to transfer eligible people into the scheme. All that assumes that there would not be legal challenges from those who would argue that such a scheme should apply to other key people in the public sector, such as headteachers, senior police officers and senior people in the Ministry of Defence who might think that they too work hard in our public services. The Labour party has made it up as it has gone along. The fact is that Labour has U-turned from a perfectly sensible policy back to being ridden with the politics of envy, which we have heard from every single Opposition Member today.

Turning to some of the speeches, my right hon. Friend the Member for Norwich North (Chloe Smith) made an excellent contribution. She speaks with great expertise and passion on the matter of getting the disabled into work. She made the very important point that that is not just for the Government and that we also need to talk about the role that employers can play. I hope she will be pleased to hear that in the build-up to the Budget I, along with my hon. Friend the Minister for Employment and the small business Minister—my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake)—engaged directly with employer groups and worked with them to come up with some of the Budget’s proposals, particularly the extension of the occupational health subsidy pilot, the returneeship policy and boot camps for over-50s. Those are very positive measures.

The hon. Member for Glasgow South West (Chris Stephens) said that all the measures we have taken are on the backs of the poor, while the hon. Member for Jarrow (Kate Osborne) and other Opposition Members said that we have let down those on the lowest incomes. I remind the House that this year it is possible, for the first time, to earn £1,000 a month without having to pay any income tax or national insurance. We have doubled the personal income tax allowance since 2010, and in the last year we have increased benefits in line with inflation. On energy support, this financial year we have given a £650 cost of living payment to those on benefits, and in the financial year to come it will be £900. Those are not the actions of a Government turning their back on the poor. This is a Government taking difficult decisions to balance the books of this country, but in a compassionate way that helps those who have the least.

Chris Stephens

If the Government are doing so much for the poor, can the Minister tell us why in-work poverty is on the rise and why 40,000 civil servants, who work for this Government, are having to use food banks?

James Cartlidge

The key statistic is that since 2010 we have cut unemployment by 1.2 million. We have near record lows in unemployment and almost record highs in employment. Of course, we want to go further.

I am glad that the Chairman of the Work and Pensions Committee, the right hon. Member for East Ham (Sir Stephen Timms), welcomed some of the Budget’s measures, particularly the important increase in the universal credit childcare cap and aspects of the White Paper. I am sure he is looking forward to engaging in detail with my right hon. Friend the Work and Pensions Secretary, who is sitting next to me.

My right hon. Friend the Member for Chipping Barnet (Theresa Villiers) was absolutely right to say that the Prime Minister has set these targets and that this year we are making fantastic progress on three of them. Inflation is set to more than halve this year. That is not a minor detail. Inflation—driven, after all, by Putin’s invasion of Ukraine—has been the biggest reason why there have been problems with growth in countries all around the world. She also made very important points about the extension of the energy price guarantee. Yes, inflation is falling, but that shows that we continue to take steps to support people with the cost of living. We know that those pressures have not completely gone away. The elevated prices of food and other products in our shops have all come from that surge in energy prices. That is why we have extended the energy price guarantee and continued the freeze on fuel duty and the 5p tax cut on petrol and diesel for motorists.

The hon. Members for Eltham (Clive Efford) and for Easington (Grahame Morris) both put forward some very interesting proposals, which I hope have been noted by shadow Front Benchers, for a range of new wealth taxes to undermine the competitiveness of the UK. If there has been a theme among Opposition Members today, it has been a return to the politics of envy and of undermining aspiration and competitiveness.

My hon. Friend the Member for South Dorset (Richard Drax) made an excellent point. We may exchange views on which taxes we should take action on, but he reminded us of the reason why we have had to take those difficult decisions. It is because of huge external factors that Opposition Members do not like to talk about. They include a pandemic, followed, literally, on 24 February, the day on which the pandemic regulations ceased, by Putin’s invasion of Ukraine. It has been an extraordinarily challenging time, requiring us to put in place £390 billion of additional support. We can debate whether it should have happened, but it did happen and, as my hon. Friend the Member for Thurrock (Jackie Doyle-Price) has said, that has consequences for taxes and we have had to take those difficult decisions.

I also agree with the very important point made by my hon. Friend the Member for South Dorset about energy security. He is absolutely right. We are proud of the huge progress that we have made in reducing our emissions, at a faster rate than any other G7 country. Last year, 40% of our electricity was from renewables. The figure in the United States was just 20%. Yes, we welcome the steps that the US is taking through the Inflation Reduction Act 2022, but no one should be under any illusion that we are not making huge steps forward ourselves. However, we must always remember the role of energy security, which is why my hon. Friend the Member for South Dorset is right that, rather than turning our back on the North sea as others have suggested, we should be maximising the UK’s domestic supplies of energy. That is why I hope that colleagues will welcome the steps that we are taking in respect of small modular reactors. There was also the important announcement, which was welcomed by several Opposition Members, including the hon. Members for Preston (Sir Mark Hendrick) and for Stockton North (Alex Cunningham), of £20 billion investment in carbon capture and storage.

I am delighted that my hon. Friend the Member for Milton Keynes South (Iain Stewart), the Chair of the Transport Committee, welcomed the news on East West Rail, which we have had exchanges on in previous Treasury questions. He is absolutely right about the central role that new infrastructure plays in driving growth and connectivity, and I hope that the announcement brings great benefit to his constituents.

Alex Cunningham

I am grateful to the Minister for acknowledging the support for carbon capture and storage, but this must be the start of the investment. We need another wave of investment followed by another wave after that. Are the Government really committed to it?

James Cartlidge

We have announced £20 billion of funding, which shows the strength of our commitment. We want to decarbonise and continue our rapid progress to net zero, but, along the way, we must maintain energy security, otherwise what have we learned from what has happened in the past 12 months, following the invasion of Ukraine? Our constituents want to know that we will do everything possible to grow the supply of UK domestic energy.

Sir Mark Hendrick rose—

James Cartlidge

This is the last time I shall give way.

Sir Mark Hendrick

Is the Minister aware of Newcleo, a British company, that will burn waste plutonium in Cumbria without public subsidy or recourse to public funds, but purely with private investment?

James Cartlidge

I am not aware of that specific company but the hon. Gentleman is welcome to write to me. None the less, he is right to talk about the need for private investment.

Another important step that we took in the Budget, which the hon. Member for Inverclyde (Ronnie Cowan) referred to—I am not sure whether he was supportive of it—was changing the taxonomy so that we encourage more private investment into nuclear, which is so important.

Ronnie Cowan rose—

James Cartlidge

I apologise, but I cannot give way. I only have two and a half minutes left. The hon. Gentleman made a very entertaining speech and I enjoyed what he said on hemp, and I hope that he writes to the Secretary of State for Environment, Food and Rural Affairs to pursue that.

Yesterday, the Chancellor unveiled the biggest ever employment package. In the knowledge that, following Brexit, we will move from an employment model based on unlimited low-skilled migration to one based on high wages and high skills, we brought forward a set of major reforms to remove barriers to work. We have incredible potential. The World Bank has said that, out of all big European countries, we are the best place in which to do business. In the sectors of the future, we lead the world—whether that is financial services, life sciences, advanced manufacturing, creative industries or tech, but those sectors, and the entire economy, need a pipeline of talent. That is why we are introducing reforms that say to those who are long-term sick or have a disability that we will help you into, and at, work; reforms that ensure that those who can and want to work, do work, because independence is always better than dependence; reforms that help some of the most experienced people back into work; and reforms that mean women are no longer held back by the cost of childcare. With those reforms, we can grow our economy.

Ordered, That the debate be now adjourned.—(Scott Mann.)

Debate to be resumed Monday 20 March.

March 19, 2023
James Cartlidge – 2023 Statement on the Energy Bills Discount Scheme

The statement made by James Cartlidge, the Exchequer Secretary to the Treasury, in the House of Commons on 9 January 2023.

Following a review of the energy bill relief scheme (EBRS), the Government today announce a new energy support scheme for businesses, charities, and the public sector. The new energy bills discount scheme (EBDS) will provide all eligible UK businesses and other non-domestic energy users with a discount on high energy bills until 31 March 2024, following the end of the EBRS in March 2023.

This will help businesses locked into contracts signed before recent substantial falls in the wholesale price manage their costs and provide others with reassurance against the risk of prices rising again.

This further support follows the Government’s unprecedented package for non-domestic users through this winter through the EBRS, worth £18 billion per the figures certified by the OBR at the autumn statement.

At autumn statement, we were clear that such levels of support, unprecedented in their nature and scale, were time-limited and intended as a bridge to allow businesses to adapt. Wholesale energy prices are falling and have now gone back to levels seen just before Putin’s invasion of Ukraine. But to avoid a cliff-edge for businesses and provide reassurance against the risk of prices rising again, we are launching the new energy bills discount scheme, giving them the certainty they need to plan ahead.

The new scheme strikes a balance between supporting businesses over the next 12 months and limiting the taxpayer’s exposure to volatile energy markets, with a cap set at £5.5 billion based on estimated volumes.

Through the scheme, from 1 April 2023 to 31 March 2024, eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill, except for those benefiting from lower energy prices. The relative discount will be applied if wholesale prices are above a price threshold of £302/MWh for electricity and £107/MWh for gas.

A substantially higher level of support will be provided to businesses in sectors identified as being the most energy and trade intensive—predominately manufacturing industries. A long-standing category associated with higher energy usage, these firms are often less able to pass through cost to their customers due to international competition. Businesses in scope will receive a gas and electricity bill discount based on a price threshold, which will be capped by a maximum unit discount of £40.0/MWh for gas and £89.1/MWh for electricity. This discount will only apply to 70% of energy volumes and will apply above a price threshold of £185/MWh for electricity and £99/MWh for gas.

This Government are committed to supporting UK business and the voluntary sector, and through this package we aim to give organisations the certainty they need to plan through next winter.

January 11, 2023
James Cartlidge – 2023 Statement on Energy Support Package for Businesses

The statement made by James Cartlidge, the Exchequer Secretary to the Treasury, in the House of Commons on 9 January 2023.

With permission, Mr Deputy Speaker, I will make a statement on how the Government are continuing to support businesses, charities and the public sector with their energy bills. Before I outline how we are helping businesses, I remind the House why we are in this position.

Although wholesale energy prices are now falling, some businesses are still exposed to higher energy bills after Putin’s illegal invasion of Ukraine pushed prices far above their historical averages. Putin’s military aggression has put households and businesses across Europe and beyond under serious financial pressure. For that reason, we have already provided a package of support for non-domestic users through this winter that is worth £18 billion, as per the figures certified by the Office for Budget Responsibility at the autumn statement.

The energy bill relief scheme gave a direct discount on energy costs for all eligible businesses. It lessened the shock of the immediate increase in prices; it gave businesses the certainty they needed to plan for the winter; and it is one of the most generous packages in Europe. It comes on top of our support for households, including the energy price guarantee worth £900 this winter according to the OBR, which further helped to support consumers and the businesses that rely on them. I remind hon. Members that that followed unprecedented business support during the pandemic.

The Government are proud to have helped businesses through a twin combination of unprecedented shocks that nobody could have expected a few years ago. We will always do what is necessary to keep the economy and the British people secure, which is why the Prime Minister has been clear that we will halve inflation this year to ease the cost of living and give people financial security before returning it to target. That is also why we unleashed the furlough scheme, which avoided 2 million forecast job losses; a groundbreaking vaccine roll-out, which saved lives and ensured the safe reopening of our economy; grants for pubs, shops and other retail businesses; and now, humanitarian and military aid to Ukraine as it fights for democracy, with the UK giving more than any other nation bar the US. All those steps have been right, but all have come at a significant combined cost, leaving our national debt standing at £2.48 trillion or 98.7% of GDP.

To secure the future of public services, we have committed to get national debt falling, including two new fiscal rules—that the UK’s national debt must fall as a share of GDP by the fifth year of a rolling five-year period, and that public sector borrowing in the same year must be below 3% of GDP.

As we look to the next steps in supporting businesses, it is therefore in our national economic interest that we chart a path to withdrawing such support and restoring fiscal sustainability, but in a sensible and fair way that strikes a balance between supporting businesses now and protecting taxpayers’ exposure to volatile energy markets. As my right hon. Friend the Chancellor said at the autumn statement, one of our key economic priorities is stability, and we cannot have stability without financial prudence. So all Members must recognise that there is a balance to be struck, and it is not sustainable for the Exchequer to continue to support large numbers of businesses at the current level.

No Government—no responsible, serious Government —anywhere in world can permanently shield businesses from this energy price shock, and we must cap the taxpayer’s exposure to volatile energy prices. We have also been clear throughout that such levels of support were time-limited and intended as a bridge to allow businesses to acclimatise. Firms need to adapt and invest in energy efficiency to remain viable, and as they do so, we will be at their side to help, including with £6 billion of additional investment to cut the UK’s overall energy use.

Yet we remain fully alive to the fact that businesses would be facing a cliff edge as support comes to an end. To avoid this, we are going to provide a further package of transitional support, so today I can confirm a new energy bills discount scheme for businesses, charities and the public sector. Up to £5.5 billion will be made available from the end of the energy bill relief scheme period on 31 March until 31 March 2024.

The Chancellor has been working with the key industry stakeholders to get this right. We heard that they needed a 12-month rather than six-month scheme. We have listened and, as a result, I confirm that we will be providing a year’s worth of support for all non-domestic bills beyond the current six-month scheme. This will give certainty and ongoing assistance to businesses locked into contracts signed before recent substantial falls in the wholesale price, and provide others with reassurance against the risk of prices rising again. It is different from the previous energy bill relief scheme, but provides long-term certainty for businesses and reflects how the scale of the challenge has changed since September last year.

From 1 April 2023 to 31 March 2024, non-domestic customers that have a contract with a licensed energy supplier will see a unit discount of up to £6.97 per megawatt-hour automatically applied to their gas bill and a unit discount of up to £19.61 per megawatt-hour applied to their electricity bill, except for those already benefiting from lower energy prices. This means a typical pub can expect a taxpayer-funded discount of up to £2,300 over 12 months and a typical small retail store will get up to £400 off its annual energy bill.

We also recognise that some businesses, especially intensive users such as major manufacturers, are highly exposed to both energy prices and international competition, which means they are unable to pass through or absorb all of these costs. I can therefore confirm that the Government are targeting a substantially higher level of support beyond April 2023 to energy and trade-intensive sectors, providing a major boost for the manufacturing sector. Businesses in scope will receive a gas and electricity bill discount based on a price threshold that will be capped by a maximum unit discount of £40 per megawatt-hour for gas and £89.10 per megawatt-hour for electricity. This discount will only apply to 70% of energy volumes. These firms will continue to be supported at source, based on a price threshold of £99 per megawatt-hour for gas and £185 per megawatt-hour for electricity. This means a typical medium-sized manufacturer would expect to receive nearly £700,000 of direct support over 12 months.

This comes on top of the £13.6 billion of support for firms with business rates over the next five years, a UK-wide £2.4 billion fuel duty cut this year and the protection from full corporation tax rises for businesses making profits of less than £250,000, with those making profits of less than £50,000—the vast majority—not facing any rate rise at all.

I have set out how this transitional support will reduce overall as a cost to the Exchequer while remaining significant at a time of elevated energy costs and providing certainty for a further 12 months. However, I have also been clear that, just as we withdrew covid support when we moved to a position of living with the pandemic following the success of our vaccination efforts, this energy support is deliberately transitional in nature. That means that in due course we will move unambiguously to a point where there is no universal support for businesses with energy bills from the taxpayer.

Ultimately, it is in the national economic interest that we move to a position where the Government do not routinely subsidise UK businesses. It is not for the Government to habitually pay the bills of businesses any more than it is for the Government to tell businesses how to turn a profit, and it cannot be that the taxpayer props up failing or unproductive firms. Instead, we must protect the forces of free enterprise and entrepreneurialism that have led to our economic success for generations. [Interruption.] Labour Members do not understand free enterprise and entrepreneurialism, and I do not think many of them have ever run a business.

The approach I have outlined today does just that: it is fair in balancing the needs of non-household energy users with the need for prudence and a restoration of competitiveness, and it shows that this Government remain committed to supporting businesses, charities and the public sector through these challenging times. I commend this statement to the House.

January 10, 2023
James Cartlidge – 2016 Parliamentary Question to the Department for Environment, Food and Rural Affairs

The below Parliamentary question was asked by James Cartlidge on 2016-03-10.

To ask the Secretary of State for Environment, Food and Rural Affairs, what progress she has made in setting out and implementing a national strategy for areas of outstanding natural beauty; and if she will make a statement.

Rory Stewart

Areas of Outstanding Natural Beauty (AONB) partnerships and conservation boards, along with National Park Authorities, are a vital part of the fabric of the nation. Whilst there are no current plans to either set out or implement a specific national strategy for AONBs, I recognise that they make a significant contribution to realising Defra’s wider ambitions for the natural environment, and they are engaged in our ongoing development of a 25 Year Plan for the Environment.

January 1, 2023
James Cartlidge – 2016 Parliamentary Question to the Department for Communities and Local Government

The below Parliamentary question was asked by James Cartlidge on 2016-09-13.

To ask the Secretary of State for Communities and Local Government, what information his Department holds on how many residential planning permissions which were granted in England in the last five years have yet to commence building work.

Gavin Barwell

As of 1 July 2016 planning permission had been granted since 1 January 2011 for 311,000 homes on sites where work had not yet started. However, latest figures show that on these sites yet to be started, 90 per cent of the dwellings are now progressing towards a start, up from 85 per cent in July 2015.

There are a range of factors which can delay the start of work on site. We are taking forward a range of proposals to help drive up delivery post permission, including changes in legislation to tackle unnecessary planning conditions and providing additional investment in infrastructure to help unlock housing sites and we expect developers and local authorities to work together to tackle problems at a local level.

January 1, 2023
James Cartlidge – 2016 Parliamentary Question to the Department for Environment, Food and Rural Affairs

The below Parliamentary question was asked by James Cartlidge on 2016-03-21.

To ask the Secretary of State for Environment, Food and Rural Affairs, if she will ensure that a cost impact assessment, including the potential impact assessment on the mobile seed cleaning industry, is made for any future emergency order relating to the use of neonicotinoids.

George Eustice

Any future application for authorisation of neonicotinoids for emergency use will be assessed according to the legal requirements. These cover: the risks from use; whether the use addresses a danger which cannot be contained by any other reasonable means; and the means by which the use will be limited and controlled.

The requirement for limited and controlled use includes ensuring that the product is demonstrably targeted towards those growers with the greatest need. The applicant would need to establish an auditable supply chain to ensure this requirement was met.

The assessment of the application would be based on the case made by the applicant. If the requirements outlined above are met, the Government would have no grounds for withholding authorisation.

However, there is no clear reason why it would be necessary to exclude farm-saved seed in designing appropriate control measures for an emergency authorisation of pesticide use on oilseed rape. We have drawn this issue to the attention of potential applicants.

January 1, 2023
James Cartlidge – 2016 Parliamentary Question to the Department for Communities and Local Government

The below Parliamentary question was asked by James Cartlidge on 2016-09-15.

To ask the Secretary of State for Communities and Local Government, what the total estimated net present value was of all outstanding equity loan advances in UK residential property held by government departments on the latest date for which information is available.

Gavin Barwell

The Homes and Communities Agency (HCA) operates and administers a number of current and past equity loan and equity share schemes for the Department for Communities and Local Government.

The estimated fair value for all outstanding equity loans with HCA at end March 2016 is:

Help to Buy: Equity Loan £3,629,294,000

Other legacy home equity schemes £461,301,000

Total £4,090,595,000

The other legacy home equity schemes are: FirstBuy, HomeBuy Direct and First-Time Buyers’ Initiative.

This information is set out in the HCA Annual Report and Financial Statements 2015-16 (Note 21) with further information about ‘fair value’ in Notes 1 and 31.

The Ministry of Defence operated a scheme: Affordable Homes Ownership scheme (AFHOS) until March 2014. There are presently 259 live AFHOS loans with an initial value of £15.073 million. The net present value for this book is not estimated so this figure is the value of the equity at purchase.

The Scottish and Welsh Governments and the Northern Ireland Housing Executive also operate equity loan and shared schemes for home ownership, on which they can provide information.

January 1, 2023
James Cartlidge – 2016 Parliamentary Question to the Department for Environment, Food and Rural Affairs

The below Parliamentary question was asked by James Cartlidge on 2016-03-21.

To ask the Secretary of State for Environment, Food and Rural Affairs, if she will ensure that any new Emergency Authorisations related to neonicotinoids or seed management will include a provision that both certified seed and farm-saved seed are acceptable for the distribution of the seeds that are in the order.

George Eustice

Any future application for authorisation of neonicotinoids for emergency use will be assessed according to the legal requirements. These cover: the risks from use; whether the use addresses a danger which cannot be contained by any other reasonable means; and the means by which the use will be limited and controlled.

The requirement for limited and controlled use includes ensuring that the product is demonstrably targeted towards those growers with the greatest need. The applicant would need to establish an auditable supply chain to ensure this requirement was met.

The assessment of the application would be based on the case made by the applicant. If the requirements outlined above are met, the Government would have no grounds for withholding authorisation.

However, there is no clear reason why it would be necessary to exclude farm-saved seed in designing appropriate control measures for an emergency authorisation of pesticide use on oilseed rape. We have drawn this issue to the attention of potential applicants.

January 1, 2023