Here are the climate-related sections of speeches by MPs during the Commons debate The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019.
16:32 Jesse Norman (Conservative)
Under EU rules, the UK is obliged to comply with the decision of the EU Court of Justice. If it does not, the European Commission will be required to issue infraction fines against the UK. The Government have taken appropriate time to ensure that as much as possible of the existing VAT relief is maintained. The problem would have been faced by any Government committed to green energy, but we have managed to set up mitigations that others might not have done.
In 2015, a consultation on potential changes was published, which included proposals to remove entirely the VAT relief from the installation of solar panels. That could have affected 40,000 installations per year, and would have had a significant impact on those wishing to invest in sustainable energy solutions. Following a 2016 consultation on that proposed change, the Government recognised the concerns of industry, of colleagues across the House and of campaigners, and decided to go back to the European Commission to agree, if possible, scaled-back changes.
[Source]
16:40 Peter Dowd (Labour)
On the day we got a climate change denying letter from Lord Lawson, we also have this order before us. The Solar Trade Association, which is deeply concerned, wrote to us, saying that MPs’ actions must match our rhetoric. Today, we have had lots of rhetoric but no actions. I will touch on that a little more. I will also touch on the European Court of Justice judgment, which I know everyone in the room will have read—no doubt several times, to get the nuances of it.
Just months after the Labour party secured a parliamentary declaration of a climate emergency, introducing high taxes on energy efficiency and low carbon solutions for our homes while retaining a 5% rate on fossil fuels simply does not make sense. To add to the absurdity, a motion to approve a statutory instrument relating to the draft Climate Change Act 2008 (2050 Target Amendment) Order 2019 is being debated on the Floor of the House—if not today, perhaps in the next few days. How on earth can the energy-saving materials instrument fit in with that commitment? How can we understand it as anything other than favouring fossil fuels over renewable technologies?
Despite the rhetoric, which the Solar Trade Association mentioned, and grandstanding, the instrument makes it clear that, not only do the Government not take the climate crisis seriously, but they continue to support fossil fuels via the tax system. It is okay if they do that and also support renewables, but to do one without the other is a bit odd. Indeed, clauses 36 and 37 and schedule 14 of the Finance Act 2019, which we opposed, create a favourable tax mechanism to allow companies buying equity in UK oil and gas fields to acquire the tax histories of the selling companies. I say that only to juxtapose it with the Government’s position today. It is probably to be expected, given that some Cabinet Ministers have denied the scientific consensus on climate change, and several of the Tory leadership contenders have close links with organisations and individuals who promote climate change denial. I refer, for example, to Lord Lawson and his letter today, which, if anybody has bothered to read it, is bizarre.
My right hon. Friend also made the point that if we are to be out of the European Union by 31 October—apparently—why not kick the can down the road a little bit further? We have been kicking it down the road for about three years, so another few months will not make much difference. Taking far-reaching action now, only for changes to have to be made shortly, could risk imposing costs on businesses and individuals. A better approach is for the UK to work closely with the Commission to determine what minimal changes ought to be planned for, while still allowing action to tackle the climate emergency. That is the sensible way forward. That is what the Government should do instead of navel gazing with Tory party leadership elections while the country and our climate go to the wall.
many stakeholders argue that the final price paid by customers for measures that save energy and reduce emissions could be significantly increased. That might discourage the uptake of solutions that are key to making our homes energy efficient and low carbon in order to meet our climate change targets.
Alternatively, Labour is committed to protecting and safeguarding investment in renewable energy and green infrastructure to help insulate homes. Recently, we announced plans to reduce energy bills by installing solar panels on nearly 2 million homes. Indeed, the shadow Secretary of State for BEIS, my hon. Friend the Member for Salford and Eccles (Rebecca Long Bailey), recently challenged the Government on their climate change actions in Prime Minister’s questions, after they scrapped the subsidies for domestic solar panels in April. The Government have form on this—a big long list of all previous convictions and antecedents, as people used to say.
Climate change is clearly an existential threat. We owe it to ourselves, our communities and future generations to protect and safeguard the world in which we live. Labour takes those responsibilities seriously, so we cannot support the order.
[Source]
16:53 Kirsty Blackman (SNP)
The Conservative Government have not supported the solar and battery industries. There is a climate emergency, so we need much more support for renewables. The UK Government are not supporting onshore wind. We would love there to be more onshore wind in Scotland, but we cannot make that happen because of the lack of support from the Government. If we are to be more reliant on renewables—I think we all want that—and less reliant on fossil fuels for our electricity needs, we need better battery storage. If this order has a negative impact on the development, creation and installation of battery storage, we will be much less likely to meet our climate change obligations and reduce the amount of carbon we are producing throughout the countries of the UK.
[Source]
17:01 Jesse Norman (Conservative)
I thank all colleagues who have spoken in the debate. Let me start in reverse order, with the issues raised by my right hon. Friend the Member for Newbury. He is absolutely right to highlight the extent to which this country has been in the vanguard of legislation and change to combat climate change and to improve our energy efficiency, often ahead of the EU—he is right to focus on that and I identify to a degree with his experiences. He is also right to suggest that it is quite wrong to imply that somehow our officials or lawyers are soft on these matters. When we send legal teams in to negotiate or fight battles, that is done at the highest level in the European Court of Justice and with the gloves off, as one might expect from any high-quality legal adviser or barrister. The same is true of policy officials. We have a rule-of-law society, possibly more developed than anywhere else in the EU. That is why, as a general matter, we take it upon ourselves to be compliant with EU law and in good time.
It is important to note—certainly, the comments of the hon. Member for Bootle show that it is easy to forget—that we are talking about a very small change in terms of impact. Some 95% of installations are projected to be unaffected by this change, and its overall effect on the Exchequer is negligible—less than £5 million. As we have spent £30 billion supporting renewable energy over the last few years, one can see the magnitude of the contrast.
[Source]