COP26: End of coal in sight?

Landmark climate agreement – but Australia, India, the USA and Poland don’t sign up

The end of coal – the single biggest contributor to climate change – is in sight thanks to the UK securing a 190-strong coalition of countries and organisations at COP26, with countries such as Poland, Vietnam, Egypt, Chile and Morocco announcing clear commitments to phase out coal power.

  • Thanks to a package of support from the UK and our international partners, a 190-strong coalition has today agreed to both phase out coal power and end support for new coal power plants
  • the UK’s campaign sees major banks commit to end financing coal, on top of China, Japan, Korea and the G20 commitments to end overseas finance for coal generation by the end of 2021, effectively ending all public financing of new unabated coal power
  • agreed under the UK’s COP26 Presidency, countries pledge to accelerate coal phase out and rapidly scale up deployment of clean power generation, marking a momentous turning point in the global clean energy transition

Wednesday’s commitments, brought together through UK-led efforts including the new ‘Global Coal to Clean Power Transition Statement’, encompass developed and developing countries, (some- Ed.)major coal users and climate vulnerable countries.

This includes 18 countries committing for the first time to phase out and not build or invest in new coal power, including Poland, Vietnam, and Chile, marking a milestone moment at COP26 in the global clean energy transition.

This statement, launched yesterday, commits nations across the world to:

  • end all investment in new coal power generation domestically and internationally
  • rapidly scale up deployment of clean power generation
  • phase out coal power in economies in the 2030s for major economies and 2040s for the rest of the world
  • make a just transition away from coal power in a way that benefits workers and communities

This is on top of China, Japan and Korea, the three largest public financiers of coal, committing to end overseas finance for coal generation by the end of 2021, announced in the last year during the UK’s incoming COP26 Presidency.

Agreements at the G7, G20 and OECD to end public international coal finance send a strong signal that the world economy is shifting to renewables. This could end over 40GW of coal across 20 countries, equivalent to over half of the UK’s electricity generating capacity.

Business & Energy Secretary Kwasi Kwarteng said: “Today marks a milestone moment in our global efforts to tackle climate change as nations from all corners of the world unite in Glasgow to declare that coal has no part to play in our future power generation.

“Spearheaded by the UK’s COP26 Presidency, today’s ambitious commitments made by our international partners demonstrate that the end of coal is in sight. The world is moving in the right direction, standing ready to seal coal’s fate and embrace the environmental and economic benefits of building a future that is powered by clean energy.”

To meet the goals of the Paris Agreement to limit global temperature rises to 1.5 degrees, the global transition to clean power needs to progress 4 to 6 times faster than at present. With coal being the single largest contributor to climate change, phasing it out and delivering a rapid, inclusive transition to clean energy is essential if we are to keep 1.5 degrees alive.

Twenty-eight new members have today signed up to the world’s largest alliance on phasing out coal, the Powering Past Coal Alliance launched and co-chaired by the UK. Chile, Singapore and Durban have today joined over 150 countries, sub-nationals and businesses, including finance partners NatWest, Lloyds Banking, HSBC and Export Development Canada. This accounts for over $17 trillion assets now committed to PPCA coal phase out goals.

There has also been a 76% cut in the number of new coal plants planned globally over the last 6 years which means the cancellation of 1000GW of new coal plants since the Paris Agreement, roughly equivalent to around 10 times the UK’s total peak generating capacity.

Today’s global agreement to move away from coal to clean power has been made possible thanks to a number of other UK-convened initiatives, including:

No new coal power

The end of new coal power construction is in sight. The launch of the No New Coal Power compact by 6 countries at the UN High Level Dialogue in September, followed by the commitments in the Global Coal to Clean Power Transition Statement. This means that by the end of this year, all new public finance for unabated coal power plants will have stopped, with investments increasingly focused instead on accelerating the transition to clean energy sources such as wind and solar power, now cheaper than coal generation in most countries. This accelerates the growing global momentum to end new coal power, demonstrated by the 76% collapse in the global pipeline of proposed coal power plants since the Paris Agreement in 2015.

Supporting emerging economies

In addition, major emerging economies have announced plans to accelerate a just transition from coal to clean power. This includes a South Africa Just Energy Transition Partnership worth $8.5 billion, as well as Indonesia and the Philippines agreeing a ground breaking new partnership with the Asian Development Bank to support the early retirement of existing coal plants. Further financing announcements are expected today at COP26.

Supporting coal-intensive economies

Countries with significant coal power generation and mining face large social and financial challenges in the transition from coal. The UK’s COP26 Energy Transition Council (ETC) mobilises and coordinates the assistance required to enable coal intensive economies to equitably transition from coal, bringing together 20 governments and over 15 international institutions to accelerate the transition from coal to clean power as part of a green economic recovery.

For example, the Energy Transition Council’s Rapid Response Facility delivers fast-acting technical, regulatory and commercial assistance to countries and has already responded to 24 requests in a range of areas, including energy efficiency in the Philippines and grid management in Egypt.

Ensuring a just transition

Today the UK government has also launched a new International Just Transition Declaration, ensuring the move away from coal high carbon industries results in a sustainable, green and fair future, and one that creates high quality new jobs and champions local social dialogue in developing and emerging economies. Coordinated by the UK government, so far, 12 countries have signed as well as the UK and EU Commission, covering a broad spectrum of the world’s donor funding, now driving towards a just transition for communities around the world.

Clean Growth, Energy and Climate Change Minster Greg Hands said: “As the host of COP26 and through committing to phasing out coal by 2024 and the UK’s global leadership has sent a clear signal across the world that clean energy is the way forward.

“By continuing to drive forward clean, green innovations at home and abroad, I look forward to stepping into this new chapter, united with the rest of the world in our efforts to consign coal to the history books, as we build back greener.”

FCDO Minister for Africa, Vicky Ford said: “A just and inclusive transition to clean energy is a win-win for the UK and Africa. Phasing out coal is a central objective of the UK’s COP Presidency and will support a cleaner, greener future for British people while creating hundreds of thousands of green jobs across the developing world.

“This new funding will transform the support on offer for African countries transitioning to renewable energy. The Africa Regional Climate and Nature Programme will support green electricity networks across Africa, benefitting more than 4 million people, and the Transforming Energy Access platform will see 25 million more people across the developing world access clean energy.”

The UK is already delivering many of the most ambitious clean power commitments among the world’s largest economies, committing to phase out coal power completely by 2024, driving forward renewable power generation with a decarbonised power system by 2035, and demonstrating that tackling climate change does not need to be at the expense of a growing economy.

Between 1990 and 2019, the UK’s economy grew by 78% while carbon emissions fell by 44%, the fastest reduction in the G7 – coal power makes up less than 2% of power generation compared to 40% almost a decade ago.

These achievements follow the publication of the UK’s landmark Net Zero Strategy last month, which outlines measures to support businesses and consumers to transition to clean energy, while supporting hundreds of thousands of well-paid jobs and leveraging up to £90 billion of private investment by 2030. 

Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All and Co-Chair of UN-Energy, said: “Energy Day at COP 26 is an important milestone for building momentum on Sustainable Development Goal 7 and the just, equitable clean energy transitions it can support.

“We are the architects of a sustainable future for all. Today I call on all governments to raise the level of ambition necessary to fill the financing gaps and to ensure an energy future that truly leaves no one behind.”

The Honourable Steven Guilbeault, Minister of Environment and Climate Change in Canada and co-chair of the Powering Past Coal Alliance, said: “It is imperative that we phase out coal-fired electricity as a critical step to keep global temperatures from rising above 1.5ºC and prevent the most severe impacts of climate change.

“In four years, the Powering Past Coal Alliance has united a diverse and growing number of highly ambitious members, all committed to a clean energy transition that will make coal a relic of the past.

“Whether sharing solutions or providing financial support to developing countries to help them succeed, Alliance members are driving change through this global collaboration.”

Secretary of State for Scotland, Alister Jack, said: “As one of the first countries to commit to ending coal power, the UK is leading the world in moving away from fossil fuels and it’s fantastic to see so many other countries making that commitment at COP26 in Glasgow.

“Scotland has a massive part to play in the transition to clean, green energy. On offshore wind, for which Scotland has huge potential, our commitment is to quadruple capacity. Today’s news signals tremendous progress – we must continue to move forward.”

Sharan Burrow, General Secretary of the International Trade Union Confederation, said: “Before 2030 we need Just Transition plans in place in every country with decent and quality jobs at the heart.

“Workers and their unions are needed at the table through a genuine social dialogue process that ensures that transformative action moves our economies and societies to stabilise our climate and keep global warming under 1.5°C.

“The union movement is keen to work with all the governments and institutions that sign this declaration to make this happen.”

Michael R. Bloomberg, UN Special Envoy for Climate Ambition and Solutions and founder of Bloomberg L.P. and Bloomberg Philanthropies, said: “Success in the fight against climate change depends on ending coal-fired power – the largest driver of carbon emissions and the target of a major new initiative that Bloomberg Philanthropies expanded this week at COP26.

“Together with our international partners, we welcome the work of more allies dedicated to moving beyond coal and accelerating the clean energy transition we urgently need,

Minister Schulze, German Minister of the Environment, Nature Conservation and Nuclear Safety, said: “Phasing out coal is essential to reach our climate targets. In the near future, we will have left behind all fossil fuels and live in a new and sustainable energy world based on renewable energies.

“In order to get there, we need to actively shape the potential social impacts and support the affected regions in creating good sustainable new jobs. This means ensuring a just and inclusive transition together with all relevant stakeholders.

“Germany is willing to share its experiences with changing economic patterns and is thus supporting the Coal to Clean Statement and the Just Transition Declaration. Germany is underlining its commitment to further support the pathway towards a safe, sustainable and climate friendly energy future globally.”

The French Ministry for Europe and Foreign Affairs said: “Striving to achieve universal access to affordable, reliable, sustainable and modern energy for all and in line with the objectives of the Paris agreement is a priority for France.

“In 2020, the French Development Agency Group committed 1.5 billion euros in the energy sectors to support developing countries for energy transition planning, access to electricity, energy efficiency and renewable energies.

“The partnership announced between South Africa, France, Germany, the United States, the United Kingdom and the European Union is a testament that France stands ready to support a just transition which is socially inclusive and creates local economic opportunities.

Record £41 billion per year for Scotland in budget

‘The Budget delivers for people in Scotland’

  • UK Government will provide a record £41 billion per year to the Scottish Government.
  • Scotland will also benefit from UK-wide support for people and businesses, green jobs and investment to level up opportunities.
  • Targeted funding will support local projects across Scotland, including road and infrastructure improvements, investment in local communities and funding for businesses.

The Chancellor today announced Barnett-based funding for the Scottish Government of £41 billion per year – delivering the largest annual funding settlement, in real terms, since devolution over 20 years ago. This includes a £4.6 billion per year spending boost – as part of a Budget and Spending Review that delivers a stronger economy for the whole of the UK.

Rishi Sunak set out a plan to deliver the priorities of the British people by investing in stronger public services, levelling up opportunity, driving business growth and helping working families with the cost of living.

As part of the significant spending plans, Scotland will receive an average of £41 billion per year in Barnett-based funding representing a 2.4% rise in the Scottish Government’s budget each year. The Scottish Government will now receive around £126 per person for every £100 per person of equivalent UK Government spending in England.

Chancellor of the Exchequer, Rishi Sunak said: “This is a budget for the whole of the UK. We’re focused on what matters most to the British people – the health of their loved ones, access to world-class public services, jobs for the future and tackling climate change.

“By providing record funding, the Scottish Government can tackle backlogs in the NHS and ensure people in Scotland get the support they need as we recover from the pandemic.

“The UK Government continues to level up opportunities across all parts of the UK, with investments in green jobs and high-speed internet access for thousands more homes in Scotland through Project Gigabit.

Scottish Secretary, Alister Jack said: “The Budget delivers for people in Scotland, and right across the UK.

“The Scottish Government’s block grant, boosted by an additional £4.6 billion a year due to spending in England, means that the funding for the Scottish Government is the highest it has ever been.

“It demonstrates our commitment to level up right across the UK. The Budget ushers in an era of real devolution, ensuring money is spent on projects that matter most to people in Scotland.

“The UK Government made a clear commitment to maintain Scotland’s level of funding following the vote to leave the EU, and we have delivered on that promise. We are taking decisions in the UK rather than in Brussels and dealing directly with local authorities who know their communities best.

“From the Knoydart community pub, to Dumbarton town centre and the Granton Gasworks – all these projects will bring real, visible improvements for local communities. Special funding for Glasgow’s iconic Burrell Collection and Extreme E will help drive economic growth and jobs on the back of culture and tourism.

“The continuation of the freeze on spirit duty will be a boost to Scotland’s thriving whisky industry.

“Over the past 18 months the UK Government has been focused on protecting people’s livelihoods, their incomes, and their jobs. We now need to look to the future, to build a stronger economy for people in all parts of the UK.”

Targeted funding in Scotland

On top of the record funding for the Scottish Government, Scotland will benefit from the UK Government’s commitment to invest in people, jobs, communities and businesses. Targeted projects in Scotland include:

Over £200 million to be invested in Scotland to boost the post-pandemic recovery and enhance the Scottish economy, including:

  • £172 million of the Levelling Up Fund for 8 important projects including the redevelopment of Inverness Castle, the much-needed renovation of the Westfield Roundabout in Falkirk, and a new marketplace in Aberdeen City Centre.
  • Over £1.07 million of the Community Ownership Fund for five projects in Whithorn, Inverie, New Galloway, Kinloch Rannoch and Callander that are protecting valued community assets.
  • Providing £1.9 billion for farmers and land managers and £42.2 million to support fisheries.
  • Up to £1 million, to support the delivery of a ‘green’ formula E race showcasing Hebridean Green Hydrogen to a global audience.
  • Expanding the existing trade and investment hub in Edinburgh to grow trade for Scotland.
  • Up to £3 million to bring world-class art exhibitions to the Burrell Collection in the heart of Glasgow.

UK-Wide Support

As a result of our strong United Kingdom, Scotland will benefit from:

  • A 50% cut in domestic Air Passenger Duty for flights between England, Scotland, Wales and Northern Ireland and an additional £22.5 million of new funding in anticipation of the Union Connectivity
  • Review recommendations where we will work with the devolved administrations on improving UK-wide connectivity.
  • New funding for the British Business Bank to establish a £150 million fund in Scotland, helping Scottish businesses to get the financing they need.
  • The new £1.4 billion Global Britain Investment Fund which will support investment directly into Scotland.
  • A record £20 billion by 2024-25 in Research and Development supporting innovation in Scotland.
  • Confirmation that total funding will at a minimum match the size of EU Funds in Scotland, each year through the over £2.6bn UK Shared Prosperity Fund, which will invest in skills, people, businesses, and communities, including through ‘Multiply’, a new adult numeracy programme that will provide people across Scotland with essential numeracy skills.
  • An increase to the National Minimum Wage of £9.50 an hour, with young people and apprentices also seeing increases.
  • Freezes to fuel duty for the twelfth consecutive year and a freeze on Vehicle Excise Duty for heavy goods vehicles.
  • A freeze on alcohol duty, which will mean that whisky benefits from the lowest real terms tax rate since 1918.

BUDGET REACTION

Rachel Reeves MP, Labour’s Shadow Chancellor, responding to the Budget, said: Families struggling with the cost of living crisis, businesses hit by a supply chain crisis, those who rely on our schools and our hospitals and our police – they won’t recognise the world that the Chancellor is describing. They will think that he is living in a parallel universe.

The Chancellor in this budget, has decided to cut taxes for banks. So, Madame Deputy Speaker, at least the bankers on short haul flights sipping champagne will be cheering this budget today.

And the arrogance, after taking £6 billion out of the pockets of some of the poorest people in this country, expecting them to cheer today for £2 billion given to compensate.

In the long story of this Parliament, never has a Chancellor asked the British people to pay so much for so little.

Time and again today, the Chancellor compared the investments that he is making to the last decade. But who was in charge in this lost decade? They were.

So, let’s just reflect on the choices the Chancellor has made today – the highest sustained tax burden in peacetime.

And who is going to pay for it?

It’s not international giants like Amazon – the Chancellor has found a tax deduction for them. It’s not property speculators – they’ve already pocketed a stamp duty cut. And it’s clearly not the banks  – even though bankers’ bonuses are set to hit a record high this year.

Instead, the Chancellor is loading the burden on working people. A National Insurance Tax rise – on working people. A Council Tax hike – on working people. And no support today for working people with VAT on their gas and electricity bills.

And what are working people getting in return? A record NHS waiting list, with no plan to clear it, no way to see a GP and still having to sell their home to pay for social care.

Community policing nowhere to be seen, a court backlog leaving victims without justice and almost every rape going unprosecuted.

A growing gap in results and opportunities between children at private and state schools. Soaring number of pupils in supersize classes and no serious plan to catch up on learning stolen by the virus. £2 million announced today – a pale imitation of the £15 billion catch up fund that the Prime Minister’s own education tsar said was needed. No wonder, Madame Deputy Speaker, that he resigned.

Now the Chancellor talks about world class public services. Tell that to a pensioner waiting for a hip operation. Tell that to a young woman waiting to go to court to get justice. Tell that to a mum and dad, waiting for their child the mental health support they need.

And the Chancellor says today that he has realised what a difference early years spending makes. I would just say to the Chancellor, has he ever heard of the Sure Start programme that this Tory government has cut?

And why are we in this position? Why are British businesses being stifled by debt while Amazon gets tax deductions?

Why are working people being asked to pay more tax and put up with worse services?

Why are billions of pounds in taxpayer money being funnelled to friends and donors of the Conservative party while millions of families are having £20 a week taken off them?

Madame Deputy Speaker, why can’t Britain do better than this?

The Government will always blame others. It’s business’ fault, it’s the EU’s fault, it’s the public’s fault.

The global problems, the same old excuses. But the blunt reality is this – working people are being asked to pay more for less for three simple reasons:

  •     Economic mismanagement,
  •     An unfair tax system,
  •     And wasteful spending.

Each of these problems is down to 11 years of Conservative failure and they shake their heads but the cuts to our public services have cut them to the bone. And while the Chancellor and the Prime Minister like to pretend they are different, the Budget they’ve delivered today will only make things worse.

The solution starts with growth. The Government is caught in a bind of its own making. Low growth inexorably leads to less money for public services, unless taxes rise.

Under the Conservatives, Britain has become a low growth economy. Let’s look at the last decade – the Tories have grown the economy at just 1.8 percent a year.

If we had grown at the same rate as other advanced economies, we could have spent over £30bn to invest in public services without needing to raise taxes.

Let’s compare this to the last Labour Government. Even taking into account the global financial crisis, Labour grew the economy much faster – 2.3 percent a year.

If the Tories matched our record, we would have spent £30bn more on public services without needing to raise taxes.

It could not be clearer. The Conservatives are now the party of high taxation, because the Conservatives are the party of low growth.

The Office for Budget Responsibility confirmed this today – that we will be back to anaemic growth. The OBR said that by the end of this Parliament, the UK economy will be growing by just 1.3%. Which is hardly the  plan for growth that the Chancellor boasted about today, hardly a ringing endorsement of his announcements.

Under the Tory decade we have had ow growth and there’s not much growth to look forward to.

The economy has been weakened by the pandemic but also by the Government’s mishandling of it.

Responding to the virus has been a huge challenge. Governments around the world have taken on debt, but our situation is worse than other countries.

Worse, because our economy was already fragile going into the crisis. Too much inequality, too much insecure work, too little resilience in our public services.

And worse, because the Prime Minister dithered and delayed, against scientific advice – egged on by the Chancellor – we ended up facing harsher and longer restrictions than other countries.

So, as well as having the highest death toll in Europe, Britain suffered the worst economic hit of any major economy.

The Chancellor now boasts that we are growing faster than others, but that’s because we fell the furthest.

And whilst the US and others have already bounced back to pre-pandemic levels, the UK hasn’t. Our economy is set to be permanently weaker.

On top of all of that, the Government is now lurching from crisis to crisis. People avoiding journeys because they can’t fill up their petrol tank is not good for the economy. People spending less because the cost of the weekly shop has exploded is not good for the economy. And British exporters facing more barriers than their European competitors because of the deal that this government did is not good for the economy.

If this were a plan, it would be economic sabotage. When the Prime Minister isn’t blagging that this chaos is part of his cunning plan, he says he’s “not worried about inflation.”

Tell that to families struggling with rising gas and electricity bills, with rising prices of petrol at the pump and with rising food prices. He’s out of touch, he’s out of ideas and he’s left working people out of pocket.

Madame Deputy Speaker, Conservative mismanagement has made the fiscal situation tight. And when times are tight it’s even more important to ensure that taxes are fair, that taxpayers get value for money. But the Government fails on both fronts.

We have a grossly unfair tax system with the burden heaped on working people.

Successive budgets have raised council tax, income tax and now National Insurance. But taxes on those with the broadest shoulders, those who earn their income from stocks, shares, and property portfolios have been left largely untouched.

Businesses based on the high street are the lifeblood of our communities and often the first venture for entrepreneurs.

But despite what the Chancellor has said today, businesses will still be held back by punitive and unfair business rates. The Government has failed to tax online giants and watered-down global efforts to create a level playing field.

And just when we need every penny of public money to make a difference, we have a government that is the by-word for waste, cronyism and vanity projects.

We’ve had £37 billion for a test and trace system that the spending watchdog says, ‘treats taxpayers like an ATM cash machine’. A yacht for ministers, a fancy paint job for the Prime Minister’s plane and a TV studio for Conservative Party broadcasts, which seems to have morphed into the world’s most expensive home cinema.

£3.5bn of Government contracts awarded to friends and donors of the Conservative Party, a £190 million loan to a company employing the PMs former Chief of Staff, £30 million to the former Health Secretary’s pub landlord. And every single one of those cheques signed by the Chancellor.

And now he comes to ordinary working people and asks them to pay more. More than they have ever been asked to pay before and at the same time, to put up with worse public services. All because of his economic mismanagement, his unfair tax system and his wasteful spending.

There are of course some welcome measures in this budget today, as there are in any budget.

Labour welcomes the increase in the National Minimum Wage, though the Government needs to go further and faster. If they had backed Labour’s position of an immediate rise to at least £10 an hour then a full-time worker on the minimum wage would be in line for an extra £1,000 a year.

Ending the punitive public sector pay freeze is welcome, but we know how much this Chancellor likes his smoke and mirrors. So, we’ll be checking the books to make sure the money is there for a real terms pay rise.

Labour also welcomes the Government’s decision to reduce the Universal Credit taper rate, as we have consistently called for. But the system has got so far out of whack that even after this reduction, working people on universal credit still face a higher marginal tax rate than the Prime Minister. And those unable to work – through no fault of their own – still face losing over £1000 a year. And for families who go out to work everyday but don’t get government benefits, on an average wage, who have to fill up their car with petrol to get to work, who do that weekly shop and who see their gas and electricity prices go up – this budget today does absolutely nothing for them.

We have a cost-of-living crisis.

The Government has no coherent plan to help families to cope with rising energy prices. Whilst we welcome the action taken today on Universal Credit, millions will struggle to pay the bills this winter.

The Government has done nothing to help people with their gas and electricity bills with that cut in VAT receipts as Labour has called for. A cut that is possible because we are outside the European Union and can be funded by the extra VAT receipts that have been experienced in the last few months.

Working people are left out in the cold while the Government hammers them with tax rises.

National Insurance is a regressive tax on working people, it is a tax on jobs.

Under the Chancellor’s plans, a landlord renting out dozens of properties won’t pay a penny more. But their tenants, in work, will face tax rises of hundreds of pounds a year. And he is failing to tackle another huge issue of the day. Adapting to climate change.

Adapting to climate change presents opportunities – more Jobs, lower bills and cleaner air. But only if we act now and at scale. According to the OBR, failure to act will mean public sector debt explodes later, to nearly 300% of GDP.

The only way to be a prudent and responsible Chancellor is to be a Green Chancellor. To invest in the transition to a zero-carbon economy and give British businesses a head-start in the industries of the future.

But with no mention of climate in his conference speech and the most passing  of references today, we are burdened with a Chancellor unwilling to meet the challenges we face.

Homeowners are left to face the costs of insulation on their own, industries like steel and hydrogen are in a global race without the support they need and the Chancellor is promoting domestic flights over high speed rail int he week before COP26.

It is because of this Chancellor that in the very week we try and persuade other countries to reduce emissions, this Government can’t even confirm it will meet its 2035 climate reduction target.

Madame Deputy Speaker, everywhere working people look at the moment they see prices going up and shortages on the shelves. But this Budget did nothing to address their fears.

Household budgets are being stretched thinner than ever but this Budget did nothing to deal with the spiralling cost of living. It is a shocking missed opportunity by a government that is completely out of touch.

There is an alternative.  Labour would scrap the business rates and replace it with something much better by ensuring online giants pay their fair share. That’s what being pro-business looks like.

We wouldn’t put up National Insurance for working people, we would ensure those with the broadest shoulders pay their share. That’s what being on the side of working people looks like.

We’d end the £1.7 billion subsidy the Government gives private schools and put it straight into local state schools. That’s what being on the side of working families looks like.

We’d deliver a climate investment pledge – £28bn every year for the rest of the decade. That’s Giga-factories to build batteries for electric vehicles, a thriving hydrogen industry and retrofitting, so we keep homes warm and get energy bills down. That’s what real action on climate change looks like.

This country deserves better but they’ll never get it under this Chancellor who gives with one hand but takes so much more with the other.

The truth is this – what you get with these two is a classic con game. It’s like one of those pickpocketing operations you see in crowded places. The Prime Minister is the front man – distracting people with his wild promises. All the while, his Chancellor dips his hand in their pocket. It all seems like fun and games until you walk away and realise your purse has been lifted.

But people are getting wise to them. Every month they feel the pinch. They are tired of the smoke and mirrors, of the bluster, of the false dawns, of the promises of jam tomorrow.

Labour would put working people first. We’d use the power of government and the skill of business to ensure that the next generation of quality jobs are created right here, in Britain.

We’d tax fairly, spend wisely and after a decade of faltering growth, we’d get Britain’s economy firing on all cylinders.

That is what a Labour budget would have done today.

Edinburgh Pentlands SNP MSP Gordon MacDonald said that the Tory UK Government’s budget makes it clear that “independence is the only way to give Edinburgh a fair recovery from the pandemic.”

Gordon MacDonald said that the budget, described by the head of the Institute for Fiscal Studies as “actually awful” for living standards, is failing the people of Scotland by failing to tackle the cost of living crisis, the Brexit crisis and the climate crisis whilst the Tory Government prioritise cuts to the cost of champagne and giving tax breaks to bankers.

The Edinburgh Pentlands MSP said: “What the Tory UK Government has outlined today does not meet the ambition needed to build a fair and sustainable recovery and to tackle the cost of living crisis.

“It’s painfully clear that there will be no fair recovery from the pandemic under Westminster control.

“This Tory budget fails Scotland as a whole and doesn’t go anywhere near supporting people in Edinburgh, who are being hit by an energy crisis, a Brexit crisis, labour shortages and an inflation crisis under Westminster control.

“The UK Government budget is leaving families in Edinburgh hundreds of pounds worse off next year due to Tory cuts, tax hikes and the soaring cost of Brexit.

“It’s little wonder that, in May’s election, the people of Scotland voted overwhelmingly for a different future when they gave the SNP the highest share of the vote since the dawn of devolution and a clear mandate for an independence referendum – Independence is the only way to keep Scotland safe from Tory cuts.”

Commenting on today’s budget and spending review (Wednesday), TUC General Secretary Frances O’Grady said: “The chancellor has gone from pay freeze to pay squeeze.

“The chancellor admitted that we will have zero pay growth across the economy next year. And he has no plan to get real wages rising for everyone after an eleven year pay squeeze, with average real pay growth over the next four years predicted to be just 0.3 per cent.

“Millions of key workers who saw us through the pandemic will still be worse off than they were in 2010. That puts vital services under pressure as even more staff leave, and it risks the recovery.  

“He should have announced fair pay deals for whole industries, negotiated with unions, designed to get pay and productivity rising in every sector.

“Families face a triple whammy of a £1,000 universal credit cut, tax hikes and fast-rising energy and food bills. All the while wages across the economy stand still.”

On the universal credit taper cut, she added:

“Workers on universal credit should always have been able to keep more of their wages. This change does not make up for the £1,000 per year cut to universal credit, and does not help those on universal credit who cannot work.”

Centre for Cities’ Chief Executive Andrew Carter said: “Raising the National Living Wage is a quick win for the levelling up agenda and will have the biggest impact in the places that are crucial to the Prime Minister winning the next election. Four of the five places where the most people will benefit are in the North.

“While a pay increase is good news for people struggling with the cost of living crisis, it does not address the reasons why they live on low pay in the first place: a lack of well-paid jobs in their local area.

“We’ve seen today the beginnings of a plan focused on skills, innovation and infrastructure to address this, but turning it from rhetoric to reality will depend on ministers’ willingness to work with metro mayors and councils on delivering it.

“I am now looking to the delayed Levelling Up White Paper to set out how this will happen.”

Katie Schmuecker, Deputy Director of Policy & Partnerships at JRF said: “This is a tale of two Budgets for families on low incomes. 

“For those in work, the change to the taper rate and work allowance, alongside the National Living Wage increase, are very positive steps, allowing low-paid workers to keep more of what they earn. Together these measures improve our social security system for working families and demonstrate a serious intent to turn the tide on the pre-pandemic trend of rising in-work poverty.  

“But the reality is that millions of people who are unable to work or looking for work will not benefit from these changes. The Chancellor’s decision to ignore them today as the cost of living rises risks deepening poverty among this group, who now have the lowest main rate of out-of-work support in real terms since around 1990. 

“Among the people in our society who cannot work are cancer patients, people with disabilities and those caring for young children or elderly parents. 

“Their energy bills and weekly shop are going up like everyone else’s and they face immediate hardship, hunger and debt in the months ahead. The Chancellor had an opportunity to support families on the lowest incomes to weather the storm ahead, and he did not take it.” 

New analysis by the independent Joseph Rowntree Foundation reveals that the rising cost of living wipes out much of the financial gain some families will receive from the Universal Credit changes announced today.

Weekly incomes and Costs for 2022/23Family 1: single adult, no children, not workingFamily 2: single parent, with one young child (assume age 5), part-time 16 hours per weekFamily 3: couple with two young children (assume 7 and 5). One FT workerFamily 4: single parent, with one young child (assume age 5), full-time 35 hours per weekFamily 5: Couple with two young children (assume 7 and 5). 1 FT worker (35 hours), 1 PT worker (16 hours)
Weekly income before new announcements£77£278£433£333£489
Weekly gain from taper rate and work allowance£0£8£19£19£31
      
Total loss from higher cost of living due to…-£13-£16-£23-£18-£24
1) increase in energy prices-£7-£7-£7-£7-£7
2) overall cost of living increase-£6-£8-£13-£8-£13
3) increase in National Insurance and impact of inflation on earnings£0-£1-£3-£3-£4
      
Overall weekly gain or loss after measures and cost of living-£13-£8-£4£1£7

Note all five families lost £20-a-week in October 2021, due to the cut in the Universal Credit Standard Allowance, so all are worse-off than they would have been in September 2021. All workers are assumed to be paid at the National Living Wage rate, so benefit from its increase.

Peter Kelly,Director of the Poverty Alliance, said: “It is a shameful, unjust decision that makes the Chancellor’s rhetoric about ‘levelling up’ seem as empty as the pockets of the hundreds of thousands of people swept into poverty as a result.”

Kate Forbes: UK Budget ‘must give economic certainty’

Finance Secretary Kate Forbes has written to Chancellor of the Exchequer Rishi Sunak calling for additional spending to support households and businesses who are facing a perfect storm of rising prices, reduced support and increasing shortages.

Writing ahead of the UK Autumn Budget and Comprehensive Spending Review, Ms Forbes urged the Chancellor to at least match the Scottish Government’s £500 million Just Transition Fund for the North East and Moray and increase the Scottish Government’s borrowing powers to enable greater investment in decarbonisation schemes.

She also called for an extension of the reduced 12.5% VAT rate for the hospitality sector, which is due to end on 31 March 2022, for a further year,  a reversal of the decision not to award the Scottish carbon capture, utilisation and storage project Track-1 status and for the UK Government to “prioritise spending that supports the financial security of low-income households, the wellbeing of children and young people and delivers good, green jobs and fair work.” 

The letter states:

Dear Rishi,

I am writing to you in advance of the UK Government announcing the Autumn Budget and Comprehensive Spending Review on 27 October, with a view to constructively progressing the recent dialogue with the Chief Secretary to the Treasury and the First Minister’s meeting with the Prime Minister.

I am conscious that over recent days there has been wide media coverage in relation to Budget and Spending Review content. The reports have contained differing degrees of detail and a lack of clarity on how much of the predicted spend is new. In the absence of direct engagement, I have not reflected this information.

The Scottish Government will work to ensure that our responses to the unprecedented public health, economic and wider challenges presented by Covid deliver for the benefit of all of Scotland. This environment is compounded by the complexity and financial detriment to Scotland of the UK Government’s decision to leave the European Union against the will of the Scottish people, while we continue to work urgently to address the needs of climate change. These challenges will require short and long-term solutions and I set out below how the UK Budget and Spending Review can support priorities in Scotland.

Net Zero

COP 26 in Glasgow will focus international attention on the urgent action needed to tackle the global climate emergency. As outlined in the joint nations letter, and by the UK Climate Change Committee, significant investment is required from the UK Government in reserved areas to meet the Scottish Government’s ambitious emissions reduction targets. Given the requirement for co-ordinated action to address this challenge, it was disappointing that the UK Net Zero Strategy was launched without any meaningful engagement. The UK Net Zero Strategy provides some encouragement in key areas, but overall does not go far enough in many of the critical elements for ensuring the deep decarbonisation that the Scottish Government has repeatedly called for action in.

In Scotland, our climate change targets set their own pace and scale, requiring us to avail ourselves of every lever at our disposal. However, many levers remain at UK level, even where they affect Scotland directly. Following on from our recent meetings, it is worth highlighting again those actions which would most benefit our delivery in relation to funding key climate change commitments:

  • Removal of the capital borrowing cap, replacing this with a prudential borrowing scheme to help leverage the greater volume of capital investment required;
  • Agreement that all new spending will reflect the devolution settlement, enabling us to address Scotland’s specific challenges in making the transition to net zero (such as the needs of rural populations);
  • Meaningful and consistent dialogue between UK Government and Devolved Governments to allow consideration of all relevant input in advance of key green policy and regulatory decisions;
  • Engagement in relation to the net zero roadmap and other key strategies.

The Scottish Government has committed to working with partners, communities and other stakeholders to take forward a ten-year £500m Just Transition Fund for the North East and Moray. Given the UK Treasury has, over decades, benefited from billions of pounds of revenue from activity in the North Sea, I ask that you at least match our commitment to help secure jobs the North East of Scotland, support the energy transition, and reduce emissions.

There are a number of areas where we need the UK Government to take more action and act faster, including support for carbon capture, utilisation and storage (CCUS). Scotland represents the most cost-effective and deliverable opportunity for CCS in the UK by the mid-2020s. Therefore, the recent UK Government announcement failing to award the Scottish Cluster clear and definitive Track-1 project status as part of your CCUS cluster sequencing process is illogical.

We have previously advised the UK Government that we would help to support the Scottish Cluster, and stand ready to do so. However, we do not hold all the necessary legislative and regulatory levers which are retained by the UK Government. We are therefore calling upon the UK Government to reverse this decision, and accelerate the Scottish Cluster to full Track-1 status without delay.

Health & Social Care

I welcome the approach from UK Government officials to Scottish Government equivalents to form a working group in relation to the implementation of the levy, however this rise will have a notable impact on taxpayers in Scotland. Without necessary investments in supporting low-income households, this regressive approach to revenue generation will further compound the financial hardship many families already face as detailed above.

Whilst the UK Government has provided indications of the consequentials we will receive as a result of this tax rise, I remain concerned that reductions will be made in other areas giving rise to negative consequentials overall, and ask that this is ruled out in the forthcoming Budget and spending review. As part of this, I expect the allocation to devolved administrations will cover the full costs of the levy that will be incurred by our public sector employers including local government.

It is imperative that the UK budget delivers on your commitment to ensure that the NHS receives whatever support it needs throughout this pandemic. While the Health and Social Care Levy will go some way to supporting services, it is clear in particular that this will be insufficient to address the scale of social care pressure and consequent impact on NHS services.

I reiterate my previous call for a comprehensive package of investment, taking the whole health and social care system into account, both in terms of delivery of services and addressing specific Covid-19 pressures. I would also reaffirm the need for increased transparency of UK Government spending arrangements, so that the Scottish Government is clear on the funding that will arise from key programmes such as testing and vaccinations.

As I have previously highlighted, it will continue to be necessary for the UK Government to accommodate flexibility across the UK in these programmes of activity, so that devolved administrations can deploy resources in a manner that best meets spending profiles and specific needs in Scotland.

Recovery from the Combined Impacts of Covid and EU Exit

The Barnett guarantee provided in 2020-21 was a successful demonstration of the benefits of fiscal flexibility. UK fiscal policy and any new fiscal rules should be flexible as well as credible. This is something the Institute for Fiscal Studies has recently advocated to ensure fiscal policy can continue to respond to temporary economic shocks and help ensure fairness across generations. It is essential that the UK Government adopt such an approach.

As I have previously communicated, the Scottish Government is strongly opposed to any return to austerity and strongly urge you to reinstate the £20-per week uplift to Universal Credit. A real cost-of-living crisis is emerging as a result of this cut, combined with the escalating energy costs and upcoming rise in National Insurance Contributions. The Universal Credit cut alone will push an extra 60,000 people in Scotland, including 20,000 children, into poverty and hundreds of thousands more into hardship, whilst also reducing social security expenditure in Scotland by £461m by 2023-24.

I cannot accept that these cuts to individual income, alongside other poverty-inducing policies such as the benefit cap, or the two child limit for child tax credit are justifiable at this time. The UK Budget must prioritise spending that supports the financial security of low-income households, the wellbeing of children and young people, and delivers good, green jobs and fair work.

The choices made by the UK Government following Brexit are contributing to labour and skills shortages in Scotland. As predicted by Scottish Government modelling, severe impacts are disproportionately concentrated on the food and drink sector, particularly seafood, meat and dairy, as well as beverages and textiles. Evidence is mounting, including from BICs and HMRC Regional Trade Statistics to illustrate the detrimental impact on our trading performance, and supporting my call for the UK Government to re-engage in good faith with the EU and find pragmatic solutions to the blockages confronting businesses.

Where these create additional new costs or obstacles, I ask that the UK Budget and Spending Review is transparent about the impact and provides additional financial support to help compensate businesses for the losses incurred as a direct result of EU Exit.

Public Sector Pay

Decisions on public sector pay by the UK Government in this Budget and Spending Review are a material factor in setting pay awards for the public sector workforce in Scotland. Any continuation of the UK Government pay freeze has a material impact on our block grant settlement, within which we must balance reward and affordability. Public sector pay awards must be progressive, fair and allow valued workers to maintain their standard of living, as they continue to deliver the strong and innovative public services our people deserve.

Capital Investment

There is much common ground between UK and Scottish Government infrastructure priorities in delivering our net zero targets, delivering new jobs and securing Covid recovery. However, our economic recovery could be damaged if this spend is not prioritised and committed within the UK Budget. The decision taken by the UK Government to disburse the Levelling-Up Fund directly across the UK, despite previous commitments otherwise, impacts on the level of devolved funding available to the Scottish Government for Scotland.

To help achieve our Net Zero aims and grow our economy, I would welcome your assurance that the Scottish Government will receive a fair share of future years’ Capital and Financial Transactions allocations; that the gap in the Scottish Budget resulting from the change in approach to the Levelling Up Fund will be filled and that there will be appropriate governance arrangements for the UK Infrastructure Bank and other partnerships or funding routes to ensure that all interested parties have an appropriate ability to influence and control spend in the relevant areas of the UK.

VAT

I believe that the UK Government must make responsible tax policy decisions that will support the sectors and businesses economy throughout this challenging period, and I welcome measures taken on VAT to date. However, I am convinced that the increase in VAT from 1 October comes too soon.

This will affect many businesses that have been hit hardest by the Covid pandemic, potentially leading to their closure and therefore slowing the economic recovery in Scotland. It is vital that the UK Government takes account of the needs of all parts of the UK when deciding how best to support the recovery through its taxation levers, and I urge you to consider extending the reduced rate of VAT for the next financial year.

Air Passenger Duty

As you will be aware, the Scottish Government has a strong interest in the UK Government’s consideration of next steps for Air Passenger Duty following this year’s consultation on aviation tax reform. We accordingly asked to be fully consulted on any decisions before they are made, to ensure that any implications for devolution and the interests of Scotland are taken fully into account.

In that regard, it is concerning to see that the media appears to have been briefed on those decisions, without any discussion with the Scottish Government having occurred. Moving forwards, I would welcome your full commitment to meaningful dialogue on this, and indeed on all relevant tax matters, in advance of media briefings.

Replacement of EU Funding

In common with my counterparts in the Devolved Administrations, I expect full replacement of EU funds to ensure no detriment to Scotland’s finances, and I expect the UK Government to fully respect the devolution settlement in any future arrangements.

The current approach to the replacement of and participation in EU programmes leaves Scotland worse off. The ability to undertake long-term strategic planning has been significantly undermined as the flexible seven-year multi-annual funding mechanisms of EU funding are being replaced by annually managed allocations. Furthermore, the proposed methodology for determining farm funding allocations effectively penalises the use of the remaining flexibilities from legacy funding. I have written to you jointly with other finance ministers from the Devolved Administrations in order to express our concerns about this methodology and our expectations regarding future allocations.

With regards to fisheries, I consider the existing settlement to be vastly insufficient, given past underfunding and the significant impacts of Brexit on the sector. We provided clear evidence for a multi-year £62m allocation for Scottish fisheries, as opposed £14m allocation we received in the 20/21 Spending Review. Additionally, it appears that the yearly £5.5m top up which was previously provided to Scotland on the basis that the EU EMFF allocation was insufficient will no longer continue, increasing an already significant funding shortfall.

This process seems to mirror our experience with the Bew review, where commitments made in 20/21 are then being downgraded within the life of this parliament. In the case of the Bew review, this was to agree a process of engagement ahead of the upcoming Spending Review to address the issue of Bew funding from 2022/23 onwards. While the initial recommendations of the Bew review have been met, the proposed funding does not include any additional budget cover beyond 2021-22. This leaves Scotland in the same position as in 2019 where the inequality in distribution of land remains an issue.

Further discussions need to take place on the principle of intra-UK allocations in line with the wider observations of the Bew review. In the absence of such a review we would expect at least the £25.7m funding to continue beyond 2021-22 to address the funding inequality included in the previous ceiling levels. A failure to do so would result in a cut of £77.1m in our budget up to 2025. I require assurance that the UK Budget and Spending Review will redress these issues to ensure no detriment to Scotland’s finances.

Internal Market Act

The financial assistance powers in the Internal Market Act (IMA) confer new powers on UK ministers to spend directly in a wide range of devolved matters, bypassing parliamentary scrutiny and accountability at Holyrood. This also, in effect, gives the UK Government the power to bypass the Barnett Formula. Aside from being a profound departure from the existing devolution settlement, it introduces considerable additional uncertainty to future devolved funding and fundamentally alters the devolution landscape.

I ask for assurance that the powers will not be used without the prior consent of the Devolved Governments, and for clarity on how decisions on use of IMA financial assistance powers will be made, and under what circumstances. Without this it is difficult to see how the principles of consent, transparency, and stability and predictability espoused in the Statement of Funding Policy can be met. Moreover, it risks poor value for money as a result of incoherent policy and disjointed spending decisions.

As a minimum I would ask that the forthcoming spending review set out details on any plans to spend under the IMA over the course of the period (and beyond where known), and that the implications for devolved funding arrangements and decision-making are addressed in the planned update to the Statement of Funding Policy.

I trust that you will consider the suggestions made above and that we can work collaboratively to address the matters raised in order to provide certainty to the wider public sector, boost the economy and support our most vulnerable at this challenging time.

Yours sincerely,

KATE FORBES

£5 million for cutting-edge treatments for injured veterans

  • Chancellor expected to provide £5 million at Budget for new UK-wide Veterans’ Health Innovation Fund.
  • Investment will help to ensure veterans who have suffered injuries or mental health challenges receive the most cutting-edge treatments.
  • Innovative new surgery techniques and treatment options for amputees and blast victims to receive funding.

Veterans who have suffered injuries or mental health challenges are set to receive innovative and cutting-edge treatments thanks to a new £5 million fund, the Chancellor is expected to announce next week.

At Wednesday’s Budget and Spending Review, Rishi Sunak will unveil the new UK-wide Veterans’ Health Innovation Fund – which will be used to help develop ground-breaking treatments to help veterans with physical injuries, and those with hard-to-treat mental health injuries such as Post-Traumatic Stress Disorder.

Between 2001 and March 2021 there were more than 300 UK service personnel whose injuries included a traumatic or surgical amputation as a result of sustained injuries in Afghanistan.

One in ten serving military personnel were also seen by medics for a mental health-related reason last year, while the number of veterans entering psychological therapies on the NHS increased by around 45 percent between 2014 and 2020.

The Veterans’ Health Innovation Fund will provide grants for research into cutting-edge surgery techniques and treatments for amputees and veterans with blast injuries, new treatments for mental health challenges, and new technology to help injured veterans rebuild their lives and participate in work, education and sport. It will also fund research and treatment options for veterans with mild traumatic brain injury.

Grants could fund research into new surgery techniques such as Direct Skeletal Fixation, which enables artificial limbs to be permanently fixed to bones, removing the need to use traditional socket-based technology.

The Fund will also aim to support drug-assisted therapy trials, currently underway in the US and Israel, which have shown promising results in treating patients suffering with PTSD, and could also help with restoring patients’ function after brain injuries.

Chancellor of the Exchequer Rishi Sunak said: “We hugely value the sacrifices made by so many brave men and women in our Armed Forces. Supporting injured veterans and those with mental health needs is a crucial part of repaying the huge debt we all owe them.

“This new Fund will help ensure veterans get the support they deserve with the very best ground-breaking research and treatments.”

The fund will be distributed by the Office for Veterans’ Affairs (OVA) as part of the Government’s commitment to support veterans.

In addition to the new £5 million Veterans’ Health Innovation Fund, the Government has provided £10 million for veterans with mental health needs in both the 2021 and 2020 budgets. These funds are distributed through the AFCFT.

In September 2021, the Prime Minister also announced that Armed Forces charities would receive £5 million in additional funding to support veterans, including those who may be struggling following recent events in Afghanistan.

Build Back Greener: Government sets out Britain’s path to net zero

The Net Zero Strategy sets out how the UK will deliver on its commitment to reach net zero emissions by 2050

  • Net Zero Strategy sets out how the UK will deliver on its commitment to reach net zero emissions by 2050
  • outlines measures to transition to a green and sustainable future, helping businesses and consumers to move to clean power, supporting hundreds of thousands of well-paid jobs and leveraging up to £90 billion of private investment by 2030
  • reducing Britain’s reliance on imported fossil fuels will protect consumers from global price spikes by boosting clean energy
  • it comes as the UK prepares to host the UN COP26 summit next week, where the Prime Minister will call on other world economies to set out their own domestic plans for cutting emissions

A landmark Net Zero Strategy setting out how the UK will secure 440,000 well-paid jobs and unlock £90 billion in investment in 2030 on its path to ending its contribution to climate change by 2050 has been unveiled by the UK government yesterday (19 October).

Building on the Prime Minister’s 10 Point Plan, today’s UK Net Zero Strategy sets out a comprehensive economy-wide plan for how British businesses and consumers will be supported in making the transition to clean energy and green technology – lowering the Britain’s reliance on fossil fuels by investing in sustainable clean energy in the UK, reducing the risk of high and volatile prices in the future, and strengthening our energy security.

The commitments made will unlock up to £90 billion of private investment by 2030, and support 440,000 well-paid jobs in green industries in 2030. This will provide certainty to businesses to support the UK in gaining a competitive edge in the latest low carbon technologies – from heat pumps to electric vehicles – and in developing thriving green industries in our industrial heartlands – from carbon capture to hydrogen, backed by new funding.

As part of the strategy, new investment announced yesterday includes:

  • an extra £350 million of our up to £1 billion commitment to support the electrification of UK vehicles and their supply chains and another £620 million for targeted electric vehicle grants and infrastructure, particularly local on-street residential charge points, with plans to put thousands more zero emission cars and vans onto UK roads through a zero emission vehicle mandate
  • we are also working to kick-start the commercialisation of sustainable aviation fuel (SAF) made from sustainable materials such as everyday household waste, flue gases from industry, carbon captured from the atmosphere and excess electricity, which produce over 70% fewer carbon emissions than traditional jet fuel on a lifecycle basis. Our ambition is to enable the delivery of 10% SAF by 2030 and we will be supporting UK industry with £180 million in funding to support the development of UK SAF plants
  • £140 million Industrial and Hydrogen Revenue Support scheme to accelerate industrial carbon capture and hydrogen, bridging the gap between industrial energy costs from gas and hydrogen and helping green hydrogen projects get off the ground. Two carbon capture clusters – Hynet Cluster in North West England and North Wales and the East Coast Cluster in Teesside and the Humber – will put our industrial heartlands at the forefront of this technology in the 2020s and revitalise industries in the North Sea – backed by the government’s £1 billion in support
  • an extra £500 million towards innovation projects to develop the green technologies of the future, bringing the total funding for net zero research and innovation to at least £1.5 billion. This will support the most pioneering ideas and technologies to decarbonise our homes, industries, land and power
  • £3.9 billion of new funding for decarbonising heat and buildings, including the new £450 million 3-year Boiler Upgrade Scheme, so homes and buildings are warmer, cheaper to heat and cleaner to run
  • £124 million boost to our Nature for Climate Fund helping us towards meeting our commitments to restore approximately 280,000 hectares of peat in England by 2050 and treble woodland creation in England to meet our commitments to create at least 30,000 hectares of woodland per year across the UK by the end of this parliament
  • £120 million towards the development of nuclear projects through the Future Nuclear Enabling Fund. There remain a number of optimal sites, including the Wylfa site in Anglesey. Funding like this could support our path to decarbonising the UK’s electricity system fifteen years earlier from 2050 to 2035

The policies and spending brought forward in the Net Zero Strategy mean that since the Ten Point Plan, we have mobilised £26 billion of government capital investment for the green industrial revolution.

More than £5.8 billion of foreign investment in green projects has also been secured since the launch of the Ten Point Plan, along with at least 56,000 jobs in the UK’s clean industries – and another 18 deals have been set out at the Global Investment Summit to support growth in vital sectors such as wind and hydrogen energy, sustainable homes and carbon capture and storage.

Through energy efficiency measures, falling costs of renewables and more, the measures in the strategy also mean people’s energy bills will be lower by 2024 than if no action was taken particularly as gas prices rise.

As the first major economy to commit in law to net zero by 2050 and hosts of the historic UN COP26 climate summit, the UK is leading international efforts and setting the bar for countries around the world to follow.

The UK has hit every carbon budget to date – today’s Net Zero Strategy sets out clear policies and proposals for meeting our fourth and fifth carbon budgets, and keeps us on track for carbon budget 6, our ambitious Nationally Determined Contribution (NDC), while setting out a vision for a decarbonised economy in 2050.

Prime Minister Boris Johnson said: “The UK’s path to ending our contribution to climate change will be paved with well-paid jobs, billions in investment and thriving green industries – powering our green industrial revolution across the country.

“By moving first and taking bold action, we will build a defining competitive edge in electric vehicles, offshore wind, carbon capture technology and more, whilst supporting people and businesses along the way.

“With the major climate summit COP26 just around the corner, our strategy sets the example for other countries to build back greener too as we lead the charge towards global net zero.”

Business and Energy Secretary Kwasi Kwarteng said: “There is a global race to develop new green technology, kick-start new industries and attract private investment. The countries that capture the benefits of this global green industrial revolution will enjoy unrivalled growth and prosperity for decades to come – and it’s our job to ensure the UK is fighting fit.

“Today’s plan will not only unlock billions of pounds of investment to boost the UK’s competitive advantage in green technologies, but will create thousands of jobs in new, future-proof industries – clearly demonstrating that going green and economic growth go hand in hand.”

Both the Net Zero and Heat and Building Strategies build on the Prime Minister’s Ten Point Plan in November 2020 which laid the foundations for a green industrial revolution, kick-starting billions of pounds of investment in new and green industries to help level up the country. To date, the UK has decarbonised faster than any other G7 country.

Published alongside these two strategies is HM Treasury’s Net Zero Review, an analytical report which explores the key issues as the UK decarbonises. It helps to build a picture of where opportunities could arise and the factors to be taken into account when designing decarbonisation policy. While there are costs in reaching net zero, the cost of inaction is much higher.

Net Zero Strategy 

Heat and Buildings Strategy.

Prime Minister pays tribute to Sir David Amess MP

PM Boris Johnson paid tribute to Sir David Amess MP in the House of Commons yesterday:

The passing of 72 hours has done little to numb the shock and sadness we all felt when we heard of the tragic and senseless death of Sir David Amess. This House has lost a steadfast servant, we have lost a dear friend and colleague and Julia and her children have lost a loving husband and devoted father.

Nothing I or anyone else can say will lessen the pain, the grief, the anger they must feel at this darkest of times. We hold them in our hearts today, we mourn with them and we grieve alongside them.

Sir David was taken from us in a contemptible act of violence, striking at the core of what it is to be a Member of this House and violating the sanctity both of the church in which he was killed and the constituency surgery that is so essential to our representative democracy.

But we will not allow the manner of Sir David’s death to in any way detract from his accomplishments as a politician or as a human being. Because Sir David was a patriot who believed passionately in this country, in its people, in its future.

He was also one of the nicest, kindest, and most gentle individuals ever to grace these benches.

A man who used his decades of experience to offer friendship and support to new members of all parties. Whose views often confounded expectation and defied easy stereotype. And who believed not just in pointing out what was wrong with society but in getting on and doing something about it.

It was that determination to make this country a better place that inspired his outstanding record on behalf of the vulnerable and the voiceless. The master of the private members bill and 10-minute rule bill he passed legislation on subjects as diverse as animal welfare, fuel poverty and the registration of driving instructors.

He was a prodigious campaigner for children with learning disabilities and for women with endometriosis, a condition in which he became an expert after meeting a woman at one of the constituency surgeries.

Behind the famous and irresistible beam lay a seasoned campaigner of verve and grit whether he was demanding freedom for the people of Iran or courting votes in the Westminster Dog of the Year contest whether he was battling for Brexit or fighting his way to the front of the Parliamentary Pancake Race.

And as every member of this House will know, and you just confirmed Mr Speaker, he never once witnessed any achievement by any resident of Southend that could not, somehow, be cited in his bid to secure city status for that distinguished town.

Highlights of that bulging folder included a world record for playing most triangles being played at once; a group of stilt-walkers travelling non-stop from the Essex coast to Downing Street; and a visiting foreign dignitary allegedly flouting protocol by saying he liked Southend more than Cleethorpes.

A compelling case, Mr Speaker, and as it is only a short time since Sir David last put that case to me in this chamber, I am happy to announce that Her Majesty has agreed that Southend will be accorded the city status it so clearly deserves. That Sir David spent almost 40 years in this House but not one day in ministerial office tells everything about where his priorities lay.

He was not a man in awe of this chamber, nor a man who sought patronage or advancement. He simply wanted to serve the people of Essex, first in Basildon, then in Southend. And it was in the act of serving his constituents that he was so cruelly killed.

In his recent memoir, Sir David called surgeries a part of “the great British tradition of the people openly meeting their elected politicians”. Even after the murder of Jo Cox and the savage attacks on Stephen Timms and Nigel Jones he refused to accept that he should be in any way deterred from speaking face to face with his constituents.

And so when he died he was doing what he firmly believed was the most important part of any MP’s job: offering help to those in need. In the awful moments before we knew the full horror of the tragedy a member of Sir David’s constituency association, her voice breaking with emotion, told an interviewer that “we need him, the country needs him”. And we do.

This country needs people like Sir David, this House needs people like Sir David, our politics needs people like Sir David. Dedicated, passionate, firm in his beliefs but never anything less than respectful for those who thought differently.

Those are the values he brought to a lifetime of public service.There can be few among us more justified in their faith in the resurrection and the life to come. And while his death leaves a vacuum that will not and can never be filled, we will cherish his memory we will celebrate his legacy and we will never allow those who commit acts of evil to triumph over the democracy and the Parliament that Sir David Amess loved so much.

Sir David Amess MP’s murder is terrorist incident, says Met Police

The Metropolitan Police issued a statement shortly after midnight:

The fatal stabbing in Leigh-on-Sea has tonight been declared as a terrorist incident, with the investigation being led by Counter Terrorism Policing.

The investigation is being led by the Met’s Counter Terrorism Command who are working closely with colleagues from the Eastern Region Specialist Operations Unit (ERSOU) and Essex Police.

Senior National Coordinator for Counter Terrorism Policing, Deputy Assistant Commissioner Dean Haydon formally declared the incident as terrorism. The early investigation has revealed a potential motivation linked to Islamist extremism.

Essex Police responded to an incident at an address in Eastwood Road North, Essex, shortly after 12:05hrs on Friday, 15 October.

At the scene, officers found a man with multiple stab wounds. He was given emergency medical treatment by emergency services, but sadly died at the scene.

The man was identified as Sir David Amess, Member of Parliament for Southend West. Specialist officers are supporting his family.

A 25-year-old British man was arrested at the scene on suspicion of murder. He is currently in custody at a police station in Essex.

As part of the investigation, officers are currently carrying out searches at two addresses in the London area and these are ongoing.

It is believed that he acted alone, and we are not seeking anyone else in connection with the incident at this time. However, enquiries into the circumstances continue.

Detectives would urge any witnesses or anyone with information about this incident to contact police.

If you have any information that could assist the investigation, then please call police in confidence on 0800 789 321. Anyone with moving footage or pictures is asked to submit them via this link 

Governments welcome fiscal reform progress

UK and Scottish governments agree first stage of the Fiscal Framework Review

The UK Government and Scottish Government today agreed in principle the scope of the independent report that will inform the subsequent review of the Scottish Government’s Fiscal Framework.

During an in-person meeting in Westminster, Chief Secretary to HM Treasury Simon Clarke and the Scottish Government’s Cabinet Secretary for Finance and the Economy Kate Forbes agreed to commission an independent report on the Block Grant Adjustment arrangements, including a call for stakeholder input, prior to a broader review of the Fiscal Framework. The Ministers will confirm these arrangements in writing.

Chief Secretary to the Treasury Simon Clarke said: “After our first in-person meeting it’s great that we’ve been able to get an agreement and can now get on with the Fiscal Framework Review and ensure fair and sustainable funding for Scotland’s future.

“We’re continuing to work together to tackle the big issues we face as a United Kingdom, including climate change, levelling up opportunities and supporting jobs.”

Scottish Finance Minister Kate Forbes said: “Today’s meeting was positive and I am glad that we are finally making some progress on the fiscal framework.

“I have reached an agreement in principle with the Chief Secretary to the Treasury which enables us to move without further delay towards commissioning the independent report, with the Fiscal Framework review itself beginning as close to the beginning of 2022 as possible.

“While the report will look only at the Block Grant Adjustments, we agreed that the review should have a wider scope, and involve input from parliamentary committees and wider stakeholders.”

The Chief Secretary also chaired a quadrilateral meeting that included Cabinet Secretary Kate Forbes, and finance ministers from Wales and Northern Ireland where they discussed Net Zero, creating jobs across the UK and recovering from the pandemic.

UK Coronavirus response: “some big achievements with some big mistakes”

MPs publish Coronavirus: Lessons Learned To Date report

Covid vaccine programme “one of most effective initiatives in UK history” but delay to first lockdown a “serious error” that should have been challenged

The House of Commons and Science and Technology Committee and Health and Social Care Committee have published their Report, Coronavirus: lessons learned to date, examining the initial UK response to the covid pandemic.

The 150-page Report contains 38 recommendations to the Government and public bodies, and draws on evidence from over 50 witnesses—including Rt Hon Matt Hancock MP, Professor Chris Whitty, Sir Patrick Vallance, Sir Simon Stevens, Dame Kate Bingham, Baroness Harding of Winscombe and Dominic Cummings—as well as over 400 written submissions.

The Report was agreed unanimously by members of both Select Committees, which consist of 22 MPs from three political parties—Conservative, Labour and SNP.

The joint inquiry, which began in October 2020, examined six key areas of the response to covid-19: the country’s preparedness for a pandemic; the use of non-pharmaceutical interventions such as border controls, social distancing and lockdowns to control the pandemic; the use of test, trace and isolate strategies; the impact of the pandemic on social care; the impact of the pandemic on specific communities; and the procurement and roll-out of covid-19 vaccines.

The inquiry concluded that some initiatives were examples of global best practice but others represented mistakes. Both must be reflected on to ensure that lessons are applied to better inform future responses to emergencies.

In particular:

  • The forward-planning, agility and decisive organisation of the vaccine development and deployment effort will save millions of lives globally and should be a guide to future Government practice;
  • The delays in establishing an adequate test, trace and isolate system hampered efforts to understand and contain the outbreak and it failed in its stated purpose to avoid lockdowns;
  • The initial decision to delay a comprehensive lockdown—despite practice elsewhere in the world—reflected a fatalism about the spread of covid that should have been robustly challenged at the time;
  • Social care was not given sufficient priority in the early stages of the pandemic;
  • The experience of the covid pandemic underlines the need for an urgent and long term strategy to tackle health inequalities; and
  • The UK’s preparedness for a pandemic had been widely acclaimed in advance, but performed less well than many other countries in practice.

The 38 recommendations made, if implemented by the Government and by public bodies such as the NHS, would ensure that during the remaining period of the pandemic and in any new emergency, the UK could perform better by having distilled lessons—positive and negative—from the UK’s initial response to covid.

In a joint statement on the publication of the Coronavirus: lessons learned to date Report, Rt Hon Jeremy Hunt MP, Chair of the Health and Social Care Committee, and Rt Hon Greg Clark MP, Chair of the Science and Technology Committee, said:  “The UK response has combined some big achievements with some big mistakes. It is vital to learn from both to ensure that we perform as best as we possibly can during the remainder of the pandemic and in the future. 

“Our vaccine programme was boldly planned and effectively executed. Our test and trace programme took too long to become effective. The Government took seriously scientific advice but there should have been more challenge from all to the early UK consensus that delayed a more comprehensive lockdown when countries like South Korea showed a different approach was possible.

“In responding to an emergency, when much is unknown, it is impossible to get everything right. We record our gratitude to all those—NHS and care workers, scientists, officials in national and local government, workers in our public services and in private businesses and millions of volunteers—who responded to the challenge with dedication, compassion and hard work to help the whole nation at one of our darkest times.” 

The Report includes an Executive Summary with conclusions, recommendations and lessons learned at the end of each Chapter. 

Boris Johnson: Getting On With the Job or More Bluff and Bluster?

BUILDING BACK BETTER: Prime Minister Boris Johnson addressed the Conservative Party Conference in Manchester yesterday. This is what he told the party faithful:

Isn’t it amazing to be here in person

the first time we have met since you defied the sceptics by winning councils and communities that Conservatives have never won in before – such as Hartlepool

in fact it’s the first time since the general election of 2019 when we finally sent the corduroyed communist cosmonaut into orbit where he belongs

and why are we back today

for a traditional Tory cheek by jowler?

It is because for months we have had one of the most open economies and societies

and on July 19 we decided to open every single

theatre and every concert hall and night club in England

and

we knew that some people would still be anxious

so we sent top government representatives to our sweatiest boites de nuit to show that anyone could dance

perfectly safely

and wasn’t he brilliant my friends?

let’s hear it for Jon Bon Govi

living proof that we, you all

represent the most jiving hip happening and generally funkapolitan party in the world

and how have we managed to open up

ahead of so many of our friends?

You know the answer, its

because of the roll-out of that

vaccine

a UK phenomenon

the magic potion invented in oxford university

and bottled in wales

distributed at incredible speed to vaccination centres everywhere

I saw the army in action in Glasgow

firing staple guns like carbines as they set up a huge vaccination centre

and in Fermanagh I saw the needles go in like a collective sewing machine

and they vaccinated so rapidly that we were able to

do those crucial groups one to four

the oldest and most vulnerable faster than any other major economy in the world

and though the disease has sadly not gone away the impact on death rates has been astonishing

and I urge you all to get your jabs because every day our vaccine defences are getting stronger and stronger

and you, all of you, and everybody watching made this roll-out possible

you each made each other safe

so perhaps we should all thank each other

go on – try a cautious fist bump

because it’s ok now

and we in turn thank the

volunteers, the public health workers, the council workers

the pharmacists

but above all our untiring unbeatable unbelievable NHS

and as a responsible conservative government we must recognise the sheer scale of their achievement

but recognise also the scale of the challenge ahead


‍The NHS

When I was lying in St Thomas’s hospital last year l looked blearily out of my window at a hole in the ground between my ICU and another much older Victorian section and amid the rubble of brick they seemed to be digging a hole for something or indeed someone – possibly me

but the NHS saved me

and our wonderful nurses pulled my chestnuts out of Tartarean pit

and the other day I went back on a visit

and I saw that the hole had been filled in

with three or four gleaming storeys

of a new paediatrics unit

and there you have the metaphor my friends for how to build back better now

we have a huge hole

in the public finances

We spent £407 bn on covid support

and our debt now stands at over two trillion pounds

and waiting lists will almost certainly go up before they come down

covid pushed out a great bow wave of cases

people did not or could not seek help

and that wave is now coming back

a tide of anxiety washing into every A and E and every GP

your hip replacement

your mother’s surgery

and this is the priority of the British people

does anyone seriously imagine that we should not now be raising the funding to sort this out

is that really the view of responsible conservatives?

I can tell you something

Margaret Thatcher would not have ignored this meteorite that has just crashed through the public finances

she would have wagged her finger and said more borrowing now is just higher interest rates and even higher taxes later

when this country was sick our NHS was the nurse

frontline health care workers

battled against a new disease

selflessly

risking their lives sacrificing their lives

and it is right that this Party that has looked after the NHS for most of its history

should be the one to rise to the challenge

48 new hospitals

50,000 more nurses

50m more GP appointments

40 new diagnostic centres

and fixing those backlogs with real change

because the pandemic not only put colossal pressure on the NHS

it was a lightning flash illumination of a problem we have failed to address for decades


‍Fixing Social Care

In 1948 this country created the National Health Service but kept social care local

and though that made sense in many ways generations of older people have found themselves

lost in the gap

when covid broke there were 100,000 beds in the NHS

  • and 30,000 occupied by people who could have been cared for elsewhere

whether at home or in residential care

and we all know that this problem of delayed discharge is one of the major reasons why

it takes too long to get the hospital treatment that your family desperately need

and people worry that they will be the one in ten

to suffer from the potentially catastrophic cost of dementia

wiping out everything they have

and preventing them from passing on anything to their families

and we Conservatives stand by those who have shared our values

thrift and hard work

and who face total destitution in this brutal lottery

of old age

in which treatment for cancer is funded by the state

and care for alzheimers is not – or only partly

and to fix these twin problems of the NHS and social care

we aren’t just going to siphon billions of new taxes into crucial services

without improving performance

we will

use new technology so that there is a single set of electronic records as patients pass between health and social care

improving care

and ensuring that cash goes to the frontline

and not on needless bureaucracy

When I stood on the steps of Downing Street I promised to fix this crisis

and after decades of drift and dither

this reforming government

this can do government

this government that got brexit done

that is getting the vaccine rollout done

is going to get social care done

and we are dealing with the biggest underlying issues of our economy and society

the problems that no government has had the guts to tackle before

and I mean the long term structural weaknesses

in the UK economy

It is thanks to that vaccine roll-out that we now have the most open economy and the fastest growth in the G7

we have unemployment two million lower than forecast

We have demand surging

and I am pleased to say that after years of stagnation – more than a decade – wages are going up

faster than before the pandemic began

and that matters deeply

because we are embarking now on a change of direction that has been long overdue

in the UK economy

we are not going back to the same old broken model

with low wages

low growth

low skills

and low productivity

all of it enabled and assisted by uncontrolled immigration

and the answer to the present stresses and strains

which are mainly a function of growth and economic revival

is not to reach for that same old lever of uncontrolled immigration

to keep wages low

the answer is to control immigration

to allow people of talent to come to this country

but not to use immigration as an excuse for failure to invest

in people, in skills

and in the equipment the facilities the machinery they need to do their jobs

the truckstops – to pick an example entirely at random – with basic facilities where you don’t have to urinate in the bushes

and that is the direction in which this country is going now

towards a high wage

high skill

high productivity

and yes, thereby low tax economy

that is what the people of this country need and deserve

in which everyone can take pride in their work and in the quality of their work

and yes it will take time

and yes it will sometimes be difficult

but that was the change that people voted for in 2016

and that was the change they voted for again powerfully in 2019

and to deliver that change we will get on with our job

of uniting and levelling up across the UK

the greatest project that any government can embark on

We have one of the most imbalanced societies and lop-sided economies

of all the richer countries

it is not just that there is a gap between London and the South east and the rest of the country

there are aching gaps within the regions themselves

what monkey glands are they applying in Ribble Valley

what royal jelly are they eating

that they live seven years longer than the people of Blackpool

only 33 miles away

Why does half of York’s population boast a degree and only a quarter of Doncaster’s

This is not just a question of social justice

it is an appalling waste of potential

and it is holding this country back

because there is no reason why the inhabitants of one part of the country should be geographically fated to be poorer than others

or why people should feel they have to move away from their loved ones, or communities to reach their potential

When Thomas Gray stood in that country churchyard in 1750 and wrote his famous elegy

as the curfew tolled the knell of parting day

he lamented

the wasted talents of those buried around him

the flowers born to blush unseen

the mute inglorious miltons who never wrote a poem

because they never got to read

the simple folk who died illiterate and innumerate

and he knew that it was an injustice

let me ask you, maybe you know

where was he standing when he chewed his pensive quill ? Anybody know

Correct, thank you, he was standing in Stoke poges

my friends there may be underprivileged parts of this country but stoke poges is not now among them

in fact it was only recently determined by the Daily Telegraph

and if you can’t believe that, what can you believe my friends

to be the 8th richest village in England

since gray elegised, Buckinghamshire has levelled up to be among the most productive regions in the whole of Europe

Stoke Poges may still of course have its problems

but they are the overwhelmingly caused the sheer lust of other people to live in or near Stoke Poges

overcrowded trains

endless commutes

too little time with the kids

the constant anxiety that your immemorial view of chalk downland is going to be desecrated by ugly new homes

and that is why levelling up works for the whole country

and is the right and responsible policy, because it

helps to take the pressure off parts of the overheating South East

while simultaneously

offering hope and opportunity to those areas that have felt left behind

and let us be clear that there is a huge philosophical difference between us and labour

because in their souls they don’t like levelling up

they like levelling down they do

they like decapitating the tall poppies and taxing the rich till the pips squeak

they dislike academic competition latin I hear

and in Islington – I kid you not I have seen it with my own eyes – they like kids to run races where nobody actually wins

and I have to tell you I don’t believe that is a good preparation for life

let alone for the Olympic games

and if you insist on the economic theory behind levelling up

it is contained in the insight of Wilfredo Pareto

a 19th century Italian figre who floated from the cobwebbed attic of my memories

that there are all kinds of improvements

you can make to people’s lives he said

without diminishing anyone else

Rishi will I am sure confirm this

and we call these pareto improvements

and they are the means of levelling up

and the idea in a nutshell it is that you will find talent genius flair imagination enthusiasm everywhere in this country all of them evenly distributed

but opportunity is not

and it is our mission as conservatives to promote opportunity

with every tool we have

and it is still a grim fact that in this country

that some kids will grow up in neighbourhoods that are safer than others

and some will be, as Priti was saying, some will be sucked into gangs

and some will be at risk of stabbing and shooting

and some will get themselves caught in the one way ratchet of the criminal justice system

and many others will not

that’s why levelling up means fighting crime

putting more police out on the beat as we are

and toughening sentences

and rolling up the county lines drugs networks as we are

1100 gone already

and giving the police the powers they need

to fight these dealers in death and misery that’s what we want to do

– and what is Labour’s answer, by the way –

to decriminalise hard drugs apparently

to let the gangsters off with a caution

an answer that is straight from the powder rooms of the North London dinner parties

and nothing to do with the real needs of this country

crime has been falling

and not just by the way because we took the precaution of locking up the public for much of the last 18 months

but because you have a conservative government that understands the broken windows theory of crime

I read a learned article by some lawyer saying we should not bother about pet theft

Well I say to Cruella de Vil QC – if you can steal a dog or a cat

then there is frankly no limit to your depravity

and you know those people gluing themselves to roads

I don’t call them legitimate protestors

like some Labour councillors do I, some Labour councillors actually glue themselves to roads

I say they are a confounded nuisance who are blocking ambulances, stopping people go about their daily lives

and I am glad Priti is taking new powers to insulate them snugly in prison where they belong

what I found most incredible of all was the decision by Labour

now led by lefty Islington lawyers

to vote against tougher sentences for serious sexual and violent offenders

and on behalf of the entire government I tell you

we will not rest until we have increased the successful prosecutions for rape

because too many lying bullying cowardly men are using the law’s delay

to get away with violence against women

and we cannot and we will not stand for it

and I know that there are some who now tell us that we are ungenerous and unfeeling in our attempts to control our borders

and I say – don’t give me that

This is the government that stood up to China and announced that we would provide a haven for British overseas nationals in Hong Kong

30,000 have already applied

and I am really proud to be part of a Conservative government that will welcome 20,000 Afghans

people who risked their lives to guide us and translate for us

we are doing the right and responsible thing

and speaking as the great grandson of a Turk who fled in fear of his life I know that this country is a beacon of light and hope for people around the world

provided they come here legally

provided we understand who they are and what they want to contribute

and that is why we took back control of our borders

and will pass the borders bill

because we believe there must be a distinction between someone who comes here legally and someone who doesn’t

and though I have every sympathy with people genuinely in fear of their lives

I have no sympathy whatever

with the people traffickers who take thousands of pounds

to send children to sea in frail and dangerous craft

and we must end this lethal trade

we must break the gangsters’ business model

and is it not a sublime irony that even in French politics there is now a leading centre right politician calling for a referendum on the EU

Who is now calling for France to reprendre le controle??

it’s good old Michel Barnier

that’s what happens if you spend a year trying to argue with Lord Frost

the greatest frost since the great frost of 1709

and we will fight these gangs at home and abroad

because their victims are invariably the poorest and the neediest

and I will tell you what levelling up is

a few years ago they started a school not far from the Olympic park

a new school that anyone could send their kids to

in an area that has for decades been one of the most disadvantaged in London

that school is Brampton Manor academy and it now sends more kids to Oxbridge than Eton

and if you want proof of what I mean by unleashing potential

and by levelling up

look at Brampton Manor

and we can do it

There is absolutely no reason why the kids of this country should lag behind

or why so many should be unable to read and write or do basic mathematics at the age of 11

and to level up

– on top of the extra 14 bn we’re putting into education

and on top of the increase that means every teacher starts with a salary of £30k

we are announcing a levelling up premium of up to £3000 to send the best maths and science teachers to the places that need them most

and above all we are investing in our skills, skills folks

our universities are world beating, I owe everything to my tutors and they are one of the great glories of our economy

but we all know that some of the most brilliant and imaginative and creative people in Britain

and some of the best paid people in Britain

did not go to university

and to level up you need to give people the options

the skills

that are right for them

and to make the most of those skills and knowledge

and to level up you need urgently to

plug all the other the gaps in our infrastructure that are still holding people and communities back

As I’ve been saying over this wonderful conference to you

when I became leader of this party, there were only, can you remember, what percentage of households had gigabit broadband when you were so kind as to make me leader? 7 percent, only 7 percent

and by the new year that will be up to 68 per cent

thanks to Rishi’s superdeduction the pace is now accelerating massively

as companies thrust the fibre-optic vermicelli in the most hard to reach places

it’s wonderful, for years SNP leader Ian Blackford has been telling the Commons that he is nothing but a humble crofter on the isle of Skye

well now we have fibre optic broadband of very high quality that we can inspect the library or is it perhaps the billiard room of Ian Blackford’s croft

and that is levelling up in action

and my friends it is not good enough just to rely on zoom

after decades of ducked decisions

our national infrastructure is way behind some of our key competitors

It is a disgrace that you still can’t swiftly cross the pennines by rail

a disgrace that leeds is the largest city in Europe with no proper metro system

a waste of human potential that so many places are not served by decent bus routes

transport is one of the supreme leveller-uppers

and we are making the big generational changes shirked by previous governments

we will do Northern Powerhouse rail

we will link up the cities of the midlands and the north

we will restore those sinews of the union that have been allowed to atrophy

the A1 north of Berwick and on into Scotland

the A 75 in Scotland that is so vital for the links with northern Ireland and the rest of the country

the north wales corridor

and we will invest in our roads

unblocking those coagulated roundabouts and steering-wheel-bending traffic lights

putting on 4000 more clean green buses

made in this country

some of them running on hydrogen

and as we come out of covid

our towns and cities are again going to be buzzing with life

because

we know

that a productive workforce

needs that spur

that only comes with face to face meetings

and water cooler gossip

if young people are to learn on the job in the way that they always have and must

we will and must see people back in the office

and that is why we are building back better with a once in an a century £640bn pound programme

of investment

and by making neighbourhoods safer

by putting in the gigabit broadband

by putting in the roads and the schools and the healthcare

we will enable more and more young people everywhere

to share the dream of home ownership

the great ambition of the human race

that the left always privately share but publicly disparage

and we can do it

Look at this country from the air
Go on google maps

you see how our landscape has been plotted and pieced and jigsawed together by centuries of bequests and litigation

a vast testament to security of title

trust in the law

a confidence that is responsible for so much international investment

you see how rich this country is growing

the billions of loving and incremental improvements to homes and gardens

you can see how beautiful it is

vast untouched moorland

and hills

broadleaf forests

we are going to re-wild parts of the country and consecrate a total of 30 per cent to nature

we are planting tens of millions of trees

otters are returning to rivers from which they have been absent for decades

beavers that have not been seen on some rivers since tudor times

massacred for their pelts

are now back

and if that isn’t conservatism, my friends I don’t know what is

build back beaver

‍and though the beavers may sometimes build without local authority permission

you can also see how much room there is

to build the homes that young families need in this country

not on green fields

not just jammed in the south east

but beautiful homes on brownfield sites

in places where homes make sense
Home ownership
And this government is helping young people to afford a home

It has been a scandal – a rebuke to all we stand for

that over the last 20 years the dream of home ownership

has receded

and yet under this government we are turning the tide

we have not only built more homes than at any time in the last 30 years

we are helping young people on to the property ladder

with our 95 per cent mortgages

and there is no happiness like taking a set of keys

and knowing that the place is yours

and you can paint the front door any colour you like

as it happens I am not allowed to paint my own front door, it has to be black

but I certainly don’t have far to go to work

and if you don’t have too far to go to work

and the commute is not too dreadful

and if

the job suits your skills

and your wifi is fast and reliable

then I tell you something else

that housing

in the right place

at an affordable price

will add massively not just to your general joie de vivre

but to your productivity

and that is how we solve the national productivity puzzle

by fixing the broken housing market

by plugging in the gigabit

by putting in decent safe bus routes and all other transport infrastructure

and by investing in skills skills skills

and that by the way is how we help to cut the cost of living for everyone

because housing, energy, transport

are now huge parts of our monthly bills

and it is by fixing our broken housing market

by sorting out our energy supply – more wind, more nuclear, becoming less dependent on hydrocarbons from abroad

by putting in those transport links

we will hold costs down and save you money

and we will make this country an even more attractive destination for foreign direct investment

We are already the number one

– look at the Nissan investment in Sunderland

or the Pfizer vaccine manufacturing centre that’s coming to Swindon

and with these productivity gains we will turbo charge that advantage

and help businesses to start and grow everywhere

so let me come now to the punchline of my sermon on the vaccine

It was not the government that made the wonder drug

it wasn’t brewed in the alembicks of the department of health

It was, of course it was Oxford University, but it was the private sector that made it possible

behind those vaccines are

companies and shareholders and, yes,

bankers

you need deep pools of liquidity that are to be found in the City of London

it was capitalism that ensured that we had a vaccine in less than a year

and the answer therefore is not to attack the wealth creators

it is to encourage them because they are responsible for the aggregate increase in the country’s wealth

that enables us to make those pareto improvements

and to level up everywhere

and to rub home my point

it is not just that vaccination has saved more than 120,000 lives

Vaccination has allowed us to meet like this

and blessed us with such rapid growth

with wages rising fastest for those on lowest incomes

and that levelling up in action

The vaccines have ensured that by a simple vowel mutation jabs jabs jabs

become jobs jobs jobs

the world’s most effective vaccines have saved our open society and free market economy

and it is our open society and free market economy that have produced the world’s most effective vaccines

and that is the symmetry in the lesson of the covid vaccines

– science, innovation, capitalism –

is vital now for the challenge we face

the challenge the whole humanity faces

is even more existential for our way of life

in just a few weeks time this country will host the summit of our generation in Glasgow

when the resolve of the world is put to the test

can we keep alive the ambition of Paris – to stop the planet heating by more than 1.5 degrees

government can’t do it alone

and taxpayers certainly can’t do it alone

the other day I took a boat out into the moray firth

to see an aquatic forest of white turbines towering over the water like the redwoods of california

and you have no idea of their size until you see them up close

the deceptive speed of their wings

twice the diameter of the London eye

their tips slicing the air at more than 100 miles per hour

and I met the young men and women

apprentices

who had moved straight across from the world of oil and gas

and they had the same excitement at working amid winds and wave

and being able to see whales and dolphins from the office window

but they had the extra satisfaction that goes with knowing you are doing something to save the planet

and get Britain to Net Zero by 2050

and that is the symmetry represented by these giant windmills

massive and innovative private sector investment

and a government taking the tough decisions to make it possible

that’s the difference between this radical and optimistic Conservatism

and a tired old Labour

did you see them last week, did you watch them last week in Brighton

hopelessly divided I thought they looked

their leader like a seriously rattled bus conductor

pushed this way and that by, not that they have bus conductors any more unfortunately, like a seriously rattled bus conductor pushed this way and that by a corbynista mob of sellotape-spectacled sans-culottes

or the skipper of a cruise liner that has been captured by Somali pirates

desperately trying to negotiate a change of course

and then changing his mind

and remember Labour’s performance during the pandemic

flapping with all the conviction of a damp tea towel

They refused to say that schools were safe

they would have kept us in the European medicines agency

and slammed the brakes on the vaccine roll out

the Labour leader attacked the vaccine task force for spending money on outreach to vaccine hesitant minority groups

when it is hard to think of any better use of public money

and let us try to forgive him on the basis that he probably didn’t know what he was talking about

in previous national crises labour leaders have opted to minimise public anxiety and confusion by not trying to score cheap party political points

one thinks of Attlee or even Michael foot in the falklands crisis

sadly that was not the approach taken by captain hindsight

attacking one week

then rowing in behind when it seemed to be working

the human weathervane

the starmer chameleon

and in his final act of absurd opportunism he decided to oppose step four of the roadmap in July

that’s right folks

if we had listened to captain hindsight we would still be in lockdown we wouldn’t have the fastest growth in the G7

if Columbus had listened to captain hindsight he’d be famous for having discovered Tenerife

and how utterly astonishing that in the last few weeks labour should actually have voted against new funding we’re putting frward for the NHS

and we need to remember why and how we have been able to back people through this pandemic at all

it was because we Conservatives fixed the economy

we repaired the damage Labour left behind

every labour government has left office with unemployment higher than when it came in

every single one – ever since the party was invented

and today we are going to fix this economy and build back better than ever before

and just as we used our new freedoms to accelerate the vaccine rollout

we are going to use our brexit freedoms to

to do things differently

we are doing the borders bill

we have seen off the European superleague and protected grassroots football

we are doing at least eight freeports

superfertilised loam in which

business will plant new jobs across the UK

and now we are going further

not only jettisoning the EU rules we don’t need any more

but using new freedoms to

improve the way we regulate in the great growth areas of the 21st century

as we fulfil our ambition of becoming a science superpower

gene editing

data management

AI

Cyber quantum
we are going to be ever more global in our outlook

we have done 68 free trade deals including that great free trade deal with our friends in the EU that they all said was impossible

and after decades of bewildering refusal we have persuaded the Americans to import prime British beef

a market already worth £66 m

build back burger I say

‍and you ask yourself how have the americans been able to survive without British beef for so long?

and if you want a supreme example of global Britain in action

of something daring and brilliant that would simply not have happened if we had remained in the EU

I give you AUKUS – an idea so transparently right that Labour conference voted overwhelmingly against it

and I know that there has been a certain raucus squaukus from the anti-aukus caucus

But Aukus is simply a recognition of the reality that

the world is tilting on its economic axis

and our trade and relations with the Indo pacfific region are becoming ever more vital than ever before

and that is why we have

sent the amazing carrier strike group

to the far east

been performing manoeuvres with 40 friendly countries

HMS Queen Elizabeth

as long as the entire palace of Westminster

and rather more compelling as an argument

than many speeches made in the house of commons

it has dozens of F35s on board

and 66 thousand sausages aboard

not because want to threaten or be adversarial to anyone

either with the F35s or indeed the sausages

but because we want to stick up for the rule of law that is so vital for freedom of navigation and free trade

and that is what brings AUKUS together

Australia, UK, US

shared values

a shared belief in democracy and human rights

‍and a shared belief in the equal dignity and worth of every human being

very few countries could have pulled off the Kabul airlift – an astonishing feat by our brave armed forces

even fewer have the same moral priorities

No other government brokered a deal such as this government did with Astra Zeneca

so that the Oxford vaccine has been distributed at cost around the world

more than a billion low cost vaccines

invented in Britain

saving millions of lives

we are led by our values

by the things we stand for

and we should never forget that people around the world admire this country for its history and its traditions

they love the groovy new architecture and the fashion and the music and the chance of meeting Michael in the disco

but they like the way it emerges organically from a vast inherited conglomerate of culture and tradition

and we conservatives understand the need for both and

how each nourishes the other

and we attack and deny our history at our peril

and when they began to attack Churchill as a racist I was minded to ignore them

it is only 20 years ago since BBC audiences overwhelmingly voted him the greatest Briton of all time

because he helped defeat a regime after all that was defined by one of the most vicious racisms

the world has ever seen

but as time has gone by it has become clear to me that

this isn’t just a joke

they really do want to re-write our national story

starting with hereward the woke

we really are at risk of a kind of know nothing cancel culture know nothing iconoclasm

and so we Conservatives will defend our history and cultural inheritance

not because we are proud of everything

but because trying to edit it now is as dishonest as a celebrity trying furtively to change his entry in Wikipedia

and its a betrayal of our children’s education

churchill’s last words to his cabinet, actually his whole ministers but his cabinet were there

were

Never be separated from the americans

pretty good advice I’m sure you’ll agree –

‍–

and ended with the observation

man is spirit

He was right there.

I believe that through history and accident this country has a unique spirit

the spirit of the NHS nurses AND the entrepreneurs

whose innovative flair means that there are three countries in the world that have produced more than 100 unicorns not a mythical beast

tech companies worth more than a billion dollars each

They are the US and China and the UK and those unicorns they are now dispersed around the United Kingdom in a way that is new to our country, that is the spirit of levelling up

and we need the spirit of the NHS nurses and the entrepreneurs because each enables the other

I mean

the spirit of the footballers who took England into the final of a major knock out tournament for the first time in the lives of the vast majority of the people of this country

probably, looking around at all you young thrusters, the majority of you in this room

the indomitable spirit of Emma Raducanu

her grace and her mental resilience when the game was going against her

because that is what counts

the spirit of our Olympians

it is an incredible thing to come yet again in the top four

a formidable effort for a country that has only 0.8 per cent of the world’s population

in spite of the best efforts of some us jacob

but when we come second in the Paralympics as well –

that shows our values

not only the achievement of those elite athletes

but a country that is proud to be a trailblazer

to judge people not by where they come from

but by their spirit

and by what is inside them

That is the spirit that is the same across this country

in every town and village and city that can be found

that can be found in the hearts and minds of kids growing up everywhere

and that is the spirit we are going to unleash.

While the conference hall lapped it up, others were less generous:

The SNP said: 🤦 Boris Johnson’s shameless attempt to shift the blame will do nothing to fix the crisis he has caused.

⚠️ Tory Universal Credit cuts and regressive tax hikes will push families into poverty.

🚨 Yet, just like Thatcher, the Prime Minister fails to show an ounce of regret.

Commenting on the Prime Minister’s speech at Conservative Party conference, in which he claimed previous goverments ‘haven’t had the guts’ to tackle big issues in our economy and society, Katie Schmuecker, Deputy Director of Policy & Partnerships at JRF said: “The Prime Minister has not had the guts to look the millions of people whose incomes are being cut today in the eye and tell them how they are expected to get through the year ahead.  

“The Prime Minister’s attempt to strike an upbeat tone is completely at odds with the despair people are feeling and the cost-of-living crisis we are now facing. He has chosen to cut £20 a week from the incomes of millions including many who are in work as well as those who cannot work due to sickness, disability or caring responsibilities. 

“Promises of a ‘high wage, high skill economy’ that will take years to reach will offer no comfort to families whose incomes have been cut, and the Government knows this.  

“It is a sign of profound disrespect that he did not even acknowledge the struggle people across the country on low incomes are facing on the very day that the biggest ever cut to social security comes into force.” 

Anneliese Dodds MP, Labour’s Party Chair, responding to the Prime Minister’s speech at the Conservative Party conference, said: “Boris Johnson’s vacuous speech summed up this whole Conservative conference. The PM talked more about beavers than he did about action to tackle the multiple crises facing working people up and down the country.

“Far from getting a grip on the spiralling costs of energy, fuel and food, the Tories are actively making things worse – cutting incomes today for six million families by over £1,000 a year.

“Britain deserves a fairer, greener and more secure future. Last week Labour set out how we can get there. This week it’s clear that after over a decade in power the Conservatives don’t have a clue.”

Responding to Boris Johnson’s speech to the Conservative Party Conference, TUC General Secretary Frances O’Grady said: “If Boris Johnson was serious about levelling up Britain, he wouldn’t be slashing universal credit in the middle of a cost-of-living crisis.  

“The PM is in no position to lecture people on wages when he is holding down the pay of millions of key workers in the public sector.  

“And when he is doing nothing to fix the gaping hole in local authority budgets that has resulted in most social care workers being paid less than the real living wage. 

“As the country’s biggest employer, the government should be setting an example on paying staff properly – not skimping on wages. 

“My advice to the PM is simple. The best way to level up pay and conditions across the country is to give workers and their unions more bargaining power at work. 

“11 years into a Conservative government we hope that he can finally learn this lesson.” 

Commenting on the PM’s claims that wages are rising, Frances added: “Wages are barely rising above inflation, and millions of key workers – who got us through this crisis – are facing a real-terms pay cut this autumn.”