Parliamentary Questions

Virginia Crosbie MP: To ask the Chancellor of the Exchequer, whether he plans to update the UK Government Green Financing Framework, published in June 2021, to allow the proceeds of green gilts to be used for nuclear energy projects.

Andrew Griffith MP (Economic Secretary at HM Treasury) - As set out in the British Energy Security Strategy, nuclear energy is a key part of the UK’s low-carbon energy mix alongside solar, wind and other energy sources. These technologies are important in tackling climate change and diversifying the UK’s supply, contributing to the UK’s energy security and sustainable growth.

The UK Government Green Financing Framework was set in June 2021, with its current exclusion of nuclear energy projects. Any changes to the Framework in the future to include nuclear energy would be transparently published by the Government.

View question on the UK Parliament Website here.

Charlotte Nichols MP: To ask the Chancellor of the Exchequer, if he will make it his policy not to use public money to fund any new fossil fuel projects in the UK.

James Cartlidge (Exchequer Secretary at HM Treasury) - The government is fully committed to green growth and net zero by 2050, including speeding up the deployment of clean and renewable technologies such as nuclear, hydrogen, solar, carbon capture and storage and wind – where the UK is already a world leader in offshore generation. The UK’s omissions have also fallen by over 44% between 1990 and 2019. However, oil and gas are not incompatible with this, as the UK will need these fuels for decades to come to support our energy security through the transition to clean energy.

The government places additional taxes on the extraction of oil and gas, with companies engaged in the production of oil and gas in the UK and on the UK Continental Shelf subject to a combined headline tax rate on their profits of 40%. The Energy Profits Levy was introduced in May as a temporary 25% tax on top of this (the rate will rise to 35% from 1 January 2023). The Energy Profits Levy will end on 31 March 2028.

The government has always sought to balance delivering a fair return for the UK from the use of its resources while providing the right conditions to attract investment in the North Sea that is key to support domestic jobs and the nation’s energy security. That is why companies investing in new or existing projects can claim a deduction against their taxable profits taking into account the cost of their investments. The UK will receive tax revenues from these investments as and when they generate a profit.

View question on the UK Parliament Website here.

Bill Esterson MP (Shadow Minister for Business and Industry): To ask the Secretary of State for Business, Energy and Industrial Strategy, whether it is his policy to support the development of Sizewell C Nuclear Power Station.

Graham Stuart MP (Minister of State at Department for Energy Security and Net Zero) - The Government is in constructive ongoing negotiations on Sizewell C, with the aim of delivering a key objective of the British Energy Security Strategy, to take one large-scale nuclear project to a Final Investment Decision (FID) this Parliament, subject to value for money and all relevant approvals.

The Government has announced its intention to provide up to £700m of funding to the project, subject to the outcome of these negotiations.

View question on the UK Parliament Website here.

Bill Esterson MP (Shadow Minister for Business and Industry): To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to The Ten Point Plan for a Green Industrial Revolution published on 18 November 2020, how much money has been paid into the Advanced Nuclear Fund since the publication of the plan.

Graham Stuart MP (Minister of State at Department for Energy Security and Net Zero) - The £385m Advanced Nuclear Fund, announced in 2020, includes funding of up to £210m for Small Modular Reactors (SMRs) and Advanced Modular Reactors (AMRs). For SMRs, this is being delivered through the Low-Cost Nuclear Innovation Programme which provided a £210m grant to Rolls-Royce (RR) SMR. This encouraged industry to invest £280m, from Rolls Royce and other investors. For AMRs, in September the Government announced up to £3.3m for successful organisations under Phase A of the Research, Development and Demonstration programme.

View question on the UK Parliament Website here.

Bill Esterson MP (Shadow Minister for Business and Industry): To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the policy paper entitled The Ten Point Plan for a Green Industrial Revolution, published on 18 November 2020, how many jobs have been created in nuclear power since the publication of the plan.

Graham Stuart MP (Minister of State at Department for Energy Security and Net Zero) - Since the publication of the Ten Point Plan, this Government has been in constructive negotiations on the Sizewell C project which is likely to support 10,000 jobs at peak construction. In addition, the British Energy Security Strategy announced an aim for up to 24GW of nuclear capacity by 2050, which will create highly skilled jobs at a local, regional, and national level.

View question on the UK Parliament Website here.

Charlotte Nichols MP: To ask the Secretary of State for Business, Energy and Industrial Strategy, for what reasons the Government has permitted a significant proportion of investment in Sizewell C nuclear power station to come from foreign investors.

Graham Stuart MP (Minister of State at Department for Energy Security and Net Zero) - The Government welcomes investment into the UK’s nuclear sector and values the important role of overseas investors in large-scale infrastructure projects. The Regulated Asset Base model will help attract the significant investment needed from UK and international pension funds, insurers and other institutional investors, reducing reliance on overseas developers for finance which led to the cancellation of potential projects. Investment involving critical nuclear infrastructure needs to satisfy our robust national security, and other legal and regulatory requirements.

The Government has also declared its preparedness to invest directly in the Sizewell C project, subject to ongoing negotiations and all relevant approvals.

View question on the UK Parliament Website here.