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My Lords, while complimenting the Minister and the Government on getting on with the SMR programme, I ask him whether sites are being sought for these reactors where the heat they produce can be used in district heating systems for buildings, industry and horticulture.
My Lords, while complimenting the Minister and the Government on getting on with the SMR programme, I ask him whether sites are being sought for these reactors where the heat they produce can be used in district heating systems for buildings, industry and horticulture.
The noble Lord links together two important facets of this work: the importance of getting on with building new nuclear capacity, which I think is widely recognised, and the importance of developing heat networks. We do not have such a tradition of heat networks in this country, but they are rapidly expanding and we are investing hundreds of millions of pounds in future heat networks.
My Lords, if home electricity prices apply, the cost per mile to propel a typical electric car will be very much lower than that needed to propel a fossil-fuel car. However, two-thirds of the cost of petrol and diesel is duty and VAT. Do the
Government plan to tax electricity for electric cars in a similar way, or will they retrieve the approximately £30 billion lost to the Exchequer by other means, such as the long-rumoured road pricing, and how would such changes be phased in?
My Lords, if home electricity prices apply, the cost per mile to propel a typical electric car will be very much lower than that needed to propel a fossil-fuel car. However, two-thirds of the cost of petrol and diesel is duty and VAT. Do the
Government plan to tax electricity for electric cars in a similar way, or will they retrieve the approximately £30 billion lost to the Exchequer by other means, such as the long-rumoured road pricing, and how would such changes be phased in?
The noble Lord will appreciate that matters of taxation are for the Chancellor, but the Government have set out that, as we move forward with this transition away from petrol and diesel cars and vans, we will need to ensure that the tax system continues to encourage the uptake of electric vehicles. Revenues from motoring taxes must keep pace with this change to ensure that we can continue to fund the first-class public services and infrastructure that people and families across the UK expect. I am sure that the Treasury will be looking at other ways of taxing electric vehicles in the future.
To ask Her Majesty's Government what assessment they have made of the impact on innovation of moving Innovate UK from the Department for Business, Energy and Industrial Strategy to UK Research and Innovation.
To ask Her Majesty's Government what assessment they have made of the impact on innovation of moving Innovate UK from the Department for Business, Energy and Industrial Strategy to UK Research and Innovation.
UKRI was set up in 2018 to maximise the collective impact of the seven research councils, Innovate UK and the research and knowledge exchange functions of HEFCE. The impact of innovation takes a long time to realise. As part of UKRI, Innovate UK have successfully delivered new approaches to innovation funding, such as the Industrial Strategy Challenge Fund and Innovation Loans pilot.
My Lords, as has already been mentioned by the noble Baroness, Lady Royall, and the noble Lord, Lord Kirkhope, Erasmus is as much about students coming to the UK as it is about our students going overseas. Indeed, I believe we have been receiving twice the number of students that we have sent away, which is a tribute to our universities and effectively balances the cost of our students going abroad. Surely the Turing scheme or others must provide the means to continue that balanced exchange of students, their teachers and those involved in coming up with innovations needed to keep our economy competitive.
My Lords, as has already been mentioned by the noble Baroness, Lady Royall, and the noble Lord, Lord Kirkhope, Erasmus is as much about students coming to the UK as it is about our students going overseas. Indeed, I believe we have been receiving twice the number of students that we have sent away, which is a tribute to our universities and effectively balances the cost of our students going abroad. Surely the Turing scheme or others must provide the means to continue that balanced exchange of students, their teachers and those involved in coming up with innovations needed to keep our economy competitive.
My Lords, the noble Lord is right. Erasmus was a scholar at the university of which the noble Lord was vice-chancellor. Inbound student participation is important as well. That is why we are pleased that there are nearly half a million international students studying in the UK and why the Government have an international education strategy to continue to build on that number. We have four of the world’s top 10 universities and remain an attractive destination.
Are the Government in their heat and housing strategy doing everything possible to use the heat from nuclear power stations? Some 40% of the energy from nuclear reactors, including small modular reactors, is emitted in the form of heat, which can be captured in district heating systems to heat buildings. It can also be used to produce hydrogen and other low-carbon fuels, thereby making the cost of nuclear power competitive with that of renewables.
Are the Government in their heat and housing strategy doing everything possible to use the heat from nuclear power stations? Some 40% of the energy from nuclear reactors, including small modular reactors, is emitted in the form of heat, which can be captured in district heating systems to heat buildings. It can also be used to produce hydrogen and other low-carbon fuels, thereby making the cost of nuclear power competitive with that of renewables.
The noble Lord is quite right on the science of his question. Indeed, the heat produced by nuclear power stations can be used for many other purposes, rather than just heat networks. After all, nuclear power stations in France are sited often much closer to conurbations than they are here. As for heat networks, the pipe infrastructure is fuel agnostic. Once infrastructure is in place, heat networks can be developed to exploit a range of lower-carbon heat sources. The Government believe that nuclear could have a role in beyond-the-grid applications, including hydrogen production. All nuclear reactor technologies have the potential to feed into the hydrogen market, by producing either low-cost electricity or heat for increasingly efficient electrolysis production.
To ask Her Majesty's Government whether they have requested that the Competition and Markets Authority investigate the potential purchase of ARM by Nvidia; and if not, what plans they have to do so.
To ask Her Majesty's Government whether they have requested that the Competition and Markets Authority investigate the potential purchase of ARM by Nvidia; and if not, what plans they have to do so.
The government is clear that Arm is an important part of the UK's technology sector and makes a significant contribution to the UK economy.
The Competition and Markets Authority bears responsibility for assessing any competition impacts arising from the proposed deal and it will be following its normal regulatory processes in examining this deal. Separately, the Secretary of State also has the responsibility for determining whether or not to refer an acquisition on public interest grounds if relevant thresholds in the Enterprise Act 2002 are met. As such, we are examining this potential acquisition carefully.
We note that it is subject to regulatory approvals in multiple jurisdictions and is not expected to complete until 2022. It would be inappropriate to comment further at this stage.
To ask Her Majesty's Government what assessment they have made of (1) the acquisition of Arm by NVIDIA, and (2) whether such an acquisition is in the national interest.
To ask Her Majesty's Government what assessment they have made of (1) the acquisition of Arm by NVIDIA, and (2) whether such an acquisition is in the national interest.
Arm is an important part of the UK's technology sector and makes a significant contribution to the UK economy. The Government monitors acquisitions and mergers closely. When a takeover may have a significant impact on the UK we will not hesitate to investigate further and take appropriate action. We are examining this deal carefully.
My Lords, the IEA outlook report points out that to achieve net zero in 2050 we need by 2030 to have 50% electric cars and 75% low- carbon electricity. These aggressive goals will be met only with international collaboration. It takes 50 times longer to charge an electric car than to fill a petrol car, requiring an immense number of charging points; at present too much carbon is released in making car batteries; and, to meet the 75% target, more nuclear power will be needed than is planned. Does the Minister think that there is a leadership role for the UK in achieving all of this?
My Lords, the IEA outlook report points out that to achieve net zero in 2050 we need by 2030 to have 50% electric cars and 75% low- carbon electricity. These aggressive goals will be met only with international collaboration. It takes 50 times longer to charge an electric car than to fill a petrol car, requiring an immense number of charging points; at present too much carbon is released in making car batteries; and, to meet the 75% target, more nuclear power will be needed than is planned. Does the Minister think that there is a leadership role for the UK in achieving all of this?
Indeed there is—and we have taken a leadership role by setting our 2050 net-zero targets, by setting a phase-out date for petrol and diesel vehicles, and by introducing policies to incentivise the electric vehicle market. Accelerating the clean energy transition globally is the focus of our work going up to COP 26.
Her Majesty's Government when the proposal for a two-year graduate work visa for international students will take effect.
Her Majesty's Government when the proposal for a two-year graduate work visa for international students will take effect.
The Graduate route will be introduced in the summer of 2021. To give assurance to those who begin their course overseas this year, the Government published guidance for international students on 16 June confirming that those who enter the UK to complete their course before 6 April 2021 will be eligible for the route if they meet the requirements.
Her Majesty's Government how long international students in the academic year 2020–21 will have to be physically present in the UK to qualify for the two-year graduate work visa.
Her Majesty's Government how long international students in the academic year 2020–21 will have to be physically present in the UK to qualify for the two-year graduate work visa.
The Graduate route will be introduced in the summer of 2021. To give assurance to those who begin their course overseas this year, the Government published guidance for international students on 16 June confirming that those who enter the UK to complete their course before 6 April 2021 will be eligible for the route if they meet the requirements.
My Lords, is the Minister aware of Taiwan’s importance when it comes to semiconductor technology? Taiwan leads the world in making semiconductor chips. In fact, it is said that the latest artificial intelligence and machine learning chips can be made only in Taiwan; they cannot be made even in the United States.
My Lords, is the Minister aware of Taiwan’s importance when it comes to semiconductor technology? Taiwan leads the world in making semiconductor chips. In fact, it is said that the latest artificial intelligence and machine learning chips can be made only in Taiwan; they cannot be made even in the United States.
The noble Lord makes a very important point. It is why the United Kingdom is very committed to growing our trading relationship with Taiwan. Currently, more than 300 UK companies are located across a variety of sectors, including the one the noble Lord mentioned.
My Lords, I have a straightforward question. We have made good progress on decarbonising our electricity, but 50% is still generated using methods that produce carbon dioxide. While we are doing that, everything using electricity, including of course electric cars, will still emit carbon dioxide. When do the Government plan to completely decarbonise electricity generation, what combination of nuclear and renewables will be used, and can they give us a guarantee that the lights will not go out when the wind does not blow and the sun does not shine?
My Lords, I have a straightforward question. We have made good progress on decarbonising our electricity, but 50% is still generated using methods that produce carbon dioxide. While we are doing that, everything using electricity, including of course electric cars, will still emit carbon dioxide. When do the Government plan to completely decarbonise electricity generation, what combination of nuclear and renewables will be used, and can they give us a guarantee that the lights will not go out when the wind does not blow and the sun does not shine?
I come from Scotland; the sun does not shine very often but the wind does indeed blow. It is important to stress that we have
powered past coal and it is no longer a vital part of our electricity generation. As we begin to decarbonise domestic heating and our transport fleet, the real challenge is that the demand for electricity will grow so we will need to find innovations. We are already a world leader in offshore wind, but we will need to look at nuclear and decarbonising hydrocarbons through carbon capture, utilisation and storage. However, the lights will not go off.
My Lords, the Augar report is balanced from the point of view of funding. Can the Minister reassure us that, should the Government— whichever Government it is—decide to go ahead with this Bill, they will take a balanced view and not cherry pick the cuts in funding rather than increases in funding? If you cut teaching funding any more, even in a place such as Cambridge, where at present it is not used to fund research, it will be transferred. It will damage research as well as teaching, and it will damage the reputation of our leading universities and their ability to attract direct foreign funding, as well as their general reputation in joining in collaboration. I want the Minister’s
reassurance that this matter will be looked at in a balanced way so that we do not damage both teaching and research.
My Lords, the Augar report is balanced from the point of view of funding. Can the Minister reassure us that, should the Government— whichever Government it is—decide to go ahead with this Bill, they will take a balanced view and not cherry pick the cuts in funding rather than increases in funding? If you cut teaching funding any more, even in a place such as Cambridge, where at present it is not used to fund research, it will be transferred. It will damage research as well as teaching, and it will damage the reputation of our leading universities and their ability to attract direct foreign funding, as well as their general reputation in joining in collaboration. I want the Minister’s
reassurance that this matter will be looked at in a balanced way so that we do not damage both teaching and research.
The noble Lord is absolutely right. I listen particularly carefully to him, given his experience of Cambridge. It is very important to say that the UK enjoys a world-class reputation, with globally renowned teaching and cutting-edge research and innovation. We do not want to put that in jeopardy.
My Lords, a word of caution on nuclear power—the noble Lord, Lord Cunningham, mentioned it. Does the Minister agree with me that we need to collaborate with the Chinese in building our nuclear plants? The Chinese are now world leaders. They have been the first to build an EPR, such as we are building at Hinkley Point, and they have also been the first to build the American AP1000. Specifically, collaboration with China General Nuclear, CGN, will be key to our success at Hinkley Point, Sizewell and Bradwell and in qualifying CGN’s own HPR1000, especially in the light of the withdrawal of the Japanese. I declare my interest as a member of the parliamentary group led by Ian Liddell-Grainger MP that visited the EPR reactor in Taishan in November. I would like to say—
My Lords, a word of caution on nuclear power—the noble Lord, Lord Cunningham, mentioned it. Does the Minister agree with me that we need to collaborate with the Chinese in building our nuclear plants? The Chinese are now world leaders. They have been the first to build an EPR, such as we are building at Hinkley Point, and they have also been the first to build the American AP1000. Specifically, collaboration with China General Nuclear, CGN, will be key to our success at Hinkley Point, Sizewell and Bradwell and in qualifying CGN’s own HPR1000, especially in the light of the withdrawal of the Japanese. I declare my interest as a member of the parliamentary group led by Ian Liddell-Grainger MP that visited the EPR reactor in Taishan in November. I would like to say—
My Lords, we welcome Chinese inward investment into the civil nuclear projects in the UK, as the noble Lord mentions, subject to our robust legal, regulatory and national security requirements. We have the most robust and stringent requirements. My advice is that the project at Hinkley so far meets all the necessary requirements that the noble Lord referred to.
My Lords, I declare my interest as a foreign member of the Chinese Academy of Engineering. I am somewhat encouraged by what the Minister said because, in the situation we find ourselves in now, where storage of carbon dioxide is not going well—we have made scarcely any progress—and it is now obvious that batteries are far too expensive to back up wind on a national scale, we are left with nuclear, so it is extremely important that we proceed as quickly as possible. I have to admit that when I talk to Chinese engineers they feel that if we replicate an EPR we can do it at 30% less money than the initial venture, which means that if we combine that with the cost of wind properly backed up, which is about £60 per megawatt hour, we can do the same with nuclear. So should we not get on with all speed, but maximising our own contribution by including the small modular reactor?
My Lords, I declare my interest as a foreign member of the Chinese Academy of Engineering. I am somewhat encouraged by what the Minister said because, in the situation we find ourselves in now, where storage of carbon dioxide is not going well—we have made scarcely any progress—and it is now obvious that batteries are far too expensive to back up wind on a national scale, we are left with nuclear, so it is extremely important that we proceed as quickly as possible. I have to admit that when I talk to Chinese engineers they feel that if we replicate an EPR we can do it at 30% less money than the initial venture, which means that if we combine that with the cost of wind properly backed up, which is about £60 per megawatt hour, we can do the same with nuclear. So should we not get on with all speed, but maximising our own contribution by including the small modular reactor?
My Lords, there was an awful lot to answer in the noble Lord’s question, but I think he is right to emphasise the importance of nuclear. It provides some 20% of our electricity requirements, and obviously in a low-carbon manner. We are also looking for cost reductions in new-build projects and I am glad that the noble Lord emphasised that. In our nuclear sector deal we are looking for cost reductions of some 30% over the next 15 years or so, as well as cost reductions in other areas. He is also right to emphasise the role that wind can play and the fact that the cost of wind is coming down.
My Lords, this is a multifaceted and complex problem. I hope that the Government will take serious advice from not only engineers but the medical profession—which has changed its mind, creating a certain disorder in the decisions—and from behavioural scientists. Will the Minister reassure us that such detailed advice will be taken before we proceed in a cavalier manner based on politics, in many instances?
My Lords, this is a multifaceted and complex problem. I hope that the Government will take serious advice from not only engineers but the medical profession—which has changed its mind, creating a certain disorder in the decisions—and from behavioural scientists. Will the Minister reassure us that such detailed advice will be taken before we proceed in a cavalier manner based on politics, in many instances?
My Lords, I entirely agree that we must work across many departments and get much advice on this. At the end of May, we published our clean air strategy, which aims to cut all forms of air pollution, not just transport emissions. It set out a wide range of actions that the Government are taking. We are working with the organisations the noble Lord mentioned.
My Lords, with respect to the previous question, would it not be a good idea for the Government to follow that issue rather carefully, so that the consumer can have a realistic price? Solar cells and storage batteries are expensive, and people selling them do not always give straightforward information. It would be a good idea, would it not, for the Government to look at this in some detail, so that consumers can be given reliable advice on the cost of such storage?
My Lords, with respect to the previous question, would it not be a good idea for the Government to follow that issue rather carefully, so that the consumer can have a realistic price? Solar cells and storage batteries are expensive, and people selling them do not always give straightforward information. It would be a good idea, would it not, for the Government to look at this in some detail, so that consumers can be given reliable advice on the cost of such storage?
My Lords, as I said in my answer to the previous question, the cost of lithium-ion batteries has come down considerably—by 50%. Batteries are still expensive but it is in the interests of some consumers to buy them to even out their use of electricity and make savings. Obviously, any advice that they can get, which was partly behind the Government and Ofgem’s smart systems flexibility plan, would be of use to those consumers.
My Lords, I am sure the Minster realises that, on the positive side, this will grow exports. If we do not have our products adequately defined in digital terms we will not compete internationally. It is essential that we drive this forward.
My Lords, I am sure the Minster realises that, on the positive side, this will grow exports. If we do not have our products adequately defined in digital terms we will not compete internationally. It is essential that we drive this forward.
My Lords, I can only say how much I agree with the noble Lord. We have to look at what digitalisation offers to us while also bearing in mind what the noble Lord, Lord West, said about threats. That is why we want to make the right response. I note what has been said.
My Lords, does the Minister realise that this is a very competitive industrial situation? We cannot go on procrastinating. In engineering matters, there is never 100% certainty. We must step forward and take a risk on this, to my mind.
My Lords, does the Minister realise that this is a very competitive industrial situation? We cannot go on procrastinating. In engineering matters, there is never 100% certainty. We must step forward and take a risk on this, to my mind.
The noble Lord makes the good and strong point that you can never be 100% sure, but you have to assure yourself that there is a route to market before you embark on a major new capital investment.