Mr Angus MacDonald
MP for Inverness, Skye and West Ross-shire · Liberal Democrat · United Kingdom
“In the highlands, powers and funding have also been moved back to Inverness city, at the expense of Wester Ross, Skye, Caithness, Sutherland and Lochaber. Capital investments, such as city deals, have been hogged by cities.”
“Scotland has, except that has produced very few local jobs, little legacy housing and minimal community benefit. It is not a boom. Scotland as a whole received only £30 million of community benefit in 2025, and the highlands, which are covered in wind farms, got only £7 million.”
“Isolation comes as a result of many of the issues that I will point out, and deprivation, as has been mentioned, is much less obvious in a small, pretty croft house on the lochside than in a deprived inner-city housing estate.”
“We have had an 18% fall in the number of care homes, despite the rising number of elderly people; there are only 45 care beds in Skye for a population of 10,000. NHS Highland is paying £77,000 a day for delayed discharges. In short, people in rural coastal communities earn less money.”
“The small schools do not get science, technology, engineering and mathematics coverage; they do not get the physics, mathematics or computing teaching that the big urban schools get. That means that parents with children who are gifted in those subjects move into the cities, so there is a downward spiral at those schools.”
“A week before his election, Boris Johnson promised that not a penny of funding for rural areas would be lost as a result of Brexit. That money funded skills training, community projects and infrastructure, including roads and bridges.”
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“What does the hon. Member think about the many hospices that do not need the capital but are desperate for the income? I would be interested in his answer.”
“If only we had a road with the quality of the A75—I dream of such a road. The A82 going up Loch Lomond has to be one of the worst roads in Britain. Lorries and buses cannot pass each other, and that is the main trunk road up to the west. CalMac ferries are a complete disaster story, as we all know. I bet nobody can guess how long it takes to travel the 145 miles from Mallaig to Glasgow. Five hours and 20 minutes, with an average speed of less than 30 miles an hour. High Speed 2? We dream of some of that money. The main road from Inverness to Skye is single-track with lay-bys. It is an absolute scandal in every possible way. I would like to put forward a motion that Transport Scotland is closed down and that the Scottish Government are not fit to run Transport Scotland.”
“The Bill presents an opportunity to ensure that offshore wind farm projects—indeed, all renewable energy projects—not only meet our national and global ambitions but provide meaningful real-world advantages to the people most impacted by them. There are numerous examples from overseas of where community benefits have become significant. One such example is from Germany, where in the North sea archipelago of Heligoland three offshore wind farms generated €22 million in 2016. These are massive amounts of money. While the Bill’s focus is on increasing borrowing powers and investment flexibility, there is no mention of how communities will benefit from these developments, although perhaps Labour Members know something that I do not.”
“A measure is to be considered in the other House on 13 January to try to get it to do that, so perhaps Labour Members know something that I do not. Anyway, that is good news. I want to focus on a critical element that is close to my heart, and perhaps even more familiar to my colleagues, as I bang on about it. That subject is, of course, community benefits. Those of us in remote and rural Britain pay far more for energy than those who can access mains gas, and we also have a much higher level of poverty; especially fuel poverty. Communities hosting renewable energy projects, and particularly those overlooking offshore wind farms, deserve to see tangible benefits from those developments.”
“I will speak about the Crown Estate’s borrowing powers and the broadening of its investment scope. These changes are intended to enhance the Crown Estate’s capacity to support our ambitious goals for renewable energy, nature recovery and economic growth. The Bill is undoubtedly a significant step forward in enabling the Crown Estate to play a greater role in the transition towards net zero. I fully support its efforts and ambitions. The partnership between the Crown Estate and Great British Energy to develop offshore wind projects is exciting. Many of us have been trying to get Great British Energy to include community benefits and community ownership within its reach, but we have failed to do so. [ Interruption. ] It does? Okay—we have tried hard.”
“The Bill represents a vital step forward in enabling the UK to meet its net zero targets and enhance energy security. However, it is equally vital that we legislate to include statutory powers for the Crown Estate in England and Wales, and indeed in Scotland, to ensure that these transformative projects see their fair share of community benefits for communities.”
“Funnily enough, as a Highland councillor, it is a subject that I have spent many years working on. Highland council—I know this does not relate to the Crown Estate in England and Wales—had £9.1 million of community benefits and Scotland as a whole had £23 million. This is an industry worth hundreds of billions of pounds across the whole of Britain, so we should have, say, 5% of that as community benefits, which would be transformational for Cornwall, Devon, Pembrokeshire and indeed Scotland. I encourage the House to consider how the Bill could establish a robust framework for community benefits that could serve as a model for renewable energy projects across the whole of the UK, working closely with the Scottish Crown Estate.”
“May I come back to the community benefits, which the hon. Member brought up in her intervention on me? The community benefits will be hundreds of millions for 25 years or the life of the project. It will be absolutely transformational to the most rural parts of Britain; it is not just something that will come and go.”
“The petition cannot result in a new general election, but the Prime Minister will know he is on notice. He now has a dissatisfaction rating reaching 61%, and the economic optimism in our country is collapsing. Almost universally, the people of Britain have been appalled by this Budget. The Prime Minister and the Chancellor have let down the poorest people, charities and struggling businesses. Personally, as a Scottish MP, I am appalled that the Prime Minister has done a big job towards helping the Scottish National party win the next Scottish Parliament election—not a good job, I am afraid.”
“It really has destroyed the economy and many of the charities. Who would have thought that the Labour party would walk away from the commitment—maybe it was not written down but we have certainly seen the photographs—to the WASPI women? The Prime Minister would have been a much more compassionate person, and had a much more compassionate Budget, if he had increased the top rate of tax—both the income tax for better-off people and the corporation tax for companies making hundreds of millions, if not billions, of pounds of profit. That would have been a much more compassionate decision. It would have been much more compassionate to tax the online companies that are making many billions of pounds in the UK, maybe a percentage of revenue rather than a percentage of profit—say 1.5%. Almost everybody would have understood that.”
“Despite the 3 million people who signed this petition, we know that the Government will continue to stand. That said, the petition is an excellent thing, because it has let the Government know how deeply unpopular many of their policies have been. I feel that many Members on the Government side are rather ashamed of many of the things that have resulted in the petition. People in the Labour party—its voters—feel let down; I will expand on that in a second. Who would have thought that it would be the Labour party that would cut the winter fuel payments for older and more vulnerable people? Who would have thought that charities, GPs, hospices and hundreds of thousands of smaller businesses would suffer a national insurance increase of 8.7%—almost four times the rate of inflation?”
“Apologies for being late. I ask the Minister if the Government have considered the impact on the hospitality industry in Scotland from the national insurance changes? The reason I ask is that we do not have business rates relief in Scotland, and I believe the impact of the changes is going to be massively bad for the hospitality industry.”
“Is the Minister aware of the complete disaster this will cause for Scottish hospitality businesses? We do not have business rates relief, as businesses do in England Wales. We have a very large number of young people in the hospitality sector. For example, for someone working part-time for 25 hours a week on the minimum wage, their salary is £15,912, and the national insurance has just gone up by 74%. This is wiping out the hospitality industry in Scotland.”
“Does the hon. Gentleman not agree that the impact of this measure is hitting the most vulnerable businesses and the most vulnerable charities throughout the United Kingdom? Surely a much better way of raising the money—which I can understand is needed—would be to raise corporation tax, or to increase taxes on, for instance, social media or the very largest companies.”
“The hon. Gentleman keeps talking about the largest businesses, but the Government are completely wiping out small and medium-sized businesses across the whole hospitality and retail sector. This is a catastrophic piece of legislation. He talks about a kamikaze Budget; we are considering a kamikaze Budget right here, today.”
“The £500 million set aside for the shared rural network was instigated by the previous Government. In the highlands of Scotland, it is organised by land mass, rather than the geographic concentration of people. If the Minister wants to find £300 million or £400 million of that to help with the roll-out of broadband, he can feel free, because it is very unpopular where we are and it is not serving the needs of the people.”
“Thank you very much, Sir Roger, for allowing me to contribute to the debate. I thank my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael) for securing it. The two big issues facing rural Scotland, and the highlands in particular, are the care sector and fuel poverty. I am sure hon. Members have not spent too much time worrying about this, but although the mean daily temperature in London is 16°C, it is 9°C on the island of Skye, where God comes from. On Skye we have longer nights, colder weather, windier conditions and older, draughtier houses. In June this year, the daily standing charge for electricity was 61.1p in the north of Scotland and 40.8p in London, so in the north of Scotland we pay 50% more to be connected to our electricity. That is shocking.”
“What is absolutely clear is that the electricity companies are not losing money. Their total profits add up to tens of billions of pounds, but the costs are being borne by the poorest people in our society.”
“1 call is for fuel vouchers to be given to affected locals, and of course in the highlands we have lots of renewables. That would make a very big difference. The second thing the Minister could do is to get Ofgem to review standing charges. I estimate that if they were equalised, there would be a £75 a year saving at no cost to the Treasury. Thirdly, we should concentrate the winter fuel allowance on the most deserving people, who tend to be the older, the poorer and the more remote.”
“I do not understand why the figure was set at £13,000, rather than at the average household income of £34,000. That would have been a huge relief to many of the people who have been most affected, and it would probably have been much more popular for the Government. In the highlands, incomes are much lower than in the rest of Scotland and Britain as a whole, and we have a much older population. The cost of living is between 15% and 30% higher than in the rest of Scotland, according to the Scottish Affairs Committee in 2021. We have a substantial depopulation problem and the highest cost of living in the UK, to which fuel is a major contributor. I know the Energy Minister has heard this from me before, but community benefits from renewables are potentially the biggest saving grace from this. My No.”
“That is also Liberal Democrat policy, so I am pleased to support that. Interestingly—I know you will find this interesting, Sir Roger—France, Italy, Ireland and others have an equalisation of standing charges. Ofgem’s reluctance to reform standing charges has been raised many times in Westminster Hall and in the main Chamber, so we need to get proper answers. Town gas is by far the most affordable way of heating a house, but 60% of houses in the highlands do not have access to it. As my right hon. Friend the Member for Orkney and Shetland says, kerosene, bottled gas, electricity, wood and coal are very much more expensive, but people in the highlands have no option but to use them. It is easy for us to have a go at the policy of stopping the winter fuel allowance.”
“Will the Minister allow humble servants such as myself to get involved in that? I have spent several years working with the Highland council and others on community benefits, and I would appreciate a meeting.”
“Marie Curie anticipates that the NI increase will cost it £3 million a year—money it does not currently have. The Government’s planned increase in employer NI contributions to 15% from April 2025 is an impossible amount for the palliative care sector. If those essential care providers cannot absorb the additional cost, their survival is at risk. If hospices fail, the patients they support will inevitably turn to the NHS, placing greater pressure on an already overstretched system. If the Minister could listen to me and put his phone down for a moment, I would be grateful—can you listen to me, just for a second?”
“It is appropriate that I am following the words of the hon. Member for Stafford (Leigh Ingham) about the palliative care sector. I am grateful for the substantial settlement for the NHS, especially as Scotland will get £3.4 billion, which will make an enormous difference. The Belford hospital in Fort William has been condemned, effectively, for 25 years. Unfortunately, I have very little confidence in the Scottish Government to spend that £3.4 billion well. I recently spoke with Kenny Steel, the chief executive officer of Highland hospice in Inverness, who told me that the changes to employer national insurance are expected to add an unaffordable £177,000 to its annual salary bill. That comes on top of the need to remain competitive with the 5.5% salary increase awarded to NHS staff.”
“Palliative care charities are essential partners that deliver compassionate, dignified end-of-life care on behalf of, and much cheaper than, the NHS. Organisations that provide healthcare for the NHS should be treated like NHS bodies in these decisions. Increasing NI contributions for hospices but not the NHS places those providers in a critical financial position, and firmly indicates that the Government regard organisations such as Highland hospice as second-class.”
“We are all aligned on the goals, so let us not get bogged down by technicalities or party politics. The Minister knows of the huge cross-party support for community energy ownership. If this goes to a vote, do this Government really want to vote against community energy ownership? Let us show the people of Britain that this Bill truly supports the right to own and benefit from our natural resources through Great British Energy.”
“This small community of just 110 people demonstrates the innovation and resilience that flourish when communities are empowered. Eigg’s journey is a true example of prioritising community ownership and how that drives forward sustainability and local resilience. To paraphrase the Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), community involvement is critical, not a mere “nice to have”. If we are to build the infrastructure of the future, we must ensure that communities benefit directly. Community-driven projects are key to making that a reality, so let us follow Eigg’s lead and put the Government’s own words into action. The current Government have an opportunity here to show their commitment to cross-party collaboration by embracing community energy.”
“That is almost certainly true, but as my colleagues and I have emphasised, amendment 5 would not restrict GB Energy; it would simply clarify that community-led energy is a priority. The Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), recently experienced a powerful story of community-driven energy on his visit to the island of Eigg. Just 25 years ago, Eigg’s residents, frustrated by years of poor management and a lack of investment, took matters into their hands and purchased their island. The Eigg buy-out succeeded in 1997, sparking what is now a beacon of self-sustained energy. Since then, Eigg has moved away from fossil fuels, becoming the world’s first island to generate 24-hour electricity from a variety of different renewables.”
“I invite hon. Members to refer to my entry in the Register of Members’ Financial Interests. I thank my hon. Friend the Member for South Cambridgeshire (Pippa Heylings) for her commitment to our essential amendments, both in Committee and here today. I also thank the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton), who has been incredibly supportive of our ambition for communities to benefit from renewable energy. I have one little correction: Tom Johnston, who invented the hydro boards, and the Labour Government did not actually put in place a proper system whereby local communities could benefit. They supplied a lot of power to the south and the cities, but it was of very little benefit to those of us living in the highlands, even then. The Government have argued that nothing in this Bill limits community ownership.”
“Will the hon. Gentleman explain why the SNP Government have left community benefit at the same £5,000 level it was in 2014, even though prices have gone through the roof? Their advisory information could have been changed. They have been pressed on the issue many times because it has severely damaged the income of rural communities.”
“Will the hon. Lady give her opinion on business improvement districts? Does she think they are valuable for rejuvenating the economies of market towns and small cities across Britain?”
“Many billions of pounds are being made, a huge number of jobs are being created and cheap electricity is being generated, but it is overseas companies, with overseas ownership of renewables projects, that we are seeing all over the UK. Precious little of the money ends up in the hands of the people who are being impacted by those projects. The issue I have with these renewables projects, whether solar, wind, pumped storage or whatever, is that they are in rural areas. The locals suffer the visual impact, and we have all seen miles and miles of 200-metre-high wind turbines and field after field, sometimes of prime land, covered in solar panels. Villagers—people—have to face those industrial projects, and we really need to take them with us on this net zero journey.”
“I beg to move, That this House has considered community benefits from renewable energy projects. It is an honour to serve under your chairmanship, Dr Huq. In all our careers, we have seen extraordinary changes, such as the advent of the internet, artificial intelligence and mobile phones. Going back 50 years, in the early stages of many of our lives, we had the North sea oil boom. The oil boom was extraordinary for many countries, not least Norway, which has saved US $1.7 trillion from it. Great Britain saved none of that money, however, and I am worried that we will save none of the money from the extraordinary renewables boom that is coming our way. One of the biggest systemic changes in our life is happening right now: the move from fossil fuels to renewables.”
“The same people are not connected to mains gas, and therefore pay a great deal to have tankers deliver heating oil to their houses.”
“In some way, it is like discovering oil or gold on their land, and it is great that our bountiful wind and rain can be such an asset for us, especially in an era when coal is inaccessible and unacceptable, nuclear is being phased out, and gas is often imported from countries with an unacceptable moral standing, while also badly hitting our balance of payments and being environmentally unfriendly to transport to Britain. Renewables are absolutely the future. The 68 million people in the UK are enormous beneficiaries of our renewables sectors, but the cost is borne by a fraction of that number—by those living in the remotest areas. Those of us in the Chamber represent populations who pay a 50% premium on electricity connection fees compared with those living in cities.”
“Micro-renewables are the way ahead, and the more micro the better. Whether that is a solar thing on a roof or hydro for a farm, I could not support it more. In 2023, as part of research in a written submission to Parliament, Octopus Energy showed that 87% of people would support a turbine in their community if it decreased their bills. Now, I do not blame the landowner; these projects can allow farmers to retain the land in their family for generations to come.”
“I absolutely love that—I am going to make the right hon. Lady a dame in my first honours list. It is an absolute disgrace that people in rural Britain pay a premium to get renewables, even though it is us generating the electricity. The standing charge should be the subject of our next discussion. Those of us in the highlands, and indeed in many other parts of Britain, have long, dark, windy and cold winters. When many people open the curtains in the morning, they look out on to a wind farm selling cheap, green energy to the big cities. The remote highlands and islands, the Scottish Borders, Wales, Cumbria and the west country are among our poorest areas.”
“There is a recent change to planning in Scotland—I am unsure whether it extends to England—called national planning framework 4, which makes the economic benefit to the community part of the criteria for getting a plan in, so we are moving towards what my hon. Friend describes. The areas I mentioned are among our poorest. They suffer from the highest level of fuel poverty, an older population, lack of affordable housing, poor transport infrastructure, struggling market towns, lower wages, and often worse education and health services than cities. Rural people have higher costs and lower incomes.”
“Somebody whose opinion I respect greatly told me that undergrounding cables was no more expensive. I was very surprised at that, because I had understood from the transmission line companies in Scotland that it was a great deal more expensive to underground them. I will definitely look into that, because I know that it is a requirement to underground them in Norway. We should explore that issue further. So we have boom time in renewables, generating trillions of pounds over many decades, and we have a rural population that really needs financial help and investment.”
“I think my hon. Friend will be thrilled with the next part of my speech, which will answer that question. We have a huge financial need, and we have the renewables revenue, which we will talk about in a second. Money and need—bingo, we have a match. Is that not exactly what we are here in Parliament to facilitate? I am pleased to hear that the Great British Energy Bill is largely here, as it holds the prosperity of much of rural Britain in its hands. It can insist that communities have a stake in local renewables projects and that we legislate to require all renewables projects to pay a significant sum to impacted areas. Amazingly, it made no mention of community ownership of renewables projects or of community benefits.”
“A percentage would allow communities to benefit from a soaring electricity price, as happened after Russia invaded Ukraine, and protect the project owners and utilities if the electricity price slumped. Here is my financial proposal: 5% of revenue from all newly consented renewable energy, generated both onshore and offshore, should be paid to community energy funds. For onshore projects, two thirds of that should be paid to the affected council board, with one third paid to a council strategic fund. For offshore projects, all of that 5% of gross revenue should go to a council strategic fund. An existing renewables project should also pay money; I will explain that in a second.”
“I have met Government Ministers here and in Scotland, discussed the issue with most knowledgeable people in all political parties and generally bored everyone I can find with it. There is consensus that it would be fair to require that the impacted rural people of the highlands and islands, of Scotland and of the UK as a whole benefit from bearing the costs of hosting our energy infrastructure. The Highland council has done the work. It has a social value charter, which it would be pleased to share. The council and I agree on almost all aspects, except that the amount paid to communities should be a percentage of gross income from the projects, rather than £12,500 per megawatt.”
“It is fair to say that building a visitor centre was not one of my list of key things to do with the money, but I shall add it to my list at around No. 97 —there is a space there. We will talk about this more in a minute, but fuel poverty, affordable housing and so on are probably the key uses for that money at the beginning. The Lib Dem energy spokesman, my hon. Friend the Member for South Cambridgeshire (Pippa Heylings), has submitted an amendment to the Great British Energy Bill that would allow it to consider community benefits, and I very much hope that her amendment is taken forward. I had a motion on community benefits passed in the Highland council. I have consulted the electricity generators and Ofgem.”
“The total income from wind generation in the highlands for 2023 was estimated to be around £590 million. That calculation is based on a potential production of 11.8 GW. If all renewables—including hydro, offshore wind and pumped storage—were included, the benefit increased to 5%, and the amount of renewable energy doubled by 2030 to 22 GW, which is likely, then the community benefit would rise well above £50 million per year. That is a heck of a lot of money to highland rural communities. What would that be across the UK? £500 million a year? £1 billion? £5 billion over 10 years? This is a proper levelling-up fund for rural communities. It was recently announced that two cancer wards on the island of Lewis in the Hebrides will share £4.5 million from a single offshore wind farm. That shows what can be achieved.”
“If 1,000 properties were given £1,000 each, that would be £1 million. Perhaps the locals managing the fund would allocate it to households that earn less than the UK median household income of £34,500. In any case, at a time of winter fuel allowance cuts, that would be most welcome. A second option is for the community to use the money to build affordable housing, and I know of a third community that injects money into its local care sector, for care homes. Let me plagiarise the Highland council report in order to provide some context. In 2023, in the highlands, local communities received approximately £9 million. That is below the expected commitment based on Crown Estate Scotland’s guidelines, which suggest that developers should contribute £5,000 per megawatt, equating to £13.9 million.”
“I wholeheartedly agree. It should be the same for the transmission lines and the interceptors, for pumped storage and battery—really, the whole infra- structure of producing renewables. So where is the 5% going to come from? It is really important that investors do not suffer from swings in British policy, and that they continue to invest in UK energy infrastructure. It is key that this increase is passed on to all consumers in the UK as part of a green tariff. My informed opinion is that paying that 5% to impacted communities would translate to about a 1.25% increase in electricity prices in Britain. What should a council that receives that substantial amount of money use it for? Here are three examples of what has been happening already. One community fund near me gives £1,000 to each of the properties in the community.”
“I was a Highland councillor for quite a few years and sat on the planning committee. We heard application after application promising a large number of jobs and a large amount of local buying, yet we did not see that, but I do think we need to tighten up a great deal what is being offered in all the different aspects of renewables. I have been looking at the situation overseas. In Denmark, new renewables projects must offer at least 20% ownership of their overall venture to local residents. In Germany, there is a local tax on renewables. In Heligoland, an archipelago in the North sea, three offshore wind farms were built in the mid-2010s, and the tax revenue taken in by the municipality was €22 million in 2016 alone. In Ireland, the contribution to community benefit fund is to be set at €2 per megawatt-hour of generation.”
“The absolute sweet spot of this entire discussion would be communities’ ownership of their own renewables, which they could control and distribute as they wanted. Indeed, that is happening in some places. Of course access to funding is the big issue, but that is the perfect solution. Surely, one of our great injustices is that our poorer people, who provide half the energy to the UK, have the highest level of fuel poverty and the highest electricity bills, and suffer the industrialisation of their nearby countryside. Now is the time to resolve that injustice.”
“I did forget to disclose that I may have a potential conflict of interest, the details of which are on the parliamentary website. I apologise for not saying so before, but I do not think anyone would find it a major such conflict. You did mention—”
“Sorry. The Minister mentioned community benefits, but in rather a weak way. The Members in this room—I think there have been 60-plus of us here—represent the majority of the land mass of Britain. I think the message we are sending loud and clear to the Minister is that we all feel very strongly about the community benefits, and we very much hope they will be significant. Thank you very much for allowing me to host this debate. Question put and agreed to . Resolved , That this House has considered community benefits from renewable energy projects.”