Labour hasn’t yet released its manifesto. But we’ve got a pretty good idea of what’s going to be in it.
We’re taking a look at the key policies that Labour could announce in the coming weeks, in our Labour Manifesto Preview. To help you better understand what a Labour Government will mean for you and your business, over the next few days we’ll be pulling out the key policy offerings that will likely form the majority of their manifesto.
Today, we’re looking at what Labour has said it will do on energy & infrastructure.
The Labour Party’s overarching aim around energy is to increase jobs and deliver energy security with cheaper, zero-carbon electricity by 2030. To achieve this, the party is planning to include multiple supply-side investment policies to increase connectivity and renewable energy production.
To achieve this, the party is planning to include multiple supply-side investment policies to increase connectivity and renewable energy production. It’s set out some core policies that it hopes to enact if it wins the General Election on 4 July.
Great British Energy
Labour has committed to establishing GB Energy – headquartered in Scotland – to build “clean and cheap homegrown power for the British people”. Labour will set out its strategic remit and investment framework as well as prepare its initial portfolio of energy projects – from new nuclear, to Local Power, and deploying leading edge technologies.
Labour will spend just over £4.7 billion a year, on top of £10 billion of green schemes that the government has already committed to. This investment will provide huge benefits for Britain, cutting bills, creating jobs and delivering energy security.
GB Energy will also be able to invest to accelerate the deployment of established technologies where there is a clear case that public sector investment would accelerate private sector development.
On energy more generally, Labour says it will:
- Quadruple offshore wind with an ambition of 55 GW by 2030.
- Pioneer floating offshore wind, by fast-tracking at least 5 GW of capacity.
- More than triple solar power to 50 GW.
- More than double our onshore wind capacity to 35 GW.
- Get new nuclear projects at Hinkley and Sizewell over the line, extending the lifetime of existing plants, and backing new nuclear including Small Modular Reactors.
- Double the Government’s target on green hydrogen, with 10 GW of production for use particularly in flexible power generation, storage, and industry like green steel.
- Invest in carbon capture and storage, hydrogen, and long-term energy storage to ensure that there is sufficient zero emission back-up power and storage for extended periods without wind or sun, while maintaining a strategic reserve of backup gas power stations to guarantee security of supply.
- Provide £600m in funding for local authorities and up to £400m low-interest loans each year for communities.
Green Prosperity Plan
Labour’s Green Prosperity Plan is the vehicle through which it plans turn Britain’s economy around. It is at the heart of another of Labour’s missions, to secure the highest sustained growth in the G7.
“Strategic, responsible public investment” is at the heart of this plan. Labour wants to “get our economy back on track” by supporting the industries of the future — working in partnership with business and trade unions — creating real energy security and cutting energy bills.
The Plan commits Labour to:
- Ensuring the long-term security of nuclear power, extending the lifetime of existing plants and backing new nuclear plants and Small Modular Reactors. Ensure a comprehensive and safe process for the disposal of radioactive waste as plants are decommissioned.
- Expanding renewable energy capacity through creating a new generation of community energy owners.
- Ensuring the “workers most affected by the transition” play a central role in shaping, implementing and benefitting from it through an ‘energy transition working group’ with relevant trade unions
Clean Power Alliance
Labour plans to include a strong green agenda in its foreign policy, at the heart of which will be a new Clean Power Alliance, a coalition of nations committed to achieving 100% clean power by 2030.
Reduce the time projects take in planning from years to months
Labour plans to introduce tough new targets for consenting decisions for renewable projects, with a new framework to monitor decision times and a designated directorate within Government to ensure departments and statutory consultees remain on track. Labour will guarantee that decisions don’t languish on the Secretary of State’s desk for months or years.
We’ll wait to see what’s in the manifesto when it’s launched, but we hope this gives you a good steer of where Labour stands on energy and infrastructure.
Our full manifesto preview – including additional insight into what Labour wants to do on energy, transport, and infrastructure – is available to download here, covering each of Labour’s 5 Missions and their potential impacts on businesses.
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