Blog 16 July 2024

Ringing in the Changes

What the First Week of a Labour Government Means for Communicators in the Energy Sector

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It’s often said that a week is a long time in politics, and with the arrival of majority-backed Labour Government and a slew of policy updates under its belt, that was especially true last week.

Many of those updates are tied to Labour’s second ‘mission’ to make Britain a ‘clean energy superpower.’

They follow a manifesto that brought lots of ambition – doubling onshore wind, tripling solar power, and quadrupling offshore wind, all by 2030 – but lacked detail. The coming weeks and months will be vital for the industry.

With that in mind, we’ve examined the key updates so far and what they mean for energy businesses and their communications.

Policy shift What’s changed What to look out for
Onshore wind unleashed
  • The de facto ban on onshore wind has been lifted, as projects no longer need to be included in local development plans, which previously meant even the slightest opposition from the local community would prevent them from progressing.
  • The Government has also committed to doubling onshore wind energy by 2030. 
  • Whether the Government is able to class onshore wind farms as nationally significant infrastructure projects remains to be seen. Such a move would further accelerate project progress by allowing large farms to obtain planning approval even more quickly.
  • If the current lack of grid capacity is addressed, preventing a further backlog of projects. 
Great British Energy
  • Great British Energy, a newly launched government-owned power company with £8 billion of investment, will work alongside and in partnership with the private sector to help deliver the transition.
  • It will be largely invisible to consumers, instead offering financing and helping to build lowcarbon infrastructure, from windfarms to nuclear reactors. 
  • How effectively it turns relatively small sums into significant public gains and avoids spreading investment too thin. 
  • Whether it’s also able to manage the high expectations brought by its lofty goal to ‘take control of energy supply and bring down bills.’
Reforming the planning system
  • Beyond the onshore wind farm change mentioned above, a key move from an energy perspective will be allowing the Secretary of State to prioritise energy projects in the system to ensure quick progress. 
  • How quickly this translates to project progress.  
The National Wealth Fund
  • The National Wealth Fund, to be injected with £7.3 billion, will invest in strategic industries to promote growth and clean energy.
  • More than a third of its capital will be allocated to the steel industry, with other key sectors including ports, electric vehicle batteries, carbon capture and green hydrogen. 
  • How the fund, which will be channelled through the UK Infrastructure Bank to speed progress, operates within its parent entity. 
  • Which of the five suggested preliminary areas (green steel, green hydrogen, industrial decarbonisation, gigafactories and ports) receives the most focus and capital. 
UK clean energy taskforce
  • Chris Stark, the former head of the
    UK’s climate watchdog, will lead a
    taskforce modelled on its COVID-19
    equivalent.
  • The centre will work alongside
    energy companies and regulators
    with the aim to deliver clean and
    cheaper power by 2030.
  • Where the task force invests its time across key challenges such as building supply chains, developing skills, assessing the cost of borrowing, and incentivising international investment.
New licenses ban for offshore oil in the North Sea 
  • The party has confirmed they will offer no new licenses for oil and gas extraction, although they acknowledge that North Sea extraction will continue for “decades” through current projects.
  • The response from trade unions and wider industry stakeholders to the move, should it go ahead.
  • Further reaction to the suggested closing of loopholes in the windfall tax that have benefitted oil and gas companies.
Solar ‘rooftop’ revolution
  • Labour will introduce a number of measures that aim to significantly increase the number of households utilising solar energy.
  • Whether restrictions in conservation areas and on listed buildings are loosened as part of the measures.
  • The community response to the three new projects.

 

Strategic priorities for energy communicators

Double down on policy monitoring: While there was a huge amount in the manifesto, details were sparse, and only a handful of commitments have been the subject of post-election communications. Much remains to be discussed. Ongoing monitoring around key emerging details, such as specifics on support for industries like nuclear and CCS, details on how financing pots will be allocated or the confirmation of proposed national targets across grid decarbonisation, EVs, and a ban on gas boilers, will be vital in the coming weeks.

Be bolder in your message: While some of the obstacles for onshore wind have been lifted, many communications challenges will remain. New Chancellor Rachel Reeves knows that getting projects moving won’t be easy and has spoken of ‘hard choices to face down the vested interests." Making a compelling economic, social and community case to secure project support and persuade your stakeholders to make those hard choices will be vital.

Mission control: Many journalists still haven’t quite broken the habit of viewing politics through the lens of the post-2016 governing agenda. However, this Government will have different priorities – see the demise of ‘levelling up’ as an example. Communicators will need to adjust their approach to media briefings to speak to new language of Government and, for example, the ‘mission-driven’ nature of the Labour Government.

Broaden your circle: As the public affairs world returns to a vastly changed landscape, populated with a with new suite of MPs, advisors and Ministers, even the most hardened networkers will be making new friends. Getting out and re-building your black book will be a priority for many.

Engagement, engagement, engagement: From a new net zero strategy, to defining climate financing goals, and setting a seventh carbon budget, there is plenty for the Government to tackle. As it moves from opposition to defining the legislative agenda, there will be plenty of room in the coming months for businesses to make a case for their priorities.