After a landslide victory and a whirlwind start, the new Labour government is clearly setting out its stall for change in the UK after 14 years of Conservative governance. In this edition of Industry Insight, we take a look at a couple of key promises made by the Labour government in the early days of its office.
Putting wind in the sails of UK renewables
Just days into power, the Labour government made bold promises to double onshore and quadruple offshore wind capacity by 2030, ending the de facto ban on new onshore wind in England brought in by the Conservatives in 2015. England’s onshore wind capacity has been practically unchanged since the end of 2017, remaining at just over 3,000 megawatts (MW). In contrast, France’s onshore wind capacity is more than 22,000 MW, whilst Germany’s is more than 61,000 MW. Labour’s declared commitment to increasing England’s wind capacity has been well received by environmentalists and energy experts, who have long called for the change.
Enabling the growth of wind power whilst also phasing out all remaining coal fired power plants will not only help the UK further progress its emissions reduction, but will also increase our energy security, reduce household energy bills, provide a boost to the economy by up to £45 billion, and create around 27,000 jobs, according to RenewableUK. Certainly, it’s a welcome step after over a decade of unfulfilled climate targets and spiralling energy costs.
That said, Labour’s dramatic cuts to its own green investment pledge earlier this year, reducing the annual green spend to around £15 billion, continues to leave a bitter taste in the mouths of those with high hopes for a green industrial revolution. The cuts were made in an effort to reconcile environmental goals with fiscal responsibility – a tough act to balance. We must hope that the new government will continue to follow through on environmental promises whilst also working to identify the means to go further.
With the King’s speech laying the Great British Energy Bill before parliament, there is at least a clear appetite for a publicly owned body to own and operate clean power projects throughout the UK, with a promised investment of £8.3bn.
Laying the foundations for a housing boom
In her inaugural speech as chancellor, Rachel Reeves vowed to “get Britain building again”, to boost growth in the UK economy. The new government is reintroducing compulsory housebuilding targets, previously ditched by the Conservatives, with the aim of building 1.5 million homes in England over the next 5 years. There’s no denying the ambition of the target but the reality of delivering it raises some questions. The persistent skills gap in the UK construction workforce alone is likely to pose a significant barrier. It’s also anticipated that there may be challenges at a local level where council planning committees face objections from within the community.
Despite the challenges, the housing targets offer an opportunity to private housebuilders across the country, but it is going to be vital for Labour to engage consistently and proactively with the industry if there is going to be any hope of the 1.5 million homes target being met. The previous government did not have a good track record on communicating positively with the industry and it is to be hoped that the new housing minister, Matthew Pennycook, will enjoy a longer term in the role and bring the stability and consistency the sector so desperately needs.
In the meantime, the Planning and Infrastructure Bill could clear the way to getting more projects moving more quickly.
The vital first 100 days
The first 100 days of any new government is widely recognised to be foundational in setting the tone for their tenure. Those initial decisions, first impressions, and newly emerging relationships all lay the groundwork on which the following years’ governance is built. After such a historic victory, and carrying an unprecedented majority, Labour’s first 100 days will be under close scrutiny as the nation judges whether its trust has been well placed.
BRE has set out a 100 day roadmap for the new government, calling for it to prioritise low-carbon innovation in construction, improve EPCs, and create a Decent Homes Standard for the Private Rented Sector. The industry needs to see a coherent approach, grounded in rigorous policymaking, and it is high time that the sector itself is recognised as a key partner – full of capability and expertise – in making that happen.