King Charles is set to deliver a speech at the opening of parliament as Labour wants to enact change, however, the energy sector is still “deeply concerned.”
Last November saw the first King’s Speech in over 70 years as Rishi Sunak’s government looked to bring in a bill to “support the future licencing of new oil and gas fields.”
Much has changed since then, the Conservative Party’s 14 years in power have come to an end and Labour is looking to double down on renewables.
Some industry leaders are calling for more clarity on policy, chief executive of trade body Offshore Energies UK (OEUK), David Whitehouse, said: “The new Government says it has put partnership working at the heart of its agenda and we have welcomed that.
© Supplied by OEUK“But we remain deeply concerned that some of the new proposals being put forward for our industry will undermine the very same homegrown energy transition we all want to deliver.
“Labour’s leadership has recognised that North Sea oil and gas will be with us for decades to come and they have committed to managing this strategic national asset in a way that does not jeopardise jobs.
“They now need to deliver on their commitment to support our industry and work in partnership with us.”
Urging Labour to create ‘conditions which unlock investment’
Labour faced criticism throughout the election campaign as it announced plans to ban future oil and gas licences in the UK while upping the rate of tax imposed on operators and reducing investment incentives.
The windfall tax, has proved to be a point of contention across the energy sector as Labour looks to “close loopholes” in the policy and increase the rate the oil firms pay.
Currently, there are investment incentives for oil and gas firms that encourage spending on UK projects, however, that is subject to change under Labour’s manifesto.
At the moment, there is still uncertainty around what closing “loopholes” means in practical terms.
© Supplied by -Oil firms in the UK currently pay a headline rate of tax of 75%, however, Labour has suggested bumping that up to 78%.
Mr Whitehouse added: “Through working together with the sector, we can create the conditions which unlock investment, support our supply chain companies, underpin jobs and grow the economy.
“The best path to this growth is through supporting our companies and people here in the UK.”
Labour government has 35 bills in the works
In his speech last year, King Charles also outlined plans to “attract record levels of investment in renewable energy”, something the UK’s new energy secretary Ed Miliband will look to build upon.
Since coming into power, the Labour government has lifted the onshore wind ban in England, announced a “rooftop revolution” to triple UK solar capacity, and launched the Chris Stark-fronted ‘Mission Control’ project to scale up grid connection.
Ahead of Wednesday’s speech, a UK Government statement outlined: “Departments are working on more than 35 bills to deliver an ambitious parliamentary session that will be built on a bedrock of economic security, to enable growth that will improve the prosperity of our country and the living standards of working people.”
Renewables have been a focus of the new UK government as it looks to set up GB Energy, a publicly owned firm.
© PAThere is still a little confusion around what GB Energy will do with some statements describing it as an “investment vehicle” while others called it a “generation” company.
One thing is clear, the state-backed firm will be focusing on renewable energy sources as Labour looks to accelerate the transition away from fossil fuels.
It is expected that King Charles will shed some light on the plans for the firm later today.
Morag Watson, a director of policy at Scottish Renewables, said: “Scotland’s renewable energy industry stands ready to play its part in delivering the UK Government’s mission of kickstarting economic growth and making Britain a clean energy superpower.
“We welcome the early signals from the UK Government so far on the need to prioritise crucial infrastructure and maximise investment for our clean energy pipeline. With increased ambitions for 2030 we will need to see continued momentum on delivery.
“Scottish Renewables looks forward to working closely with the UK Government on its programme of energy legislation to ensure it builds a stable policy environment which enables a clean energy system that will benefit communities across the UK.”
Mr Starmer added: “The task of national renewal will not be easy, and this is just the down payment on our plans for the next five years, but the legislation set out at the King’s Speech will build on the momentum of our first days in office and make a difference to the lives of working people.”
