Cuts to renewable energy subsidies would be a betrayal of the UK’s commitment to the Paris climate deal and a “slap in the face” for successful community schemes, Labour said.
Reductions in taxpayer backing for small-scale projects such as solar panel arrays on the roofs of homes, schools and community buildings are expected to be confirmed by the Government on Thursday.
Ministers say they must be reined in to keep down household bills but the industry has warned 27,000 jobs and £127 million in investment would be put in jeopardy.
Shadow energy secretary Lisa Nandy said it would also spell disaster for dozens of small-scale projects whose “immense” benefits included improving community relations and providing training for youngsters as well as cutting emissions.
She spoke out as she visited the UK’s largest community energy project on social housing – a set of panels on the roof of a block of council flats in Hackney, east London.
At the weekend, the UN climate summit in Paris agreed a global pact to fight climate change, setting out a long-term goal to limit temperature rises to “well below” 2C above pre-industrial levels.
Ms Nandy said: “We’ve just had Paris, this incredible, historic agreement from over 190 countries around the world to work towards a cleaner, greener, more sustainable economy.
“And at the very same time, the Government is unravelling all of the schemes that will help to make that a reality in the UK.
“I think it’s just about trying to save a bit of expenditure in the short term without properly thinking through what the long-term costs will be.”
Vital jobs at the forefront of green technology would be lost to China and India, she said.
A recent survey of 80 community energy groups with membership totalling 11,000 people revealed the vast majority (90%) said their developing projects – involving millions of pounds of investment – were completely or partially at risk due to the proposed cuts.
Community Energy England (CEE) said 38 groups had received £7.4 million in “feed-in tariff” subsidies since the scheme began in 2010, which had brought in £50 million of private investment and generated £45 million for local economies.
They also generate community funds for schemes including advising people on fuel poverty, improving community buildings, providing computers for low income schools and improving wildlife areas and local healthcare services, its report said.
Ms Nandy said other communities were “clamouring” to set up their own schemes – which often provide internships for local young people – but would find they were no longer viable if the subsidies were slashed.
“It is typical of a complete lack of long-term strategic thinking in the Government,” she said.
Shadow chancellor John McDonnell said he believed the cuts were a symptom of “corporate capture” – with ministers bowing to pressure from big firms.
“It’s a false economy. It will undermine everything we’ve been doing. It’s a real slap in the face for community projects and George Osborne is pulling the rug from under these schemes,” he said.
There appeared to be “a prejudice within Government against renewables”, he said.
Recommended for you
