The Prime Minister’s team is operating at full speed even before we reach the State Opening of Parliament, scheduled for Wednesday, 17 July. During this event, the King will deliver a speech written by the Government, outlining the policy programme for the Parliamentary year.
From overturning the effective ban on onshore wind, appointing the former Climate Change Committee CEO Chris Stark to oversee delivery of its 2030 decarbonisation target, launching the National Wealth Fund and approving three large-scale solar developments, the Labour Government is already acting at pace to deliver its clean power mission. The upcoming King’s Speech should provide further clarity on how the party intends to deliver on this mission and make the UK a clean energy superpower.
With the FT reporting that 35 bills are set to be included in the Kings Speech, below, Brevia has outlined some of the key energy announcements to watch out for on Wednesday.[1]
Energy Independence Bill
The Labour Government intends to introduce an Energy Independence Bill, setting out the legislative framework for its energy and climate policies. This includes its flagship proposal to establish GB Energy, a state-owned energy company backed by £8.3 billion over the next Parliament.[2]
While there is still some confusion over the exact role of GB Energy, it is known that at a minimum, it will act as a vehicle to scale investment in new technologies. The expected Energy Independence Bill will likely provide more details on GB Energy’s structure and operational parameters.
GB Energy will also be tasked with leading Labour’s Local Power Plan and accelerating the deployment of locally distributed power. In a bid to give communities a greater stake in their energy transition, the Government is expected to confirm £3.3 billion available in low-interest loans for communities for small-scale clean energy projects.[3]
The King’s Speech is also expected to include Labour’s reversal of the former Prime Minister Rishi Sunak’s net zero rollbacks, such as reinstating the 2030 phase-out date for the sale of new internal combustion engine vehicles.[4]
Planning & Infrastructure
Labour has made clear it plans to overhaul the planning system in order to deliver nationally significant infrastructure more efficiently. As noted above, the Government has already made progress by removing the de facto ban on onshore wind and planning to consult on designating onshore wind projects as Nationally Significant Infrastructure Projects (NSIPs).[5]
The King’s Speech will likely provide further details on the Government’s plans to ensure critical projects are not hindered by ‘red tape’. It may also outline the parameters for the new National Infrastructure and Service Transformation Authority (NISTA), rumoured to be formed by merging the National Infrastructure Commission and the Infrastructure and Projects Authority.[6]
Regulation
Labour’s manifesto set out the Party’s intention to strengthen the energy regulator to ensure companies are held accountable.[7] The water sector serves as a useful example, where the new Environment Secretary Steve Reed MP wasted no time on calling in water company bosses to make clear that poor performance will not be tolerated.[8]
Labour’s manifesto also hinted at a desire to streamline the regulatory frameworks governing the regulated sectors, including through the creation of a new Regulatory Innovation Office, which will bring together existing functions across government.[9] While primarily focused on the regulation of emerging technologies, it is indicative of the Government’s desire to update regulation and coordinate issues that span across sectors. This was an area of work being looked at by the previous Conservative Government via the smarter regulation programme, and it will be worth keeping an eye on how this progresses and what detail is set out in the King’s Speech.
The scale of change required to deliver the Government’s ambitions will require bold and systemic change – something the new Government is clearly very aware of. We could therefore see the regulatory framework and structures rewritten through a new bill specifically on the future of regulation.
In conclusion: expect radical
Perhaps best encapsulated by the new Transport Secretary’s motto for her Department, ‘move fast and fix things’, the Government’s first week in office shows it is not afraid to shake up existing structures.[10] With an ambitious programme of work ahead, the Government is aware of the need for bold reforms to deliver results. While the desired end goal is already known, the King’s Speech will shed more light on the programme of activity which we can expect over this Parliamentary year.
With an ambitious target of attracting £3 of private investment for every £1 of public finance via the National Wealth Fund, the Government recognises the scale of private sector investment required to deliver its ambitious programme of work. The new Government team has also made clear that it wants industry input and engagement to guide the building of its delivery frameworks, as evidenced by the Business Secretary’s recent open call to business on LinkedIn to share their thoughts, proposals and concerns.[11]
Although the plethora of announcements and changes may seem overwhelming, businesses should ensure timely engagement to maximise their chances of positive influence.
BREVIA ENERGY PROVIDES STRAIGHTFORWARD PUBLIC AFFAIRS AND PUBLIC RELATIONS SUPPORT TO ORGANISATIONS OPERATING IN THE UK ENERGY SECTOR.
Discover how Brevia Energy can help you and your organisation by visiting: www.brevia.co.uk/sectors/energy/. You can also contact the Brevia Energy Team on 020 7091 1650 or email contact@brevia.co.uk
Notes
[1] Financial Times, ‘Starmer plans to introduce AI bill in King’s Speech’, 14 July 2024, Link
[2] The Labour Party, ‘Our plan to change Britain’, 13 June 2024, Link
[3] Ibid
[4] Ibid
[5] HM Treasury, ‘Chancellor Rachel Reeves is taking immediate action to fix the foundations of our economy’, 8 July 2024, Link
[6] New Civil Engineer, ‘Labour plans to merge NIC and IPA into ‘powerful’ new infrastructure delivery body’, 23 May 2024, Link
[7] The Labour Party, ‘Our plan to change Britain’, 13 June 2024, Link
[8] Department for Environment, Food and Rural Affairs, ‘Government announces first steps to reform water sector’, 11 July 2024, Link
[9] The Labour Party, ‘Our plan to change Britain’, 13 June 2024, Link
[10] Department for Transport, ‘Transport Secretary sets out 5 key priorities to deliver the biggest overhaul to transport in a generation’, 10 July 2024, Link
[11] LinkedIn, Department for Business and Trade, ‘A few words from our new Secretary of State’, 9 July 2024, Link
