A Labour government will create a publicly owned clean energy company in a bid to cut energy bills and reduce reliance on fuel imports from countries with poor human rights records, such as Russia, leader Sir Keir Starmer claims.
Labour's plans for 'Great British Energy' will “give us real energy independence from foreign dictators” and will be “owned by the British people, built by the British people and benefit the British people”, he added.
Labour’s announcement appears to be aiming to capitalise on widespread public dissatisfaction with energy price rises over the past few years under the Tories.
Creating ‘Great British Energy’ owned by homeowners
Great British Energy will invest in clean energy across the country and aims to make the UK a world leader in floating offshore wind and other renewable energy sources.
By 2030, Labour have pledged to fast-track at least 5 GW of capacity of floating offshore wind, more than double onshore wind capacity to 35 GW, and more than triple solar power to 50 GW.
A Labour statement read: “When there’s instability abroad, prices shoot up here at home. Look at what’s happened in the last year. As Putin’s war in Ukraine ramped up, so did the price of gas.
“The results have been devastating for the finances of ordinary families, whilst oil and gas giants have made record profits.
“We need to take control of our energy system. The solution is clean, homegrown power that we can produce and control at home in Britain – that is the only way to cut energy bills once and for all and make us energy independent.”
The party also announced a new National Wealth Fund that will invest in the National Grid, jobs, ports, gigafactories, hydrogen, and the British steel industry.
Focus on creating warmer homes
Labour says it will upgrade insulation in British homes to save households and businesses hundreds of pounds on their annual household energy bills.
Announcing Labour’s energy plans, Starmer said: “The Tories contest it, but look around the country, sticking plasters everywhere.
“I’ll give an example: ‘green crap’. That’s what they said – ‘cut the green crap’.
“And so they scrapped investment in home insulation, stalled nuclear energy, and banned onshore wind.
“And the result? When the crisis hit last year and when Russia invaded Ukraine, not only did the bills of businesses and working people go through the roof, we had to borrow £40bn with no new infrastructure to show for it. That’s not green crap, that’s Tory crap.”
In response, the UK Secretary of State for the Department of Energy Security and Net Zero Claire Coutinho, said: “Sir Keir Starmer can’t say what he will do to protect our energy security because he does not have a plan - he set out a 2030 decarbonisation promise, which Labour themselves costed at £28 billion without a plan to pay for it.
“Not only does he not have a plan of his own, but he also voted against our North Sea Oil and Gas Bill, which will protect over 200,000 jobs and maximise our energy security.”
A ‘proper’ windfall tax on oil and gas companies
Labour says it will fight for a “proper” windfall tax on the excess profits of oil and gas companies, to support families with the cost of living.
Their statement added: “During the worst cost of living crisis in a generation, (the Tories) have sided with the big oil and gas companies making record profits rather than hardworking families. Even now they still refuse to implement a proper windfall tax on the oil and gas giants.”
This comes after gas and oil companies announced record profits last year, with 'British Gas announcing they made £969 million in profit, which was almost double than last year’.
This is despite many households suffering from fuel poverty and struggling to afford their heating bills, which Labour plan to ease by impose higher taxes on these profits.
