Danny Alexander picks an important fight with Osborne

Scrap over climate change policy.

In tabling a motion for the Liberal Democrats autumn conference on low carbon policy, Danny Alexander MP, Chief Secretary to the Treasury, has picked an important fight with his boss, the Chancellor George Osborne. Alexander’s feet must be kept to the fire on this if Britain is to have any chance of achieving its legal obligations to decarbonise the power sector.

Alexander’s motion roundly criticizes "the refusal of the Conservatives to acknowledge that investing in carbon reducing technologies has the potential to make an important contribution to long-term growth".

There is no one this accusation can be more squarely aimed at than Alexander’s boss in the Treasury, the Chancellor George Osborne.

Since his autumn 2011 conference speech, Osborne has been almost wholly negative on the low carbon agenda. "We are not going to save the planet by putting our country out of business", he said putting himself squarely at odds with business groups like the CBI and EEF who see the green economy as a key driver of growth. Indeed, the green economy grew by 2.3 per cent in real terms in 2010/11, and made up a third of what little growth Britain managed in 2011/12.

Most recently Osborne was heavily rebuked by the Energy and Climate Change Committee for undermining the development of the government’s flagship Energy Bill, which is intended to bring forward vast amounts of investment in low carbon energy sources. Osborne seems far more interested in making the UK a fossil fuel hub and frightening the wind industry than going low carbon.

The Chancellor is likely to be particularly angered by Alexander’s proposal for the Government to establish a 2030 decarbonisation target for the power sector, in the range of 50 to 100 grams of CO2 emissions per kilowatt hour of energy produced. 2030 is a crucial staging post towards the UK reducing its emissions by 80 per cent 2050, and, while the independent Committee on Climate Change and the Energy and Climate Change Select Committee have recommended that a target of 50g by 2030 for the power sector is adopted, it is something to which Osborne appears firmly opposed. The mismatch between Alexander’s proposed target range of 50g to 100g, instead of the stricter 50g recommended by the Committee on Climate Change, is something that requires an explanation.

It is our view, set out in our submission to the Energy and Climate Change Select Committee, that adoption of a 2030 power sector target is the single most important step the Government can take to provide certainty to industry about the direction of travel for the energy industry. Providing this certainty, we believe, will ensure that energy bills are kept as low as possible and the UK reaps the maximum benefits from growth in low carbon sectors, while at the same time emissions are reduced.

Danny Alexander is right to challenge the Chancellor on climate change policy because going low carbon is the only credible economic policy. It is now time for others to come out in support of the 2030 target and ensure it is adopted by government in the Energy Bill. This includes the Labour party; prominent green-minded Conservative MPs like Zac Goldsmith, Oliver Letwin and William Hague who are witnessing the rapid deterioration of their party’s reputation on climate change; and industry pressure groups like the CBI that are supportive of ambitious emission reduction policies.

Reg Platt is a Research Fellow at IPPR. He tweets at @regplatt

George Osborne. Photograph: Getty Images

Reg Platt is a Research Fellow at IPPR. He tweets as @regplatt.

Photo: Getty
Show Hide image

Emmanuel Macron can win - but so can Marine Le Pen

Macron is the frontrunner, but he remains vulnerable to an upset. 

French presidential candidate Emmanuel Macron is campaigning in the sixth largest French city aka London today. He’s feeling buoyed by polls showing not only that he is consolidating his second place but that the voters who have put him there are increasingly comfortable in their choice

But he’ll also be getting nervous that those same polls show Marine Le Pen increasing her second round performance a little against both him and François Fillon, the troubled centre-right candidate. Her slight increase, coming off the back of riots after the brutal arrest of a 22-year-old black man and Macron’s critical comments about the French empire in Algeria is a reminder of two things: firstly the potential for domestic crisis or terror attack to hand Le Pen a late and decisive advantage.  Secondly that Macron has not been doing politics all that long and the chance of a late implosion on his part cannot be ruled out either.

That many of his voters are former supporters of either Fillon or the Socialist Party “on holiday” means that he is vulnerable should Fillon discover a sense of shame – highly unlikely but not impossible either – and quit in favour of a centre-right candidate not mired in scandal. And if Benoît Hamon does a deal with Jean-Luc Mélenchon – slightly more likely that Fillon developing a sense of shame but still unlikely – then he could be shut out of the second round entirely.

What does that all mean? As far as Britain is concerned, a Macron or Fillon presidency means the same thing: a French government that will not be keen on an easy exit for the UK and one that is considerably less anti-Russian than François Hollande’s. But the real disruption may be in the PR battle as far as who gets the blame if Theresa May muffs Brexit is concerned.

As I’ve written before, the PM doesn’t like to feed the beast as far as the British news cycle and the press is concerned. She hasn’t cultivated many friends in the press and much of the traditional rightwing echo chamber, from the press to big business, is hostile to her. While Labour is led from its leftmost flank, that doesn’t much matter. But if in the blame game for Brexit, May is facing against an attractive, international centrist who shares much of the prejudices of May’s British critics, the hope that the blame for a bad deal will be placed solely on the shoulders of the EU27 may turn out to be a thin hope indeed.

Implausible? Don’t forget that people already think that Germany is led by a tough operator who gets what she wants, and think less of David Cameron for being regularly outmanoeuvered by her – at least, that’s how they see it. Don’t rule out difficulties for May if she is seen to be victim to the same thing from a resurgent France.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.