Who runs Britain’s energy policy?

A smaller cut in wind power funding comes at the cost of a commitment to decades more of dirty and expensive gas.

Who runs Britain’s energy policy? We have a Department of Energy and Climate Change – you might think from their name that they do. Or perhaps it’s Chancellor George Osborne’s Treasury that calls the shots? Now you’re getting warmer.

This week's announcement by the Energy Secretary, Ed Davey, that he had secured only a 10 per cent cut in wind power funding, was heavily spun as a victory for the Lib Dem-run department. Given that the Treasury had been demanding 25 per cent cuts, this seemed a victory indeed – but one with a huge hidden cost. Because, as payment for this victory, Davey has been forced to quietly concede to another of the Treasury’s demands: a commitment to decades more of dirty and expensive gas.

We know this to be the Chancellor’s wishes, because on Monday someone leaked a letter – effectively a ransom note – that he had sent to Davey outlining his position. In it, Osborne demanded that the Energy Secretary issue “a statement which gives a clear, strong signal that we regard unabated gas as able to play a core part of our electricity generation to at least 2030 – not just providing back-up for wind plant”.

Acceding to this outrageous demand would mean seriously jeopardising the UK’s fight against climate change. As the Government’s independent advisors, the Committee on Climate Change, stated in response: "This would all lead to a second dash for gas. This would be incompatible with the government's climate change goals."

But on Wednesday, DECC dutifully trotted out a press release stating that “the Government… is today confirming that it sees gas continuing to play an important part in the energy mix well into and beyond 2030”. Some victory.

The exchange has also highlighted the hypocrisy of the Treasury in its assessment of what merits public subsidy, and what must go without.

Osborne stated in his letter to Davey: “While your proposals [on renewables funding] achieve some savings we will still be paying more than £500m more to support renewable generation in 2013-14 than we collectively agreed was affordable”. No-one disputes that as technology costs come down, public funding for renewables should decline; the renewables industry itself was offering up 10 per cent cuts.

But wait; what’s this? On Wednesday, as DECC announced its cuts to renewables funding, the Treasury simultaneously unveiled £500m of tax breaks for offshore gas drilling. What’s unaffordable to spend on clean energy suddenly becomes eminently affordable to spend on drilling up the dirty stuff.

Enough is enough. The Chancellor must be prevented from undermining the UK’s green economy – as the CBI recently stated, it’s one of the few parts of the economy still growing. A high-carbon energy system will lock the UK in to a high-cost as well as high-polluting future. So in whose interests is the Chancellor acting?

It’s now up to David Cameron and Nick Clegg to back their Energy Minister over the Chancellor. They should insist that the Energy Bill includes a target to decarbonise the UK’s electricity system by 2030 and unlocks support for clean British energy. The alternative energy strategy that George Osborne would have us follow is a dirty and dangerous dead end.

Guy Shrubsole is an Energy Campaigner at Friends of the Earth. For more information on Friends of the Earth’s Clean British Energy campaign:


Photograph: Getty Images

Guy Shrubsole is energy campaigner at Friends of the Earth.

Grant Shapps on the campaign trail. Photo: Getty
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Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.