What’s going wrong with politics and energy – and how to fix it

Change is always tricky, but it's far from impossible, writes Green Alliance's Alastair Harper.

Uncertainty over the government’s position on our energy future is costing us. One senior Conservative figure, deeply frustrated by the situation, confided that interest rates on energy projects have increased by 15 per cent over the last few weeks, entirely because of Westminster’s energyshambles. That kind of financing leap adds up – and features later on our bills.

Changing our infrastructure is hard. It means changing things not just for those who provide it, but for the people who use it. It is a big challenge that costs and can confuse. Look at what happened recently in broadcasting – we moved from an analogue format to a digital one. A relatively minor shift in the mode of transmission, but what an effort it took.

It wasn’t just about changing our televisions. It meant changing everything from the cables in the ground to the satellites in space. Because of this, it meant changing things not just in the UK, but around the world. But it worked. How?

First, a global agreement was reached as to when the switchover should happen. Six years ago, a deadline of 17 June 2015 was registered with the United Nations. 

Each nation then agreed its domestic target for achieving the switchover – Netherlands was first in 2006, while the UK finished a few weeks ago on 24 October 2012. 

The government spent a considerable amount of money helping people with this change, overseen by an independent body of experts in the form of Digital UK. But such was the rigour and certainty with which the government went about the process (empowered by cross-party support) that it ended up costing less than expected.

You would think that a demonstrable improvement shouldn’t need government interference: the market should take care of itself. But manufacturers need coordinated targets to tell them when a product becomes redundant and new ones are needed. Retailers need to know what they should be stocking when. During the digital switchover, a clear line of direction helped the public and business to bring about a complex change together on time and under budget.

This was a huge programme of change – from making sure a regional care home had a functional communal telly, to sending new satellites into space. And this was all done not for anything as dramatic as saving the planet - just to offer a better product. 

So why is it so much more difficult for something much more important like the switch to low carbon energy? Why the newspaper headlines? Why the controversy? Why the mess?

Much of the structure is already in place. We have, as we did with the digital switchover, a nonbinding UN agreement on decarbonisation. It’s not enough, of course, but as China reduces its emissions by 15 per cent in five years, we can’t pretend not to be part of a global process.

We have a firm domestic target – an 80 per cent reduction in emissions by 2050 as set out in the Climate Change Act.

We have the independent experts to achieve that goal in the form of the Committee on Climate Change. 

Everything should be in place to achieve the change we need, so why does it feel like something’s going wrong? It’s the politics. 

We had a target, but the politicians argued about how to meet it. We had advisers, but the politicians argued about what they advised. 

As no one knows what the direction of travel is, the costs are going up. They go up as government whips secretly support rival parties. They go up as one department calls for a gas-led future and another says it will have a limited role. When one minister says an energy technology is done, and his boss says he is wrong. This is all despite huge public support for renewables – in fact, a recent analysis showed Conservative voters want more wind, not less.

That is why business is so cross. That is why everyone from Siemens to Alstom to Virgin to Marks and Spencers to National Grid to Microsoft to Edf to Unilever  and many, many more have said we need more certainty. As Mike Barry of M&S recently said: “the certainty of the Climate Change Act has been replaced.”

At the moment, under the Climate Change Act, we only have a target for greenhouse gas emissions across the economy– everything from agriculture to refrigeration. These are all pillars, holding up the structure of our decarbonisation plan. In an ideal world we wouldn’t need a target for any one particular pillar, but a crucial one is currently looking very wobbly indeed – our electricity generation. If we don’t succeed in decarbonising electricity, everything else will have to meet much higher targets, making everything much more expensive.

As with digital switchover, as with the rail revolution, as with decimalisation, our country has prepared itself for a big change to the status quo. We should be busy achieving the change. We shouldn’t need extra frameworks  – but our politicians have let us down. We now need our politicians to show they are capable of giving businesses the structure they need to deliver without them, by listening to what those companies have told them and putting in place a clear figure on how much carbon can be in our electricity mix by 2030. 

A solar thermal generator in California's Mojave desert. Photograph: Getty Images

Alastair Harper is Head of Politics for Green Alliance UK

Photo: Getty
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Ken Livingstone says publicly what many are saying privately: tomorrow belongs to John McDonnell

The Shadow Chancellor has emerged as a frontrunner should another Labour leadership election happen. 

“It would be John.” Ken Livingstone, one of Jeremy Corbyn’s most vocal allies in the media, has said publicly what many are saying privately: if something does happen to Corbyn, or should he choose to step down, place your bets on John McDonnell. Livingstone, speaking to Russia Today, said that if Corbyn were "pushed under a bus", John McDonnell, the shadow chancellor, would be the preferred candidate to replace him.

Even among the Labour leader’s allies, speculation is rife as to if the Islington North MP will lead the party into the 2020 election. Corbyn would be 71 in 2020 – the oldest candidate for Prime Minister since Clement Attlee lost the 1955 election aged 72.

While Corbyn is said to be enjoying the role at present, he still resents the intrusion of much of the press and dislikes many of the duties of the party leader. McDonnell, however, has impressed even some critics with his increasingly polished TV performances and has wowed a few sceptical donors. One big donor, who was thinking of pulling their money, confided that a one-on-one chat with the shadow chancellor had left them feeling much happier than a similar chat with Ed Miliband.

The issue of the succession is widely discussed on the left. For many, having waited decades to achieve a position of power, pinning their hopes on the health of one man would be unforgivably foolish. One historically-minded trade union official points out that Hugh Gaitskell, at 56, and John Smith, at 55, were 10 and 11 years younger than Corbyn when they died. In 1994, the right was ready and had two natural successors in the shape of Tony Blair and Gordon Brown in place. In 1963, the right was unprepared and lost the leadership to Harold Wilson, from the party's centre. "If something happens, or he just decides to call it a day, [we have to make sure] it will be '94 not '63," they observed.

While McDonnell is just two years younger than Corbyn, his closest ally in politics and a close personal friend, he is seen by some as considerably more vigorous. His increasingly frequent outings on television have seen him emerge as one of the most adept media performers from the Labour left, and he has won internal plaudits for his recent tussles with George Osborne over the tax bill.

The left’s hopes of securing a non-Corbyn candidate on the ballot have been boosted in recent weeks. The parliamentary Labour party’s successful attempt to boot Steve Rotheram off the party’s ruling NEC, while superficially a victory for the party’s Corbynsceptics, revealed that the numbers are still there for a candidate of the left to make the ballot. 30 MPs voted to keep Rotheram in place, with many MPs from the left of the party, including McDonnell, Corbyn, Diane Abbott and John Trickett, abstaining.

The ballot threshold has risen due to a little-noticed rule change, agreed over the summer, to give members of the European Parliament equal rights with members of the Westminster Parliament. However, Labour’s MEPs are more leftwing, on the whole, than the party in Westminster . In addition, party members vote on the order that Labour MEPs appear on the party list, increasing (or decreasing) their chances of being re-elected, making them more likely to be susceptible to an organised campaign to secure a place for a leftwinger on the ballot.

That makes it – in the views of many key players – incredibly likely that the necessary 51 nominations to secure a place on the ballot are well within reach for the left, particularly if by-election selections in Ogmore, where the sitting MP, is standing down to run for the Welsh Assembly, and Sheffield Brightside, where Harry Harpham has died, return candidates from the party’s left.

McDonnell’s rivals on the left of the party are believed to have fallen short for one reason or another. Clive Lewis, who many party activists believe could provide Corbynism without the historical baggage of the man himself, is unlikely to be able to secure the nominations necessary to make the ballot.

Any left candidate’s route to the ballot paper runs through the 2015 intake, who are on the whole more leftwing than their predecessors. But Lewis has alienated many of his potential allies, with his antics in the 2015 intake’s WhatsApp group a sore point for many. “He has brought too much politics into it,” complained one MP who is also on the left of the party. (The group is usually used for blowing off steam and arranging social events.)

Lisa Nandy, who is from the soft left rather than the left of the party, is widely believed to be in the running also, despite her ruling out any leadership ambitions in a recent interview with the New Statesman.However, she would represent a break from the Corbynite approach, albeit a more leftwing one than Dan Jarvis or Hilary Benn.

Local party chairs in no doubt that the shadow chancellor is profiling should another leadership election arise. One constituency chair noted to the New Statesman that: “you could tell who was going for it [last time], because they were desperate to speak [at events]”. Tom Watson, Caroline Flint, Chuka Umunna, Yvette Cooper, Andy Burnham and Liz Kendall all visited local parties across the country in preparation for their election bids in 2015.

Now, speaking to local party activists, four names are mentioned more than any other: Dan Jarvis, currently on the backbenches, but in whom the hopes – and the donations – of many who are disillusioned by the current leadership are invested, Gloria De Piero, who is touring the country as part of the party’s voter registration drive, her close ally Jon Ashworth, and John McDonnell.

Another close ally of Corbyn and McDonnell, who worked closely on the leadership election, is in no doubt that the shadow chancellor is gearing up for a run should the need arise.  “You remember when that nice Mr Watson went touring the country? Well, pay attention to John’s movements.”

As for his chances of success, McDonnell may well be even more popular among members than Corbyn himself. He is regularly at or near the top of LabourList's shadow cabinet rankings, and is frequently praised by members. Should he be able to secure the nominations to get on the ballot, an even bigger victory than that secured by Corbyn in September is not out of the question.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog. He usually writes about politics.