The former Environment Secretary seems to be endorsing Ukip energy policy. Photo: Getty
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The Tory right is becoming desperate on climate change and energy

The former environment secretary will tell climate change sceptics this week that his party should adopt Ukip policies.

The former Environment Secretary, Owen Paterson, will this week demonstrate how desperate the right wing of the Conservative party has become in its attempts to force energy and climate change policies into an ideological straitjacket.

In a speech on Wednesday to Lord Lawson’s lobby group for so-called climate change sceptics, the Global Warming Policy Foundation, Paterson will argue that the UK should turn its back on renewable energy in favour of fracking and nuclear power.

Paterson’s speech was leaked over the weekend to the Sunday Telegraph and the Mail on Sunday, the two newspapers that most aggressively oppose efforts to tackle climate change.

According to the front page splash in the Sunday Telegraph, Paterson will call for the UK to weaken its target of cutting its annual greenhouse gas emissions by 80 per cent by 2050, as set out in the 2008 Climate Change Act, unless other countries enact similar legislation.

He will warn that the Act will require the building of many new onshore windfarms, and will ultimately result in power cuts for homes and businesses.

Instead, he will argue, the UK should aim to slow down the rate of decarbonisation of its power sector, and instead generate more electricity from shale gas and, bizarrely, by developing across the country a new fleet of small nuclear reactors like those that power some submarines.

Paterson, who was sacked from the cabinet in July, told the Mail on Sunday that the repeal of the Climate Change Act and a ban on new wind farms would make the Conservative party more popular among supporters who are being attracted to Ukip.

The title of Paterson’s speech, "Keeping the Lights On", is the same as Ukip’s energy policy document, and Ukip's communications director, Patrick O’Flynn, responded to the newspaper reports by tweeting: “Nice to see Owen Paterson commending Ukip energy policy to his party”.

Paterson’s intervention is clearly designed to rally the right wing of the Conservative party, but his proposals lack the coherence and credibility required to appeal to a broader audience.

His dogmatic rejection of the scientific evidence about the scale of the risks of climate change – he will point to the temporary slowdown in the rate of global warming to justify his complacency – as well as his opposition to onshore wind farms, forces him into an extreme position based on myths and misinformation.

Paterson will claim that onshore wind is both unpopular with the public and expensive for consumers. Neither is true.

While there is some local opposition in communities to the nearby construction of wind turbines, nationally 67 per cent of the public support them as a source of energy.

Similarly, the latest figures from Ofgem show that, of an average annual household bill for gas and electricity of £1330, just £41, or about 3 per cent, is due to the cost of the Renewables Obligation through which wind energy and other sources are currently subsidised.

The government has indicated that climate policies as a whole, including carbon pricing, are likely to add about a further £100 to bills by 2020, but this could be more than offset by energy efficiency measures to cut waste.

The main driver of the rise in household energy bills over the last 10 years has been the increase in the cost of natural gas, the majority of which the UK has to import.

It makes sense to explore the potential of domestic supplies of shale gas, if the environmental risks can be managed, but it is not yet clear how much is economically recoverable, and even optimistic forecasts suggest that it will not stop our reliance on imports or lead to a significant reduction in household bills.

Natural gas could help to quickly reduce emissions if it used in power stations instead of coal, which generates twice as much carbon dioxide per unit of electricity and is responsible for about a quarter of the UK’s annual production of the gas.

But, as the independent experts on the Committee of Climate Change have pointed out, the UK’s power system needs to be decarbonised by 2030, so gas-fired power stations beyond that date will either be used only sparingly to provide back-up to renewables, or else will need to be fitted with carbon capture and storage technology to prevent greenhouse gases from being pumped into the atmosphere.

Unlike Paterson, the Committee has carried out thorough economic and technical analyses of the UK’s electricity system and has concluded a broad mix is likely to be most cost-effective.

So without renewables, the UK will find it more difficult and expensive to reduce its emissions in line with the 2050 target of the Climate Change Act, which was set to allow the UK to contribute to the international goal of avoiding dangerous global warming of more than two centigrade degrees.

Businesses have praised the Act for providing the clarity about the future of government policy that is essential for unlocking billions of pounds in investment in a clean energy economy.

However, Paterson’s call to scrap the Act creates uncertainty, undermining the confidence of investors and increasing the cost of capital.

It shows that Paterson and others on the right wing of Conservative party have yet to identify a set of sensible energy and climate change policies that they will support.

Bob Ward is a fellow of the Geological Society and policy and communications director at the Centre for Climate Change Economics and Policy and the Grantham Research Institute on Climate Change and the Environment at London School of Economics and Political Science

Bob Ward is policy and communications director of the Grantham Research Institute on Climate Change and the Environment at London School of Economics and Political Science.

Photo: Getty
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No, John McDonnell, people earning over £42,000 have not been "hit hard" by the Conservatives

The shadow chancellor's decision to support this tax cut is as disappointing as it is innumerate. 

John McDonnell has backed Conservative plans to raise the point at which you start paying the 40p rate (that’s 40p of every pound earned after you hit the threshold) to above £45,000 by April 2017 (part of the Conservative manifesto pledge to raise the 40p rate so that it only covers people earning above £50,000 by 2020).

Speaking to the BBC, the shadow chancellor said that those affected “need a tax giveaway at the moment because the mismanagement of the economy by the Conservatives is hitting them hard”.

Is he right? Well, let’s crunch some numbers. Let’s say I earn £42,000, my partner doesn’t work and we have two children. That puts our household in the upper 30 per cent of all British earners, and, thanks to changes to tax and benefits, we are 1.6 per cent worse off than an equivalent household in 2010. Have we been “hit hard”? Well, no, actually, in point of fact, we have been the least affected of any household with children of the coalition.

The pattern holds for every type of household that will feel the benefit of the 40p rate hike. Those with children have seen smaller decreases (1.0-2.3 per cent) in their living standards that those in the bottom three-quarters of the income distribution. The beneficiaries of this change without children, excluding pensioners, who have done well out of Conservative-led governments but are unaffected by this change, have actually seen increases in their tax-home incomes already under David Cameron. There is no case that they need a bigger one under Theresa May.

But, nonetheless, they’re getting one, and it’s the biggest bung to higher earners since Margaret Thatcher was in office.  For context: a single parent family earning £42,000 is in the top 15 per cent of earners. A family in which one person is earning above £42,000 and the other is working minimum wage for 16 hours to look after their two children is in the top 13 per cent. A single person earning £42,000 is in the top 6 per cent of earners.  

That’s before you get into the big winners from this policy, because higher earners tend to marry other higher earners. A couple with one person earning £45,000 and the other earning £35,000 is in the top three per cent of earners. A couple in which both are earning £45,000 with one child are in the top four per cent.  (Childless couples earning above average income are, incidentally, the only working age demographic to do better since 2010 than under New Labour.)

And these are not cheap tax cuts, either. To meet the Conservative proposal to raise the 40p rate to £50,000 by 2020 will cost £9bn over the course of the parliament, and giving a tax cut to “hard-pressed” earners on £42,000 will cost around £1.7bn.

The political argument for giving up on taxing this group is fairly weak, too. Hostilty to tax rises among swing voters extends all the way up to the super-rich, so Labour’s commitment to the top rate of tax has already hurt them among voters. To win support even for that measure, the party is going to have to persuade voters of the merits of tax-and-spend – it makes no sense to eschew the revenue from people in the top five per cent of earners while still taking the political pian.

Which isn’t to say that people earning above £42,000 should be tarred and feathered, but it is to say that any claim that this group has been “hit hard” by the government or that they should be the target for further tax relief, rather than clawing back some of the losses to the Exchequer of the threshold raise and the planned hike in the higher rate to £50,000, should be given extremely short shrift. 

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