The chorus from business is now deafening: "give us certainty on energy policy and low carbon investment"

Businesses need to know what will happen in the future, writes RenewablesUK's Maf Smith. A government in turmoil can't provide that.

Government traditionally likes to avoid picking winners. Individual businesses are rightly in competition with each other. This creative tension is what drives our economic success. Such disagreements are why government traditionally goes to great lengths to avoid second guessing the market. 

However, there are some areas of the economy, like our energy infrastructure, where government has to stay at the table. Today, most politicians will agree that there are market failures in our energy system, and government needs to play a role to solve our so called “energy trilemma”: making sure that the lights stay on, ensuring we have secure sources of energy available, while also cutting greenhouse gas emissions. 

But even though government accepts it has a role, it cannot seem to agree on what needs to be done. It’s said that if you ask four different economists about the economy you will get at least five opinions. Right now the same seems to apply when asking UK Government Ministers their view on energy policy. The "Quad" of ministers is still debating the issue in the final run-up to the much anticipated Energy Bill. Meanwhile, the industry is reeling from a public disagreement between the Energy Minister John Hayes and Energy Secretary Edward Davey on the future of onshore wind in the UK. This was followed by the revelation that the Conservative MP Chris Heaton-Harris supported an anti-wind campaigner in the Corby by-election when he was supposed to be running the campaign for the official Tory candidate instead. To those of us getting used to the vagaries of political point-scoring in the Coalition, these spats may look like just part and parcel of day to day coalition Government. However, to the investment community (and especially the increasing number of foreign companies looking to invest for the long term in the UK’s supply chain) they can be unsettling.  

That is because, outside of Whitehall, in business, something interesting is happening. As government goes through the final negotiations before publishing the Bill, business opinion is settling on a shared viewpoint. 

Last week, the British Chambers of Commerce published a survey of 3,500 member companies. 90 per cent of them want the Government to ensure that the UK has a diverse energy mix, capable of avoiding future supply problems, and that the UK “must not find itself in a situation where it becomes more dependent on fossil fuels from overseas or on one technology at home”. 

In the same week as the BCC’s intervention, business leaders from prestigious organisations including Unilever, Kingfisher, EDF Energy, Doosan Power Systems, Heathrow Airport, Philips, Anglian Water and Johnson Matthey jointly wrote to the Prime Minister, expressing their concern that "the on-going divergence of views at the heart of government on the future of this sector…is paralysing investment and undermining the UK’s growth prospects". There have been similar letters and statements from companies as diverse as PepsiCo, Aviva, BT and Marks & Spencer. And recently seven of the world’s top energy companies – who employ 17,500 people in the UK alone – wrote to the Chancellor warning of political risk in current energy policy. 

Added to all this is RenewableUK’s own recent membership survey, in which almost two thirds of companies from the wind and marine renewables sector stated that policy was less favourable to the sector than 18 months ago. Despite this, 90 per cent of those organisations still expect to see growth over the next 18 months, showing the immense opportunity that clearer direction from government could unlock, as well as the furthering of the commitment that over 130 wind energy companies made to Britain via the Wind Energy Charter in May this year. 

For example, investment in offshore wind alone rose by 60 per cent last year. By 2020, the wind, wave and tidal energy industries alone are set to employ more than 88,000 people, from apprentices to highly-skilled engineers. That’s the scale of the prize on offer – as long as the all-important policy framework is right. 

The case being put forward by businesses, who are ready to make once in a generation investments into our economy, is based upon evidence and global trends. But we run the risk that these investments could be delayed. 

They hinge on the agreement of the UK Government’s Ministerial "Quad" – Cameron, Clegg, Osborne and Alexander – who are apparently set to meet to discuss energy policy. Over the autumn, business opinion has got firmly behind the view that our electricity sector needs to decarbonise. Such a shift will protect us against future price rises, open up investment in new technology and manufacturing, and support a new cornerstone of our economy – the green economy – which alone has delivered a third of the UK’s total growth in the last year. Sometimes business opinion settles on a realisation that future prosperity lies in a particular direction. Sometimes it is important that Government can agree that too, that’s why this Energy Bill is crucial for the sector.

Workers build an onshore wind turbine. Photograph: RenewableUK

Maf Smith is the Deputy Chief Executive of RenewableUK, the professional body for the UK’s wind and marine sectors, with 675 member businesses.

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Inside the progressive alliance that beat Zac Goldsmith in Richmond

Frantic phone calls, hundreds of volunteers, and Labour MPs constrained by their party. 

Politics for a progressive has been gloomy for a long time. On Thursday, in Richmond Park of all places, there was a ray of light. Progressive parties (at least some of them) and ordinary voters combined to beat Ukip, the Tories and their "hard Brexit, soft racist" candidate.

It didn’t happen by accident. Let's be clear, the Liberal Democrats do by-elections really well. Their activists flood in, and good luck to them. But Richmond Park was too big a mountain for even their focused efforts. No, the narrow win was also down to the fast growing idea of a progressive alliance. 

The progressive alliance is both a defensive and offensive move. It recognises the tactical weakness of progressives under first past the post – a system the Tories and their press know how to game. With progressive forces spilt between Labour, Liberal Democrats, Greens, the SNP, Plaid Cymru, the Women’s Equality Party and more – there is no choice but to co-operate, bring in proportional representation and then a whole new political world begins.

This move opens up the wider strategy – to end the domination of the City, and right-wing newspapers like the Mail, so Britain can have a real debate and make real choices about what sort of economy and society it wants. A pipedream? Well, maybe. But last night the fuse was lit in Richmond Park. The progressive alliance can work.

Months before the by-election, the pressure group for a progressive alliance that I chair, Compass, the Greens, and some Labour, Liberal Democrat and SNP MPs and activists, began considering this. The alternative after Brexit was staring into the void.

Then the Tory MP Zac Goldsmith stepped down over Heathrow. To be fair, he had pledged to do this, and we should have been better prepared. In the event, urgent behind-the-scenes calls were made between the Greens and the Liberal Democrats. Compass acted as the safe house. The Greens, wonderfully, clung onto democracy – the local party had to decide. And they decided to stand up for a new politics. Andree Frieze would have been the Green candidate, and enjoyed her moment in the autumn sun. She and her party turned it down for a greater good. So did the Women’s Equality Party.

Meanwhile, what about Labour? Last time, they came a distant third. Again the phones were hit and meetings held. There was growing support not to stand. But what would they get back from the Liberal Democrats, and what did the rules say about not standing? It was getting close to the wire. I spent an hour after midnight, in the freezing cold of Aberdeen, on the phone to a sympathetic Labour MP trying to work out what the party rule book said before the selection meeting.

At the meeting, I am told, a move was made from the floor not to select. The London regional official ruled it out of order and said a candidate would be imposed if they didn’t select. Some members walked out at this point. Where was the new kinder, gentler politics? Where was membership democracy? Fast forward to last night, and the Labour candidate got less votes than the party has members.

The idea of a progressive alliance in Richmond was then cemented in a draughty church hall on the first Tuesday of the campaign – the Unitarian Church of course. Within 48 hours notice, 200 local activist of all parties and none had come together to hear the case for a progressive alliance. Both the Greens and Compass produced literature to make the case for voting for the best-placed progressive candidate. The Liberal Democrats wove their by-election magic. And together we won.

It’s a small victory – but it shows what is possible. Labour is going to have to think very hard whether it wants to stay outside of this, when so many MPs and members see it as common sense. The lurch to the right has to be stopped – a progressive alliance, in which Labour is the biggest tent in the campsite, is the only hope.

In the New Year, the Progressive Alliance will be officially launched with a steering committee, website and activists tool-kit. There will also be a trained by-election hit squad, manifestos of ideas and alliances build locally and across civil society.

There are lots of problems that lie ahead - Labour tribalism, the 52 per cent versus the 48 per cent, Scottish independence and the rest. But there were lots of problems in Richmond Park, and we overcame them. And you know, working together felt good – it felt like the future. The Tories, Ukip and Arron Banks want a different future – a regressive alliance. We have to do better than them. On Thursday, we showed we could.

Could the progressive alliance be the start of the new politics we have all hoped for?

Neal Lawson is the Chair of Compass, the pressure group for the progressive alliance.

Neal Lawson is chair of the pressure group Compass, which brings together progressives from all parties and none. His views on internal Labour matters are personal ones.