With the upcoming UK general election on 4 July 2024, the main parties have published their manifestos. Economic growth, energy security and net zero targets are key concerns on both the national and international stage and in this article we summarise the manifesto commitments made by Labour, the Conservatives, the Liberal Democrats, the Green Party and Reform UK in relation to the UK energy sector.

Common trends and overlaps – key points

• Net zero and clean energy targets – Labour, the Conservatives, the Liberal Democrats and the Green Party have committed to an overall net zero or clean energy target of sorts, and include direct policy commitments to reach this. Labour, Liberal Democrats and the Green Party have gone further with targets contemplating clean power as the predominant (or even sole) energy source. Reform UK appears to be moving in a different direction and plans to scrap net zero.

• Planning – Labour, the Conservative Party, the Liberal Democrats and the Green Party highlight the need for planning reforms. Labour for example has set out new national policy statements, has committed to making major projects faster and cheaper to deploy by slashing red tape, and aims to build support for developments by ensuring communities directly benefit. Labour has further promised to unblock planning barriers for large-scale solar and onshore wind projects. The Conservativenmanifesto also highlights an intention to bring forward reforms to the planning system to speed up decisions for major infrastructure projects from the current four years to one year. Reform UK plan to fast-track new housing on brownfield sites especially in coastal regeneration areas, Wales, the North and the Midlands.
• Wind and solar – Labour and the Green Party have included quantifiable targets for the future deployment of both wind and solar.
• Retrofit – all parties, except for Reform UK, have made promises to retrofit homes, albeit with varying levels of detail and funding commitments.
• Oil and gas – the Conservatives are clear on thkeir view that that energy security cannot be achieved without oil and gas, and new gas power stations are promised if they were to be elected. By contrast, Labour plans to remove fossil fuels almost entirely from UK electricity generation by 2030 and only keep a "strategic reserve" of gas power stations. Reform UK plans to accelerate oil and gas licences in the North Sea.
• Electricity Grid – save for Reform UK, all parties acknowledge the need for increased investment in grid infrastructure.

Net Zero

Labour, the Conservatives, the Liberal Democrats and the Green Party have all made commitments to deliver on Net Zero policies, with differing timelines and objectives. Labour wants the UK to be the green finance capital of the world, mandating UK-regulated financial institutions – including banks, asset managers, pension funds and insurers – and FTSE 100 companies to develop and implement credible transition plans that align with the Paris Agreement's 1.5°C goal. Reform UK plan to "scrap net zero" and has called net zero "the wrong bit, at the wrong price, in the wrong timeframe". 

Renewables

All the Parties, except for Reform UK, are committed to the deployment of increasing amounts of renewable energy, each with a focus on different technologies and deployment aims.

Labour's manifesto outlines three priorities to deliver its vision for UK renewables. Firstly, it would deliver a Local Power Plan working with local authorities, energy companies and co-operatives to develop onshore wind, solar and hydropower projects. Secondly, it promises to unblock planning barriers for large-scale solar and onshore wind projects. Finally, it would lead a global "Clean Power Alliance" in which countries cooperate to protect and enhance low carbon supply chains.

If elected, Labour would introduce a new Energy Independence Act establishing the framework for its energy and climate policies, and to provide the basis for the establishment Great British Energy (GB Energy). GB Energy would be a publicly owned renewable energy company set up within the first year of government. Labour would give GB Energy £8.3bn over the next five years and it is envisaged that GB Energy would partner with industry and trade unions to deliver clean power by co-investing in leading technologies. Initial investments would focus on wind and solar projects, with new technologies such as floating offshore wind, hydrogen and carbon capture and storage also eligible for funding. This would be paid for by £1.7bn from the windfall tax on oil and gas companies, as well as additional borrowing. Labour hopes that each pound of public investment would trigger a further £3 in private-sector funding for projects.

The Conservatives include a pledge to treble offshore wind capacity and ramp up supply chains and grid infrastructure investment.The manifesto reiterates planning reforms to protect the best agricultural land, to make it easier for solar to be located "in the right places" on brownfield sites and on rooftops.

Reform UK say that scrapping net zero could save over £30 billion per year for the next 25 years.

Energy Efficiency

Labour, the Conservatives, the Liberal Democrats and the Green Party have made manifesto commitments to improve the UK's housing stock, including in relation to energy efficiency.

The Conservative party has not increased their commitment to energy efficiency funding beyond the £6bn over the next three years that was announced in December 2023. This included the £1.2bn of the Social Housing Decarbonisation Fund Wave 3 announced just before the election.

Labour pledges £13.2bn for retrofit (£6.6bn on top of current commitments) for retrofitting homes and rolling out clean heat. Labour's manifesto doesn't go into detail about how this funding will be broken down, saying only that Labour would offer a mixture of grants and low interest loans to support investment in insulation and other improvements such as solar panels, batteries and low carbon heating. This additional funding would also help meet another of Labour's related manifesto commitments to 'support councils and housing associations to build their capacity to ensure more social homes can be built'. Labour has also said that it will ensure homes in the private rented sector meet minimum energy efficiency standards by 2030.  Labour has committed to 'work with the private sector, including banks and building societies, to provide private finance to accelerate home upgrades and low carbon heating."

Grid Infrastructure

Save for Reform UK, each of the parties has recognised that there are major issues to be resolved in relation to the UK's electricity grid, both in terms of the physical infrastructure and the process and delays in securing capacity on the grid

The Conservative party has pledged to implement the recommendations of the UK's Electricity Networks Commissioner in the Winser Review to accelerate the deployment of electricity transmission infrastructure with the view to cutting grid connection waiting times to deliver an estimated saving of £15 – £25 per household per year out to 2035. Its manifesto also commits to "a rapid review into the advantages of alternative grid network technologies compared to overhead pylons". The manifesto said the review would "consider moving to a presumption in favour of undergrounding where cost competitive".

The Labour manifesto recognises that the UK's electricity grid has become an obstacle to the deployment of renewable energy and electrification of industry, and it outlines plans to work with the sector to upgrade national transmission infrastructure. Labour have committed to significant, unambiguous targets for expanding the solar and wind sectors. Labour's manifesto notes the need to "rewire Britain" without setting out in detail how this is proposed to be delivered.

Fossil Fuels

The parties take differing approaches to the UK's use of fossil fuels for the future UK energy system, with some promoting the deployment of new assets, or maintaining existing licences and assets, while others are more definitively looking to move the UK away from reliance on fossil fuels as far as possible.

The Conservative party intends to retain the Energy Profits Levy (often referred to as the windfall tax) at its current rate of 35% and the total headline rate of tax on oil and gas profits to 75% until 2028-2029. In contrast, Labour has pledged to increase windfall tax to 38% bringing the headline rate to 78%.

If elected, Labour would not issue new oil and gas licences, although it would honour existing licences and "ensure a phased and responsible transition in the North Sea". The Conservative party has restated its intention to legislate for mandatory annual oil and gas licenses.

Electric Vehicles

Whilst not being "headline grabbing" policies of this election campaign, EVs did nonetheless feature in all manifestos to varying extents. The Conservatives, Labour and Liberal Democrats all committed to further rollout of a national charging infrastructure.

Conclusion

Depending on the outcome of the election, the UK's energy future could look very different. With the UK energy sector in the midst of a fundamental transition, the next government will need to make significant decisions that will have long lasting impacts on the UK's energy sector. With net zero targets, energy security and economic growth remain key concerns, and increasingly important issues for the public, the incoming Government will need to balance its energy policy with the need to ensure that the UK remains competitive in the face of global challenges such as inflation and geopolitical tensions.