Labor’s energy policy will be a ‘triple blow to Britain’

The Conservatives say Labour’s energy policy will be a “triple blow” to the UK as they renewed their tax attack on their rivals.

Labor said North Sea oil and gas production “will be with us for decades to come” but would not issue new licenses to explore new deposits because “it won’t cut a penny off our bills, won’t give us energy security and will only will accelerate the deepening climate crisis.”

The Conservatives said analysis of such a ban suggested it could lead to an estimated loss of tax revenue of £4.5 billion over the next 10 years and put tens of thousands of jobs at risk.

Sir Keir Starmer’s party dismissed the Tories’ claims as “more desperate nonsense”.

Labour’s manifesto states that the party will not revoke existing licenses and that the North Sea will be managed in a way that does not threaten jobs.

The party also pledged to close windfall profits tax loopholes on oil and gas companies to help finance clean green energy plans.

Energy Secretary Claire Coutinho said: “Labour’s energy policy will be a triple whammy for the UK; lost jobs, higher taxes and destroyed investments.

“While Labour’s energy policy is light on detail, one thing we do know is that it runs the risk of turning out the lights and raising taxes to pay for it.

“The Conservatives are the only party with a clear plan to protect our nation’s energy security and lower energy bills for you and your family.”

In the last parliament, the Tory government’s Offshore Oil Licensing Bill was approved by the House of Commons but did not come into force because it did not pass all the necessary stages before calling a general election.

The bill would require the industry regulator to conduct annual rounds for new oil and gas licenses, subject to stringent new emissions and import tests.

The government saw it as a way to maximize oil and gas production in the North Sea, although critics suggested it would make little difference and promoted the belief that the UK was retreating from climate action.

The Conservative manifesto pledges to renew the legislation, triple the capacity of offshore wind farms, build the first two carbon capture and storage clusters for technology that captures and permanently stores carbon emissions, and invest £1.1 billion to support the development of green industries.

In response to the Tory claims, a Labor Party spokesman said: “This is even more desperate nonsense from the Conservative Party, which has lied throughout this campaign.

“Labor will impose an appropriate windfall profits tax on oil and gas companies making record profits and raise billions in extra tax revenue that we would use to invest in clean energy produced in-house through Great British Energy.

“Conservatives oppose this plan because they are too weak to tax the oil and gas giants fairly. Every family has paid the price of 14 years of failed Conservative energy policy in higher bills and is at risk of future energy shocks that could cost households over £900.

“All this latest desperate attack shows is that the Conservatives’ 2035 plan will actually leave the country twice as vulnerable as it is today, while independent analysis shows Labour’s plans will cut imports, cut bills and increase our energy security “.

Jess Ralston, head of energy at the Energy and Climate Intelligence Unit, a think tank, said: “Oil and gas production in the North Sea has been falling for years and any new exploration licenses will do nothing to stop this decline, or at best make it worse. marginal difference from production.

“On the other hand, North Sea wind farms and renewable energy sources in general can have a really big impact on our energy security.

“Given the industry’s inexorable decline, North Sea workers need to know an appropriate relocation plan. Some experts suggest that 90% of current oil and gas jobs could find a new home in offshore renewables.

“Either way, it’s about accelerating the deployment of renewables to secure jobs and the UK’s energy independence.”