Expert warns Labour and Tory energy policy ‘don't drastically differ’

A LEADING economics expert has said that Labour and the Conservatives “do not drastically differ” on energy policy.

Speaking to Energy Voice about the debate around energy during the General Election campaign, Leo Mercer – policy analyst at the London School of Economics Grantham Research Institute – also said Labour’s manifesto was “good on rhetoric but light on detail”, particularly when it comes to its GB Energy pledge.

It comes as a senior Labour figure appeared to rule out any compensation for Waspi women while speaking on BBC Radio 4’s Today programme.

When comparing energy policy between Labour and the Tories, Mercer said the parties “no not drastically differ”.

He said: “Labour is much more optimistic, stressing the opportunities investing in green industries could bring for the UK, the Conservatives are more cautious, warning about the costs and risks to the country of moving too fast."

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Meanwhile, Mercer said the Conservative party’s net-zero strategy for the sixth carbon budget is still not legally compliant with the Climate Change Act.

The Tory manifesto lacks any “substantively new policy that will shift the dial on this”, Mercer added.

Similarly, he said that the Labour manifesto is “good on rhetoric but light on detail” on the key election pledge of the publicly owned GB Energy, which has drawn criticism after Keir Starmer admitted it was "not an energy company" but an "investment vehicle".

‘No serious economist thinks new licenses will boost energy security’

Mercer said the Conservatives had played a key role in making new North Sea oil and gas licenses a key topic in debates.

He added that the party had partly used energy security as a wedge issue against Labour, and partly as part of efforts to see off the electoral threat from Reform.

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“This is why [the Conservatives] are advocating continued licensing in the North Sea,” Mercer said.

“No serious economist worth their salt believes that future licensing in the North Sea will boost domestic energy security or lower prices, given that the fields are in production decline and natural gas is a global commodity with pricing set at the margins as an international commodity.”

He added: “What we need to see from both parties are responsible statements which recognise the continued role of North Sea oil and gas in the UK energy mix, but that this is a declining role which necessitates labour market transition plans to ensure a just transition for oil and gas workers in north east England and Scotland.”