What do we know so far about the new Labour government's plan for environment and energy?

We are almost a month into Andy Burnham MP’s premiership, but there still isn’t much clarity on the new government's energy and climate policy. There has been, however, a huge emphasis on tackling the cost-of-living, with the PM’s first major policy announcement being a VAT cut on electricity bills. With a budget pencilled in for the 28th October, there will be continued speculation on the government's position on a number of climate issues, particularly on North Sea drilling and nationalising certain utility companies.

Here’s what we do know so far about the key appointments and political signals which can give us some insight into what to expect.

The New Secretary of State for Energy Security and Net Zero

Miatta Fahnbulleh MP, the new Energy Secretary, was previously CEO of the New Economics Foundation and Head of Policy/Research at IPPR. As the head of the NEF for 6 years, Miatta was at the forefront of designing economic policies which operated strictly within environmental limits and addressed social justice. Left-of-centre and a close Burnham ally, she is seen as likely to continue Miliband's pro-climate direction, and is viewed positively by the sector. In 2022 she said, “To have a shot at staying within 1.5C global warming, we can’t have any new oil or gas fields”. More recently, in her first visit as Secretary of State to the Port of Aberdeen, she highlighted that oil and gas have to be a part of the energy mix if affordability and jobs to communities like Aberdeen are to be delivered.

Rosebank Oil Field

As the public consultation on the Rosebank oil field ends next week, the PM and Energy Secretary will have to make their position known soon and make a decision on whether to approve more production on Rosebank and Jackdaw sites. The PM has, however, committed to staying within Labour’s 2024 manifesto, which ruled out granting any more exploration licences. This issue could put the PM and his Energy Secretary at odds, if not with each other, with parts of the Labour Party too. Although the PM would not have appointed Miatta without knowing her public track record, so it is likely at least publicly that they will come to the same view.

Interestingly but probably not surprisingly, Donald Trump, when asked about the Prime Minister, has repeatedly said that he was going to open up the North Sea for drilling, though he has not publicly made this statement.

The New Secretary of State for Environment, Food & Rural Affairs

Angela Eagle MP is the new DEFRA secretary, 27 years after her first ministerial role as a junior DEFRA minister. She is seen as effective and detail-oriented, but not reliably pro-climate and nature, especially on farming. At the top of her in-tray will be what to do with Thames Water; the company is more than £20 billion in debt and only has enough cash reserves to survive until the end of the year. The PM is reportedly wary of the impact this would have on government debt, and therefore is hesitant to go for full nationalisation, but is considering a cooperative model, or putting the company into a Special Administration Regime (SAR).

Nationalisation or Cooperative Model for Water

In the context of Thames Water, which serves 16 million customers, a cooperative model is not a guaranteed success, and has never been tried at such a scale. A SAR, in contrast, would allow the government to restructure unsustainable debts, refocus operations so they serve customers and prevent taxpayer money being spent on a total bailout, with the company eventually emerging as a cooperative. It has been reported that the PM is looking at scrapping insolvency laws so it would be easier to bring key utilities into a SAR, and eventually public ownership. The mayors of North, West and South Yorkshire, who were close to the Prime Minister when he was mayor of Greater Manchester, have all pushed for a non-profit cooperative model that would see ownership of water companies transferred from shareholders to customers.

Why you should take action

The throughline in the Prime Minister's appointments and political instincts is clear: this is a PM who thinks in terms of devolution, local communities, and regional coalitions rather than the top-down Whitehall approach that has not served ordinary communities well for decades. We are still in the honeymoon period, so whether the government can turn rhetoric into visible action which improves lives, remains to be seen.

But what we can see is the new PM is more willing to have a discussion and collaborate, compared to many of his predecessors. A government this early in its life is still shaping policy on water and energy, and led by someone who's shown he listens to regional and local pressure, is more likely to actually factor constituent letters and other feedback into decision-making.

If you've got a view on water company ownership, North Sea oil and gas drilling, or how fast net zero should move, now is a better time than most to write to your local politician and let your voice be heard.