Recently, Labour have passed several policies/licences that will have profound impacts on the environment, the cost of living, and the rural and urban sectors. The two main ones I will discuss are the Jackdaw oil and gas field licence and the changes to the Carbon Border Adjustment Mechanism (CBAM).
Firstly, Labour have given the green light for drilling at the Jackdaw oil and gas field (North Sea, 150 miles east of Aberdeen, Scotland). This has been done to promote UK energy security following troubles in the Middle East (and Strait of Hormuz), provide job security and pursue a green energy transition.
The last point may seem odd, but a new Energy Wealth Fund was announced simultaneously. This will divert taxes levied on oil and gas from the North Sea towards renewable and low-carbon technologies.
Secondly, on 1 January 2027, goods such as cement, steel, iron, fertilisers, hydrogen and aluminium will be subject to CBAM tariffs. This is to try to ensure that foreign importers of these goods will pay the same carbon tax that UK producers are currently subject to.
If you ask me, this looks like Labour cannot decide what their environmental policy is. Drilling at Jackdaw will contribute to climate change; that shouldn’t be a controversial statement. However, we need oil and gas. That is an absolute. I can understand drilling to achieve greater energy independence, especially since last year, according to the ONS (Office for National Statistics), we imported £9.90 billion of gas, £7.80 billion of crude oil and £636.00 million of electricity.
Producing our own gas and oil should drive these costs down and, by extension, the cost of living. (This assumes we don’t export crude oil, yet last year we exported £690.30 million of it while importing vastly more. I don’t know why.)
However, the CBAM changes seem to contradict the previous policy. To pursue a green future, Labour have effectively raised the price of hydrogen, which I, as a chemist, would say is probably one of the most promising renewable fuels. Furthermore, the inclusion of fertiliser will drive up the cost of living drastically while strangling domestic food production and security.
Last year, we imported £6,446.96 million of crude and refined fertilisers, according to the ONS. I was unable to find data on how much was produced domestically, but I would be willing to bet that it’s less than we imported.
Additionally, during the last general election, Labour pledged to build 1.5 million homes, a goal they will miss regardless; the CBAM tariffs on cement, steel, aluminium and iron will all serve to harm this. Not to worry, though: the cost of many products will be driven up regardless, as a direct effect of these tariffs.
What Labour’s ultimate goal is by the next general election is completely beyond me. They have the will to pump millions of taxpayers’ money into tackling the cost of living, but simultaneously drive it up far more than they can fix. They call for improved security of critical commodities while actively destabilising them.
This selection of policies seems to lack any sense of cohesion.
