Labour’s net zero plans risk poorer households subsidising the rich
Poor households risk subsidising the rich under the Government’s net zero plans, a leading think tank has warned.
The Resolution Foundation, which has close ties to Labour, said the vast majority of green projects, such as wind and solar farms, were likely to be in wealthier areas in the South of England.
In its net zero blueprint, Labour promised to “ensure local people benefit directly” from new energy production projects near them. This has led to speculation that the Government will either offer discounted bills or make investments in areas.
However, the Resolution Foundation, which was until recently run by Torsten Bell, who is now a Labour MP, warned that this threatened to widen the gap between richer and poorer parts of the country.
Its analysis found that the vast majority of planned green projects were in richer areas, with 60pc of proposed solar schemes in the wealthiest 40pc of neighbourhoods in the country.
Resolution Foundation’s senior economist Jonathan Marshall said: “It is important that using financial incentives to assuage locals’ concerns – as proposed by both the new and previous government – does not lead to widespread compensation from younger, poorer and urban households to their older, wealthier and rural counterparts.”
He said the Government should “think hard” about the scale of any payments as, if they were too small, they might not “appease older households for whom disruption will start immediately but benefits will only be realised over decades”.
“Too large and they risk seeing poorer urban households overcompensating their better-off and retired counterparts.”
The warning comes as Labour pushes ahead with its plans to speed up net zero, including aiming to decarbonise the National Grid by 2030.
The Government has already moved to approve new green infrastructure projects as part of the push. Ed Miliband, the Energy Secretary, this month gave the green light to Britain’s biggest solar farm, which is to be built in rural eastern England.
The decision sparked a fierce local backlash, with MPs and campaigners arguing that it put the nation’s food security at risk and failed to take into account residents’ views or expert evidence.
The Examining Authority – the Government’s planning inspectors – had previously found that the scheme’s significant costs were not outweighed by any kind of public benefit.
The Resolution Foundation said it expected projects such as new solar farms, battery storage and onshore wind turbines to face staunch resistance from local groups.
However, the think tank said the Government “needs to make sure things actually get built”. It said Labour could consider options to combat resistance including making decisions at a central government level rather than in local communities.
This would essentially prevent residents from being able to oppose schemes.
Mr Marshall said: “[Decarbonising the economy] effectively will require overcoming opposition to development from net zero Nimbys, who often live in wealthier parts of the country.
“The Government must be prepared to win these battles, which won’t be popular with some voters, but are vital for the country as a whole.”
A Department for Energy Security and Net Zero spokesperson said: “We are wasting no time in implementing the bold climate and energy plan needed to deliver our mission for greater energy independence.
“In just one week, we have swept away barriers to onshore wind farms, consented more solar power than has been installed in the past year and set out plans for a solar rooftop revolution.
“It is also important we listen to people’s concerns, and where communities host clean energy infrastructure, they should benefit directly from it.”