The King’s Speech and the first key moments that will test Labour’s commitment to green action

This briefing outlines some of the decisions the new government would need to take to prove they are on track to delivering on the climate and nature mandate voters have given them. 

After 14 years of the Conservative government’s failure to act substantively on the climate and nature emergency, it has never been more urgent for an incoming government to take bold, immediate action to turn the tide. Millions of people voted on July 4th for change – burying Sunak’s divisive anti-green agenda once and for all. Voters resoundingly elected a party with a proper plan to turbocharge cheap, clean renewable energy.

To avoid repeating the same mistakes as the last government, and to deliver the real change voters want, the new Labour government must show serious leadership on climate and nature, both at home and on the world stage, without delay. This will require placing the environment at the heart of all government decision-making; standing up to polluting industries; and embracing the huge opportunities for new jobs, cheaper bills and energy independence from investing in a green transition.

There are a number of significant national and international moments over the first 100 days of the new government being in power, which could be considered as early tests of its commitment to delivering the change they have promised. This briefing provides an overview of these moments and outlines some of the decisions the new government would need to take to prove they are on track to delivering on the climate and nature mandate voters have given them.

King’s Speech (17th July)

The test: Put climate, nature and workers’ rights at the heart of the speech.

The State Opening of Parliament will be the first time a Labour government has led a King’s Speech since 2009. This will be the first test for the new government in setting the agenda for the year ahead in Parliament. For climate, nature and workers’ rights to be considered at the heart of the speech, many of the following commitments would need to be included:

Energy Independence Bill

This Bill is needed to set up GB energy, which should have an explicit mandate to support the delivery of the UK’s net zero commitments and the Labour government’s promise to deliver 100% clean power by 2030.

The Energy Independence Bill should also create an obligation on high carbon companies to facilitate workers’ redeployment to greener sectors through training or paying a levy; and the North Sea Transition Authority could receive an updated primary mandate to support the North Sea to become a zero emission energy producer by 2045, alongside mandatory consultation with workers and unions on the transition plan. Other measures to aid UK energy security such as regulations on energy efficiency in rented housing could also be included here.

UN Ocean Treaty (Ratification) Bill

The UN Global Ocean Treaty, a vital global framework for protecting at least 30% of the world’s oceans by 2030, must be ratified into UK law immediately. This follows Labour’s election commitment to make this one of their ‘first measures in government’. Primary legislation is required to do this, much of which has already been prepared by civil servants. This means ratification could easily be completed before the end of 2024 – setting an example to other countries around the world.

Employment Rights Bill

This is needed to deliver reforms promised in Labour’s manifesto – including increasing the minimum wage, ending the practice of ‘fire and rehire,’ banning zero hour contracts, repealing anti-strikes and anti-trade union legislation, and creating a new duty on employers to inform all new employees of their right to join a union. These are critical to help tackle poverty and improve workers’ rights – a precondition for delivering an effective just transition to a clean economy.

Fiscal Lock Bill

This is expected to enshrine Rachel Reeves’ previous commitment to ensure that any significant and permanent tax and spending changes would be subject to an independent Office for Budget Responsibility forecast. Rather than enshrining the Labour Party’s current rigid and arbitrary definition of fiscal rules, it will be vital to enact a fiscal framework that ensures long term fiscal sustainability by moving away from short term targets and enabling green infrastructure investment at scale to capitalise on the opportunities for growth-generation and economy-wide resilience that it provides. Consequently the fiscal rules need to recognise that public borrowing for investment, for example in clean energy and public transport systems, is sensible.

Railways Bill

It is expected that this will be introduced in order to set up Great British Railways, a state-owned holding company for all of the rail franchises as they are gradually taken into public ownership over the coming years when the existing contracts with the private sector expire. Nationalisation of our railways should be an important step in enabling a more efficient and reliable rail network with more frequent services.

Decision on the future of waste incineration (18th July, unless delayed)

The test: Confirm moratorium on new incineration

In April, the previous Defra minister announced a temporary pause on granting new incinerator permit applications to review the government’s policy on incineration on climate and environmental grounds. The previous energy minister made a statement confirming a new deadline of 18th July with reference to potentially approving a plant in Scunthorpe, from which the wider Defra review on incineration would follow. Incineration harms the climate, drives air pollution and worsens living conditions. New incinerators also “lock in” a system that encourages waste and disposable packaging. The new Energy Secretary should rule out the new Scunthorpe plant on 18th July, and the new Environment Secretary should ensure that Defra’s wider incineration review confirms that new permits should not be issued. This would be in line with the Environment Secretary’s promise to deliver a roadmap to a zero waste economy. It would also show whether or not Labour can match the Conservative Party’s manifesto commitment, which promised to “prevent new waste incinerators being built, including those with recent permit approvals, revoking those where substantial construction has not taken place.”

International Seabed Authority (ISA) Assembly (29th July – 2nd August)

The test: Proactively push for a moratorium on deep sea mining.

The ISA meeting will be the first major international environmental negotiation to take place after the election. There will be a debate on developing a General Policy on protecting the marine environment, which could pave the way for a future global moratorium on deep sea mining. The government should support a strong General Policy and build on its existing support for a precautionary pause on deep sea mining to position itself as one of the strongest international voices advancing a moratorium.

Renewables Auction AR6 (August – early September)

The test: Increase funding at the next auction.

Allocating sufficient funding for this auction is critical to scaling up renewables at the pace needed to successfully deliver Labour’s commitment to decarbonise power by 2030. Energy UK have said the budget needs to be doubled to £1.5bn to allow 10GW of offshore wind to go forward, which they estimate as necessary for Labour’s decarbonisation agenda. Decarbonising the entire grid by 2030 is likely to require at least 55GW. The think tank Ember has also said more support will be required in the so-called “AR6” budget to boost offshore wind.  There will also need to be increases in budget for onshore wind and solar.  As Energy UK point out, these costs are in part a reflection of the way contract costs are calculated and don’t change the fact that renewables are the cheapest way to decarbonise. On the current timeline, the auction budget will need to be decided by 1 August with auction results in early September

Spending Review/ Budget (Mid September or October)

The test: Boost green investment and reform taxes.

The earliest likely date for a fiscal event under the new government is 11th September although mid-October seems likely. The government has an opportunity to revive our economy through transforming Britain into a world-leading green industrial powerhouse with hundreds of thousands of new green jobs and genuine energy independence – but only with the right investment and tax reforms. Labour made some initial steps towards this in the party’s manifesto – such as the promise to invest an extra £6.6 billion over the next parliament in warm homes, and the plan to abolish non-dom tax status and end the use of offshore trusts to avoid inheritance tax.

The Spending Review or Budget should deliver on all existing manifesto and Green Prosperity Plan promises for tax reforms which focus on the wealthiest and most polluting in society and green infrastructure investment and build on them to deliver the boost our economy needs – including but not limited to:

• An additional £15bn over the parliament to deliver a national home retrofit programme for energy efficiency (assuming ECO carries on at current level and other monies committed so far are additional).
• An extra £8-10bn per year of public investment to boost bus, rail and cycling infrastructure expansion and electrification, alongside at least an extra £1bn per year to indefinitely cap single bus fares outside of London and provide free bus travel for under 25s.
• A minimum of £4bn a year to aid skills development, retraining and job creation, particularly in areas most in need of just transition investment.
• Begin to increase wealth taxes on the super-rich to raise more money for public services, support for the poorest households, and workers in high-carbon industries to retrain and reskill. Building on some of the measures Labour is already considering, the government could begin by equalizing capital gains with income tax rates, which could raise up to £15.2bn a year; and close inheritance tax loopholes, which are used by a small minority of very wealthy people and currently cost around £1.4bn a year. The party should also urgently explore alternative revenue raising options which ensure that the greatest burden falls on the broadest shoulders.
• Deliver the promised reforms to the oil and gas windfall tax (including extending the sunset clause to the end of next parliament, increasing the rate of the levy by 3% and removing the investment allowances). This should go alongside ending fossil fuel producer subsidies (worth around £3.35bn/yr) and a commitment to explore further options for taxation through the fossil fuel industry’s value chain, in order to raise new public finance to support communities at home and abroad facing growing impacts of climate change.

COP29 (11 Nov – 22 Nov)

The test: Champion a global agreement to phase out fossil fuels and make the industry pay through greater taxation to support people at home and in developing countries facing growing climate impacts.

The next climate COP is a chance to demonstrate on the world stage that the UK is once again playing a progressive and constructive role on global climate action, guided by a recognition of our country’s responsibility towards developing countries and the most climate vulnerable communities around the world. Building on Labour’s world-leading policy to end new oil and gas licences, the government should join the Beyond Oil and Gas Alliance to advocate for other countries to introduce similar policies, and kick-start a properly funded just transition strategy in collaboration with workers and unions to set an example around the world for what a fair fossil fuel phaseout looks like. Alongside this, as part of Labour’s contribution to the New Collective Quantified Goal climate finance negotiations this COP, the government should commit to commissioning an independent review into domestic polluter tax options to raise more public funds for climate-impacted communities at home and abroad. It should also support a COP outcome that commits countries to introduce more taxes on polluting companies, including the fossil fuel industry, for the same purposes.

Global Plastics Treaty – Fifth round of negotiations (INC5) (25 Nov – 1 Dec)

The test: Push for a strong global target to cut plastic production at source

The next round of negotiations for the Global Plastics Treaty is a major opportunity for the Labour government to take a stronger approach than its predecessor. The government must send a Minister to the negotiations and push for a strong global target to cut plastic production. Ahead of the negotiations, the government must push for a treaty that is ambitious, legally binding and addresses all forms of plastic production without loopholes – and immediately sign the Bridge to Busan declaration, as many other European countries have done to push for production reduction to be part of the final treaty text.

New oil and gas (likely within the first 100 days)

The test: Rule out new oil and gas licences, including the 35 areas bid for offered by companies under the previous government within the 33rd licencing round.

The Labour manifesto promised that “we will not issue new licences to explore new fields because they will not take a penny off bills”. Before the election, the last government initiated a licencing round – the 33rd round – allowing companies to bid for blocks of seabed for potential exploitation. Within the 33rd round, bids for up to 35 areas of the North Sea are reportedly still awaiting a decision from the North Sea Transition Authority (NSTA). As well as confirming that no new licencing rounds for oil & gas will be initiated beyond the 33rd round, to be consistent with their manifesto commitment, Labour will need to issue a formal decision to prevent the outstanding 35 areas within the 33rd round from receiving licences from the NSTA. The International Energy Agency said in 2021 there should be no new oil and gas fields approved for development if internationally-agreed climate change targets were to be hit.

Planning Reforms (expected within the first 100 days)

The test: Enable electricity grid upgrades to be fast-tracked in harmony with nature, while ensuring communities benefit.

The new government should take a much more proactive approach to strategic planning to avoid a series of protracted and soul-destroying site battles to get new green infrastructure built. National spatial mapping would allow the ideal locations for important new offshore wind, grid upgrade and home-building projects to be identified while still delivering the agreed goal to properly protect at least 30% of our land and seas by 2030. Unhelpful narratives around ‘bulldozing’ planning should be avoided. Government should put resources into the planning system to reduce delays from lack of capacity in agencies like Natural England, and build in nature from the start of development design.

Decision on the future of Tata steel (expected within the first 100 days)

The test: Protect jobs at Tata steel and invest in the industry’s green transition.

The last government failed to create a coherent industrial strategy for UK green steel, and failed to design a green transition programme for workers in the sector. High grade green steel production is crucial for building a green economy: from building wind turbines to zero emission vehicles. Some of this may well be accessible from recycled steel, but the need for virgin green steel remains strong. Labour must commit early on to maintain jobs and production at scale at Tata steel, and invest in a green transition for the industry, which would include smelting using green hydrogen. That means brokering a package with Tata, working closely with unions and workers, that protects jobs and promotes a green future for the steel industry – in exchange for the money the government is expected to provide. The Conservative government pledged £500m.

Future of Drax (likely within the first 100 days)

The test: End destructive biomass burning which does nothing for climate and damages nature.

Drax is the biggest biomass power station in the world, but subsidies have long been destined to finish in 2027. Drax had planned to have a Bioenergy with Carbon Capture and Storage (BECCS) plant running by then, but delays mean it won’t be going until sometime in the 2030s, if ever. Before the election, the Conservative government consulted on whether to extend the existing subsidy arrangements – subsidy simply for using biomass – for an unspecified extra length of time before the BECCS plant would come forward. Since the subsidy scheme was set up, a series of scandals and exposes about Drax’s sourcing of biomass from SE USA, Canada and Estonia have provided further evidence of the unsustainability of Drax. Think tank Ember have calculated subsidies to Drax for this dubious practice are running at £893 million (2021 levels), which are calculated to rise to £1.73bn per year if the Drax plant goes ahead. The new government will need to decide imminently on this: they should call time on subsidies to Drax.