Rachel Reeves has ditched the Conservative’s “absurd” onshore windfarm ban in a bid to reboot the economy as she said the new Labour government’s economic inheritance was the worst since the Second World War.
The chancellor has ordered civil servants to compile a dossier on the state of the economy after 14 years of Conservative rule.
In a speech at the Treasury, she said she had repeatedly warned about the dire state of the public finances during the general election and “what I have seen in the past 72 hours has only confirmed that”.
“Our economy has been held back by decisions deferred and decisions delayed… political self-interest put ahead of the national interest,” she said.
It came as:
- She warned public sector workers she would have to make “difficult choices” on pay.
- She said she was prepared for “short-term political pain” to fix Britain’s foundations.
- Labour’s housebuilding targets will involve building on some of the ‘green belt’, while its boundaries will be reviewed.
- Councils will also be given newly restored mandatory housebuilding targets.
- But she pledged Labour will not use its large majority to renege on its tax promises.
- New Treasury analysis, ordered by Ms Reeves, showed that if the economy had grown at the OECD average since 2010 the economy would be £140bn bigger – with £58bn more for public services.
In one Labour’s first major shakeups since taking power, the party scrapped the de facto ban in England which has been in place since 2015.
Ms Reeves also said Labour would look at whether to class onshore wind as a nationally significant infrastructure – a move that would allow large farms to get planning approval more quickly.
“We will get Britain building again… we will get Britain growing again,” she vowed, adding: “As of today we are ending the absurd ban on new onshore wind in England.”
She added: “We must acknowledge that trade-offs always exist. Any development may have environmental consequences, place pressure on services and rouse voices of local opposition, but we will not succumb to a status quo which responds to the existence of trade-offs by always saying no.”
The move was welcomed by the energy sector and environmental campaigners.
Under the previous rules onshore wind was treated differently from other developments – effectively stopping schemes going ahead if there were any objections.
Labour had said it would overturn the ban within weeks if it came to power.
The party wants to double onshore wind as part of its plans to transition to more clean energy by 2030.
One of the cheapest forms of new power, it can cut dependence on expensive gas and help slash climate emissions, according to experts.
Energy UK’s chief executive Emma Pinchbeck said: “It’s excellent to see the new Government prioritise planning reforms as a key enabler for economic growth and enhancing our energy security.
“Unblocking the planning system, removing the de-facto ban to double onshore wind and ensuring adequate resourcing for planning authorities are crucial steps the industry has long been calling for,” she said.
But she warned that the previous ban had significantly reduced the pipeline for new developments.
Industry body RenewableUK’s chief executive Dan McGrail said that lifting the ban was “long overdue and we’re delighted that Labour has made this one of its first priorities in office.
“This shows that the new Government is determined to act fast to tackle some of the longstanding barriers which have held the UK back on developing vital new clean energy infrastructure.”
He said public support for onshore wind was “sky-high”, with 78 per cent in favour of the technology in official polling.
Modern turbines were more efficient and powerful than older wind farms, he added.
Alethea Warrington, senior campaigner at climate charity Possible, described the announcement as a “really positive step forward for our climate, our economy, and our energy bills”.
“This is a sensible, practical move which reflects the UK public’s strong support for onshore wind, which goes across political parties and every constituency.”
During his race for the Tory leadership two years ago, Rishi Sunak vowed never to “relax the ban on onshore wind in England, instead focusing on building more turbines offshore”.