
The general election saw a landslide victory for the Labour Party which swifty formed a new government. Prime Minister Keir Starmer set out an ambitious policy agenda but while he has a sizeable majority, new Labour MPs in rural seats will be seeking to influence the direction of travel to support their new constituents. This election has also seen the growth of third parties, with more Liberal Democrat and Green MPs also now representing rural areas. So, what does this all mean for the off-grid sector and what can we expect in the crucial first 100 days of the new government?
The previous Conservative administration adopted a heat pump-first approach to decarbonising the UK domestic heating sector, including off the gas grid. However, in response to mounting concern over the cost and disruption off-grid households could face to make the necessary improvements to their property for the technology to work effectively, we saw a growing recognition of the need for alternative solutions. The ban on the installation of new fossil fuel boilers in the home from 2026 was pushed back to 2035 and an amendment to the Energy Bill required the government to hold a consultation on a Renewable Liquid Heating Fuel Obligation.
During the election campaign, the Labour Party went further and committed to scrapping this 2035 target to ban new gas boilers, arguing they didn’t want to ‘force’ homes to ‘rip out’ their boilers. Instead, they said they will focus on incentives for heat pumps to support households who want to adopt the technology. We recognise that heat pumps have an important role to play and we support their installation in suitable properties. Through our heat pump training courses, more and more OFTEC technicians will be delivering this important rollout.
However, for many properties, it simply isn’t practical to install a heat pump. This is particularly true off the gas grid where buildings are typically older and poorly insulated. To achieve our net-zero commitments, we can’t leave these properties behind so we will need find alternative low carbon technologies. That’s why solutions, like renewable liquid fuels which have been proved as an effective alternative, will have an important part to play in a multi technology future.
The new Labour government has also outlined its focus on growth and economic stability. They’ve also recognised the financial challenges facing both the government and consumers. To deliver on this commitment, decarbonisation policy will need to be driven by affordable and practical solutions. This can only be delivered through a pragmatic approach.
Alongside the decisions made at Westminster, newly elected rural Labours MPs will also have an important influence. Historically, off-gird constituencies in the UK have been held by Conservatives but this election has seen a seismic shift. Rural villages from Cornwall, Norfolk, Yorkshire to Scotland now have Labour Parliamentary representatives. Many of these MPs also have relatively slim majorities so they will want to ensure the voices of their off-grid constituents are represented and will be building support within their Party to influence Keir Stamer’s national policy. We saw in the last Parliament the influence backbench MPs can have in driving legislative change.
It’s also not just the Labour Party which will be seeking to influence the UK’s energy policy. This election saw the growth of third parties from the Liberal Democrats, to Green, to Reform. Again, many of these representing off-grid constituencies who will be eager to drive their own policy ambitions through amendments to legislation and putting pressure on the government.
The shift from the Scottish National Party (SNP) to Labour in Scotland and the growth of Labour in Wales, where both countries have high levels of off-grid properties, will also mean the UK government will need a greater focus on ensuring these communities are not left behind in the UK’s net-zero policies. We’ve seen from the outset of Starmer’s premiership his message of wanting to deliver for Scotland and Wales.
So, while the Labour Party has a sizeable majority, it’s a more complex picture and there is now arguably greater representation of off grid communities. The signals from the new government are positive and the off-grid sector has every reason to be optimistic. There is a clear drive to deliver net-zero but also a recognition that budgets are tight and we need to ensure we don’t put unnecessary additional financial burden on the government or consumers.
Our successful demonstration of the renewable liquid fuel Hydrotreated Vegetable Oil (HVO) is an example of the innovation we have seen to deliver practical alternatives. We will work positively with the new government to support a wider rollout and deliver the UK’s net-zero transition.
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