More than half of business leaders support UK Government efforts to phase out fossil fuels, campaigners said, adding that those who favour more drilling for oil and gas are “increasingly out of step with the majority”.
A new survey of leading entrepreneurs found 55% back the government’s position.
Survey findings on Labour’s fossil fuel plan
With Labour having pledged not to issue new licences for oil and gas, almost two-thirds (62%) of the 1,350 questioned as part of the latest UK Business Leader survey said that Labour’s plan to phase out fossil fuels would either have a positive impact on businesses, or no impact at all.
Similarly, 62% said phasing out oil and gas would either benefit the UK economy or make no difference – with 35% fearing there could be a negative economic impact.
Concerns over energy bills and diesel prices
The figures were released ahead of Conservative Party conference getting underway on Sunday, with Kemi Badenoch’s party vocal champions of continued developments in the North Sea.
However, Uplift executive director Tessa Khan raised concerns that a dependence on oil and gas was seeing both businesses and households being “squeezed by unaffordable energy bills”.
Her comments came in the wake of the average price of diesel in the UK going above £2 a litre for the first time.
Meanwhile, the start of October also saw another rise in the energy price cap, with the prospect of further steep rises in bills in January.
Calls for a clean energy system
Ms Khan argued that “business leaders want a clean energy system that cuts costs, strengthens the economy and benefits their customers”, adding that they also want “clear signals from government – including an end to new drilling – that show the UK is serious about the shift to renewables”.
She insisted: “Those demanding more drilling are increasingly out of step with the majority of businesses in this country.
“If this government is serious about energy security and economic growth, it must double down on a clean, electrified energy system and break our dependence on fossil fuels for good.”
James Alexander, chief executive of the UK Sustainable Investment and Finance Association (UKSIF), meanwhile said: “Businesses clearly recognise that breaking the UK’s long-term reliance on fossil fuels makes financial sense.
“We’ve seen just this year how oil and gas dependency can leave companies exposed to sudden price shocks, driving up operating costs and squeezing profit margins.
“Countries that are shifting to clean energy now will be far better placed to convince global markets they are a stable destination for investment in the years ahead. Policymakers must ensure they fully recognise the business consensus on this issue.”
Rachel Solomon Williams, executive director of the Aldersgate Group, stated: “Our business members are clear that clean power and greater electrification are a key route to investment, competitiveness and energy security in the UK.
“The closure of the Strait of Hormuz is yet another reminder of how exposed UK firms remain to volatile international fossil fuel prices.
“The best protection is to make clean electricity more competitive with gas, moving policy costs off electricity bills and onto general taxation, progressing grid development and connection reform, and accelerating economy-wide electrification.
“Above all, businesses need clear, stable, and long-term policy signals to commit the investment needed. With climate impacts already adding costs for businesses, delay is not a cheap option.”
Scott Arthur, Labour MP for Edinburgh South West, said: “This polling confirms that businesses want a clean energy future, not one hooked on fossil fuels.
“The rollercoaster of international oil and gas markets has undermined competitiveness and reduced resilience.
“For Scotland, the transition to clean energy offers huge potential for investment, growth and reindustrialisation.
“With this Government’s industrial strategy, we are offering a route off the rollercoaster, and towards a better future for business.”
