The Tony Blair Institute has launched a sharp critique of the Labour Party, branding its approach to energy as "too ideological" and calling for Energy Secretary Ed Miliband to endorse new oil and gas projects. In a newly released report, the think tank argues that ministers should have acted earlier to shield the nation from the volatility of energy prices exacerbated by the conflict in Iran.
Pressure Mounts on Labour's Energy Strategy
This criticism marks the latest in a series of jabs at Ed Miliband's policies from the think tank founded by the former Labour prime minister. The report specifically advocates for backing the Jackdaw and Rosebank fields, asserting that such moves would reduce Britain's dependence on imported fossil fuels and bolster domestic supply chains.
Starmer's Stance on Future Approvals
In a recent statement from the Middle East, Prime Minister Sir Keir Starmer indicated that oil and gas could remain part of the UK's energy mix for years to come. He acknowledged the economic benefits, noting they are "good for revenue, good for jobs," but cautioned that they do not alleviate the "rollercoaster" of high energy bills for consumers.
This comes amid internal clashes within the government over whether Labour should resume oil and gas extraction or adhere to Miliband's focus on green energy. Ed Miliband, who emphasises reliance on renewables over fossil fuels, faces growing pressure to issue new drilling licences off the Scottish coast, putting him at odds with Chancellor Rachel Reeves, who views drilling as beneficial for economic growth.
Key Projects in the Spotlight
Miliband is reportedly considering approval for the Jackdaw gasfield near Scotland, though he remains opposed to the Rosebank oilfield, which is estimated to contain up to 300 million barrels. The Tony Blair Institute's report contends that the UK should have prioritised strengthening domestic supply and reducing exposure to unstable global markets before the Iran war intensified.
Instead, the report claims the UK is pursuing a "riskier" path by rapidly decarbonising the electricity system and increasing reliance on fossil fuel imports. Titled "More than Clean Power: Electrification is the UK's Best Bet for Resilience," the paper calls for a "reset" of the UK's energy strategy while still aiming to meet net zero goals by 2050.
Addressing Systemic Energy Crises
The report highlights that to tackle Britain's "systemic energy crisis," the country requires greater electrification and more affordable power. It argues that the UK's current approach is misaligned with global competitors like China, the US, and India, where energy policies focus on supplying low-cost electricity to drive economic growth, potentially leaving Britain behind.
Tone Langengen, an energy policy expert at the Tony Blair Institute and author of the paper, stated, "Iran hasn't just been an energy shock - it's been a cost-of-living shock and a test of Britain's economic resilience." He emphasised that the case for strengthening domestic supply and supporting projects such as Jackdaw and Rosebank was already compelling, with the crisis merely exposing the UK's vulnerabilities.
Langengen added, "If the government doubles down on the wrong parts of the system, the UK will remain exposed to the same vulnerabilities. The lesson from Iran is clear: the UK doesn't just need more clean power, but electrification, greater resilience, and a more affordable system over time. Without it, households will face repeated price shocks, businesses will carry persistently high costs, and the transition itself will fail."
Government Response and Future Directions
A spokesperson for the Department for Energy Security and Net Zero responded, "We are taking action to bear down on the cost of living, including taking £117 off average energy bills this month and supporting de-escalation in the Middle East. The lesson of yet another fossil fuel crisis is the UK needs to get off the fossil fuel rollercoaster and onto clean homegrown power we control."
As debates over energy policy intensify, the Tony Blair Institute's report underscores the ongoing tension between ideological commitments to green energy and pragmatic considerations of energy security and economic stability in the UK.
