The renewable energy industry's chief lobbyist has warned that a Reform UK government fulfilling its promise to scrap subsidy contracts for green projects could trigger economic turmoil reminiscent of the Liz Truss era. Tara Singh, chief executive of RenewableUK, said the policy would severely undermine investor confidence in both the energy sector and the wider UK economy.
Singh, a former energy adviser to David Cameron, cautioned that stripping projects of subsidy contracts would send a damaging signal to investors, potentially raising the cost of building new infrastructure across the economy. "We've all lived through a Liz Truss era, and I don't think this is something that we would want to go back to," she said.
Reform UK's deputy leader, Richard Tice, last summer issued "formal notice" to large renewable developers that the party would axe any deals struck in the government's subsidy auction if it came to power. In a letter to energy companies, Tice said the "political consensus that has sheltered your industry for nearly two decades is fracturing" and vowed to "seek to strike down all contracts".
While the industry initially reacted calmly, concerns have deepened as Reform UK has triumphed in recent byelections. One senior industry figure noted that the party is "clearly positioning themselves as a force to be reckoned with, as the next government in waiting". They highlighted the economic benefits of offshore wind operations, which are bringing billions in investment and employing local people.
Singh argued that the policy "wouldn't save any money" because developers could sue to enforce watertight private law subsidy contracts. She pointed to Spain's experience after the financial crisis, where scrapping solar subsidies led to over 50 international lawsuits, reputational damage, and higher costs for all new infrastructure. She urged all parties to avoid a "culture war" over energy policy and focus on energy security, costs, and job creation.
Renewable energy projects are now cheaper to build than new gas plants, even before the Middle East war caused a fossil fuel supply crisis. The industry is expected to account for 112,000 jobs by 2030, many in Reform-leaning areas. Singh noted that even among conservative voters, there is a clear majority in favour of net zero, and renewables offer "by far the best value".
