UK Energy Investments At Risk Ahead Of Elections

According to a recent report, some $30bn (£24.2bn) of investment in new UK energy projects is at risk if Labour wins the next election. The report suggests that a Labour government could send a signal to investors that the UK is not a secure destination for new energy projects, deterring future investment in renewable energy developments. Despite the potential risks to investments, polls suggest that Labour’s plan to ban new oil and gas projects is popular, with 40% support compared to 32% opposed.

The report indicates that the growing expectation of a Labour government – which has pledged to ban new North Sea oil and gas developments – was already causing energy firms to pivot from the UK. The Conservative government’s windfall tax has already angered many oil and gas firms, with several currently reconsidering their pipeline of UK projects.

It is suggested that demand for energy will remain robust even if domestic supplies are reduced. However, it warns that investment in the industry could fall below $1bn per year by 2027. According to a YouGov poll, Labour’s plan to ban new oil and gas projects is popular among Brits, with 40% support compared to 32% opposed.

Meanwhile, Just Stop Oil has published an open letter calling for Keir Starmer to pledge his resignation if any new oil and gas project is signed off and if the Rosebank field’s potential development isn’t cancelled.