Cutting by 40%… but these campaigners wanted to cut emissions, not spending
I’m at the Labour party conference in Manchester this week, doing the rounds of the climate fringe events and asking whether ‘Red Ed’ will rediscover his previous persona as ‘Green Ed’. Expect a number of posts reporting back over the next few days.
First up, the future of the Department of Energy and Climate Change (DECC) itself. This emerged as a key concern at this morning’s Fabians discussion on green jobs, with speakers Emily Thornberry MP (Shadow Energy & Climate team), Michael Jacobs (former environment advisor to Gordon Brown), Alan Whitehead MP, and Tony Hawkhead (CEO of environmental charity Groundwork).
The panel expressed great disquiet about the impact of the looming spending cuts on DECC. The department’s current budget is some £3.2bn; cutting its spend by 40% – as the Treasury asked all departments to model earlier this year – would leave it with just £1.92bn to spearhead the low-carbon transition. But it was pointed out that £1.7bn of DECC’s existing budget is spent on nuclear clean-up: liabilities that have to be taken care of and that Government can hardly divest themselves of. Assuming DECC would still be saddled with this responsibility, a 40% budget cut would leave the department with a paltry £220m to support renewables, energy efficiency, low-carbon cars and all the rest. DECC would effectively cease to function as a meaningful department – and it’s understood that DECC officials have said as much to the Treasury.