DESNZ shedding nuclear ministers as spending review threatens net zero mission
The Department for Energy Security and Net Zero (DESNZ) has lost two ministers in the span of a month in a blow to Energy Secretary Ed Miliband.
Philip Hunt, nuclear minister, retired less than a year into his tenure, citing wanting to spend more time with his family.
He was followed in short succession by Margaret Curran, who was appointed on the 22nd May. She stepped down on Friday, citing health reasons.
The resignations come amidst talks that the government’s net zero mission could be at stake following next week’s spending review.
The turnover is unlikely to help the DESNZ ministers lobby for a better deal.
Whitehall’s environmentalists are concerned that the clean power agenda could be buried under other priorities – and louder lobbies.
The cabinet has reportedly been warned by the Treasury they will have to be “ruthless” in finding ways to save money ahead of the review.
“There are good things that I’ve had to say no to,” the chancellor said, with the justification that “it is important to have control of the public finances.”
DESNZ has two overarching ambitions: to achieve clean power by 2030, and to hit net zero by 2050.
Nuclear-level plans
The nuclear portfolio has been known to be “easier,” as it’s not a major priority for Miliband. It is also an area which moves at a glacial pace, as nuclear power plants take several years to build – and that’s without severe delays and the ballooning costs that ensue.
However, there might be some twitching in the nuclear energy space, indicating things might get moving.
The winners of the multi-billion pound contract on small modular reactors – or ‘mini nukes’ – are likely to be unveiled in the lead up to the spending review.
The spending review “forced the government’s hand” to make big policy decisions on nuclear energy, an industry figure has said. But a former Whitehall official said “the Treasury has always been skeptical of nuclear because it costs so much.”
Homes stay warm
Energy Secretary Ed Miliband has been vying to sustain his projects, particularly the flagship £13.2bn warm homes plan, which Rachel Reeves was considering hollowing out – though other sources claim the warm homes plan is safe.
If the warm homes plan gets cut, the entire clean power 2030 mission could be at stake, and, in turn, so could the reputations of Miliband and his cabinet.
DESNZ has declined to comment “on speculation.”
The warm homes plan comprises a number of schemes providing grants and low-interest loans for improved insulation or low-carbon heating installations.
The warm homes plan would insulate properties and make them more energy efficient, which promises to lower household bills for millions – though the plan is not without its critics.
Campaigners have said that reinstating the much-politicised winter fuel payments is worth little if homes do not become better insulated and more energy efficient.
The plan is also expected to create more than 4 million jobs, as the government aims to upskill workers to insulate and retrofit homes.
Charging GB Energy
There has also been speculation that GB Energy might have its funding cut.
GB Energy, a new publically–owned energy company, is meant to receive £8.3bn in public investment before the end of the decade – and crowd in much more.
GB Energy interim CEO told POLITICO that he had been assured his mandate was safe.
Miliband has prevailed, according to the Telegraph, in protecting some of his big projects. But it’s likely something will have to give in next week’s spending review, as defence, NHS, and welfare spending see major uplifts, and departments like DEFRA see their funds thinned out.