“Let’s shift our focus from the election outcome to what the next few years hold for our customers.
“As we move beyond the recent election and look ahead to the next few years, it’s important to shift our focus to the issues that directly impact our customers. One such significant issue is the transition towards renewable liquid heating fuels.
“During the last parliamentary term, we successfully persuaded all political parties that a Renewable Liquid Heating Fuel Obligation (RLHFO) was the right approach to help the 1.7 million rural homes using fossil fuels transition to renewable liquid heating fuels. The RLHFO provides a cost-effective and least disruptive pathway for these households to contribute to the decarbonisation of the UK’s heating sector. It also aligns with the new government’s objective of achieving clean power by 2030 and, importantly, it doesn’t impose additional strain on the electricity capacity requirements in rural areas.
“Despite the recent changes in political representation in over 50% of the 100 constituencies where the majority of our customers live, we remain optimistic about maintaining cross-party support for this initiative. It’s reassuring that the Labour Party’s manifesto commitment that no one will be forced to replace their boiler fits with our proposed solution.
“As we embark upon this new political landscape, we will engage and collaborate with all MPs across the country to address the unique challenges our customers face and ensure a deep understanding of rural heating issues.”
Collaboration key to growth
Peter Davidson, Chief Executive, Tank Storage Association congratulated Keir Starmer and the Labour Party on winning the 2024 General Election and highlighted his hopes that the bulk storage sector can become a “driver of change” to deliver “growth and prosperity”.
“We look forward to working with the new Government on implementing their manifesto pledges, including the introduction of a new mission-driven and forward focused industrial strategy for the UK with partnership at its core.
“The bulk storage and energy infrastructure sector is an integral part of a complex web of global activities and supply chains and is well set to thrive in the coming years. It is at the heart of the UK’s journey towards carbon neutrality and leading the way to open up new possibilities.
“Our core priorities are ensuring that an industrial strategy for the UK recognises the significant contribution of the sector and its innovative capabilities, that companies can access the capital and talent they need, and working in partnership to ensure this vital sector becomes a driver of change and contributes to shaping the next decades.
“The Tank Storage Association’s 2024 Industry Manifesto sets out six steps that the new Government could take to deliver growth and prosperity by collaborating with the bulk storage and energy infrastructure sector and take full advantage of the wealth of opportunities ahead in the journey to Net Zero.”
Shared goals
Jamie Baker, Fuels Industry UK Director of External Relations noted encouraging signs with regard to funding and skills, but was disappointed in the omission of the role for fuels in transport and heat decarbonisation in Labour’s manifesto.
“The Labour government has been voted in on a promise of ‘change’. But they still face the same challenges with securing investment in net zero, improving regulation and lowering costs, as well as making sure we have the skills we need to deliver on those ambitions.
“And there are signs that the new Government ‘gets it’. There is funding for carbon capture, essential to decarbonise refineries, and an intention to reduce the industrial energy costs that are a key contributor to the UK struggling to attract investment. Skills policy also looks positive, with early commitments to reforming migration rules and bringing through the apprentices we need.
“We do, therefore, look forward to working with government to deliver on our shared goals. However, it was disappointing that there was little mention of fuels in Labour’s manifesto. Other than the (welcome) commitment to Sustainable Aviation Fuels, there was no reference to the role of fuels in decarbonising transport or heating.
“Hopefully, as the new ministers begin work, the valuable role of fuels and the sector which provides them will become obvious as we continue to deliver lower carbon fuels, and deliver them reliably.”
Boost productivity
“Prioritising logistics can kickstart growth”, says David Wells, Chief Executive of business group Logistics UK
The incoming government could begin kickstarting growth in its first 100 days by partnering with the logistics sector to develop Labour’s promised industrial strategy, a move that would boost productivity for all areas of UK PLC, according to business group Logistics UK.
Following Labour’s election success, the business group has outlined how, with the right policies, the logistics sector is key to driving economic growth and, as one of the UK’s largest employers, deliver skilled roles and break down barriers to opportunity.
“Logistics underpins all sectors of the economy to deliver for households, businesses and public services, every day,” explains Logistics UK’s Chief Executive David Wells OBE, “and is a major sector in its own right, employing 8% of the UK workforce. As a result, logistics is ideally placed to help the new government to get the economy moving again, providing its needs can be accommodated in the new government’s industrial strategy.
“If our members are to help get the new government off to the best possible start and give the economy a vital boost, it is essential that the Labour administration supports the logistics sector to drive the growth the country so desperately needs.
“Efficient, cost-effective logistics is critical to every single part of the UK’s economy and our sector is poised to work in partnership with the new government to establish the infrastructure, decarbonisation, skills, innovation and trade policies that will get the country building again. By involving our members in the development of the planned industrial strategy and the government’s missions, we are confident that logistics can deliver productivity gains to supercharge the economy by up to £8 billion a year*.
“It is vital that we power up the country while reestablishing the UK’s industrial strength in a clean, green manner. At the same time, we must work with government to provide the roles that will engage and excite the next generation of logistics talent and future-proof the UK’s supply chain to support trade both at home and abroad.”
Call for a dedicated minister
Logistics UK remains committed to raising the profile and importance of the sector by encouraging the new government to establish the public-private partnership with the industry which was included in the business group’s Manifesto asks. As Wells continues, this will encourage legislators to consider the needs of logistics businesses as an integral part of all business decision making.
“Logistics has a critical role to play in kickstarting growth,” he asserts. “It is vital that the new administration involves our industry in all areas of Whitehall decision-making on the economy, through the appointment of a dedicated minister for logistics and supply chain – our sector’s role and needs should be an integral part of all plans. This will ensure that our industry can facilitate and support the economic development the country needs to return to growth.”
Ambitious plans
The country’s leading hydrogen trade association has also welcomed the election result, describing it as “the most advantageous outcome for the sector”.
Celia Greaves, CEO of The Hydrogen Energy Association said the Labour party had put forward the most ambitious vision for hydrogen and she would be working with the new government to firm up its plans.
“We are looking forward to strengthening our existing solid relationships with Labour Ministers and working with the Labour government going forward to develop the details behind their manifesto commitments,” she said.
“We have had many, useful conversations with the party over recent months leading to collaboration around policies and endorsement for our ambition and work to date.
“In the last few weeks, we have seen Labour double down on its Clean Energy Superpower commitments to cut bills, create jobs and delivery energy security by 2030, with investment pledges and reconfirmation of a £500m green hydrogen manufacturing fund.
“We anticipate continuing to work in partnership with the new government to prioritise clean power in line with pledges made in the run up to the election to maintain momentum and push for climate leadership for the UK on the world stage.
“We hope that the incoming government will bring new enthusiasm to drive forward ambitions that require solid commitment and decisive action.”
Celia added that it was vital to maintain the momentum of the last five years that witnessed the launch of the Hydrogen Strategy in 2021, the Scottish Government’s Hydrogen Action Plan in 2022, the launch of the HAR scheme and the passing of the Energy Bill.
“A lot has been achieved but we have to move quickly to reap the benefits of hydrogen across clean growth, energy resilience and Net Zero goals which the Labour government understands,” she said. “Our new Prime Minister has to realise the ambition with policy specifics to underpin the rhetoric and be prepared to make the big decisions that are required to drive change.”
Global potential
Tony Fountain, Managing Partner at Essar Energy Transition was another welcoming the new government as he reiterated the company’s commitment to a just transition.
“On behalf of Essar Energy Transition, I would like to welcome the incoming government and wish Prime Minister Keir Starmer and his team a productive start.
“At EET, we are committed to supporting communities and job creation in the North West, and look forward to working together with the new Government to achieve a just energy transition that benefits all.
“The UK has the potential to be a global leader in industrial decarbonisation and EET, in partnership with Government, is here to support this ambition.”