OPINION
Labour risk the acceleration of decline (Image: PA)
In an increasingly volatile world, the United Kingdom must be honest about the vulnerabilities we face and resolute in the steps we take to secure our national interest. Energy security is not a peripheral issue; it is fundamental to the stability of our economy, the resilience of our households, and the strength of our global position. Today, the most pressing challenge is to ensure that British industry and families have access to reliable, affordable, and domestically produced energy.
In the short term, the North Sea continues to play a crucial role in meeting our energy needs. Oil and gas production from our continental shelf underpins economic activity, supports around 200,000 jobs, and provides a critical foundation for energy resilience. However, we must also be clear-eyed: the North Sea is a declining asset. Even with new licences, it will not be able to meet the UK's energy demands alone in the decades to come.
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The Climate Change Committee is right to acknowledge that oil and gas will remain part of our energy mix beyond 2050, but in diminishing volumes. We must plan accordingly.
A long-term, secure energy strategy must be rooted in diversity. That means expanding our capacity in renewables and nuclear energy: sectors in which the United Kingdom has world-class potential and a skilled workforce capable of leading the transition.
These technologies are not merely about environmental targets; they are about national strength, economic opportunity, and strategic independence.
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Gas currently plays a disproportionate role in our energy system. It sets the wholesale electricity price 97% of the time, and heats 85% of British homes. This reliance leaves us exposed to the geopolitical manoeuvrings of hostile regimes.
The Kremlin’s weaponisation of energy supply and instability in the Middle East serve as stark reminders of the need for a more sovereign approach to powering Britain.
This is why we must continue to support domestic production from the North Sea in the near term, whilst building up a broader energy base that safeguards us in the long term.
To do so, the Government must take a pragmatic, balanced approach; one that supports the transition without undermining the industries and communities that currently keep the lights on.
Unfortunately, Labour's policy platform offers no such balance. Driven by arbitrary deadlines and ideological rigidity, it risks accelerating decline in traditional energy sectors without having built the capacity to replace them. That approach is not only economically reckless, it is strategically na？ve.
It is equally concerning that the continuation of the windfall tax, in its current form, is sending damaging signals to investors. It may be politically convenient, but it is economically short-sighted. In recent months, 600 jobs have been lost in the sector. The longer-term risk is even greater: if capital is driven away, companies will neither invest in the North Sea nor in the new generation of renewable and nuclear projects Britain needs.
The transition to net zero should not be an exercise in central planning. It must be guided by the market and led by private investment. A more effective approach would be to introduce a Clean Energy Investment Allowance; encouraging oil and gas firms to channel profits into low-carbon technologies, ensuring the sector is a bridge to the future rather than a relic of the past.
Critically, we must address the supply chain vulnerabilities that threaten the security of renewables. At present, too many key components are sourced from China. We need to reduce this dependency by reforming planning rules, expanding freeports, and creating an investment climate that encourages domestic production.
In places like Teesside, we have seen how such policies can revitalise communities and anchor critical industries here at home.
Nuclear power must also form a central pillar of our energy future. The SNP’s ideological opposition to nuclear energy is denying Scotland the opportunity to benefit from billions of pounds of investment and thousands of high-quality jobs. It is time for that policy to change.
In a world where energy is increasingly weaponised, the imperative for national resilience is clear. Britain must never again be held hostage by those who seek to use gas pipelines or oil supplies as levers of coercion.
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Our answer must be a secure, sovereign energy system. One that combines the reliability of North Sea production with the promise of renewables and the enduring power of nuclear.
Energy security is not simply about economics or climate; it is about national security. By investing in a balanced, pragmatic, and sovereign energy strategy, we can protect British households, sustain skilled jobs, and safeguard our country for the future.
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