Labour's jobs warning over renewables threat

LABOUR has warned that plans by Reform UK to scrap renewable energy contracts if it came to power could cost the North East more than 30,000 jobs.

- GRAEME WHITFIELD

The warning from the Government - which follows similar concerns from companies in the renewables sector - came after Reform deputy leader Richard Tice said the party would end companies' access to a clean energy subsidy scheme if it won power.

Last week, Mr Tice wrote to some of the country's largest energy firms giving them “formal notice” that the party would axe deals aimed at offering sustainable generators protection against market volatility. In an interview with the BBC, he later appeared to soften his stance somewhat, saying Reform would try to stop energy companies amending contracts.

The Contracts for Difference (CfD) scheme sees developers guaranteed a fixed price for electricity with the aim of encouraging them to invest in renewable projects.

The scheme is seen as having been crucial in helping the UK develop one of the world's leading renewable energy sectors, with the North East one of the regions benefiting most in terms of jobs created.

Labour said moves to cancel contracts would put almost a million jobs across the country in the clean energy economy at risk, including 31,800 in the North East.

The figures are based on a CBI Economics study on jobs in the clean energy economy.