UK Chancellor reduces funding for Labour's net-zero offshore wind projects

The Treasury said it will limit public funding for offshore wind projects to schemes that demonstrate lower household bills and proven grid connections. The move is expected to make it more difficult for the Labour Party to meet its pledge to generate 95% of electricity from renewable sources by 2030, a goal outlined in its 2024 manifesto.

The Climate Change Committee has projected that annual spending on the UK's net-zero transition could rise from about £15 billion in 2025 to over £30 billion by 2029, with total costs for the decade exceeding £125 billion. The committee noted that financial benefits from decarbonisation are unlikely to materialise until around 2040.

Energy Secretary Miatta Fahnbulleh acknowledged the challenge, stating it would be "pretty hard" to deliver clean power while also reducing household energy bills. She added that net-zero plans are "necessary but not sufficient" for cost reductions, emphasizing that the public gauges success by bill levels and comfort rather than gigawatt output.

A government spokesperson reaffirmed the commitment to clean power by 2030, citing £110 billion of private-sector investment and sufficient capacity for more than 20 million homes, while stressing the focus on delivering lower bills and industrial growth.

Labour figures close to former leader Ed Miliband said he opposed the funding cuts and supported measures to lower energy costs. Deputy Prime Minister Andy Burnham reiterated Labour's intention to uphold its manifesto commitments but ruled out a general election within the next year, saying his priority is serving the public rather than party prospects.