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UK Labour pledges state-owned investment fund for offshore wind in Wales

26 Sep 2022 4 minute read
Shadow chancellor Rachel Reeves speaks to the media. Picture by Yui Mok / PA Wire

A Labour UK Government would set up a state-owned investment fund that would invest in offshore wind off the coast of the north and the south-west of Wales, the party has said.

The fund would allow the UK Government state to invest directly in productive projects and create a return for taxpayers, the shadow chancellor Rachel Reeves told the media.

Powers over the Crown Estate in Wales which controls much of Wales’ coast are currently held in Westminster, with 25% of revenues going to the Royal Family and the remainder to the UK Treasury.

The Labour Welsh Government have called for the Crown Estate to be devolved to Wales as it is in Scotland.

Labour’s plan for offshore wind would see investment go into nine clusters: North Wales and North West, the Celtic Sea south-west of Wales, Forth and Tay, Humber, East Anglia, Solent, Belfast Harbour, North East Scotland, and North East England.

Ahead of her speech at the Labour conference, Rachel Reeves set out the party’s mission to “build British industry”, investing in national projects from battery factories to renewable-ready ports.

She will argue the policy is a “real plan for the climate”, a “real plan for growth” and a “real plan for levelling up”.

The projects would be funded by a National Wealth Fund, with the party’s Green Prosperity Plan, which was announced at the last Labour conference, putting an initial £8.3 billion into a central pot.

The creation of the fund could be modelled on similar institutions in countries like Norway and Singapore and its aim is to create long-term wealth for the UK Government.

The policy would mean that when public money is spent on these projects, the public would own a share of that wealth and benefit from the returns on those investments.

Speaking at the Labour conference in Liverpool, Ms Reeves is expected to say: “Here is the deal: The next Labour Government will create a National Wealth Fund so that when we invest in new industries, in partnership with business the British people will own a share of that wealth and the taxpayer will get a return on that investment.

“Because conference, when I say I want to buy, make and sell more in Britain I mean it.

“What you will see in your town, in your city, under Labour is a sight we have not seen often enough in our country.

“Cranes going up, shovels in the ground. The sounds and sights of the future arriving. Secure, skilled jobs for plumbers, electricians and joiners, for designers, scientists and engineers.

“Wealth that will flow back into your community and onto your high street. Wealth that the British people will own a stake in. Wealth that is invested in our country’s future.”

She will add: “That is a real plan for the climate. That is a real plan for growth. That is a real plan for levelling up.

“A zero carbon economy – made right here… made in Britain.”

‘Good jobs’

Labour said that they wanted to target the money at industries where public investment could attract further private sector spending to deliver energy security and a zero-carbon economy, as well as jobs and growth across the economy.

As well as offshore wind, the projects include eight new battery factories, six clean steel plants, nine renewable-ready ports, the world’s largest hydrogen electrolyser plant and net-zero industrial clusters in every region of the country.

Shadow climate change secretary Ed Miliband said: “It is time to take back control of Britain’s economic destiny by making sure that we build the industries of the future in our towns and cities. An economy by the many for the many.”

“The Conservatives have let good jobs go overseas, and watched our industries lose out as other countries get ahead in the global race.

“We say no more. Labour’s National Wealth Fund is based on a simple idea: that it is time to invest and build the wealth for this country, so we can lead the world in industries such as hydrogen, electric vehicles, green steel and offshore wind.

“This is about good jobs that pay well, with strong trade unions, and with money that flows back into the pockets of the British people.”


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HywelE3
HywelE3
1 year ago

So, Scotland’s and NI’s Crown Estate funds go directly to their governments, but UK Labour wants Wales’s to go to Westminster.
No change there then for Wales, and more ‘muscular unionism’ from UK Labour.
They just don’t get it, do they?
So just go on the march, and the next, and the next, until our voices can’t be ignored.

Ernie The Smallholder
Ernie The Smallholder
1 year ago
Reply to  HywelE3

Scotland has a government by a party based in Scotland – SNP.
NI has elected a Sinn Fein – a party based in Ireland.

This is what Wales gets when they vote for a party based in the England.
Policies will continue to be forced upon us until we elect parties based in WALES.

Welsh Labour really do need to break away from UK Labour.

Ernie The Smallholder
Ernie The Smallholder
1 year ago

This policy uses Wales to benefit England. As always.

What’s that any different to what we almost have now !
There are plenty of Renewable Energy investment trusts.

Dr John Ball
Dr John Ball
1 year ago

And every day will be the first day of spring……There are three fundamental issues here. The first is that any “development” of offshore and other sources of energy should be decided by the Senedd, and not Westminster. We already produce more electricity that we need in Wales so why spoil our beautiful coastline with high, noisy and ugly windmills? The second is the naivety behind this policy announcement. The total lack of skills training throughout the UK (and especially Wales) over the last two decades or more means that these well paid, skilled jobs will be in places like Denmark… Read more »

hdavies15
hdavies15
1 year ago
Reply to  Dr John Ball

Thanks for being focussed about this matter of wind turbines or indeed any “new” technology. Any of these initiatives will bring little or no benefit to Wales unless of course the energy is supplied at minimal prices and that ain’t going to happen. So much government money has been spent on training here in Wales, yet we remain an economy with a very modest level of transferable skills. Training companies with “friends” down the Bay probably did well but the wider “net gain” is not particularly visible. Future investments in Wind turbines, solar panels/farms or any other form of green… Read more »

Steve Duggan
Steve Duggan
1 year ago

We don’t want half measures – devolve the Crown Estates now.

CJPh
CJPh
1 year ago

“… money that flows back into the pockets of the British people”. Would you like some renewable energy, hydro electric energy and water? Cool, We’re willing to give you a good price if you’re… Oh wait, you think it’s already YOURS. And you expect the Welsh public to receive a 1/30th of what should be 100% our revenue to benefit from? Reject these unionist parties and their pickpocketing policies.

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