The Spectator

Power failure | 31 March 2016

Britain has the highest energy costs  in Europe, thanks to decisions taken not in Brussels but in Whitehall

A fortnight ago, the energy minister, Andrea Leadsom, declared grandly that Britain, alone in the world, would commit to a target of reducing net carbon emissions to zero. ‘The question is not whether but how we do it,’ she told Parliament. It is now becoming painfully clear how this target will be reached: not by eliminating our carbon emissions but by exporting them, along with thousands of jobs and much of our manufacturing industry.

This week, Tata Steel announced that its entire UK business is to be put up for sale. That came after Stephen Kinnock, whose South Wales constituency includes Tata’s giant plant at Port Talbot, joined a union delegation to the headquarters of Tata Steel in India to beg the company to keep the plant open. Some 750 job losses have already been announced there; more than 1,000 jobs, including these, will be lost across Britain as our steel industry struggles to compete with lower-cost producers overseas.

David Cameron’s government said it would consider support — which is ironic, given its role in Tata’s problems. Yes, steel prices have collapsed worldwide — but the other factor that Tata has mentioned is energy costs. Britain has the highest energy costs in Europe, thanks to decisions taken not in Brussels but in Whitehall. Crusaders like Ms Leadsom have, over the years, made sure that our manufacturers feel the force of green levies, unlike Germany, which exempts its own industry. The idea is that by making energy more expensive, people are encouraged to use less of it. This is working very effectively, as the soon-to-be-unemployed Welsh steelworkers will attest. If the plant closes, carbon emissions in Port Talbot will fall dramatically.

Mr Kinnock has been a staunch defender of the plant, as one might expect, given its importance to many of the voters who elected him.

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