Urgent Call to Prioritize North of England in Net Zero Strategy

Rachel Reeves has been urged to place the north of England at the core of the UK’s net zero strategy. This call comes as research reveals that the net zero sector significantly contributes to the region’s economy, more so than on a national scale. Julie Elliott, the Labour peer and former MP for Sunderland Central, emphasized the necessity of integrating the north into the Treasury’s clean energy growth plans.

Analysis from the Northern Powerhouse Partnership indicates that the net zero sector accounts for a larger share of regional output in the north than it does across Britain. Notably, the north generates over a fifth of the country’s net zero output. In places like Sunderland, the economic impact of the net zero strategy is particularly pronounced, leading local Labour leaders to express concerns over the potential implications of a Reform UK victory in the upcoming general election.

Reform UK, led by Nigel Farage, is projected to gain control of numerous council seats across northern England in the local elections scheduled for May. The party has vowed to eliminate what it describes as “net stupid zero” policies, claiming these initiatives threaten jobs in the oil and gas industry.

Reeves, who serves as Chancellor, has characterized clean energy as “the industrial opportunity of the 21st century.” She noted that the UK’s net zero sector is expanding at a rate three times faster than the overall economy. By 2030, government projections estimate that the clean energy workforce will exceed 800,000 jobs.

A report from The Data City, an analytics firm, highlights that net zero supports approximately 140,000 jobs in the north, which aligns with the national average of just under 2% of total employment. Yet, the net zero sector represents a more substantial share of the region’s economic output. Areas such as Sunderland, Tyneside, Warrington, Darlington, and Cumberland are experiencing rapid growth within this sector. Here, net zero contributes between 6-7% of gross value added (GVA), which measures the economic value generated by companies through their goods and services.

Lady Elliott has stated that it is critical for Reeves to construct the clean energy strategy with a focus on the north. She remarked, “If making the north a leader in energy transition isn’t front and centre in growth strategy, how can we expect the national wealth fund or GB Energy to deploy more of their investment up north if the Treasury hasn’t clearly instructed them to do so – as the evidence proves they should?”

Experts have pointed out that the transition to net zero offers both opportunities and challenges for the north of England. With strong backing from the Treasury, this transition could foster reindustrialization, enhance productivity, and secure long-term investments in regions that have struggled following the decline of heavy industry. Conversely, if net zero jobs are prioritized in other areas, it could further entrench existing economic disparities, leaving cities like Sunderland and Warrington behind.

Last week, regional leaders expressed support for the government’s long-awaited commitment to Northern Powerhouse Rail, which aims to enhance east-west transport links in the area. However, many commuters are not expected to see these improvements until the early 2030s. Consequently, there is a growing call for the Treasury to prioritize clean energy investments in the north to provide a more immediate economic uplift.

Michael Mordey, the Labour leader of Sunderland City Council, has voiced concerns that a Reform UK government could introduce regressive climate policies. He stated, “We will only continue to attract more of these well-paid jobs for local people in our city if we keep a Labour council in Sunderland in May.”

As the political landscape evolves, the focus on the north of England in the net zero strategy underscores the critical need for targeted policy that addresses both local economic needs and broader national climate goals.