Cabinet backs energy plan as debate hots up

The cabinet and the Conservatives have united behind an energy strategy that opens the door to nuclear power in a bid to tackle global warming and ensure security of supply.

An emerging consensus is set to see fast-track planning approval for the construction of new reactors.

And both Labour and the Tories are likely to agree that there should be no subsidies from taxpayers for the nuclear industry.

Emphasis is also to be put on boosting renewables and improving energy efficiency.

Both ministers and the Opposition are likely to welcome the new consensus, saying they want long term stability that will encourage private sector investment.

Shadow trade secretary Alan Duncan told the Commons: "If we share common ground that is only good for the country and good for investment."

The Liberal Democrats, however, rejected moves to boost nuclear power.

Sir Menzies Campbell said the policy would need "massive subsidies".

The news comes as a House of Lords committee said that moves to develop a strategy for the disposal of nuclear waste were "long overdue".

Consensus

At Thursday's meeting of the cabinet, industry secretary Alistair Darling gave a preview of the energy green paper.

"The cabinet are united in supporting a way forward that addresses the issues of climate change and energy security," said the prime minister's official spokesman.

"What we need is a mixed response and that is what you will see in the review."

And Darling told MPs on Thursday: "There are two big challenges facing us. First is the need to tackle climate change, the second of course is the need to address the issue of security of supply."

The Conservative leader also outlined his backing for the same policy.

"Our strategic objectives should be to reduce carbon emissions from the electricity supply industry and to guarantee an affordable and secure electricity supply," David Cameron said at the Local Government Association annual conference.

Planning

The government's energy review, to be published next week, will include powers which would allow the government to force local authorities to accept new nuclear power plants seen as essential.

Darling told the FT that he wanted to "make it easier for people to replace power plants that are going out of commission and to meet our energy needs".

A "statement of need" could be used to highlight major projects of national importance.

"Given the fact that we may need to replace a third of our electricity generation, there is a serious risk that one day we'll switch on the lights and there won't be gas or electricity unless we deal with this planning problem," Darling told the paper.

And he told MPs: "I think the panning system in this country is a major problem for getting new energy generation from whatever source."

Darling said in the Commons that the public should still be able to "make their voices heard".

But he warned: "I think the planning system does need to be overhauled."

And again the Tory chief backed a similar policy option.

"There must be a level playing field for renewable and decentralised energy to compete on equal terms with nuclear power," said Cameron.

"That means, for example, improving and streamlining planning procedures both for nuclear and for green energy."

Micro-power

Cameron gave his backing to a "decentralised energy" strategy that encourages "smaller technologies and more local participants".

"But we'll never realise that vision unless we change our attitude to energy," he added.

"In Britain we are still lumbered with the same backward-looking, central-planning mindset that has dominated thinking on electricity since the first half of the last century."

And in the Commons, energy minister Malcolm Wicks said planning changes were encouraging micro-generation of electricity.

He told MPs that "in future it will be easier for people to establish micro-generation in their own homes".

"Whilst local issues are absolutely crucial, which is why we have a planning process... we can't keep saying no to things because we need to start saying yes if we are to have the energy, the clean energy in particular, that our economy demands and our people expect," added Wicks.

Subtleties

The Tory leader also sought to boost his green credentials by insisting he was not as pro-nuclear as Labour.

He said there should be "no special favours or subsidies for nuclear power".

"Where the government see nuclear power as the first choice, under our framework it would be a last resort," he said.

"Where the Liberal Democrats rule out nuclear power, we rule out subsidies and special favours for nuclear power.

"That is the strong and responsible position to take."

Labour, in response, highlighted their record on delivering greener energy.

Wicks told MPs that the Tories were a "late arrival at the party" in terms of encouraging renewable power sources.

Darling also questioned whether Cameron was prepared to back his words on greener power with the action needed to deliver it.

Costs

Responding to Cameron's statements, the Lib Dems said his commitment to the environment "is barely skin deep".

"It is simply not credible for him to assert his green credentials without being willing to take any tough decisions," added Sir Menzies.

"Every nuclear power project in history, everywhere in the world, has required massive subsidies - often hidden in stealth taxes. New nuclear power would be no different.

"Given that modern nuclear plants would produce four times as much high level waste as previously, the only serious way to avoid this dangerous environmental legacy is to rule out an extension of nuclear now.

"It is a great pity that David Cameron is unwilling to do so."

And Green Party principal speaker Keith Taylor said: "Nuclear power is dangerous, astronomically expensive and unnecessary.

"Only this week we have seen that, even when things are going according to plan, there are severe safety worries over cracks in the reactors' cores bricks.

"Nor is nuclear power an answer to climate change - nuclear only provides a fraction of our energy - even if we doubled the amount of nuclear power the UK uses, we would only save eight per cent of CO2 emissions."

Waste

Meanwhile, a report published by the Lords EU select committee said it would be difficult to justify the use of nuclear power in Europe without allaying public anxieties about the disposal of radioactive waste.

The government's committee on radioactive waste management (CoRWM) is due to report shortly on how the UK should deal with the waste issue.

The Scottish Executive has said it wants the disposal issue to be agreed before it gives the green light to more nuclear power plants north of the border.

Committee chairman Lord Renton of Mount Harry said a waste strategy "is long overdue".

"It will be essential for the government to build upon CoRWM's final recommendations as a matter of urgency, and to ensure public views feed into the policy decision taken," he added.

"We are pleased that CoRWM, in its interim recommendations, has emphasised the key role of building public understanding and involvement.

"Local consultation must be built into every step of the decision making processes regarding the disposal of high level radioactive waste.

"If there is to be a policy of continuing or expanding nuclear use for future generations it must be allied to a determination by the EU to inform the public better about how high level radioactive waste can be safely managed in the long-term."