New Prime Minister, New Plans: How to Build a Greener and Stronger Britain

A new Prime Minister brings the possibility of a fresh start—but cutting bills for a few months will not be enough. Britain needs a long-term plan that treats clean energy, stronger industry, better homes, skilled employment and environmental protection as parts of the same national mission.

Andy Burnham became Prime Minister on 20 July 2026, promising a ten-year plan, greater political stability, stronger public control of essential services and the reindustrialisation of Britain.

His first major cost-of-living announcement was the removal of the 5% VAT from domestic electricity bills from 1 October. The government estimates that this will reduce the annualised Ofgem price cap by approximately £45, in addition to the average £150 removed from bills through earlier measures. The VAT reduction is currently funded for this financial year, so the longer-term policy has yet to be decided.

That is welcome—but it should be the beginning of a much more ambitious programme.

A small point of accuracy is important: the government has announced the VAT reduction, but Ofgem has not yet announced the full October price cap. That announcement is due on 26 August 2026. Wholesale prices and other components could therefore still affect the final figure households pay. Suggestions are for a £50 rise - we will have to see if this is real.

The real question is not simply whether the new Prime Minister can reduce one quarterly energy bill.

It is whether he can use this moment to make Britain more productive, more energy-secure, more affordable and more environmentally resilient.

Green Growth Is Still Growth

Environmental policy is sometimes presented as though it is an expensive distraction from economic growth.

That is the wrong way to look at it.

Building electricity networks creates engineering and construction work. Manufacturing heat pumps, cables, batteries, transformers, electric vehicles and wind-turbine components creates industrial employment. Insulating homes supports thousands of local businesses. Better public transport helps people reach jobs. Cleaner air reduces pressure on health services. Renewable electricity reduces our exposure to unpredictable international fossil-fuel prices.

The Office for National Statistics estimates that green industries supported approximately 652,100 full-time-equivalent jobs in 2024, although it correctly describes these figures as statistics still in development. Employment in these industries had grown by more than a quarter since 2015.

Green investment is therefore not only about preventing future climate damage. It is also about building things, employing people, cutting waste, improving productivity and retaining more money within the British economy.

The Prime Minister’s task should be to make the green transition feel less like something being imposed on people and more like a national improvement programme from which people can see direct benefits.

Ten Priorities for a Greener and Stronger Britain

1. Make Electricity Permanently Cheaper

Removing VAT from electricity is a sensible first step, particularly because electricity is increasingly powering our heating, transport, businesses and communications.

However, a temporary £45 reduction will not fundamentally change the economics of electrification.

Electricity remains disproportionately expensive compared with gas. This weakens the financial case for heat pumps, industrial electrification and some other technologies that Britain needs. The Climate Change Committee has repeatedly recommended transferring or removing policy costs from electricity so that the efficiency of electric technologies is properly reflected in people’s bills.

The government should therefore develop a permanent electricity-pricing reform that:

moves remaining environmental and social levies away from electricity bills;
protects lower-income households through taxation or targeted support;
reduces standing charges where possible;
rewards flexible consumption and locally generated electricity;
gives households confidence that electricity will remain competitive with gas;
provides affordable power for British manufacturing.

This is as much an industrial policy as an environmental one.

In 2023, UK industrial electricity prices were reported as 46% above the median of the International Energy Agency countries included in the comparison. That makes it harder for British factories to compete, even when they are otherwise efficient and well managed.

Britain cannot seriously talk about rebuilding its industrial base while allowing manufacturers to face some of the developed world’s highest electricity costs.

2. Build the Electricity Grid Britain Actually Needs

Producing more renewable electricity is only useful when it can reach the homes, factories, vehicle chargers and businesses that need it.

At present, too many projects spend years waiting for grid connections. Housing developments, renewable generators, battery-storage sites, factories and electric vehicle charging hubs can all be delayed by inadequate local or national network capacity.

The National Energy System Operator says that connections reform has unlocked 381.5 GW of ready-to-build capacity and could help release as much as £40 billion of annual energy investment.

That opportunity must not be lost in a maze of repeated consultations, planning delays and fragmented responsibilities.

The government should establish a national grid delivery programme covering:

new transmission lines;
strengthened local distribution networks;
substations and transformers;
rapid connections for factories and industrial estates;
large-scale and community battery storage;
vehicle-charging infrastructure;
support for flexible demand;
long-duration energy storage.

Communities affected by major infrastructure should receive visible benefits—perhaps through reduced local electricity costs, community investment funds, improved broadband, landscape restoration or shared ownership.

People are more likely to accept new infrastructure when they can see how it benefits their community rather than merely passing through it.

3. Launch a National Home Energy Upgrade Mission

Britain has some of the oldest and least energy-efficient housing in Europe. Heating these homes wastes energy, raises bills and leaves many people uncomfortable during both winter cold and increasingly hot summers.

The answer cannot be a succession of short-lived schemes with changing names, complex eligibility rules and uncertain funding.

We need a long-term, street-by-street home improvement programme.

It should begin with the basics:

loft and cavity-wall insulation;
draught proofing;
hot-water-cylinder insulation;
modern heating controls;
efficient lighting;
ventilation improvements;
repairs to damp and defective buildings.

The Climate Change Committee warns that support for insulation has become limited and that installation rates could fall without an adequate replacement programme. It also identifies inexpensive measures such as draught proofing and hot-water-tank insulation as straightforward ways of reducing bills.

Once the basic fabric of a home is improved, households could be offered affordable pathways towards:

heat pumps;
solar panels;
battery storage;
solar hot water;
smart tariffs;
electric vehicle charging;
heat networks where appropriate.

Grants should concentrate on low-income households, while government-backed low-interest loans could help those able to contribute towards the cost.

Most importantly, installations must be completed properly. Poor surveys, unsuitable equipment, bad workmanship and inadequate customer support damage confidence in technologies that can work extremely well.

A Personal Lesson from Our Own Home

Our experience has shown me that no single piece of technology provides the complete answer.

We have 26 solar panels, substantial battery storage, an air-source heat pump, solar hot water and electric boats that can be charged using electricity generated at home.

Together, these systems have transformed how we use energy.

Solar panels generate electricity, batteries allow us to use it later, and the heat pump converts that electricity into several times as much useful heat. Smart management allows us to make better use of cheaper periods and avoid some of the most expensive electricity.

But our experience has also shown the limitations.

Winter production can be very low. Batteries eventually run down. A heat pump works best in a properly insulated house. Equipment costs money upfront, and the economics depend heavily on electricity prices and tariffs.

The lesson for government is that green technologies should not be promoted as isolated products.

They must be treated as a system:

insulation, generation, storage, efficient heating, smart control and affordable electricity working together.

4. Make More of the Green Technology in Britain

A country does not become stronger merely by importing solar panels, batteries, vehicles, turbines and heat pumps.

Britain should aim to manufacture far more of the equipment needed for its own transition.

That does not mean attempting to produce every component domestically. It means identifying areas where Britain already has—or could realistically develop—engineering expertise and competitive supply chains.

These might include:

electrical cables and transformers;
offshore wind components;
heat-pump systems;
power electronics and inverters;
battery-management technology;
electric buses, vans and specialist vehicles;
railway equipment;
recycling and material-recovery machinery;
marine electrification;
small modular energy systems;
monitoring, control and energy-management software.

Public purchasing should help create demand for British-made products where they offer good value and meet appropriate quality standards.

When councils buy buses, government departments improve buildings, the NHS replaces vehicles or public housing receives heat pumps, those contracts should help develop British skills and manufacturing capacity.

The aim should not be protectionism for its own sake. It should be building resilient supply chains, retaining expertise and ensuring that more of the economic value created by the transition remains in Britain.

5. Create a Green Skills Guarantee

None of these plans can be delivered without people.

Britain needs electricians, plumbers, heating engineers, welders, builders, designers, surveyors, planning officers, ecologists, engineers, technicians and project managers.

We also need teachers and lecturers capable of training them.

The government’s existing clean-energy workforce plan has identified strong demand for occupations including plumbers, electricians and welders. It has estimated that the clean-energy economy could support hundreds of thousands of additional jobs by 2030.

The new government should build upon this with a Green Skills Guarantee offering:

funded technical training for young people;
adult retraining for workers changing industries;
stronger further-education colleges;
paid apprenticeships connected to real projects;
accelerated training for qualified workers adding new specialisms;
clearer professional standards for installers;
local skills plans linked to local investment.

A former gas engineer should have a clear route into heat-pump installation. A mechanic should be able to learn electric vehicle diagnostics. A construction worker should be able to specialise in retrofit. An offshore oil and gas worker should be able to transfer relevant skills into offshore wind, grid construction or carbon-management projects.

A green transition that leaves skilled workers behind will fail politically as well as economically.

6. Improve Transport Without Declaring War on Drivers

Transport policy has become unnecessarily divisive.

People who depend upon cars—particularly in rural areas—should not be blamed for using the transport system available to them.

The answer is to provide better choices.

A credible national transport programme would include:

reliable and affordable buses;
integrated fares and ticketing;
dependable local rail services;
safe walking and cycling routes;
rapid electric vehicle charging;
improved charging access for homes without driveways;
cleaner delivery vans and taxis;
support for electric buses and specialist commercial vehicles;
better planning so new homes are not automatically car-dependent.

Electric cars are becoming increasingly practical, but they are not the complete transport solution. Replacing every petrol car with an electric car would reduce emissions, yet congestion, road danger, tyre pollution and parking pressure would remain.

The strongest transport system is one in which people can drive when necessary but have attractive alternatives when they do not need to.

7. Turn Planning Reform into Better Planning

Britain needs homes, energy infrastructure, factories, reservoirs, electricity storage and transport links.

Simply saying “build more” is not enough. Nor is allowing every project to be delayed indefinitely.

Good planning should be faster, clearer and more predictable while still protecting landscapes, wildlife, water supplies and communities.

Every major development should answer some basic questions:

Where will its electricity come from?
Is there sufficient grid capacity?
How much water will it require?
How will people travel to it?
What will happen to flood risk?
What habitats will be lost or restored?
Can waste heat or materials be reused?
Will local people receive meaningful benefits?

The government should establish clear national standards so that developers know what is expected before submitting proposals.

A faster process does not have to mean weaker environmental protection. It can mean identifying unsuitable proposals earlier while allowing well-designed developments to proceed more quickly.

8. Treat Water as Essential National Infrastructure

Economic growth requires water as well as electricity.

New homes, agriculture, industry, hydrogen production, semiconductor plants and datacentres can all increase demand. At the same time, drought, population growth, ageing infrastructure and leaking pipes are placing pressure on existing supplies.

The new government should therefore require water availability to be considered at the beginning of national and regional planning—not after developments have already been announced.

Britain needs:

faster leakage reduction;
new reservoirs where evidence supports them;
greater water reuse;
sustainable drainage;
rainwater capture;
improved soil and wetland management;
water-efficient homes and appliances;
realistic water plans for datacentres and industry.

Large datacentres should be encouraged to use cooling systems that minimise potable water consumption, reuse water where possible and make productive use of waste heat.

Growth cannot be considered successful when it leaves nearby communities competing for increasingly scarce water.

9. Restore Nature as Part of National Resilience

Nature should not be treated as an attractive extra that can be considered once economic decisions have been made.

Healthy soils, rivers, wetlands, woodlands and coastal habitats provide real services.

They store carbon, reduce flooding, support food production, cool towns, improve water quality and provide space for wildlife and recreation.

UK tree planting fell to approximately 15,600 hectares in 2024–25, 25% below the previous year. The Climate Change Committee says planting rates will need to increase substantially to meet national ambitions.

A serious national restoration plan should include:

native woodland creation;
peatland restoration;
river and wetland recovery;
urban trees and green spaces;
wildlife corridors;
support for farmers improving soil and biodiversity;
better protection for existing mature habitats;
long-term maintenance funding.

Planting a tree produces an appealing photograph. Ensuring that the right tree survives in the right place for the next 50 years is the real achievement.

10. Replace Short-Term Announcements with a Stable Ten-Year Plan

Businesses cannot invest confidently when energy, planning, transport and environmental policies change every few years.

Households hesitate to buy heat pumps, solar panels or electric vehicles when grants, taxes and regulations appear temporary.

Colleges will not expand specialist courses without confidence that employers will still need those skills in five or ten years.

The Prime Minister has promised a ten-year plan for Britain. That plan should contain clear milestones rather than only ambitions.

For example:

annual home-upgrade targets;
electricity network construction targets;
industrial electricity price comparisons;
grid connection times;
renewable generation and storage capacity;
heat-pump and EV adoption;
bus service reliability;
tree planting and peat restoration;
water leakage reduction;
green apprenticeships completed;
British content in major public contracts.

Progress should be published openly each year.

When a target is missed, ministers should explain why, what has been learned and what will change.

Long-term stability does not mean refusing to adapt. It means maintaining a consistent destination while improving the route.

What Should Happen in the First 100 Days?

The government cannot rebuild the country in 100 days, but it can demonstrate direction.

The Prime Minister should:

Confirm whether the electricity VAT reduction will continue beyond the current financial year.
Publish a timetable for permanently reducing the cost difference between electricity and gas.
Establish a national home energy and insulation programme.
Accelerate priority grid, storage and industrial connection projects.
Announce a green skills and apprenticeship programme linked to actual regional investment.
Require infrastructure plans to include credible electricity, water and climate-resilience assessments.
Give local authorities long-term funding rather than repeated short-term competitions.
Publish the first measurable version of the promised ten-year national plan.

These actions would show that the October electricity announcement is not merely a temporary political gesture, but the first step towards structural change.

Greener Does Not Mean Weaker

Britain does not have to choose between being greener and being stronger.

A greener Britain can be a country that:

produces more of its own energy;
is less exposed to international gas prices;
manufactures valuable equipment;
trains skilled workers;
has warmer and more efficient homes;
provides better transport choices;
protects its water supplies;
reduces flooding;
restores wildlife;
creates healthier communities.

That is not environmentalism separate from economic policy.

It is economic policy.

The removal of VAT from electricity bills will provide some welcome breathing space. But £45 a year will not rebuild British industry, improve millions of homes or modernise the electricity grid.

The new Prime Minister has an opportunity to turn a change of leadership into a change of direction.

The test will not be how many green promises are made during the first few weeks. It will be whether households can see their bills falling, businesses can invest with confidence, young people can find skilled work and communities can see visible improvements around them.

The best green policies do not ask people to accept a poorer future for the sake of the planet.

They build a cleaner, more affordable, more secure and more successful future—and make Britain stronger in the process.

Search This Blog

Going Green Podcast, Video blog and Daily News