20/08/2024
Strategy
What a new Labour government means for sustainability and the net zero agenda in the UK public sector
A month and a half after Keir Starmer and the Labour party swept to power in Westminster, we reflect on the implications of the new government for sustainability and the net zero agenda across the UK public sector.
Labour’s manifesto made some ambitious pledges on climate and net zero, most notably in its mission to make Britain a clean energy superpower. However, from tackling NHS waiting times to building new homes, a deluge of complex challenges will be competing to reach the top of Starmer’s in-tray. In this article, we consider what the implications of a new Labour government might be for the net zero agenda across the public sector.
Upgrading our national infrastructure
Labour's manifesto placed great focus on upgrading the UK's national infrastructure to boost economic growth and improve public services. They promise to develop a ten-year infrastructure strategy and create a new National Infrastructure and Service Transformation Authority to set priorities and manage new projects. The manifesto signals priorities might include fixing potholes, improving rail connectivity in Northern England, and rolling out national 5G coverage. It also commits Labour to delivering the New Hospitals Programme, which aims to build 40 "new hospitals" across the UK by 2030.
With this renewed focus on infrastructure, now is a crucial moment to think about sustainability and the net zero agenda across the public sector estate. Indeed, if the UK is to reach its goal of a net zero economy by 2050, all new infrastructure projects must prioritise supporting the net zero agenda now, or risk "locking" carbon into the UK economy for decades to come. We've been thinking about this a lot at The PSC, including working closely with our NHS partners to consider how they can ensure environmental sustainability forms a key component of their infrastructure strategy.
Introducing GB Energy and GB Railways
At the heart of Labour's sustainability agenda is the introduction of two new publicly-owned organisations to transform both our energy and transport sectors.
In support of its mission to make Britain a clean energy superpower, the government will be introducing an exciting new player to the UK's public sector in GB Energy: a new publicly-owned energy company to drive forward investment in clean energy production. The government intends to invest £8.3bn into GB Energy over the next parliament. Crucially, it won't supply electricity directly to households. Instead, it will work with the private sector to co-invest in emerging energy technologies to make them competitive with more mature technologies.
Meanwhile, our rail services will be brought under public control once current contracts expire, run by the new GB Railways which aims to "create a simpler, better railway for everyone in Britain". Environmental sustainability will represent one of five strategic objectives for GB Railways, with aims including: increasing the attractiveness of rail to encourage modal shift; delivering rail net-zero (traction and infrastructure), protecting biodiversity and addressing air pollution; and investing in climate adaptation to protect transport links.
A focus on sustainability in the NHS
"Building an NHS fit for future" is one of Labour's 5 core missions and was central to their general election campaign. Key government priorities related to the NHS include cutting waiting times with 40,000 more appointments every week, resolving staff pay disputes and investing in 8,500 new mental health staff. Notably, environmental sustainability and net zero in the NHS was not explicitly mentioned in Labour's manifesto. However, as the NHS moves into a likely period of accelerated reform and transformation, now is the perfect time to consider how the NHS can continue transitioning towards lower carbon estates, procurement and operations in pursuit of its goal of net zero by 2045. This is especially true considering many NHS Trusts are due to update and renew their Green Plans in the coming months.
These carbon reduction efforts will need to align with the primary goals of offering more appointments and cutting waiting lists. Fortunately, as we outlined in a previous blog, from offering more community care to streamlining patient journeys, initiatives to reach net zero in the NHS usually support improved efficiency rather than compromise it.
Boosting net zero ambitions across the public sector
More broadly, Labour's manifesto signalled that net zero will be pushed up the political agenda, stating that: "The climate and nature crisis is the greatest long-term global challenge that we face". Details on what tackling this challenge may look like are still few and far between. However, public sector leaders would be wise to consider how this changing emphasis may affect requirements to (a) report on carbon emissions, (b) build sustainability into procurement and infrastructure, and (c) move towards more sustainable models of service delivery.
Overall, a new Labour government promises a significant boost in the profile and commitment to the sustainability and the net zero agenda within the UK public sector.
At The PSC, our Sustainability Team offer strategic advice and support to help public sector leaders adapt to these changes and deliver on their sustainability and net zero goals. If you are interested in knowing more, please get in touch at hello@thepsc.co.uk.
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