Ted Christie-Miller: Everything must change if Britain is to hit its Net Zero target. How are we going to manage it?

5 Jan

Ted Christie-Miller is a Senior Researcher at Onward and is leading the Getting to zero research programme.

The existential necessity of reducing our carbon emissions, and the level of cross-party consensus in Westminster, can sometimes obscure how hard it is going to be to get there. This is a policy that will require drastic changes to human behaviour, industrial processes and the homes we live in. We need a more grown up conversation about getting to zero.

Politicians, understandably, tend to emphasise the opportunities. The Prime Minister’s Ten Point Plan and last month’s Energy White Paper painted an exciting vision of a jobs-rich, cutting-edge future that could benefit Britain’s lagging regions. Voters largely agree: YouGov recently found that a majority of all age groups, regions, genders, party voters and both sides of the Brexit vote want to see Britain leading the world on climate action. Environmentalism is no longer woke metropolitanism but good politics. On the campaign trail last year in Workington, I witnessed a hustings dominated by small nuclear reactors and offshore wind.

But despite the consensus on climate, the sheer scale of the challenge is underappreciated. Over the next 30 years everything needs to change: the food we eat, the cars we drive and the way we heat our homes. As Onward uncovered last year, we need to treble the number of plumbers just to have the capacity to change out old boilers and quintuple the rate of energy efficiency improvements to insulate our housing stock. We also need to build more than 500 electric vehicle charging points a day, according to the Society of Motor Manufacturers and Traders.

As with all industrial transformations, the costs will not be evenly spread across the country. As new Onward research out today finds, the regions which have lagged most in recent decades stand to be hardest hit: 42 per cent of jobs in the East Midlands are in high emitting industries, 41 per cent in the West Midlands, and 38 per cent in Yorkshire and the Humber and the North West – compared to just 23 per cent in London and 34 per cent in the South East. In total, more than half (52 per cent) of high emitting jobs are located in the North, Midlands and Scotland. The risks of this turning into another North-South divide are acute.

Despite this, much of the existing spending on net zero programmes is going to more prosperous regions. New analysis from Zap Map shows that London and the South East received 45 per cent of new charger capacity in the past year. There are 63 public chargers per 100,000 people in the capital, more than double the average of the rest of the UK. Given the reliance on cars outside of London, and the high levels of public transport investment in the capital, this feels back to front. The Department for Transport itself estimates that people are 27 per cent more likely to have a car if they live in the West Midlands or the North West than in London.

The new BritishVolt gigafactory in Blyth announced last month demonstrates the potential for net zero to be a net positive. Whether it’s offshore wind in the North Sea, carbon capture clusters in the Humber or electric vehicle manufacturing in the North East, there are a sea of economic opportunities to come over the next three decades. But we cannot kid ourselves that this will be a seamless transition, and for many workers the journey from a carbon emitting job to green industry will be tough. If politicians are going to take voters with them, we need to be honest about the trade offs and develop policies to help those who stand to lose out.

This is why the Government’s combined agendas of net zero and levelling up are so crucial. If the synergies of the two missions can be found and the policy is creative, thoughtful and practical, the Government does not have to choose between the two. Net zero can and must be the key to unlock regional growth in the UK and a prosperous future for all of us.

Alan Mak: A new tech scrappage scheme will boost productivity

2 Jul

Alan Mak is MP for Havant and Founder of the APPG on the Fourth Industrial Revolution.

In the aftermath of the 2008 financial crash, governments around the world including those of Japan, Germany and the US responded to calls to help struggling car manufacturers by introducing popular scrappage schemes. After new car registrations declined by 30 per cent in the UK in the first quarter of 2009, the schemes saw demand bounce back, while dirty, polluting old cars were consigned to the scrapheap.

Now there is media speculation about a new car scrappage scheme – drivers will be given up to £6,000 to swap their petrol or diesel cars for electric ones – designed to provide a shot in the arm for the UK electric car manufacturing sector in the wake of Coronavirus.

Yet focus should also be given to how the Government could launch a similar scheme to help factories and businesses investing in the latest technology. We must use this period of recovery to press the fast-forward button on helping our businesses to improve their performance by adopting new technologies quickly, accelerating processes that would have otherwise taken many years into a much shorter period.

Just as the Government ushered a brand-new fleet of cars onto our roads a decade ago, a new scrappage scheme should be introduced for old and obsolete IT, tech and machinery. By particularly focusing on the adoption of robotics, it would achieve the dual ambitions of boosting productivity, and giving our businesses the cutting edge in international markets post-Brexit.

More British firms need to follow in the footsteps of innovators such as Ocado, who have created one of the most advanced automated warehouses in the world. Ocado’s newest fulfilment centre uses automation to pick 200 items per hour of labour time using its hive system – far outstripping traditional supermarket competitors.

As the Fourth Industrial Revolution accelerates, for British manufacturers and suppliers to keep up with international competitors, they must upgrade the machinery and software that is powering the workplace.

Yet automation and the adoption of new technology is an area where the UK needs to improve if we are to boost the nation’s productivity and economic growth after Coronavirus. Research published by the International Federation of Robotics shows that the UK has a robot density of 71 units per 10,000 employees – below the world average of 74 units – ranking us 22nd globally. Europe’s most automated country, Germany, has more than 300 units per 10,000 employees.

Whilst the critics will always fear job losses from automation, as we recover from Coronavirus, we can create high-wage employment through robotics. I’ve visited factories, such as Harwin’s manufacturing site near my own constituency of Havant, that have successful re-trained factory workers as high-skilled robot operators. We must rebut trade union leaders and others holding back change and hindering the adoption of new technology.

Just as a car scrappage scheme was brought in to safeguard the car manufacturing industry and protect demand in its vast supply chain, a tech scrappage scheme also has the potential to boost the fast-growing UK tech and robotics sector. Businesses that could benefit include Tharsus, the Blyth-based robotics company that supplies Ocado’s automated warehouse, which is now one of Europe’s fastest growing technology firms.

While individual businesses know the products that are right for them, a tech scrappage scheme can and should promote world class British engineering and high-end manufacturing by creating more demand.

Every UK business could benefit from upgrading technology and IT, but key to the success of the car scrappage scheme was incentivising people into the new car market by making them more affordable. To be eligible, the car had to be at least ten years old and many of those taking part in the scheme would never before have bought a new car. The same must be implemented for a tech scrappage scheme. The Government needs to target the least productive SMEs that have never before invested substantially into the latest robotics, software, automation or information technology.

Research published last year based on a survey of 2000 business owners showed that 46 per cent of small business owners believe technology is more important to their business than people. Just as we incentivised car owners into the market, a new scrappage scheme will give SMEs the confidence to make the tech upgrades their businesses need.

There would be environmental gains too. Just as polluting cars were taken off the road through scrappage, businesses would have the opportunity to replace diesel-fuelled machinery with cleaner and more energy efficient alternatives.

As our country bounces back from Coronavirus, and the focus shifts from health emergency to economic recovery, the Government must continue to focus on not only supporting businesses in the short term but arming our businesses to be ready for the long term impact of the Fourth Industrial Revolution.

Our economic recovery must be both green and digital – a scrappage scheme for IT, tech and machinery achieves both goals.

This is the third in a three-part series on how to boost our economy after Coronavirus.