đź•’ Last updated on July 19, 2025
A major political storm is brewing after nearly 60 Labour Members of Parliament came together to challenge Reform UK’s bold threat to cancel green energy contracts.
Reform UK’s Warning Sparks Alarm
The letter, signed by 59 MPs and led by the MP from East Thanet, directly takes aim at the party’s deputy leader. The group believes Reform UK is underestimating how much the green energy sector means to Britain’s economy and job market.
This backlash comes after Reform UK sent letters to major energy companies warning them not to take part in the latest round of clean energy contract bidding, known as Allocation Round 7 (AR7). These contracts give long-term price guarantees to companies building green power projects like wind farms and solar plants.
The letter from Reform UK said that if the party comes to power, they would cancel these contracts. It warned that any company relying on future payments from these deals would be taking a “significant” risk. This type of message, according to Labour MPs, could undermine investor confidence and harm thousands of green energy workers.
The clean energy sector grew by 10% in 2024 and now supports over 950,000 well-paid jobs across the UK. Many of these jobs are not in London, but in towns and rural areas that need investment the most. Labour MPs asked Reform UK whether they really understood the size and strength of this growing industry.
MPs Defend Green Energy and Local Jobs
The MPs’ letter raised a strong point: these green energy contracts are not signed with the government directly. The Department for Energy Security and Net Zero owns the Low Carbon Contracts Company, a private company, with whom they have instead reached an agreement. That means a future government cannot simply cancel them at will.
Labour MPs questioned whether Reform UK’s plans would involve ignoring contract law. If that were the case, it could create chaos in the business world and send a terrible message to investors.
The MPs asked if Reform UK really planned to “rip up contract law” and destroy trust in British business agreements. This would not only hurt green energy projects but could also damage the country’s wider economy.
The backlash grew louder when Reform UK’s deputy leader spoke to the BBC. He seemed to backtrack slightly, saying the party would only block “variations” to the contracts. But his earlier letter clearly suggested a full cancellation. When asked about the difference, he claimed “some people may have misread the wording.”
Confusion and Criticism Follow Mixed Signals
The back-and-forth from Reform UK has caused confusion. First, they told companies not to sign up for AR7. Then, in a media interview, they softened their tone. This shift has left people unsure of the party’s real plans.
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A junior government minister described the statements as “clown-car economics.” He suggested that such mixed messages could scare off companies looking to invest in Britain’s future. Meanwhile, a Reform UK mayor in Hull previously supported clean energy projects—if they created jobs—making the party’s national position even more unclear.
Most people in the UK believe climate change is real and needs to be tackled. Reform UK’s more skeptical stance puts it at odds with mainstream public opinion. With thousands of jobs on the line, many worry that pulling back from clean energy now could harm the economy and the environment.
This disagreement has made one thing clear: green energy is not just about cutting carbon. It’s about creating jobs, boosting local economies, and protecting the future of British industry.