As the new government sets out its aim to put prosperity first, and to spread higher incomes and wealth more widely around the country, it needs to alter energy policy.
Fundamental to faster growth and higher real incomes in the UK must be more and cheaper energy.
Scrapping VAT on domestic fuel as Vote Leave proposed would be a welcome start. People on lower incomes are particularly hard hit by fuel prices and taxes.
The decision to put Energy into a new Business department led by Greg Clarke is a good idea. It is important to understand the need for lower priced and more plentiful energy to business. The department needs to get to work on a new regulatory framework which will ensure more baseload gas combined cycle electricity generation. The UK also needs to tap into more of its reserves of oil and gas.
The loss of steel, aluminium, glass, ceramics, basic chemicals and other areas has reduced our industrial base. This has been speeded by dear energy.
With a background of very low interest rates and a plentiful supply of new bond finance, it should be possible to make faster progress with providing the new power stations and energy facilities we need. Out of the EU the department can review energy policy to ensure continuity of power supply, sufficient capacity, and more affordable prices. It was interesting that Theresa May reformulated the aims of energy policy in her economic speech just before becoming Leader. A new fleet of combined cycle gas stations may be the best way to offer industry the cheaper power it will need to expand, and to rebuild industrial opportunity across the country.