In the narrow lanes around Aldham in Essex the countryside is close to the English ideal.
On an unseasonably warm mid-October day the fields recede to a low horizon, broken only by hedgerows and the spire of the parish church, the tallest landmark this side of Suffolk.
If National Grid has its way it won’t stay that way for long.
Aldham is on the route of a new pylon line that will run more than 110 miles, from Norwich to Tilbury on the Thames Estuary, carrying electricity generated on wind farms in the North Sea via high voltage cables suspended from 50-metre tall towers.
National Grid, the listed company that owns and runs the UK’s electricity network, says it’s crucial to a massive grid upgrade without which the transition from fossil fuels to low carbon power cannot happen.
For locals and campaigners it’s an unnecessary intrusion that will bring steel giants marching through some of the most scenic countryside in the east of England.
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This is more than just a local planning dispute.
It’s a story about the most important national infrastructure project you have probably never heard of; about a glacial planning system that fails communities and builders; and the balance between local and national interests as the UK strives to hit its climate goals.
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The great grid upgrade
On the road to net zero Britain is like a traveller who remembered their laptop and adapter but forgot to pack the plug cable.
For years we have been preparing for a low-carbon future by focusing on supply and demand, without thinking enough about the bit in between.
While supply has focused on phasing out fossil fuels, chiefly using offshore wind power, consumer and business demand has begun shifting to lower carbon options like electric vehicles and heat pumps.
This has transformed not just where we get our power, but how much we will need.
Demand for electricity will double in the coming decade as natural gas, petrol and diesel are phased out and a world reliant on digital data consumes vastly more power.
The expansion of offshore wind and, in time, nuclear, will meet demand, but those new power sources need to be connected to a grid originally built for the fossil fuel age.
The bones of the national grid were built in the 1960s and 70s, connecting power stations largely clustered around the coalfields of the north and midlands to cities and towns using ‘motorways’ of high-voltage pylons.
With most of our power coming from the coast in the future that has to change.
National Grid has identified 17 new or upgraded lines required, including undersea cables to link Scotland and the east of England and several onshore pylon routes, the largest of which is Norwich-Tilbury.
It will cost up to £19bn and most of it has to happen in seven years to meet the government’s target of decarbonising the grid by 2030.
Image: Carl Trowell, President of strategic infrastructure at the National Grid
“There’s no energy transition without a massive upgrade to the transmission system. It’s an enabler for everything we want to do,” said the man in charge of delivering it, Carl Trowell, National Grid’s president of strategic infrastructure.
“Over the next seven to eight years we’ve got to build five times more infrastructure than has been built in the last 30, so it’s quite an upgrade.”
Fight the power
For Adam Scott, owner of Church House Farm in Aldham, the great grid upgrade means three 50-metre pylons planted on his land, and £6,000 each in compensation.
“You would happily pay £6,000 not to have them,” he said.
“There are many impacts. You’ve got to go round them with machines, you can’t irrigate land near them, if we want to grow trees to help climate change we wouldn’t be allowed to, so there’s a lot of separate impacts the pylons will have if they arrive in our village.”
Image: Sky’s Business correspondent, Paul Kelso with farmer Adam Scott in East Anglia
Mr Scott and residents along the entire route have been galvanised by perhaps the most effective local campaign group in the country, the Community Planning Alliance, founded and run by Rosie Pearson.
Dubbed the “Queen of the Nimbys”, a term she loathes, Ms Pearson has been hugely successful in helping community groups maximise their influence to oppose infrastructure projects, primarily housing.
She believes the pylons are unnecessary and should go under the sea, referring to rough drawings of an alternative offshore plan she says would be cheaper.
“We don’t see why the pylons should be built across East Anglia when the wind farms are offshore and the power is needed down south. It’s offshore, keep it offshore,” she said.
National Grid utterly rejects this, saying campaigners have misrepresented their figures and insisting an offshore route would cost £4bn as opposed to £1bn for the pylons, with consumers ultimately paying the difference.
“The first thing to say is that Norwich to Tilbury is part of a wider system, some of which is offshore and some onshore. Going offshore is four to five times more expensive, and it comes with its own environmental issues,” said Mr Trowell.
“And you can’t put all your infrastructure offshore. It takes hours to repair a pylon but it can take months to years to try and fix a problem or a fault offshore. Ultimately we have to strike a balance, and that’s what we’ve done.”
Image: Local campaign groups oppose National Grid’s Norwich to Tilbury proposals
If the pylons are built, Ms Pearson says communities should be compensated for hosting in the same way as if Norwich to TIlbury was a train line.
Currently the grid, and the government’s electricity commissioner have said only that they should receive “benefits” from hosting infrastructure, such as cheaper bills.
“That’s patronising,” she said. “Full compensation needs to be paid to any farmer that’s having his business disrupted, any homeowner who can’t sell, any business that can’t run in the same way, not sweeteners.”
Planning problems
Where she and the grid agree is that the planning system is not working.
It can take a decade for major projects to pass through a system ill-designed to cope with the net zero infrastructure boom.
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De-carbonising Britain’s electricity grid
Rosie Pearson may have helped around 600 local groups challenge various building projects, but she rejects the accusation that they stand in the way of progress.
“I think people look at it the wrong way.
“The system creates the objector, the planning system even calls us ‘objectors’. If the system involved communities right from the beginning, presented them with options or alternatives, with facts and pros and cons, then you’d end up with decisions being made much faster.
“I can certainly say with this pylons campaign, if we’d all been consulted at the beginning we’d probably be working towards a better solution for everybody.”
For National Grid and other infrastructure developers the problem is a lack of clarity. Major planning decisions are guided by National Policy Statements, many of which are out of date and leave many decisions open to interpretation.
Sir John Armitt, chair of the National Infrastructure Committee and the government’s senior adviser, told Sky News they need urgent rewriting and regular updating.
“The process gets bogged down partly because there isn’t clarity of direction from the outset that enables an inspector to judge a project against the importance of the project to the nation, much more than to a locality,” he said.
“What we have to do over the next 20 years does require boldness, it requires clarity, it requires a sense of leadership and a sense that this is very important for our country in terms of the economy, our ability to grow jobs to spread that wealth around the country, our ability to compete.
“If we don’t make the changes to our infrastructure that’s necessary, we risk being left behind.”
Mr Stuart said banks were spending “enormous” sums of hundreds of millions of pounds on IT systems – the biggest expense in their businesses.
“Cybersecurity is now very much at the top of our agenda,” he added.
Image: Ian Stuart, chief executive of HSBC UK, appearing before the Treasury Committee. Pic: PA
Concerns were also highlighted by Lloyds Bank chief executive Charlie Nunn, who said financial fraud will get worse if banks cannot intervene to prevent it and social media and telecoms companies are not incentivised to halt it.
Mr Nunn said the UK “has become the home of fraud”, adding that the number of victims is “pretty disturbing” and “individual cases are harrowing”.
Major high street businesses, including M&S and the Co-op, have been hit by cyber attacks in recent weeks and had their operations impacted.
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Who is behind M&S cyberattack?
Cybersecurity threats, however, were not behind the several-day outage at Barclays at the end of January, its UK chief executive Vim Maru said.
He added: “We’ve learned the lessons. We’re acting on the lessons, both work done internally, but also with help from third parties as well.
The steel tycoon Sanjeev Gupta is mounting a last-ditch bid to salvage his British operations after seeing an emergency plea for government support rejected.
Sky News has learnt that Mr Gupta’s Liberty Speciality Steels UK (SSUK) arm is seeking to adjourn a winding-up petition scheduled to be heard in court on Wednesday.
The petition is reported to have been brought by Harsco Metals Group, a supplier of materials and labour to SSUK, and is said to be supported by other trade creditors.
Unless the adjournment is granted, Mr Gupta faces the prospect of seeing SSUK forced into compulsory liquidation.
That would raise questions over the future of roughly 1,450 more steel industry jobs, weeks after the government stepped in to rescue the larger British Steel amid a row with its Chinese owner over the future of its Scunthorpe steelworks.
If Mr Gupta’s operations do enter compulsory liquidation, the Official Receiver would appoint a special manager to run the operations while a buyer is sought.
A Whitehall insider said talks had taken place in recent days involving Mr Gupta’s executives and the Insolvency Service.
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Steel industry sources said the government could conceivably be interested in reuniting the Rotherham plant of SSUK with British Steel’s Scunthorpe site because of the industrial synergies between them, although it was unclear whether any such discussions had been held.
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Mr Gupta is said to have explored whether he could persuade the government to step in and support SSUK using the legislation enacted last month to take control of British Steel’s operations.
Whitehall insiders said, however, that Mr Gupta’s overtures had been rebuffed.
He had previously sought government aid during the pandemic but that plea was also rejected by ministers.
The SSUK division operates across sites including at Rotherham in south Yorkshire and Bolton in Lancashire.
It makes highly engineered steel products for use in sectors such as aerospace, automotive and oil and gas.
A restructuring plan due to be launched last week was abandoned at the eleventh hour after failing to secure support from creditors of Greensill, the collapsed supply chain finance provider to which Mr Gupta was closely tied.
Under that plan, creditors, including HM Revenue and Customs, would have been forced to write off a significant chunk of the money they are owed.
The company said last week that it had invested nearly £200m in the last five years into the UK steel industry, but had faced “significant challenges due to soaring energy costs and an over-reliance on cheap imports, negatively impacting the performance of all UK steel companies”.
It adds: The court’s ability to sanction the plan depended on finalisation of an agreement with creditors.
“This has not proved possible in an acceptable timeframe, and so Liberty has decided to withdraw the plan ahead of the sanction hearing on May 15 and will now quickly consider alternative options.”
One source close to Liberty Steel acknowledged that it was running out of time to salvage the business.
They said, however, that an adjournment of Wednesday’s hearing to consider the winding-up petition could yet buy the company sufficient breathing space to stitch together an alternative rescue deal.
A Liberty Steel spokesperson said on Tuesday: “Discussions continue with creditors.
“Liberty understands the concern this will create for Speciality Steel UK colleagues and remains committed to doing all it can to maintain the Speciality Steel UK business.”
The Insolvency Service and the Department for Business and Trade have also been contacted for comment.
The publisher of the Daily Mail has held talks in recent days about taking a minority stake in the Telegraph newspapers as part of a deal to end the two-year impasse over their ownership.
Sky News has learnt that Lord Rothermere, who controls Daily Mail & General Trust (DMGT), was in detailed negotiations late last week which would have seen him taking a 9.9% stake in the Telegraph titles.
It was unclear on Monday whether the talks were still live or whether they would result in a deal, with one adviser suggesting that the discussions may have faltered.
One insider said that if DMGT did acquire a stake in the Telegraph, the transaction would be used as a platform to explore the sharing of costs across the two companies.
They would, however, remain editorially independent.
Sources said that RedBird and IMI, whose joint venture owns a call option to convert debt secured against the Telegraph into equity, were hoping to announce a deal for the future ownership of the media group this week, potentially on Thursday.
However, the insider suggested that a transaction could yet be struck without any involvement from DMGT.
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The progress in the talks to seal new ownership for the right-leaning titles comes days after the government said it would allow foreign state investors to hold stakes of up to 15% in British national newspapers.
That would pave the way for Abu Dhabi royal family-controlled IMI to own 15% of the Daily and Sunday Telegraph – a prospect which has sparked outrage from critics including the former Spectator editor Fraser Nelson.
The decision to set the ownership threshold at 15% follows an intensive lobbying campaign by newspaper industry executives concerned that a permanent outright ban could cut off a vital source of funding to an already-embattled industry.
RedBird Capital, the US-based fund, has already said it is exploring the possibility of taking full control of the Telegraph, while IMI would have – if the status quo had been maintained – been forced to relinquish any involvement in the right-leaning broadsheets.
Other than RedBird, a number of suitors for the Telegraph have expressed interest but struggled to raise the funding for a deal.
The most notable of these has been Dovid Efune, owner of The New York Sun, who has been trying for months to raise the £550m sought by RedBird IMI to recoup its outlay.
On Sunday, the Financial Times reported that Mr Efune has secured backing from Jeremy Hosking, the prominent City investor.
Another potential offer from Todd Boehly, the Chelsea Football Club co-owner, and media tycoon David Montgomery, has failed to materialise.
RedBird IMI paid £600m in 2023 to acquire a call option that was intended to convert into ownership of the Telegraph newspapers and The Spectator magazine.
That objective was thwarted by a change in media ownership laws – which banned any form of foreign state ownership – amid an outcry from parliamentarians.
The Spectator was then sold last year for £100m to Sir Paul Marshall, the hedge fund billionaire, who has installed Lord Gove, the former cabinet minister, as its editor.
The UAE-based IMI, which is controlled by the UAE’s deputy prime minister and ultimate owner of Manchester City Football Club, Sheikh Mansour bin Zayed Al Nahyan, extended a further £600m to the Barclays to pay off a loan owed to Lloyds Banking Group, with the balance secured against other family-controlled assets.
Other bidders for the Telegraph had included Lord Saatchi, the former advertising mogul, who offered £350m, while Lord Rothermere, the Daily Mail proprietor, pulled out of the bidding for control of his rival’s titles last summer amid concerns that he would be blocked on competition grounds.
The Telegraph’s ownership had been left in limbo by a decision taken by Lloyds Banking Group, the principal lender to the Barclay family, to force some of the newspapers’ related corporate entities into a form of insolvency proceedings.