Google’s former boss has warned Sir Keir Starmer he will fail to meet his 2030 clean energy goal unless he fixes UK regulations.
Eric Schmidt, Google’s former chief executive officer, said he believes Sir Keir can speed up regulation bureaucracy to ensure the government reaches its goal of decarbonising electricity by 2030.
But he said regulation is currently “killing you”.
Speaking to Sir Keir at the International Investment Summit in London, Mr Schmidt said: “Democracies, especially something as old as this one, have so many ways in which people can say no.
“I’d much rather – and I think the business community would much rather – have a single person who can say yes or no…and then they can move on.
“The cost of capital and the delay is killing you, and furthermore you’re not going to achieve your 2030 energy goal, which is laudable, without fixing this.
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“You have a tactical leadership problem to achieve this and I think you can pull it off, but you have to figure out a way to get control.”
Image: Ex-England football manager Gareth Southgate was also at the summit, talking to Culture Secretary Lisa Nandy (R) .Pic: PA
Sir Keir agreed the speed at which decisions get signed off “is a really big challenge”.
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He said: “It has to be a cross-government priority, not just within the Treasury team. It’s going to be across government.
“So we are setting up some of the structures that will do this.
“But in the end, it’s a mindset. It’s a mindset that does this promote growth? Or does this not promote growth being the most important question we ask ourselves.”
Ahead of the question and answer session between Sir Keir and Mr Schmidt, the PM promised to “rip up” bureaucracy and said it is “time to upgrade the regulatory regime”.
He said the government will “make sure that every regulator” in the country takes growth “as seriously as businesses”.
The government is expected to unveil deals in AI, life sciences and infrastructure during Monday’s summit, which is being attended by about 300 industry leaders worth an estimated £40 trillion in assets.
Image: Keir Starmer with Mr Schmidt and Dame Emma Walmsley, the CEO of GSK. Pic: Reuters
Mr Schmidt also urged Sir Keir to invest in data centres to help achieve clean power by 2030 by explaining how they go hand in hand, despite data centres taking up massive amounts of energy.
The former Google CEO called on Sir Keir to approve “the necessary steps” to have data centres in Britain.
He said the electricity the data centres use “allows us to build more materials” which ultimately provides a solution to green energy efficiency problems, and with improved efficiency, there would be more capital for further green power investment.
Moments after the pair appeared on stage together, the technology secretary announced global tech firms have invested a further £6.3bn into data centres in the UK, bringing the total investment into data centres to £25bn since July.
US firms CyrusOne, ServiceNow, Cloud HQ and CoreWeave will all base their data infrastructure in the UK.
The return on Donald Trump to the G7 was always going to be unpredictable. That it is happening against the backdrop of an escalating conflict in the Middle East makes it even more so.
Expectations had already been low, with the Canadian hosts cautioning against the normal joint communique at the end of the summit, mindful that this group of leaders would struggle to find consensus.
Canadian Prime Minister Mark Carney carefully laid down an agenda that was uncontroversial in a bid to avoid any blow-ups between President Trump and allies, who of late have been divided like never before – be it over tariffs and trade, Russia and Ukraine, or, more recently Israel’s conduct in Gaza.
But discussions around critical minerals and global supply chains will undoubtedly drop down the agenda as leaders convene at a precarious moment. Keir Starmer, on his way over to Canada for a bi-lateral meeting in Ottawa with PM Carney before travelling onto the G7 summit in Kananaskis, underscored the gravity of the situation as he again spoke of de-escalation, while also confirmed that the UK was deploying more British fighter jets to the region amid threats from Tehran that it will attack UK bases if London helps defend Israel against airstrikes.
Image: Canadian PM Mark Carney is greeted by President Donald Trump at the White House in May. Pic: AP
Really this is a G7 agenda scrambled as world leaders scramble to de-escalate the worst fighting between Tel Aviv and Tehran in decades. President Trump has for months been urging Israel not to strike Iran as he worked towards a diplomatic deal to halt uranium enrichment. Further talks had been due on Sunday – but are now not expected to go ahead.
All eyes will be on Trump in the coming days, to see if the US – Israel’s closest ally – will call on Israel to rein in its assault. The US has so far not participated in any joint attacks with Tel Aviv, but is moving warships and other military assets to the Middle East.
Sir Keir, who has managed to strike the first trade deal with Trump, will want to leverage his “good relationship” with the US leader at the G7 to press for de-escalation in the Middle East, while he also hopes to use the summit to further discuss the further the interests of Ukraine with Trump and raise again the prospects of Russian sanctions.
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“We’ve got President Zelenskyy coming so that provides a good opportunity for us to discuss again as a group,” the PM told me on the flight over to Canada. “My long-standing view is, we need to get Russia to the table for an unconditional ceasefire. That’s not been really straightforward. But we do need to be clear about what we need to get to the table and that if that doesn’t happen, sanctions will undoubtedly be part of the discussion at the G7.”
Image: Prime Minister Sir Keir Starmer (R) is greeted by Mark Carney as he arrives in Ottawa ahead of the G7
But that the leaders are not planning for a joint communique – a document outlining what the leaders have agreed – tells you a lot. When they last gathered with Trump in Canada for the G7 back in 2018, the US president rather spectacularly fell out with Justin Trudeau when the former Canadian president threatened to retaliate against US tariffs and refused to sign the G7 agreement.
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Since then, Trump has spoken of his desire to turn Canada into the 51st state of the US, a suggestion that helped catapult the Liberal Party beyond their Conservative rivals and back into power in the recent Canadian elections, as Mark Carney stood on a ticket of confronting Trump’s aggression.
With so much disagreement between the US and allies, it is hard to see where progress might be made over the next couple of days. But what these leaders will agree on is the need to take down the temperature in the Middle East and for all the unpredictability around these relationships, what is certain is a sense of urgency around Iran and Israel that could find these increasingly disparate allies on common ground.