In the lead-up to the budget, there are always concerns from various sectors. Recently, Offshore Energies UK, representing the oil and gas industry, warned that the UK could face a loss of £13 billion in “economic value” due to Labour’s proposal to raise the windfall tax on North Sea producers from 75% to 78%, along with reductions in investment allowances.

They present a compelling argument: while short-term financial gains may be evident, there could be a long-term decrease in tax revenues if companies decide to withdraw from North Sea operations. Ideally, the UK would transition away from fossil fuels rapidly, relying on renewable sources such as wind and solar power, alongside emerging technologies like carbon capture, hydrogen energy, and small modular nuclear reactors. However, under a government focused on growth, what if the prediction that the UK can decarbonise its electricity supply by 2030 is overly optimistic?

Many experts express skepticism about the feasibility of this goal. Sir Jim Ratcliffe, CEO of Ineos, publicly dismissed the target, remarking, “I’m sorry but that’s absurd. Where’s it all going to come from?” He highlighted that last year, gas accounted for 32% of the UK’s electricity. While he may be incorrect, could Labour leader Sir Keir Starmer afford to risk harming North Sea operations, especially if he prioritizes enhancing energy security?

The energy sector is gradually reducing Labour’s options. The £900 million Buchan project, supported by Serica Energy, Jersey Oil & Gas, and Neo Energy, has witnessed delays, which raises questions about its anticipated production start in late 2027. Additionally, Deltic Energy has withdrawn from the Pensacola project alongside Shell, and Harbour Energy, the UK’s leading production company, has shifted its focus to operations in Europe, Mexico, and Africa. The future of the Rosebank and Jackdaw fields is also uncertain, given Labour’s decision not to contest green legal challenges linked to those projects.

According to industry data, the UK imported nearly £27 billion worth of crude oil last year—£6 billion more than what was earned from exports. The gas sector similarly reflects a concerning trend, with £21 billion spent on imports, outpacing gas export revenues by £17 billion. Can this substantial gap be rapidly filled with clean energy produced within the UK?

Another concern arises: by halting North Sea projects, Labour could dismantle a vital offshore supply chain that boasts essential skills and engineering expertise crucial for the transition to green energy. Analysis from Rystad Energy suggests a 60% overlap in capabilities between the oil and gas supply chain and that of green energy technology. While Starmer might view these figures as exaggerated, he must recognize the risks of neglecting the North Sea’s potential.

Potential Power Struggle at PRS Reit

Sound and fury are guaranteed as Robert “Scrappy Doo” Naylor and Christopher “Megaphone” Mills shift their focus to PRS Reit. The drummer and lead vocalist from the Hipgnosis Songs Fund have demonstrated their ability to create a stir, especially with their ongoing critiques of former investment manager Merck Mercuriadis, who previously handled the music rights group before its sale to Blackstone for £1.27 billion.

It is no surprise, then, that they are intensifying their efforts with the property rental group. Since its IPO in 2017, PRS has utilized the £560 million raised from investors to develop 5,400 family homes. Recently, five shareholders, representing 17.3% of shares, including Mills’ Harwood Capital, called for an extraordinary general meeting (EGM) to vote out PRS chairman Stephen Smith and non-executive director Steffan Francis. As tensions rise, a major confrontation appears inevitable unless PRS concedes to the demands of the dissenting shareholders.

Supported by two additional shareholders, this group has reportedly expanded to include 16 investors holding 30% of shares. The aggrieved shareholders share a common perspective, asserting that the current share price of 93.9p has lagged behind the net asset value of 123.6p for too long. They also criticize Smith’s decision to extend the contract with investment manager Sigma to June 2029 at a time when future developments are uncertain, arguing that this new contract could be viewed as a “poison pill.” His claims of reducing Sigma’s fees by £460,000 annually have failed to pacify discontent.

The situation has escalated further with the appointment of Rothschild as an additional financial advisor, exacerbating existing frictions. Against this backdrop of contention, it seems something will have to give. Naylor and Mills appear prepared for an explosive conclusion.

Shifting Work Preferences

Contrary to the stereotype of Gen Z as lazy or indifferent, recent findings indicate they prefer working in office environments. Ironically, it is older generations who tend to favor remote work options, according to a survey by the Centre for Cities examining work habits in major cities such as London, Paris, New York, Sydney, Singapore, and Toronto. The survey highlighted that Canada has the lowest office attendance, followed closely by the UK.

However, property developers should temper their excitement. Young workers may not be enthusiastic about office spaces per se; instead, they often lack alternative work locations, relying on their beds or shared kitchen tables. In stark contrast, older employees tend to enjoy the benefits of spacious home offices or even private retreats, underscoring the generational differences in work preferences.