Spotlight: Fahnbulleh on energy system reform, £1bn investment in affordable housing and Heathrow's third runway

This week's Spotlight focuses on comments from UK Energy Secretary Miatta Fahnbulleh, who has warned that the UK's energy system is not adequately serving consumers and requires major reform to sustain public support for the transition to clean power.  

Speaking at Energy UK's Energy Matters conference, she said the country's exposure to volatile fossil fuel markets, lengthy grid connection delays, and increasing network constraints demonstrate a system that lacks coordination and long-term direction. While praising the progress made in expanding low-carbon energy and attracting investment, Fahnbulleh stressed that ambitious targets alone are insufficient if projects cannot connect to the grid or if consumers do not see tangible benefits. Calling for closer collaboration between government and industry, she emphasised the need for stronger state leadership, investment and strategic planning, with organisations such as Great British Energy and the newly announced Great British Grid playing key roles in delivering a more efficient, affordable and reliable energy system.

In infrastructure, the Heathrow expansion debate rumbles on. Chief Executive Thomas Woldbye warned that failing to approve a third runway would be a missed opportunity for growth, with investment at risk of going overseas. Housing has had more positive news, as the Prime Minister welcomed a £1bn investment from German firm PATRIZIA to deliver up to 4,000 affordable homes.

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Spotlight on next week:

• The Scottish National Party Conference starts today in Aberdeen. Luminate will be following the conference, and you can read our preview here.

• Secretary of State for Environment, Food and Rural Affairs Dame Angela Eagle will be taking oral questions in the House of Commons on Thursday 22^nd October at 9.30am.

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‍This week’s headlines:

ENERGY

TOP STORY: 📰 Energy UK to warn over transition urgency | reNEWS

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Energy UK CEO Dhara Vyas says 2026 is a critical year for the UK's energy transition. Rising geopolitical tensions, higher energy costs and the impacts of climate change are increasing pressure on government to support clean energy, improve energy security and keep bills affordable. She argues that maintaining policy certainty and accelerating investment in clean energy and electrification are essential to reducing reliance on volatile international energy markets, strengthening long-term energy security and supporting economic growth.

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We’ve also been reading:

✒️ Building an energy system that delivers for all | Speech from Department for Energy Security and Net Zero and The Rt Hon Miatta Fahnbulleh MP  

✒️ Energy price cap: updating the time-of-use methodology | Ofgem  

✒️ Ofgem SIF backs solutions for Britain’s biggest energy challenges | UK Research and Innovation  

✒️ UK Fusion Energy Ltd Annual Report and Accounts 2025/26 | Corporate Report from UK Fusion Energy  

📰 Fahnbulleh seeks overhaul of ‘failing’ UK energy system | reNEWS

📰 UK Grid Seeks Emergency French Power to Secure Supplies | Energy Connects  

📰 Ofgem: Locking assets out of LDES cap-and-floor support would have ‘perverse outcome’ | Solar Power Portal  

📰 Appeal for major energy storage system in Devon rejected | BBC News

📰 What went wrong with the UK's Energy system? | Financial Times (paywall)

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INFRASTRUCTURE

TOP STORY: 📰 Not building third runway would be 'missed opportunity', says Heathrow boss | BBC News

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Heathrow Airport CEO Thomas Woldbye has warned that failing to approve the third runway would be a major missed opportunity for the UK, arguing that Heathrow is operating at full capacity and expansion is needed to support economic growth. He said continued uncertainty risks deterring private investment, which could instead be directed overseas, while maintaining that a third runway would deliver significant economic benefits, create jobs and strengthen national connectivity.

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We’ve also been reading:

✒️ Great British Railways rolling stock and infrastructure strategy | Written statement to Parliament from Department for Transport, DfT Operator Limited and The Rt Hon Heidi Alexander MP  

✒️ New taskforce to boost Britain’s resilience to flooding and drought | Press release from Department for Environment, Food & Rural Affairs and Emma Hardy MP  

🗣 Thames Tideway Tunnel Benefits Realisation Report 2025 | Thames Tideway

🗣 How the push to ban data centre construction in Britain is based on sloppy research |  Notes on Growth

📰 Water companies face £240m in penalties for poor performance | Energy Live News

📰 Canada warns Andy Burnham over Thames Water nationalisation | The Times (paywall)

📰 Businesses could be barred from non-essential water use amid supply threat | The Guardian

📰 Water UK calls for Mayors to have powers over water infrastructure | Water Magazine

📰 Private finance could unlock road schemes – but who carries the risk? | Construction News

📰 Ageing Infrastructure Threatens UK Water Resilience | The Engineer  

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‍DEVELOPMENT

TOP STORY: ✒️ £1bn German investment to deliver 4,000 affordable homes across the UK | Press release from Prime Minister's Office, 10 Downing Street and The Rt Hon Andy Burnham MP

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Kemi Badenoch made Inheritance Tax the headline of her party conference speech. Shadow Chancellor Andrew Griffith also announced plans to scrap Natural England and the Environment Agency, which he says would unblock housebuilding and growth.

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We’ve also been reading:

🗣️ Prosper UK Housing Commission sets out a radical new plan to make housing more affordable in every postcode | Prosper UK

🗣️ Tens of thousands of planned new social homes remain unfunded | National Housing Federation

🗣️ Working for better roads - Community Infrastructure Levy funding: an additional revenue stream for highway improvements | Report from APPG for Better Roads  

📰 Pennycook: Mayors unlikely to call-in ‘swathes’ of planning decisions | Local Government Chronicle  

📰 Labour chair of housing committee calls for urgent funds for affordable homes in England | The Guardian

📰 Permissions in principle decisions jump 81% year-on-year | Planning Resource (paywall)

📰 Housing giant announces no more homes in London, citing broken viability | Architects Journal

📰 Higher mortgage rates inflict ‘pain’ on UK housing market | Financial Times (paywall)

📰 Homes England signs new Strategic Place Partnership | Inside Housing

📰 Planning reform will decide whether the UK housing recovery lasts | Planning, Building & Construction Today  

📰 Analysis: is infrastructure deficit stalling UK housebuilding boom? | TheBusinessDesk.com

📰 Senedd votes down ‘divisive’ Reform motion to end social housing and HMO access for foreign nationals | Inside Housing

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