Cable Viewer

Currently released so far... 12478 / 251,287

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04 2011/05/05 2011/05/06 2011/05/07 2011/05/08

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 96 97 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/06
1986/05
1987/06
1988/01
1989/12
1990/01 1990/07 1990/08 1990/10
1991/05
1992/01 1992/06 1992/12
1993/10
1996/11
1997/12
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/06 2001/07 2001/09 2001/10 2001/11
2002/01 2002/02 2002/03 2002/04 2002/07 2002/08 2002/09 2002/11
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chennai Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown Consulate Fukuoka
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne
Embassy Nicosia Embassy Niamey Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Naples Consulate Naha
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sapporo Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AU ASEC AE AF AORC AEMR AMGT ABUD AFFAIRS APER AS AMED AY AG AR AJ AL AID AM AODE ABLD AMG AFIN ATRN AGAO AFU AN AA ALOW APECO ADM ARF ASEAN APEC AMBASSADOR AO ASUP AZ AADP ACOA ANET AMCHAMS ACABQ ASECKFRDCVISKIRFPHUMSMIGEG APCS AGMT AINF AIT AORL ACS AFSI AFSN ACBAQ AFGHANISTAN ADANA ADPM AX ADCO AECL AMEX ACAO ASCH AORG AGR AROC ASIG AND ARM AQ ATFN AC AUC ASEX AER AVERY AGRICULTURE
BL BR BO BA BD BM BK BG BU BB BH BTIO BY BEXP BP BE BRUSSELS BF BIDEN BT BX BC BILAT BN BBSR BTIU BWC BMGT
CA CASC CVIS CM CH CO CU CD CWC CI CS CY CMGT CF CG CR CB CV CW CE CBW CT CPAS COUNTERTERRORISM CJAN CODEL CIDA CDG CDC CIA CTR CNARC CSW CN CONS CLINTON COE CROS CARICOM CONDOLEEZZA COUNTER CL COM CICTE CIS CFED COUNTRY CJUS CBSA CEUDA CLMT CAC COPUOS CIC CBE CHR CTM CVR CITEL CLEARANCE CACS CAN CITT CARSON CACM CDB CAPC CKGR CBC
DEAX DR DJ DA DEA DOMESTIC DO DK DHS DAO DCM DTRA DISENGAGEMENT DOD DPRK DEPT DOE DS DE DEFENSE
EC EG EPET ECON ETRD EFIN EIND EMIN ENRG EAID EAGR EUN ETTC EAIR ENIV ES EU EINV ELAB ECIN EFIS ELTN EWWT ECPS ECONOMIC ENGR EN EINT EPA ELN ESA EZ ER ET EFTA EINVECONSENVCSJA EUMEM ETRA EXTERNAL EI EUR EK ERNG ENGY ETRDEINVECINPGOVCS ENERG EINVEFIN ENVR ECA ELECTIONS ETC EUREM ENNP EFINECONCS EURN ECINECONCS EEPET EXIM ERD ENVI ETRC ETRDEINVTINTCS ETRO EDU ETRN EAIG ECONCS ECONOMICS EAP ECONOMY EINN EIAR EXBS ECUN EINDETRD EREL EUC ESENV ECONEFIN ECIP EFIM EAIDS ETRDECONWTOCS EUNCH EINVETC
FR FI FJ FBI FAC FM FO FAO FDA FTAA FARC FTA FREEDOM FISO FOR FOREIGN FOI FAS FINR FINANCE FMLN
GM GG GE GT GR GH GTIP GV GA GOI GAERC GY GOV GERARD GANGS GAZA GTMO GL GF GCC GZ GLOBAL
HA HO HU HUMOR HK HURI HR HEBRON HSTC HILLARY HUMAN HI HYMPSK
IZ IT IR IS IN IC IAEA IO ICAO IWC ID IV ISRAEL IAHRC IQ ICTR IMF IRS IDP IGAD ICRC ICTY IMO IL INRA INRO ICJ ITU IBRD INMARSAT IIP ITALY IEFIN IACI ILO INTELSAT ILC ITRA IDA INRB IRC INTERPOL IA IPR IRAQI ISRAELI INTERNAL ISLAMISTS INDO ITPHUM ITPGOV ITALIAN IBET INR IEA IZPREL IRAJ ITF IF
JO JA JM JOHN JP JOSEPH JUS JAMES JOHNNIE
KDEM KU KPAL KNNP KCRM KZ KN KS KJUS KTFN KSCA KV KISL KPAO KPKO KIRF KTIA KIPR KFLO KFRD KTIP KAWC KSUM KCOM KAID KE KTDB KMDR KOMC KWBG KDRG KVPR KTEX KGIC KWMN KSCI KCOR KACT KDDG KHLS KSAF KFLU KSEO KMRS KSPR KOLY KSEP KVIR KGHG KIRC KUNR KIFR KCIP KMCA KMPI KBCT KHSA KICC KIDE KCRS KMFO KRVC KRGY KR KAWK KG KFIN KHIV KBIO KOCI KBTR KNEI KPOA KCFE KPLS KSTC KHDP KPRP KCRCM KLIG KCFC KTER KREC KTBT KPRV KSTH KRIM KRAD KWAC KWMM KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KOMS KX KMIG KRCM KVRP KBTS KPAONZ KNUC KNAR KPWR KNPP KDEMAF KNUP KNNPMNUC KERG KGIT KPAI KTLA KFSC KCSY KSAC KTRD KID KOM KMOC KJUST KGCC KREL KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KFTFN KO KNSD KHUM KSEC KCMR KCHG KICA KPIN KESS KDEV KCGC KWWMN KPAK KWNM KWMNCS KRFD
LY LH LG LE LO LI LA LU LTTE LAB LOG LT LABOR
MOPS MCAP MPOS MARR MO MNUC MX MASS MG MY MU ML MR MILITARY MTCRE MT MEPP MA MDC MP MAR MASSMNUC MARAD MAPP MZ MD MI MEETINGS MK MCC MEPN MRCRE MAS MIL MASC MC MV MTCR MIK MUCN MEDIA MERCOSUR MW MOPPS MTS MLS MILI MTRE MEPI MQADHAFI MAPS
NO NATO NL NP NZ NSF NI NH NG NAFTA NU NASA NR NATOPREL NSSP NSG NA NT NW NK NPT NPA NATIONAL NPG NSFO NS NSC NE NGO NDP NIPP NRR NEW NZUS NC NAR NV NORAD
OTRA OPCW OVIP OAS OREP OPIC OIIP OPRC ODIP OEXC OPDC OSCE OIC OSCI OECD OFDP OFDA OMIG OPAD OFFICIALS OVP OIE OHUM OCS OBSP OTR OSAC ON OCII OES
PGOV PREL PHUM PTER PINS PINR PREF PK PROP PA PARM PBTS PMAR PM PGIV PE PRAM PHUH PHSA PL PNAT PO PLN PAO PSA PHUMPGOV PF PEL PBIO POLITICS PHUMBA PAS POL PREO PAHO PMIL POGOV POV PAK PNR PRL PG PREFA PSI PINL PU PARMS PRGOV PALESTINIAN PAIGH POLITICAL PARTIES POSTS PROG PORG PTBS PUNE POLICY PDOV PCI PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PBT PP PS PY PTERE PGOF PKFK PSOE PEPR PPA PINT PRELP PSEPC PGOVE PINF PNG PGOC PFOR PCUL POLINT PGGV PHALANAGE PARTY PGOVLO PHUS PDEM PECON PROV PHUMPREL
QA
RS RU RELATIONS RW RO RM RP ROOD RICE RUPREL RSO RCMP REACTION REPORT REGION RIGHTS RF RFE RSP RIGHTSPOLMIL ROBERT
SU SCUL SNAR SOCI SF SA SHUM SENV SP SR SY SANC SC SMIG SZ SARS SW SEVN SO SEN SL SNARCS SNARN SI SG SN SH SYR SAARC SPCE SHI SCRS SENVKGHG SYRIA SWE STEINBERG SIPRS ST SNARIZ SSA SK SPCVIS SOFA SIPDIS SAN
TC TI TBIO TH TSPL TRGY TSPA TPHY TU TW TS TAGS TK TX TNGD TZ TF TL TV TN TD TIP TR TP TO TT TFIN THPY TERRORISM TINT TRSY TURKEY TBID
US UK UNGA UP UZ UNMIK USTR UNO UNSC UN UNESCO UNAUS UNHRC UY UG UNHCR UNCND USOAS USEU UNICEF UNEP UV UNPUOS UNCSD USUN UNCHR UNDC USNC UE UNDP UNC USPS USAID UNVIE UAE UNFICYP UNODC UNCHS UNIDROIT UNDESCO UNCHC
VE VT VZ VTIZ VTPREL VAT VC VM VN VTEG VI
WHO WTRO WS WZ WHA WI WMD WHTI WA WTO WMO WBG WITH WIPO WTRQ WFP WWARD WB WEU
XR XM XL XS XW XF XG XT XU XA XK XY XV XB XZ XQ XC XTAG XX XE XD XH XI
YM YI YE YMCS
ZB ZU ZP ZR ZI ZANU ZL ZF ZJ ZO ZEALAND ZK ZN ZA ZOELLICK

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 08LONDON2029, ENERGY'S ECONOMIC AND POLITICAL IMPACT ON THE UK

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08LONDON2029.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08LONDON2029 | 2008-08-04 17:28 | 2011-02-04 21:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy London

`

    VZCZCXRO2946
    RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
    RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
    DE RUEHLO #2029/01 2171728
    ZNR UUUUU ZZH
    R 041728Z AUG 08
    FM AMEMBASSY LONDON
    TO RUEHC/SECSTATE WASHDC 9392
    RHEBAAA/DEPT OF ENERGY WASHDC
    RUEATRS/DEPT OF TREASURY WASHDC
    INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

` `

    UNCLAS SECTION 01 OF 02 LONDON 002029

    SENSITIVE
    SIPDIS

    E.O. 12598:  N/A
    TAGS: ENRG EPET PREL PGOV ECON SENV UK
    SUBJECT: ENERGY'S ECONOMIC AND POLITICAL IMPACT ON THE UK

    ¶1. (SBU) Summary. The UK faces two major energy challenges: a rise in fuel poverty and decreasing domestic oil and gas production. Current estimates put the number of households suffering from fuel poverty at 4.5 million according to the National Energy Action, an independent charity.  Additionally, the UK is going through a major transformation from virtual self sufficiency in terms of natural gas production to importing 80-90% of natural gas supplies by 2020 according to Department for Business, Enterprise, and Regulatory Reform (BERR) projections.  The British government is taking steps to address these issues with mixed results - and sometime political backlash - ensuring that energy will remain in the political spotlight.  End Summary.

    Rising Fuel Costs -----------------

    ¶2.  (U) Rising fuel costs have plagued the UK, like most countries, sending two million households into fuel poverty since 2005.  The British government developed a strategy in 2001 to eradicate fuel poverty in vulnerable households, defined as those with elderly or children, by 2010, and all households throughout the UK by 2018.  A household is considered in fuel poverty if it spends more than 10% of its income on fuel to maintain a satisfactory heating regime according to BERR.  Gas and electricity costs are increasingly becoming a larger part of household budgets.  While wages in the UK have increased 3.9% in the first quarter of 2008, energy costs have far outpaced wages.  The winter of 2008 saw domestic energy prices rise across all six main gas and electricity providers with EDF Energy and Npower leading the hikes with rate increases of 27%.  In June, independent energy expert John Hall of John Hall Associates warned that domestic consumers could see a 38% increase in energy costs in 2009.  On July 25, EDF announced it would raise gas prices 22%, and on July 31 British Gas followed suit raising rates 35%. The other four providers are expected to announce rate hikes in the coming week.

    Domestic Gas and Oil Production Falls -------------------------------------

    ¶3.  (U) While energy costs are rising, domestic oil and gas production declined over the last decade as the UK has moved from a net exporter of fuel to a net importer.  BERR predicts North Sea oil production will fall from 60-80 million tons in 2008 to 45-65 tons by 2013.  Gas production is also predicted to fall from 60-75 billion cubic meters in 2008 to 40-60 billion cubic meters in 2013. At the same time, demand for oil is expected to rise to over 90 million tons by 2013 and demand for gas is expected to exceed 90 million tons of oil equivalent, far outstripping domestic production.

    ¶4.  (U) The North Sea provides the majority of all domestic oil and gas production.  The development of two new fields in the North Sea, West Don and Don South West, with an estimated 25 billion barrels of oil still to be produced, have raised production hopes for the North Sea oil fields.  However, the remaining oil is difficult and costly to tap into, requiring large technological investments.  BERR acknowledges that the UK will become increasingly dependent upon imports of foreign gas and oil.  The UK imported .7 million tons of oil and imported 338 million cubic meters of natural gas in 2007, 38.5% more than in 2006.

    British Government Efforts --------------------------

    ¶5.  (U) The Labour government's 2001 plan to tackle fuel poverty included increasing the use of smart metering, grants to individuals to make energy efficient home repairs under the Warm Front program, and working with energy suppliers to offer discounts for low-income households.  Such improvements could significantly reduce residential energy demands, as many homes across the UK are not energy efficient.  BERR has since acknowledged the government will be unable to keep its promise and estimates that 1.2 million vulnerable households will be fuel poor in 2010.  Prime Minister Brown called for information sharing among energy suppliers, consumers and the government to identify and help vulnerable families in his May 28, 2008 editorial in the Guardian.  Brown is now working with energy providers to develop new measures this autumn to provide relief to fuel poor households.  He is not expected to call for a windfall tax, to the dismay of some Labour MPs.

    ¶6.  (U) Additionally, the British government is seeking to increase energy sustainability and reduce the UK's carbon output 23-33 million tons by 2020 through investments in nuclear and renewable energy sources.  There are currently 19 operating reactors at 10 nuclear power stations; all but one will close by 2023.  Nuclear provides 19% of the nation's electricity supply.   Brown has urged Parliament to pass the Planning Bill, currently in the House of Lords, to improve the process for developing nuclear plants and other major infrastructure projects by creating a commission  LONDON 00002029  002 OF 002   responsible for streamlining procedures.  The investment in new nuclear plants could represent BPS 20 billion (USD 40 B) in investment and create up to 100,000 new jobs for British citizens. The British Government, however, has vowed to not grant any subsidies in this process.  Hutton stated there will be, "no politically-imposed ceilings on the contribution from nuclear in the UK's energy mix.  The market - not ministers - should be free to determine the precise mix."

    Two Pence Tax U-turn --------------------

    ¶7.  (U) In 2007, HM Treasury planned a series of three two-pence (four cents) per liter increases in the fuel duty.  The first two-pence increase came in autumn 2007 with the second scheduled for April 2008, and a third in 2009.  The government postponed the April 2008 increase until October 2008 due to political pressure in light of rising fuel prices.  However, on July 16, the week before the Glasgow East by-election, Chancellor Darling announced that the two-pence fuel duty rise would be further postponed, with future decisions on fuel duties to be made during next spring's budget. Tory leader David Cameron attacked the move as purely political, intended to increase Labour support before the by-election, which Labour subsequently lost to the Scottish National Party.

    Fuel Protests -------------

    ¶8.  (U) As is the case across Europe, the UK has seen a number of fuel protests since summer began.  The most recent occurred July 2 with 230 trucks parading past Westminster disrupting London traffic.  The protest was organized to coincide with major industry meetings in London including the Motor Transport Awards.  Truckers are lobbying for an "Essential User Rebate" which would permit discounted fuel prices for their work.  The rebate would be similar to the existing discount given to public transportation.  The event also served to pressure the government to scrap the scheduled two-pence fuel duty increase.  A similar protest took place in London in May and in Manchester on June 5.

    ¶9. (SBU) Comment: Energy costs and planning for future energy needs will continue to be pressing political and economic issues in the UK.  The pain of current high prices is exacerbated by the current housing market crash, the credit crunch, and other downturns in economic growth.  The British government understands the political need to take action to alleviate the pressures of rising energy costs on UK voters.  But the current plan outlined by the Labour government addressing fuel poverty will not, by the government's own admission, be able to achieve its stated fuel-poverty goals, nor can the government assure that the focus on nuclear investment will pay off.  The current economic situation should continue to spur innovation and investment in alternative fuel sources including nuclear, but the solution - and an end to the current pocketbook pain UK energy consumers are feeling -- is most likely long term, a bad political reality for the Brown Government.  LEBARON

`