Madano Analysis – Budget 2021 and Build Back Better, the plan for growth

Madano Analysis – Budget 2021 and Build Back Better, the plan for growth

Alongside a Budget that focused heavily on the immediate actions required to return to growth and respond to the economic impacts of Covid-19, the Government published Build Back Better, its plan for growth, a new economic strategy for the post-Brexit, post-pandemic world with technology, net zero and innovation at its heart.  

Autumn’s Comprehensive Spending Review will still be significant in putting this to work longer term, but Build Back Better makes clear that today’s Budget, and recent announcements such as the £800m ARIA and the Green Industrial Revolution, are part of a bigger picture for the Government. Its three pillars are infrastructure, skills and innovation. New strategies expected over the next year, such as a Hydrogen Strategy, Innovation Strategy, a Transport Decarbonisation Strategy, and Digital Strategy, will all connect back to Build Back Better. 

It aims to build a connecting economic narrative for the future of the UK, with leadership in science and innovation, and the transition to net zero, all creating transformative changes in productivity and quality of life in regions across the country.  

Our highlights included: 

  • The new Future Fund: Breakthrough, a £375m public-private fund to invest in promising, R&D-intensive companies ready to scale up with equity rounds of over £20m, showing Government’s seriousness about a greater appetite for risk and supporting companies directly. 
  • The launch of the new National Infrastructure Bank, expected to deliver £12bn in public and sector project investment from Spring onwards and drive forward new net zero projects. 
  • Freeports, eight new economic zones spread across nearly every region, with special regulatory, development and taxation rules to incentivise high-tech investment. 
  • Several commitments on green finance, including a change to the Bank of England’s remit to include environmental sustainability, and new green savings products and bonds. 

Levelling up remains a key focus. Alongside freeports, the location of the new National Infrastructure Bank in Leeds and the Treasury’s new Darlington hub make that abundantly clear. 

Undoubtedly, the focus today will be on measures taken by the Chancellor to safeguard the economy as the UK travels on the roadmap towards the end of COVID-19 restrictions. But today’s Build Back Better plan demonstrates that when the Conservatives go to the electorate at the end of this Parliament, they will be expecting to do so having established a more productive economy that leads in innovative industries, and is making strides towards a lower carbon energy system.

Johnson takes to the wind

Johnson takes to the wind

Expectations across the energy sector were high yesterday, as Prime Minister Boris Johnson’s gave his “winds of change” vision for the energy sector by committing the Government to the modest target of increasing offshore wind power capacity from 30 GW to 40 GW, by 2030. He breezily claimed that this source of low carbon energy could generate enough electricity to power all the UK’s homes within a decade.

Alongside this pledge, the Prime Minister promised £160m to upgrade ports and infrastructure for building turbines and boosting offshore wind capacity, which he claimed will create 2,000 jobs in construction and support 60,000 more. We will, according to the Prime Minister, see 1 GW of floating wind turbines hove into view by 2030, too.

The Prime Minister’s backing for offshore wind is not a major surprise in and of itself, given the Government’s focus on tackling climate change in much of its messaging. And given the scale of investment announced yesterday is modest by international standards, industry will be looking for much more in the Government’s 10-point “Build Back Greener” plan if the UK is to establish itself as the ‘Saudi Arabia’ of wind power and renewable energy more broadly.

The Prime Minister’s lofty assertion that offshore wind, alone, can solve a large part of the energy question should be taken with a large pinch of sea salt or viewed as a symptom of his broad brush, oratorical style. His claim that offshore wind could power all the UK’s homes by 2030 omitted to mention that homes account for only about a third of power use. The Government is well aware that wind is only one piece of the testing net zero puzzle and that other low carbon energy sources, such as solar and nuclear power, will need support to scale up and meet the needs of wider energy challenge.

While the Prime Minister’s press release did take the opportunity to breathe fresh life into the Government’s plans for renewables by indicating that the Government will set a 2021 target to “double the capacity of renewable energy in the next Contracts for Difference auction,” he provided little detail on its proposals for solar, hydrogen, carbon capture and storage, energy efficiency or nuclear power.

Still, we can be confident that this announcement is the first stage of the “Build Back Greener” plan for a green industrial revolution from the Government, with No 10 promising further, concrete details later this year to “accelerate our progress towards net zero emissions by 2050.” There are conflicting reports on the date that this plan will be published, with both late October and late November suggested.

The long-delayed Energy White Paper is also reportedly set to be published this month. The paper will outline the Government’s approach to delivering its net zero target and will hopefully clear the air on various issues, such as large-scale nuclear, and provide confidence to the renewables sector that has weathered COVID-19 admirably and produced record-breaking levels of low-carbon energy.

To our mind, what is most notable from this policy announcement is not its content but the fact that a commitment to offshore wind is the headline announcement of a Prime Minister at the Conservative Party Conference, during a time of public health and economic crisis.

Whatever the rationale behind this decision, it confirms that addressing climate change has much greater importance for this Government compared to recent predecessors.

Written by James Watson, Madano.

Let’s talk: Virtual meetings (in healthcare)

Let’s talk: Virtual meetings (in healthcare)

Things were so much easier in 2020 BC (before COVID-19):

“A client wants us to organise a workshop? No problem! We’ve arranged loads of similar events before. We’ll use our experience, follow our tried and tested formula and then tailor the content to meet the specific requirements of this event…”

[Cue a global pandemic shutting down vast swathes of the economy and forcing large areas of the planet into lockdown. The reality of 2020 AC (Anno Coroni) suddenly hits home.]

“… Ah, this is not going to be as easy as we’d imagined! What do we need to do now to make this a success??”

That was basically the internal monologue of Madano’s Healthcare practice leading up to what would become a two-day virtual event for 80 internal stakeholders working in Alzheimer’s disease, with participants scattered around the world from Brazil and Europe to the UAE and Australia. We weren’t entirely sure how we were going to get this one over the line, faced with such unforeseen circumstances and pressures, but we love a challenge, and get it over the line we did! Here are the lessons we learned along the way.

Be engaging!

As you can imagine, the event’s virtual setting presented a whole new set of considerations and challenges to overcome, and we wanted to ensure that the event was engaging and fun for everyone sat in their home offices, living rooms, kitchens, and even childhood bedrooms for those who locked down with family!

We began by circulating a survey among participants to help us plan the event in a way that would be of most interest and use to those attending, as well as requesting their current location and time zones (as many people were locked down in areas outside of their offices’ cities!) to help with the scheduling.

The survey also enabled us to determine the type of content attendees would like to be included in the sessions, with a mix of workshops, co-creation, information-sharing and training sessions. In addition, we asked attendees to indicate whose perspectives they would most like to hear – whether neurologists, caregivers and family members of people living with Alzheimer’s, or team members for best-practice examples.

The end result included neurologist and Alzheimer’s specialists’ perspectives for two of the sessions; fortunately, we were blessed with a group of personable, energetic and passionate presenters, so each session produced a lot of interaction and questions from the audience. Making sure your presenters are enthusiastic and able to transmit that enthusiasm to those listening is important for any event, but it’s almost mandatory in a virtual environment.

Another tip that we’d offer is to include an unexpected but relevant addition to your event to surprise attendees and maintain their interest. We did this in the form of a digital illustrator who sat in on the first day’s sessions, producing sketches of each session’s content, and then presented the illustrations back to the audience on the second day. Aside from providing a very creative way to summarise the first day’s discussions for attendees, those illustrations will now be used as a follow-up to produce an infographic tracing a patient’s journey through their condition and the team’s goals to help improve this. A short break for a team scavenger hunt – finding every day items around their homes in the fastest time – also added a very enjoyable element to the second day.

Make it personal!

Prior to the meeting, attendees were asked if they’d be willing to share country-specific experiences at the event (nine agreed) and their personal experiences with the disease (four were willing). We also asked employees to provide a 10-second video clip of themselves stating a pledge they wanted to make for the future – either patient-focused or within the business. These clips were compiled into a video shown at the start and end of the event, and individually hosted on an internal team platform (which we also completely rebranded and reformatted in preparation for the meeting).

Some presentations used videos and photo montages to tell very emotional stories. These poignant personal narratives, of parents and grandparents who had been diagnosed with Alzheimer’s, demonstrated the real passion that this team has to keep patients at the heart of every discussion (and made both the clients and our team shed a few tears!), especially during a meeting otherwise quite focused on expertise and strategy.

Lessons and recommendations

At the end of the meeting, we circulated an evaluation survey to determine what had worked well and identify areas where we could improve future events. We were pleased to discover that all respondents agreed or strongly agreed that the meeting had met their expectations in terms of content, was well organised, and the sessions were relevant and useful. Encouragingly, many felt that the virtual format was as effective as if the meeting had been face-to-face, a positive step for the new world we live in.

Our recommendations for similar virtual healthcare events would include sharing more best-practice examples from internal employees, including more time for Q&A sessions and giving plenty of emphasis to the patient and caregiver voice. As the organiser, we would also advise having more sessions that are shorter in length, with more frequent breaks in between (even if only for a few minutes), to allow the audience to refresh and maintain their concentration levels.

And finally, as anyone who’s been working remotely for several months now will tell you, anticipate technology not always working in the way you had planned and try to come up with an alternative for when it does… and when that happens, above all else, keep calm!

By Sam Marshall, Programme Manager, Madano Healthcare.

Restructuring or Reinvention – The Next Communications Challenge

Restructuring or Reinvention – The Next Communications Challenge

Our focus in this edition of the Madano Mindset Series is on some of the communications considerations that will emerge as vast governmental life rafts of support are eased and organisations face up to the future COVID-19 reality.

Click the image below to download the full document.

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Seizing the opportunity, how turbines will form part of our COVID-19 recovery

Seizing the opportunity, how turbines will form part of our COVID-19 recovery

In the UK, wind represents a success story on the path to Net-Zero and one of the greatest opportunities to reach this goal by 2050. Across Europe, wind energy now makes up 15% of the EU’s electricity. Recent months have seen a return for onshore wind being eligible to participate in CfD competitions. The growth of the floating wind market is now central to discussions as a viable alternative to conventional arrays.

However, the reach of COVID-19 will not escape the sector, with supply chains suffering lockdowns and impacts to manufacturing and plunges in forex rates beginning to hamper propositions in the coming months. Organisations will need to communicate their messages clearly, with authenticity and passion to be heard in this post-COVID recovery. Most companies supplying the UK with materials are from outside of the country and are mainly based in Europe and China. In 2019, €19bn was raised for the construction of new wind farms in Europe, 24% less than in 2018. Given the impact of COVID-19, we may have to revise our expectations in the coming years.

I believe though that the wind sector is in good shape despite the COVID-19 pandemic. Here’s why.

High public acceptability

There is growing acceptability of offshore wind among key stakeholders. In recent Government polling, 81% of the population supported offshore wind and this sentiment has held steady over recent years. This attitude has largely been down to wind assets’ growing presence off our shores and public awareness growing alongside recognition of the importance of Net-Zero on the Government’s agenda.

Further projects are being approved and three major schemes are awaiting Development Consent Orders with the Planning Inspectorate due to confirm decisions by early June of the Thanet Extension, Hornsea 3 and Norfolk Vanguard sites.

However, some stakeholders retain an entrenched position, including US President Donald Trump who maintains the view of a “monstrous” wind project destroying the view of “perhaps the greatest golf course anywhere in the world” (which happens to be his Trump International Links Course). The ensuing legal challenge has resulted in Mr Trump being ordered to pay £250,000 to the Scottish Government.

With new emerging technologies and licencing rounds, developers will need to continue engaging with communities and stakeholders to inform and educate residents around proposals in order to mobilise support and consent for projects. Developers can’t take stakeholder sentiment at a local and national level for granted – authentic and compelling engagements at key stage gates for projects help to bring stakeholders on the journey.

A golden opportunity for the UK

With the Crown Estate launching the next round of the wind leasing competition, we will likely see around 7GW of capacity awarded in new seabed rights. If fully exploited, this would nearly double offshore power output in the UK. This represents more than twice the amount of energy that will be generated by the upcoming Hinkley Point C nuclear plant – enough to power over 6 million homes. Wind is now starting to play an increasing role in each of our daily lives.

With each new project, developers will need to create a clear narrative and benefit case to justify the disruption to the communities around their proposed sites. One impactful way to do this is through virtual reality and rich media content. These methods can create vibrant learning environments that consultation and stakeholder engagement meetings have struggled to achieve.

European wind capacity rose by a third (15.2GW) in 2019 across Europe with the UK leading the way in the installation of 2.4GW followed by Spain, Sweden and France. Importantly, the increasing pace of UK wind deployment will form part of the Government’s ‘levelling up’ agenda with potential supply chain benefits greatly boosting underperforming regions. Creating clusters of excellence around ports could result in long term economic benefits through development, operations and maintenance and then into decommissioning, which will enable a wide section of the energy sector to benefit from wind’s growth.

Innovating to further increase wind’s role in our energy system

Floating wind turbines offer a great opportunity for the UK given its leadership in offshore wind. The UK also needs floating wind given its tough Net-Zero climate targets. Floating wind installations offer greater cost competitiveness than conventional offshore wind arrays with less anchoring or pilling required to stabilise the turbines. Floating wind turbines increase the opportunities for onshore development with greater assembly onshore. These assets’ more mobile nature enables them to be moved further out to sea, where winds are steadier and stronger.

A single deep-sea floating turbine can produce up to 25MW of power per year, nearly seven times that of a traditional offshore turbine. Locating these arrays further out to sea also means that delicate ecosystems close to shore and communities concerned with noise can be better protected. However, there are still constraints around wind speed in highly volatile locations.

Roughly half of the world’s population lives within 125 miles of a coastline, placing demand close to offshore wind production locations. In the UK, the furthest we can be is 70 miles from the coast making short length cable runs for electricity transmission very attractive.

However, as Bruno Geschier, Chairman of the WFO Floating Wind Committee said on a recent Floating Wind webinar, work is still to be done to convince key stakeholders that floating wind is viable.

Geschier laid emphasis on Government Relations, policymaking and ensuring that developers set the right conditions to enable offshore wind to succeed. Engaging with government early, building clear areas of common understanding and then bringing stakeholders along on the journey of a project is key. Clear communications are central to enabling floating wind to achieve its goals.

Therefore, while COVID-19 will prove to be an obstacle to smooth sector growth, the overall prospects for wind in the UK remain positive. Week on week we are seeing developers seeking to mobilise supply chains and plough investment into coastal communities to support major arrays. It will be critical to ensure that the engagement, messaging and public face of these projects ensures support rather than creates voids where opposition can delay and disrupt projects.

Madano advises clients in the energy and infrastructure sectors adapting to the impacts of COVID-19 and transitioning to lower carbon operating models – if you’re interested in learning more please drop me or the team a line. You can also follow Madano on Twitter.

Email: [email protected]

Blog written by Andrew Turner, Senior Account Director, Madano (Energy and Environment).

Diagnosing your ‘real’ communications needs while navigating the COVID-19 change curve

Diagnosing your ‘real’ communications needs while navigating the COVID-19 change curve

It’s worth reminding ourselves of simple tools that have helped you and a myriad of our clients to manage communications challenges whatever the circumstances.

Below is Madano’s communications diagnostic that provides a simple but really effective framework for Business Leaders and Communications Professionals to consider what are your ‘real’ communications needs.

Click the image below to access the full PDF.

If you have any questions please get in touch with Founding Partner, Matthew Moth.

Follow Madano on Twitter, LinkedIn and Instagram.

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