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Chancellor Jeremy Hunt’s budget yesterday included the confirmation that the Energy Price Guarantee (EPG) would be extended, and investment in carbon capture and storage, plus support for swimming pools struggling to pay energy bills.
Chris Stark, Chief Executive of the Climate Change Committee, said on Twitter: “Not too many climate surprises in the Budget speech. But notable that there was a general theme of supporting Net Zero and clean energy in particular.” He also pointed out that the “government has until the end of March to bring forward a new Net Zero strategy to comply with the High Court judgement. That will also be the response to Chris Skidmore’s review.”
Hunt confirmed £20 billion in funding for carbon capture utilisation and storage (CCUS) projects over the next 20 years and the creation of a British Nuclear Agency. There was no announcement on further investment in renewable energy or energy efficiency. Leisure centres with swimming pools will be able to access £63 million in funding, via Sport England, to help energy efficiency and decarbonisation plans.
Tim Hollingsworth, Sport England’s CEO, said:
This is a significant and welcome amount of support from the government that will offer a lifeline to many public leisure centres across England as well as help sustain them into the future.
Swimming pools play a vital role in our communities and are enormously important in helping people to be physically active in their daily lives.
We know how difficult the present situation is and have been working hard to ensure these providers get the support they need. We’ll now turn our efforts to supporting the process in the weeks ahead to distribute the funding made available today to ensure it goes where it is needed the most.
Here is a selection of other responses:
Frank Gordon, Director of Policy at the REA (Association for Renewable Energy and Clean Technology), said:
Government’s commitment to advancing carbon capture and storage is a long awaited and welcome step forward, helping to reaffirm the UK’s global position as leaders in this innovative technology, and see it built at commercial scale. However, government must now set out how further bioenergy with carbon capture and storage (BECCS) projects will be taken forward across all scales. There are over 60 biomass power sites in the UK, representing over 4500 MW of capacity, all of whom could be looking to CCS to deliver carbon removals.
The industry and investors are ready; they now need government to confirm details on a reasonable route to market in order to push ahead.
While we welcome this support and acknowledge the tough economic backdrop, it was disappointing that the Budget offered no new support for moving to long-term solutions to tackle the energy crisis such as decarbonising heat, energy efficiency, securing investment in Net Zero supply chains in response to US and EU support, no compensatory measures for EV drivers from the fuel duty freeze and nothing on moving to a more Circular Economy.
Much attention will turn to the Autumn Statement where there was a commitment to respond to the supply chain investment requirements in response to the likes of the US Inflation Reduction Act.
Overall, today’s statement marks a missed opportunity as the US and EU push forward in attracting low carbon investment, while the UK risks falling behind.
David Cowdrey, director of external affairs for MCS, said:
We are currently facing a climate and cost-of-living crisis. The extension of the Energy Price Guarantee is a welcome announcement, but with prices still set to rise from 1st April and millions of people currently unable to afford their energy, we need additional government support to transition to truly home-grown, renewable energy and reduce consumers’ bills.
If energy security really is a priority, then why has the budget failed to invest further in domestic renewables? The Chancellor has allocated £20 billion to unproven carbon capture and storage measures, rather than invest in the renewables industry and energy efficiency measures available now. The Government must focus on decarbonising our existing housing stock, which is poorly insulated and too reliant on fossil fuels. There also needs to be a long-term commitment to building well-insulated new homes that are not connected to the gas grid and have heat pumps, solar and battery storage as standard.
Keith O’Connor, Founder and CEO of Fleetsolve, said:
It’s critical that the Chancellor implements a series of measures that will enable and support UK business throughout their energy transition on the journey to net-zero. We are pleased to see the Spring Budget announcement of energy efficiency funding for swimming pools. This will provide a much needed shot in the arm to those community facilities particularly threatened by high energy costs. CHP is a tried and tested technology that generates lower-cost electricity and heat simultaneously in one highly efficient process. As such it is ideal for energy intensive environments like swimming pools that require a lot of heat. We are poised to help local authorities and leisure providers take advantage of this funding as soon as it becomes available.
We also welcome confirmation that the Climate Change Agreement (CCA) scheme will be extended for a further two years, and opened to new applicants. This, combined with the extension of the 50% First Year Allowance will free up some budget to invest in energy efficiency measures such as CHP, increasing resilience and allowing firms to operate more sustainably.
UK100’s Interim Chief Executive, Jason Torrance, said:
The Chancellor’s focus on energy security, energy bill support and devolution is a welcome statement of intent — but we’re worried the measures themselves miss the mark.
Extending the Energy Price Guarantee for a further three months offers consumers a vital but brief reprieve from sky-high energy bills. However, Jeremy Hunt has let slip another golden opportunity to embrace a targeted, long-term solution.
For too long, the Government has overlooked the importance of energy efficiency. Our End the wait. Insulate. report sets out an oven-ready, cost-neutral plan for a local-led energy efficiency drive to alleviate pressure on the most vulnerable – and it won’t cost the earth.
At the same time, the Chancellor’s energy security plans ignore the cheapest and quickest way to boost UK energy production while accelerating Net Zero action; investment in renewables, including making good on the promise to lift the de facto ban on onshore wind.
Finally, the move to shift control from Whitehall to regional mayors should be celebrated as a big step in the right direction — but we need to see more detail. The same with investment zones.
