Reflections on the Autumn Budget: A Path Forward for the UK’s Green Economy and Infrastructure

The recent Autumn Budget has sparked varied reactions from industry leaders and experts, each offering insights into the implications for the UK’s economy, particularly in renewable energy, infrastructure, and local business sustainability. Below, we summarize key perspectives that shed light on the challenges and opportunities ahead.

A Cautious Optimism in Renewable Energy

Moray Barber, Senior Tax Partner at EY, expressed disappointment regarding the changes to the Energy Profits Levy (EPL). He stated, “Many in the energy sector will be disappointed not to see a different, more dynamic approach to maximizing the energy sector transition. While the EPL was intended to be a ‘windfall’ tax, the new increased rate and further expansion to 2030 will have many wondering if it’s a tax that’s creeping in to stay.”

Barber emphasized the importance of incentives for energy companies to invest in the transition to net zero: “The incentive given to energy companies investing capital into the energy transition was a much-needed mechanism to keep the UK’s net zero vision an attractive investment proposition for the long term.” He welcomed the changes allowing First Year Allowances (FYA) without restriction, which he noted would provide some cash flow benefits. However, he cautioned, “There will be concern that the cliff edge of 29% allowance, and lack of reasonable tapering, will impact the long-term investment vital to realizing the full, green energy transition.”

Adding to this sentiment, Giles Hanglin, CEO of Apatura Energy, labeled the Budget as potentially the “greenest budget in UK history.” He said, “If implemented appropriately, we believe today’s budget could be labelled the ‘greenest budget in UK history’, a step towards a world fully powered by clean, renewable energy.” Hanglin stressed the need for a circular economy, stating, “A circular economy lasts longer than a prime minister’s term in office,” and he noted the importance of energy independence for the UK.

In a similar vein, James Milner, CEO of Wild Hydrogen, commented, “The Chancellor’s pledge of £3.7 billion for hydrogen and carbon capture marks a pivotal moment for the UK’s clean energy transition. This substantial investment will supercharge Great Britain’s path to net zero. But to truly unlock hydrogen’s potential, this funding must be strategically allocated for maximum carbon impact.”

Ross Driver, Fund Manager of Foresight Solar, shared a mixed view, noting, “While today’s Budget brings mixed signals for investors, we remain deeply confident in renewables as a strong, resilient asset class.” He added, “The changes in tax treatment could shift investment dynamics in the short term… but the bigger picture shows we’re still moving in the right direction.”

Infrastructure Investment: A Step Towards Revival

The TUC’s General Secretary, Paul Nowak, emphasized the government’s serious approach to industrial revival through infrastructure investment. He declared, “This budget shows the government is serious about industrial revival. This is a step change from the Conservatives who starved our nation’s infrastructure of investment.” Nowak praised the Chancellor’s commitment to fund rail projects, upgrades to automotive factories, and green hydrogen initiatives, stating, “The Chancellor’s investment into rail projects, upgrades to our automotive factories and green hydrogen projects will start to build a better Britain.”

Philip Silk, Development Director at Conrad Energy, noted that while the Budget contains welcome measures for green hydrogen development, significant barriers remain. He stated, “There are lots of welcome measures in today’s Budget,” but cautioned that “the protracted approval process has been a pretty sizeable barrier to development for some time.” Silk emphasized the need for funding for additional planners to reduce delays, saying, “Setting aside additional funding for extra planners could reduce delays and so can only be a good thing.” He also pointed out the critical issue of grid connectivity: “As things stand, the Grid works on a first-come, first-served basis… viable projects often find themselves stuck behind a horde of zombie projects that have little chance of success.”

Support for Local Businesses and Education

In the context of local business sustainability, the CEO of LCD Ventures remarked on the Chancellor’s commitment to reforming business rates. He noted, “The Chancellor’s commitment to reforming business rates is a promising step, but it is unfortunately not a silver bullet to saving Britain’s struggling retailers and high streets.” He emphasized that this reform must fit into a holistic approach that prioritizes local businesses and SMEs: “The UK needs vibrant, thriving high streets which have a well-balanced social infrastructure, where smaller local businesses can compete with bigger brands.”

Beatrice Barleon from EngineeringUK praised the Chancellor’s focus on education and skills as crucial for supporting the engineering workforce needed for the UK’s clean energy ambitions. She said, “We welcome the Chancellor’s commitment to invest in education and skills as a central pillar of the Government’s growth agenda.” Barleon highlighted the significance of funding for school budgets and apprenticeships, noting that these initiatives are vital for addressing the teacher recruitment crisis, particularly in STEM subjects: “To resolve the teacher workforce crisis in the long term, this must be accompanied by a similar commitment to teacher retention.”

A Balanced Approach for Sustainable Growth

Overall, the Autumn Budget reflects a cautious but necessary commitment to sustainable growth and infrastructure development. While the measures announced may have set a positive tone, continuous efforts are needed to ensure that the UK can navigate its transition to a clean energy economy and a thriving high street landscape.

As industry leaders stress the importance of investment in renewables and local businesses, the path forward hinges on effective policy implementation and genuine engagement with the challenges at hand. The consensus is clear: while the measures announced may set a positive tone, continuous efforts are needed to ensure that the UK can navigate its transition to a clean energy economy and a thriving high street landscape.

The UK has the opportunity to lead in both the green economy and the revitalization of local business landscapes. However, realizing these ambitions will require a collaborative approach that prioritizes sustainability, investment, and the unique needs of local economies. Only then can the UK achieve its ambitious climate goals and foster vibrant communities that reflect the country’s rich cultural identity.

Timothy R Price
Chairman & Chief Editor
The World Renewable Energy Association