Chancellor Rachel Reeves delivered a historic Autumn Budget speech, being the first female Chancellor to do so in the history of UK politics. Vowing to “restore stability” to UK finances and “begin a decade of national renewal”, the Chancellor spoke about tax rises, wages, pensions, housing, and her spending plans for sectors such as defence, education, and clean energy.
Underpinning the Chancellor’s strategy are seven “key pillars”:
- 1. Restore economic stability
- 2. Increase investment
- 3. Ensure all areas of the UK realise their potential
- 4. Improve employment prospects
- 5. Launch a long-term, modern industrial strategy
- 6. Drive innovation
And, most importantly for us:
- 7. Maximise the growth benefits of our clean energy mission
As the Labour Party takes their seat as the ruling Government for the first time since 2010, they have a particularly sizeable task to face: achieving their Clean Power by 2030 target. This will require significant public and private investment, planning system reform, and deep-rooted stakeholder cooperation.
The Chancellor confirmed a £2bn boost for 11 new green hydrogen projects, £125m to kickstart the creation of GB Energy, and the removal of the 29% investment allowance for oil and gas companies, a move which will ensure fossil fuel developers contribute more fairly to the energy transition. The Chancellor has also promised £70bn through the National Wealth Fund to “invest in the industries of the future”, and £3.4bn for the Warm Homes Plan for 2025/26 – 2027/28 for heat decarbonisation and energy efficiency.
