The UK’s net zero economy has been left ‘disappointed’ by the 2023 autumn statement earlier this morning, after chancellor Jeremy Hunt set out the government’s tax and spending plans for the coming year.
Businesses and climate change organisations had previously urged the chancellor to make the most of the opportunity and use the autumn statement to boost the UK’s green economy, providing a more robust response to the global race to net zero.
However, Hunt spoke primarily about tax cuts and benefits, giving little time to the opportunity that the
global transition to a net zero economy offers the UK economy. Businesses had hoped the government would set out a clear and consistent long-term strategy, sending a clear signal that the UK was serious about the size and scale of investment needed to make a difference.
Instead Hunt committed to invest £4.5bn in UK manufacturing between 2025 and 2030, of which £960m is ringfenced for new ‘green industry’ businesses. The government estimates that this additional support for will attract around £2bn of additional investment each year over the next decade.
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During the full autumn statement speech, the chancellor also confirmed the widely-anticipated decision to make ‘full expensing’ permanent in what he described as the “largest business tax cut in modern British history”. The move, which is expected to cost around £11bn a year, will allow businesses investing in new IT, machinery or equipment to deduct all expenses immediately.
The chancellor also confirmed he would be reforming the time it takes for clean energy businesses to access the electricity grid, a move which he claims will cut grid access delays by 90% and offer up to £10,000 off electricity bills over the next decade for those living near power infrastructure.
The government has also published its full response to the Winser review, designed to help the UK take full advantage of its renewable energy infrastructure.
Climate Change Committee chair Professor Piers Forster said the autumn statement set a “welcome direction” towards tackling some of the barriers in the net zero transition.
“Accelerating the building of the transmission network with benefits for the local communities, speeding up grid connections and the proposed planning changes for heat pumps and electric vehicle infrastructure are all positive steps taken today. These measures will help increase public support for the net zero transition and help build business confidence.”
However, Greenpeace head of politics Rebecca Newsom, took a wholly different view, saying the autumn statement showed that Jeremy Hunt is “completely out of step” with the reality people are facing up and down this country.
“Today, we needed to see bold leadership and a big vision for a green industrial strategy, but all we got was tinkering at the edges. These small reforms will do nothing to tackle the scale of the problems our economy and climate face.”
She added: “The US, EU and China are already lightyears ahead of us in supporting investment in green technology, and investors have been left ‘shaken’ by our government’s recent u-turns on net zero. This autumn statement has done nothing to change that.
“We urgently need a vast scale-up of renewable energy, warmer homes and making transport greener. This would boost our failing economy, help ordinary people with the cost of living, and tackle the climate crisis at the same time. As things stand, this chancellor is failing on all three.”
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