Following weeks of speculation over what will be prioritised in the new Chancellor’s Autumn Budget, we have finally got confirmation of how it will affect the UK’s ambitious environmental and social sustainability targets, and the progress of businesses and third-party organisations of all sizes towards meeting them. October’s budget is of critical importance in shaping environmental and social policies for the coming year and beyond.
Here are some of the most important areas that the government has chosen to focus on so far:
The government’s statement focused on investments in capture, usage, and storage (CCUS) technology and hydrogen, with a combined total of £3.7bn to be allocated in the next financial year.
The Autumn budget statement confirmed further investments in carbon capture and storage, additional to the £20 billion earmarked in the Spring 2023 budget, as part of efforts to reduce emissions in energy-intensive industries.
Also confirmed are 11 new hydrogen projects across England, Scotland and Wales. The budget includes further funding for research and development in key national Hubs across the midlands and Scotland, with up to £520m earmarked for a Life Sciences Innovative Manufacturing fund and over £6bn to protect core research funding.
The tech sector’s potential contribution to the global transition to Net Zero emissions estimated to be as much as a 15% global reduction by 2030. In our ‘Guide to Net Zero for the Technology Sector’ we outlined key emissions drivers and enablers to sustainable action. Read more here.
Costed plans to scale up renewable sources like offshore wind, solar, and nuclear energy, in line with the targets set in the “Powering Up Britain” strategy have not been yet released, so for now it is nearly impossible to say whether the budget goes far enough to ensure the UK is on track to meet its commitments. We will continue to look into this in future weeks and keep you updated.
As things stand, we are still expecting the government to lay out a fully funded plan to gradually reduce reliance on fossil fuels and support more domestic and low-carbon energy solutions, but the Autumn 2024 budget does confirm the establishment of a brand new institution, GB Energy, in the historic capital of oil and gas – Aberdeen, Scotland.
As part of a broader strategy to reduce dependency on international energy markets, the government is expected to address the role of North Sea oil and gas production. The budget statement confirmed the government’s intention to remove the industry’s 29% investment allowance, in a bid to protect jobs and support the UK’s energy security.
Within a larger package of measures addressing the cost of living of millions, the government took the opportunity to increase the national wage to be more aligned with the recommendations of the Living Wage Foundation. By supporting their team’s economic stability, employers have a unique opportunity to contribute to more resilient communities and reduce the economic stress that often leads to physical or mental health complications.
Transport also assumed a central role in the government’s Autumn statement pledges. With respect to the support needed to meet ambitious Net Zero targets, electric vehicle (EV) incentives for car fleets are to be extended for another year, together with the 100% First Year Allowances for electric cars and a commitment of £200m in additional spending to accelerate the rollout of EV charging points.
The new government’s plans highlight plenty of opportunities for cross-sector innovation and partnerships, and a boost in local supply chains, thanks to the investments pledged in Regional Hubs across Scotland, Wales, England.
The increase of 1.2% in employer’s national insurance contributions, balanced with the employment allowance increase from £5,000 to £10,500 will undoubtedly give businesses plenty of food for thought, with many left confused by the mixed messages. Small and medium-sized enterprises in particular need to consider budgets carefully and sustainability can provide an opportunity for efficiencies elsewhere on the balance sheet.
The good news is that considerable opportunities are being presented to organisations whose supply chains fall in specific sectors where government spending is focused in the coming years, from construction and infrastructure projects, to research and development and transport and many others.
The big picture is still being painted
It is vital for governments to continue budgeting for environmental and social step changes in their plans to ensure a sustainable future for businesses and domestic consumers alike. By identifying the right gaps in technology and knowledge to move the needle on Net Zero, the government has an opportunity to pave the way for a fairer, and cleaner world for all.
Our subject matter experts will keep closely engaged with ongoing developments related to the budget’s impact on sustainability, so they can best support our customers and wider network with questions.
We’d love to hear your thoughts on how government priorities might shape the future of sustainability and impact your own strategies and operations.
Our specialists are here to help you identify savings and optimise your approach. Drop us a line at hello@energise.com, and one of our consultants will be in touch soon.
Written By Laura Cristea 
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