On 22 November, the Chancellor of the Exchequer, Jeremy Hunt, presented the government’s Autumn Statement 2023. The Statement contained a variety of measures related to energy including:
- £600bn of planned public sector investment over the next five years to underpin future growth and support energy security, net zero, and public services. The government expects to invest a further £30bn in real terms at the start of the 2024-25 Parliament.
- A £960mn Green Industries Growth Accelerator to support the development of supply chains and global growth opportunities.
- Reiteration of intentions to remove barriers to investment in critical infrastructure by reforming the UK’s planning system.
- Extension of critical national priority designation for nationally significant low carbon energy projects.
- The government will legislate for a new investment exemption for the Electricity Generator Levy (EGL). New projects, or expansions to existing projects, for which the substantive decision to proceed is made on or after 22 November 2023 will be exempt from the EGL.
- Permanent full expensing to support companies seeking to decarbonise.
- Plans to introduce a six-year Climate Change Agreement scheme where eligible participants that meet agreed energy efficiency or decarbonisation targets between 2025 and 2030 will be entitled to reduced rates of Climate Change Levy from 1 July 2027 to 31 March 2033.
In an upcoming insight paper, we further discuss the potential impact of the Autumn Statement on the UK’s ability to attract investment in net zero. The paper also analyses the implications that recent macroeconomic volatility, rising international competition, and broader UK energy policy could have for the country’s ability to remain a front-runner in the race towards to net zero.
If you would like to stay up-to-date with the latest developments in the market, find out more about our Energy Spectrum and Daily Bulletin by contacting Josh Bamsey at j.bamsey@cornwall-insight.com
