Autumn Budget 2025: Environment
After weeks of speculation, the Chancellor delivered Labour’s second Autumn Budget in Parliament. Facing a £30 billion shortfall in public finances and constrained by the fiscal rules, the Chancellor set out tax, spending and borrowing plans for the year ahead.
This backdrop sets the scene, as the debate between continued investment in climate and clean energy and the need to immediate reduce the burden on household bills bubbles away. This tightrope was visible in the Chancellor’s speech.
The Chancellor stated that secure, clean and cheap energy is central to sustainable economic growth in the long term. However, mention of the Government’s environmental commitments were notable in their omission, including the requirement to protect 30% of land and sea for nature by 2030 (30by30).
Whilst the Budget did not include an abundance of new policies for those in the environmental sector, we did see new funding for marine innovation and the publication of the North Sea Future Plan – a strategy for the management of existing North Sea oil and gas fields, and a commitment not to issue new licences to explore new fields.
Key Announcements
- The Chancellor announced the intention to invest £30 million in the Kernow Industrial Growth Fund in Cornwall’s comparative sectoral advantages, including critical minerals, renewable energy and marine innovation.
- The Government is launching a new grant scheme for public bodies to support land remediation and reinvest water company fines in projects to clean up rivers, lakes and seas.
- The Climate Change Levy (CCL) which is the main rates of CCL for gas, electricity and solid fuels will be uprated in line with RPI from 1 April 2027. Alongside the budget the CCL consultation outcome on electrolytic hydrogen and energy context has been published.
- The Chancellor reaffirmed the Government’s commitment to its Green Financing Programme, stating it has raised more than £51.0 billion for expenditures that tackle climate change, rebuilding natural ecosystems and supporting jobs in green sectors.
- Following a previous consultation on plans to extend the higher rate of Air Passenger Duty (APD) on private jets over 5.7 tonnes, the government will proceed with these plans and has published a summary of consultation responses.
Wales
- Under the Government’s national plan to recruit workers needed for the clean energy superpower mission, Wales will receive up to 20,000 clean energy jobs by 2030. Pembrokeshire will also pilot a skills scheme which will support people in local communities to get jobs in clean energy.
Scotland
- The Chancellor is also set to approve the full business case for the ‘Forth Green Freeport’, which aims to leverage £7.9 billion of investment over 10 years and create up to 16,000 direct jobs.
- The Chancellor confirmed that Great British Energy will be based in Aberdeen, this had been previously announced earlier this year.
If you would like to learn more about what the Autumn Budget means for you, please get in touch with us at: hello@tendoconsulting.co.uk
