Headlines following the Autumn Statement have largely focused on tax cuts and who they will benefit, but nestled within messages on national insurance and fiscal drag, were some important signifiers on reaching our Net Zero targets.
The UK is currently behind our G7 counterparts in terms of low-carbon technology investment. However, yesterday’s announcements did provide some encouragement after the media storm surrounding the Prime Minister’s delays to ban on gas boilers and internal combustion engine vehicles in September.
The Chancellor confirmed the government’s intention to introduce competition to onshore power from 2024, by replicating the successful bidding system which has contributed to the boom in UK offshore wind. Under legislation in the recently royally assented Energy Act, Competitively Appointed Transmission Operators (CATO) will be able to bid for the development of onshore transmission assets. This reflects the recommendations of OFGEM and is set out in the Transmission Acceleration Action Plan.
Accompanying this are measures to speed up the installation of renewables and upgrade of the electricity transmission network by halving grid connection times which are underpinned by the recent review by the Electricity Networks Commissioner, Nick Winser.
These energy specifics were accompanied by the much-publicised permanent status for full expensing of capital allowances which could speed up investment in green industries, including £300 million per annum annual tax relief for meeting energy efficiency targets. There is also £185 million available for decarbonising industrial sites via the Industrial Energy Transformation Fund (IETF) and a new investment exemption on the windfall tax Electricity Generator Levy (EGL) to boost renewable investment.
These changes have the potential to electrify (literally) our economy and indicate a brighter future than some foresaw with the stalling of Net Zero pathways at the start of autumn. At Amberside we welcome any moves to boost investment in renewables and speed up the green transition and are ready to help our clients make the most of the opportunities Net Zero holds.
To read more about The Autumn Statement 2023, click here.