Reflections on the Spring Statement and what it means for the clean energy sector

“Rishi Sunak’s Spring Statement comes at a critical time for clean energy. The cost of living is at a record high, and soaring energy and fuel prices are putting increasing strain on the nation’s purse strings.

The Government’s plans to slash VAT from 5% to 0% on energy efficiency items such as solar panels, heat pumps and insulation, along with the tax cut for wind and water projects as the UK continues to abolish EU red tape, is a step in the right direction but further action is needed to tackle the climate crisis.

“With this year’s statement providing little indication as to how the Government plans to accelerate the clean energy transition, all eyes will be on the Government’s announcement on the updated energy strategy – expected this week – which is also set to include the launch of a new energy task force. The rumoured relaxation of planning laws to boost the UK’s energy independence is a positive move, but it doesn’t come without challenges. The industry may find the development of new wind farms in England to be a double-edged sword, with the battle for land and potential surge in investment into wind energy impacting on investment into newer technologies such as green hydrogen and CC&S at a time when the development of both new and established technologies is critical.  

“With the current tumultuous European political climate, it is more important than ever that the UK invests into, and protects, its clean energy infrastructure to ensure the future security and stability of the country. Six months on from COP26 the clean energy sector has only inched forwards on its path towards the promised land of net-zero and the Government is going to have to redouble its efforts if it is serious about meeting its carbon neutral goals. Whilst focus has understandably been elsewhere recently, neither our country nor planet can afford for clean energy to fall off the agenda.”