REACTION: energy industry responds to budget

Paul Taylor, chief executive of FCC Environment: “While it is encouraging to see the Government pledge its ongoing support for UK infrastructure projects, we feel that a major opportunity has been missed to set out plans to maximise the resource productivity of the UK economy – a central pillar of the Industrial Strategy.

“At present, UK waste management companies are paying to export waste out of our country for incineration, which other countries use to make fuel to power homes and businesses – which is simply not sustainable. Following Brexit, we now have the chance to define our own approach to waste and resource policy, away from EU environmental diktats which could cost UK businesses an additional £2bn over the next 20 years. We would welcome clarity on future recycling policy direction”

Natalie Bird, senior consultant at Baringa Partners: “The Chancellor’s announcement of funding for research into batteries for electric vehicles is a positive first step, but it doesn’t go far enough. The transport sector trails the energy and industrial sectors on decarbonisation…  In these early stages, bolder policies that reduce costs and influence public perception are needed if we want to see more people get behind the electric wheel. This means providing more certainty to investors, producers and consumers about the vision for the future of the market. In the longer run, the Government may need to shift the balance of policy away from direct subsidies and towards more technology neutral mechanisms such as a wider carbon tax for the transport sector, to discourage the use of conventional vehicles.

“The Government should also recognise the ongoing evolution of the wider transport landscape and the potential shift away from private vehicle ownership towards greater use of ‘on-demand’ flexible modes of travel such as car sharing schemes, and ensure policies take this into account. This may be accelerated by self-driving technology, which in turn could dramatically transform road transport demand patterns, and it would be good to recognise that link in the Industrial Strategy Challenge Fund.”

Emma Pinchbeck, executive director of Renewable UK: “We’re keen to work with Government on the new set of controls which are to replace the Levy Control Framework. Energy infrastructure takes time to build. Projects being thought about today will come on line in the 2020s, after the period covered by the LCF expires. We need to ensure that developers and investors in wind, wave and tidal energy projects have certainty so that projects can be built, economic returns can flow and consumers can benefit from the low cost of renewables”.

Nick Molho, executive director of the Aldersgate Group: “It was positive to see lots of focus in today’s budget on supporting innovative businesses and ensuring the UK’s workforce has the skills it needs to benefit from the job opportunities of the future. But despite the fact that some of our key trading partners such as China are investing heavily in renewable energy and other clean technologies, there was no reference to the importance of the low carbon sector to the future competitiveness of the UK economy.

“If the UK is to meet the Chancellor’s ambition of being at the cutting edge of the global economy, the Autumn Budget will need to be much clearer about the UK’s environmental and low carbon ambitions and provide a clear business plan to meet the UK’s policy objectives under its Emissions Reduction Plan and 25 Year Plan for the Environment.”

Doug Parr, Greenpeace UK policy director for solar, said: “Solar technology has huge potential for the UK, offering new jobs, investment, and clean, cheap energy. The Chancellor has failed to address the massive tax hike of business rates on commercial solar. The temporary reprieve of a £300m discretionary fund for local authorities is just a drop in the ocean. It just delays the inevitable for the 23,000 schools, hospitals and offices who installed solar to generate their own energy and reduce bills, and now have to pay much more than they bargained for. Crucially, this alone does not go far enough to prevent these damaging tax hikes from making future solar investment uneconomic – putting the brakes on a sector with major growth potential and leading to thousands more job losses. Globally, there has been record installation of solar panels to harness the sun’s energy, but the UK government risks going backwards. People trying to do the right thing, and generate their own renewable energy, are going to be hit by massive bills.”

Paul Morozzo, clean air campaigner at Greenpeace UK, said:

“Investment in electric vehicle innovation will ensure our future as a global player in car manufacturing and secure jobs for the next generation. But by itself it’s not enough. We need to get ahead of the game. That means support for industry to move to electric vehicle manufacturing quickly, boosting charging infrastructure, and investing in vital smart grid upgrades, so the UK can be a global leader in the transport revolution.”

Related content:

Electric vehicles: ‘perfect storm’ could see consumer boom

Policy Board chief: clean energy should be a pillar of industrial strategy (subscribers only)

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