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The REA responds to the Autumn Statement;
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REA welcomes measures to speed up the planning system
and improve grid infrastructure, however urges support for all,
not just based on location;
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Further investment for renewables vital to ensuring
energy is affordable for households and businesses, while
making the UK more energy independent in the
long-term.
The REA (Association for Renewable Energy and Clean Technology)
responds to the Autumn Statement from UK Chancellor , which announced “110 measures
to help grow the economy”.
These include full expensing for capital investment that could
benefit renewables, accepting the recommendations of the Winser
Review to improve grid connections and connect more renewables,
and increased spending on local mitigation projects to unlock
house building in a bid to get around nutrient neutrality
rules.
The REA welcomes the Green Industries Growth Accelerator, as
announced last week, which will benefit companies driving
innovation in technologies like bioenergy carbon capture and
storge, hydrogen and building our electricity networks. We also
welcome Full Expensing which was confirmed as permanent. Previous
deadlines for this tax investment allowance meant many renewable
projects could not benefit due to longer build out times. Making
the measure permanent should now encourage such projects to go
ahead. However, given the universal nature of this measure for
all plant and machinery, further green tax incentives should be
considered to ensure that business investment is aligned to the
growing of a green net zero economy.
Mr Hunt also announced today that those living near electricity
infrastructure will receive up to £10,000 of their bills in a bid
to speed up the roll out of new networks. While the REA welcomes
speeding up access to the national grid support and a good
environmental justice measure for those impacted, to give support
based on geographical location, rather than need, risks creating
a postcode lottery.
Investment in clean technologies is vital to the UK’s energy
security and future prosperity. Most of the investment needed
will come from the private sector but requires stable policy and
long-term targets from Government, which has been woefully
delayed.
Frank Gordon, Director of Policy at the REA (Association
for Renewable Energy and Clean Technology) said:
The Chancellor’s Autumn Statement revealed some welcome and
long needed measures to speed up grid connectivity, while
conformation of permeant tax allowances for businesses investing
in plant and machinery, should also help incentivise companies to
deploy renewable and clean technologies to help them
decarbonise”.
In light of economic forecasts estimating rising inflation
and lower growth, the REA reiterates the singular economic
growth opportunities of renewable energy and clean
technology.
We are clear, tackling climate change and boosting our
economy is not an ‘either-or’ decision. We cannot forget that
rising energy prices were the major source of inflation in the
past year and the only way to remove this risk to the economy is
move rapidly to renewables and end reliance on imported fossil
fuels.
In order to secure better economic prospects in the
long-term, we must speed up the transition to a green economy and
do more to support the decarbonisation of the heat, transport,
and heavy industry sectors.
We look forward to working alongside government in the coming
months to accelerate this transition.”
