The Association for Renewable Energy and Clean Technology (REA)
has responded to Chancellor Rachel Reeves' Budget, highlighting
the critical role the renewable energy and clean tech sector can
play in achieving the Chancellor's goals for economic growth and
a sustainable future. Key measures in the Budget, including
funding for the Warm Homes Plan, GB Energy, and restating the
2030 phase-out target for internal combustion engines, while
welcome, primarily reaffirm previous commitments. Nonetheless,
the REA recognises the essential groundwork these policies
establish and the ambition and boldness they reflect.
The Chancellor's shift of the fiscal rules will unlock investment
into green energy projects across multiple technologies, and
marks a decisive departure away from the previous government's
approach to public infrastructure spending.
New announcements include the confirmation of a UK carbon border
tax, intentions to increase funding for the Boiler Upgrade Scheme
and continuation of company car tax incentives for electric
vehicles (EVs) from 2028.
However, the decision not to increase fuel duty and the continued
freeze of the Carbon Price Floor are short-sighted measures that
undermine the Government's ambition to decarbonise across
multiple sectors. Maintaining the status quo on fuel duties will
hinder progress toward the UK's climate goals and the wider
adoption of cleaner technologies.
Trevor Hutchings, Chief Executive of the REA (Association
for Renewable Energy and Clean Technology), said:
"We welcome the Chancellor's Budget as a significant step
forward, underpinned by ambition and a commitment to strengthen
the UK's green economy. The shift in fiscal rules to unlock
investment signals a bold departure from previous approaches,
opening pathways for new infrastructure and sustainable
growth.
The confirmation of policies like the Carbon Border
Adjustment Mechanism, the Warm Homes Plan, and GB Energy funding,
along with continued support for electric vehicles and increased
funding for the Boiler Upgrade Scheme, all represent positive
leaps forward. Yet, there are missed opportunities to drive more
ambitious outcomes, such as increasing the Fuel Duty rate and
Carbon Floor Price, which could accelerate our transition to net
zero.
The renewable energy and clean tech sector is a driver of
sustainable growth, international competitiveness and prosperity.
We stand ready to work with the Government to build on today's
announcements.”
