The renewable energy and clean technology sector has responded positively to Chancellor Rachel Reeves’ Budget while calling for bolder actions to fully unlock the sector’s potential.
The Association for Renewable Energy and Clean Technology (REA) praised new initiatives, including additional funding for the Warm Homes Plan, GB Energy and the Boiler Upgrade Scheme.
These steps, the REA says, reinforce government commitments to sustainable growth but largely reaffirm previous pledges rather than introduce transformative changes.
The Budget’s adjustments to fiscal rules, unlocking more green investment, were acknowledged by the REA as a promising shift towards supporting renewable infrastructure.
However, the REA noted missed opportunities to raise fuel duty and the Carbon Price Floor, moves that could have further encouraged the transition to low carbon energy.
Trevor Hutchings, Chief Executive of the REA, said: “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.”
Energy sector leaders echoed similar sentiments.
Mike Thornton, CEO of the Energy Saving Trust, welcomed the Warm Homes Plan as a step towards lowering bills for low-income households and increasing the energy efficiency of homes, while Dhara Vyas, CEO-designate at Energy UK, highlighted the importance of clean energy development and called for a focus on energy-efficient use as well.
Mike Thornton said: “We want to see a net zero future which benefits everyone with warmer homes, clean air and stable energy prices and look forward to more detailed plans from the UK Government over the coming months on how this can be delivered.”
Dhara Vyas said: “As well as developing our sources of clean energy, we need to focus on how we use it, so the funding for the Warm Homes Plan is a positive step towards cutting bills by making more of our properties energy efficient.”
