Five ways the upcoming autumn budget could ease the energy transition

On October 30th, Chancellor of the Exchequer Rachel Reeves will deliver the autumn budget, laying out the new Government’s plans for the country’s finances.

This is an important opportunity for the Government to put the country on a strong course to net zero, give a vital boost to the economy, and provide international leadership on climate issues. And we are committed to helping by putting our efforts behind any green policy the Government decides to pursue. 

To that end, here’s a selection of policies and innovations that could help propel the UK to net zero and drive economic growth if included in the upcoming budget, all of which would have our absolute support: 

Rebalancing policy costs to encourage greener households 

By incrementally moving green levies that are primarily applied to electricity onto fossil fuels like gas, the Government can continue to raise crucial funds for net zero projects while making renewable electricity cheaper. This would also reduce running costs for domestic green technologies such as heat pumps, incentivising more people to install them in their homes. 

Cutting stamp duty to incentivise home upgrades 

Offering new homeowners a rebate on stamp duty if they upgrade their property with insulation or green technology would help to modernise the UK’s ageing housing stock, reward people for taking an active role in the energy transition, and foster much-needed alignment between the country’s tax regime and net zero goals. 

Promoting cheap green finance to help people upgrade their homes  

With green financing grants and guarantees to lenders, the Government could enable banks to offer lower interest rates, helping landlords and owner-occupiers borrow money to upgrade their properties with insulation and green technologies. Lower interest rates could also pave the way for new business models such as Energy on Subscription, where households could install green technologies at no upfront cost and pay for them through a monthly subscription over a long-term contract. The cost of the subscription would be considerably reduced with access to cheap green finance. 

Reforming the Boiler Upgrade Scheme to put more heat pumps in homes 

Allowing third-party ownership under the Boiler Upgrade Scheme would also facilitate new business models such as Energy on Subscription. Suppliers could install and maintain heat pumps with no upfront cost to the homeowner, who would pay them through a long-term subscription service, making the technology accessible to everyone. 

Reducing VAT at public charge points to make EVs cheaper to run 

As it stands, the 5% levy on public charge points can make it more expensive for households without driveways to run an electric vehicle compared to those with access to off-road charging, and even more costly than running a petrol or diesel car. By reducing VAT on these chargers, the Government could make EVs financially viable and attractive to lower- and middle-income drivers and others who rely on public charging devices. 

The autumn budget is an opportunity for a fairer, greener future 

We would be excited to help the Government design and implement any one of these policies, but together we believe they would put the UK firmly on the path to a fairer, greener future where everyone can enjoy warmer homes, lower bills, cleaner air, and all the other benefits of a successful energy transition. 

To learn more, read our Manifesto for New Energy, or our recent blog explaining how an enhanced Warm Home Discount scheme could help more people this winter.