The recent budget missed vital opportunities to revive the UK’s sluggish economy by overlooking the potential of the green industry, according to experts. They argue that neglecting the net zero economy’s 9% growth in key sectors last year, while the rest of the economy stagnated, will have negative consequences in both the short and long term. The failure to acknowledge the rapid expansion of clean industries, observed in the US and EU, is seen as a missed chance to attract much-needed investments.
Alasdair Johnstone from the Energy and Climate Intelligence Unit noted the budget’s lack of focus on key areas such as accelerating renewable deployment, home insulation, heat pump rollout, and electric vehicle adoption, which could enhance energy security. Instead, the budget opted to freeze fuel duty for the 14th consecutive year, criticized for benefiting wealthier individuals and doing little for those with lower incomes. Jürgen Maier, a former Siemens executive advising Labour on green strategies, questioned the absence of incentives for public transportation.
While Chancellor Jeremy Hunt presented some minor green initiatives, critics argue that these measures are insufficient. Advocates for new nuclear power found encouragement in the budget’s support for small modular reactor design competitions and the purchase of potential reactor sites. However, there was a notable absence of details on the proposed carbon border adjustment mechanism (CBAM) for imports, leaving businesses in uncertainty.
The lack of a clear strategy for combining the imperative of achieving net zero by 2050 with growth opportunities in low-carbon technologies disappointed green economists. They argue that the budget falls short of the necessary public investment to drive sustainable growth, pointing out the need for an additional £26 billion annually. Critics, including Ed Miliband, the shadow energy secretary, claim that the budget reflects a lack of ambition, vision, and commitment to making Britain a clean energy superpower, raising concerns about energy insecurity and job losses. They argue that only Labour’s proposed initiatives, such as Great British Energy, can address these challenges and stimulate the necessary investments for a sustainable future.