RenewableUK sets out key steps the Chancellor can take to grow the green economy

“To create the economic optimism and momentum which the Chancellor is seeking, we need a clear plan focussing on green growth. Mr Hunt must ensure that the UK can compete on a level playing field with the US and the EU, both of which are offering generous stimulus packages to attract private finance from the innovative companies which are spearheading the clean energy transition. The Chancellor needs to provide businesses with clarity on how the UK will bring forward new renewable energy capacity, bolster clean energy supply chains and maximise investment in skills.

“As a first step the Chancellor should use the Spring Budget to announce a reform to our capital allowances regime to avoid Britain losing out in the global race for investment. The US Inflation Reduction Act offers $216 billion in tax credits to companies investing in clean energy and transport. Even if we can’t match their tax breaks, we need to compensate for this with an attractive policy and regulatory environment: planning reform to enable quick deployment, reducing disruptions to electricity markets through sudden policy changes like the imposition of the Electricity Generator Levy, as well as investment in key infrastructure including ports and the transmission grid.

“We welcome Mr Hunt’s focus on education, but the Government needs to do more to ensure that we reform the curriculum to build the skills and expertise which will deliver the clean energy transition, including boosting the number of apprenticeships in clean tech”.