Autumn Budget 2024: A summary 

On 30 October Chancellor Rachel Reeves presented her Autumn Budget to the House of Commons. Here are some of the energy and sustainability highlights. 

Businesses

• Climate Change Levy main and reduced 2026-27 rates: The main rates of the Climate Change Levy (CCL) for gas, electricity, and solid fuels will be uprated in line with Retail Price Index (RPI) in 2026-27. The main rate for liquefied petroleum gas will continue to be frozen. The reduced rates of CCL will remain at an unchanged fixed percentage of the main rates. 
• Carbon Border Adjustment Mechanism (CBAM) confirmed: UK CBAM will be introduced on 1 January 2027, placing a carbon price on goods that are at risk of carbon leakage imported to the UK from the aluminium, cement, fertiliser, hydrogen, iron and steel sectors. Products from the glass and ceramics sectors will not be in scope from 2027 as previously proposed.   
  • The registration threshold will be set at £50,000, retaining over 99% of imported emissions within the scope of the CBAM, while removing over 80% of otherwise registrable businesses. Over 70% of those removed from the CBAM altogether by this threshold are micro, small, or medium sized businesses. 
• Carbon Price Support 2026-27 rates: The government will maintain Carbon Price Support rates in Great Britain at a level equivalent to £18 per tonne of CO2 in 2026-27.
• Company Car Tax rates 2028-29 and 2029-30: The Company Car Tax (CCT) rates  for 2028-2029 and 2029-30 will continue to incentivise the take-up of electric vehicles, while rates for hybrid vehicles will be increased to align more closely with rates for internal combustion engine (ICE) vehicles, to focus support on electric vehicles. 
  • Appropriate Percentages (APs) for zero emission and electric vehicles will increase by 2 percentage points per year in 2028-29 and 2029-30, rising to an AP of 9% in 2029-30. 
  • APs for cars with emissions of 1 – 50 g of CO2 per kilometre, including hybrid vehicles, will rise to 18% in 2028-29 and 19% in 2029-30. 
  • APs for cars with emissions of 1 – 50 g of CO2 per kilometre, including hybrid vehicles, will rise to 18% in 2028-29 and 19% in 2029-30. 
• Capital allowances – Green First Year Allowances: The government will extend for a further year the 100% First Year Allowances (FYA) for qualifying expenditure on zero-emission cars and the 100% FYA for qualifying expenditure on plant or machinery for electric vehicle chargepoints, to 31 March 2026 for corporation tax purposes and 5 April 2026 for income tax purposes 

Industry

• Energy Profits Levy: From 1 November 2024, the Energy Profits Levy (EPL) rate will rise by 3 percentage points to 38%, the investment allowance will be abolished, and the rate of the decarbonisation allowance will be set at 66% so its cash value is maintained. The government will make no additional changes to tax relief available within EPL. The levy will end on 31 March 2030. The government will legislate for these measures in Finance Bill 2024-25. The government will also publish a consultation in early 2025 on how the taxation of oil and gas profits will respond to price shocks after the EPL ends.  
  • More information about the EPL reforms is available on the gov.uk website
• Relief for payments made into a Carbon Capture Usage and Storage Decommissioning Fund: The government will legislate in Finance Bill 2024-25 to provide relief for payments oil and gas companies make into decommissioning funds in relation to assets sold for use in Carbon Capture Usage and Storage, maintaining the tax treatment had these assets instead been decommissioned. This legislation will also remove receipts from the sale of these assets from the scope of the Energy Profits Levy. 
• Advanced Fuels Fund: Will be extended for a further year to support the producers of sustainable aviation fuel. 

Policy and regulation

• Industrial Energy Transformation Fund: £163 million to continue the Fund over 2025-26 to 2027-28. 
• Consultation on assessing effects of Scope 3 emissions from Offshore Oil and Gas Production and Development Projects: The government is publishing a consultation on new environmental guidance for assessing end use emissions related to oil and gas projects.  
• Electric vehicle chagepoint funding: The government will invest over £200 million in 2025-26 to accelerate EV chargepoint rollout, including funding to support local authorities to install on-street chargepoints across England. 
• Great British Energy: £125 million for Great British Energy, to be headquartered in Aberdeen. 

Sustainability

• Plastic Packaging Tax rates: To incentivise businesses to use recycled instead of new plastic in packaging, the government will increase the Plastic Packaging Tax (PPT) rate for 2025-26 in line with CPI inflation.
• Tree planting and peatland restoration support: The government has pledged ‘at least’ £400 million in capital across 2024-25 and 2025-26. 

What happens next?

Whilst the impacts of some of today’s announcements remains to be seen, we continue to monitor the situation as the relevant policy papers are published.

Where can I find more information?

The full Autumn Statement 2024 is available on the gov.uk website.