Autumn Statement 2023: A summary

Earlier today Chancellor Jeremy Hunt delivered his Autumn Statement in the House of Commons. We will be examining the impacts of the announcements within the Autumn Statement in more detail as the relevant policy documents are published.

At a glance, the energy-related highlights include: 

• A new, six-year Climate Change Agreement scheme will be introduced. Participants that meet agreed energy efficiency or decarbonisation targets between 2025 and 2030 will be entitled to reduced rates of Climate Change Levy from 1 July 2027 to 31 March 2033. The new scheme will be open to applications for new sectors that meet energy intensity and import penetration criteria and will require more regular reporting of energy and throughput data. DESNZ seeks views on the new CCA scheme.
• A Connections Action Plan, which seeks to halve the end-to-end build time of electricity transmission network infrastructure to 7 years from 14 and offer an electricity bill discount for properties located closest to transmission network infrastructure. 
• The government will freeze main and reduced rates of the Climate Change Levy in the UK in 2025-26 at the main rate of £0.00775/kWh for electricity and gas, £0.02175/kWh for liquid petroleum gas (LPG), and £0.06064/kWh for any other taxable commodity. Reduced rates will be frozen at 92% for electricity, 77% for LPG, and 89% for gas and any other taxable commodity. 
• VAT relief available on the installation of energy-saving materials will be extended to additional technologies – such as water-source heat pumps – and bringing buildings used solely for a relevant charitable purpose within scope. 
• Department for Business and Trade has launched a consultation on improving the economic regulation of the water, energy and fixed telecoms sectors regulated by Ofwat, Ofgem and Ofcom. 
• £960 million earmarked for the Green Industries Growth Accelerator. This will support investments in manufacturing capabilities in Carbon Capture Utilisation and Storage (CCUS), hydrogen, offshore wind, electricity networks and nuclear. 

Whilst the full scope of the above is not yet known, our experts will be working through the details as new policy documents are released and summarising any key changes on our website.