What did the Spending Review say about energy?
Rachel Reeves' Spending Review outlined some the government’s energy plans for the coming years.
The Spending Review, set out by the UK Chancellor Rachel Reeves on 11 June 2025, outlined the government’s planned approach to energy policy over the coming years.
It included allocations for home energy efficiency and support for low-carbon electricity generation – including nuclear and renewables. Here’s what it had to say.
Great British Energy
The Government confirms that £8.3bn will be allocated to establish Great British Energy over the course of Parliament, targeting homegrown renewable generation.
Warm Homes Plan
To help ease cost of living pressures for households, the government has committed a further £13.2 billion between 2025–26 and 2029–30 to the Warm Homes Plan, supporting home insulation upgrades to reduce energy bills by up to £600 and improve energy efficiency.
Nuclear
A large portion of the review focused on nuclear, including £14.2bn for Sizewell C across the Spending Review (SR) period, £2.5bn for a Small Modular Reactor programme, with Rolls-Royce selected as the preferred bidder and a further £2.5bn ringfenced for investment in nuclear fusion.
Offshore Wind
£80m has been pledged to port investment in order to support the development of offshore wind deployment in Port Talbot, subject to final due diligence. £300m will be offered in Great British Energy support to strengthen offshore wind supply chains.
Carbon Capture and Storage
The government has announced £9.4bn to Carbon Capture Usage and Storage (CCUS) initiatives over the SR period.
Industry & Manufacturing
The government remains committed to meeting its legally binding carbon budgets and achieving net zero by 2050. The Government expects their Clean Energy Industries and Advanced Manufacturing sector plans to be published as part of the Industrial Strategy later in June. Further details will be outlined in the Carbon Budget and Growth Delivery Plan, due in October, including plans for industrial decarbonisation.
Transport
£2.6 billion capital investment has been committed to decarbonise transport from 2026-27 to 2029-30. This includes £1.4 billion to support the continued uptake of electric vehicles, including vans and HGVs, and £400 million to support the rollout of charging infrastructure, building on the almost 80,000 public charging devices already available. The Advanced Fuels Fund has also been extended to support the development of sustainable aviation fuel.
Where can I find more information?
The spending review document is available on the gov.uk website.
How does the Spending Review affect you and your business?
Whilst the impacts of some of the statements within the Spending Review remain to be seen, we understand that changing policy and market landscapes can be difficult to navigate. You can speak to one of our dedicated energy experts to better understand your organisation’s position and requirements.
Get in touch today by emailing us at [email protected]
