Bolder Budget was needed on green issues

The Chancellor of the Exchequer could have been bolder in his Budget last week over green issues.

That’s the view of Midlands green energy expert Ron Fox, who said John Healey missed a number of opportunities that could have helped fight climate change.

However, he added there were a number of helpful moves with the VAT cut on electricity bills, which was introduced on October 1 this year, being extended to July 2027 to give breathing space to residents. This will save on average £50 off the annual price cap.

Plus, the earlier pre-Budget announcement that the Government has asked the energy regulator Ofgem to remove standing charges on households’ gas bills as early as 2027 which will save £27 on a typical annual bill. These are fixed costs in energy bills that don’t change no matter how much energy people use. However, the green levy will move from bills to general taxation.

But Ron said he had a number of concerns

Firstly, while the removal of green levies from energy bills helps households, by moving the money to general taxation may make it difficult to see what renewable projects will now be funded.

Secondly, he said that while extending the VAT freeze and offering a one-off £100 Household Energy Payment for those on council tax bands A-D to help with living costs, the budget still leaves households exposed to fossil fuel price spikes.

Thirdly, Ron said the decision to remove Biodiversity Net Gain (BNG) requirements from developments on brownfield sites was a backward step. It reduces access to nature in the communities that need it the most and will remove one of the biggest opportunities to bring trees, ponds, wildlife and parks back into towns and cities and help protect communities from the impact of climate change. Introduced in 2024, BNG was set up to ensure that developers avoid harming important wildlife habitats.

Fourthly, despite the Treasury reaffirming a long-term commitment to net zero by 2050, the Budget introduced no new policy plans to increase the use of renewables, preferring to offer short-term “breathing space” for consumers.

Fifthly and finally, Ron said he was concerned that to close a £4.7 billion gap in the Defence Investment Plan, capital was shifted away from other areas, leading to funding cuts for the Warm Homes Plan, carbon capture projects, and hydrogen infrastructure.

“This is short-sighted, as failing to insulate heat-leaking homes leaves the UK dependent on volatile international gas markets,” concluded Ron, of Noreus Ltd on the University of Keele Science and Innovation Park.

This article raises some important questions, said Ron. Do you think the Chancellor could have shown more boldness in his Budget over green issues as some of our readers did? What did you think was missing in the Budget? Would you be interested in finding out more from an expert about how to cut your carbon footprint? Send your views to Ron Fox at [email protected]

For more details about green energy and how to help fight climate change call Ron on 0845 474 6641 or contact us here

Caption: Although there were some good moves in the Budget with the cuts in energy prices, Midlands expert Ron Fox thought the Chancellor of the Exchequer could have been bolder on moves to fight climate change. Picture: John Butterworth