‘Disappointing’ budget with green issues just a footnote

Last week’s budget was a disappointment with green issues a footnote instead of being centre stage, says Midlands energy expert Ron Fox.

He said there were some good points with plans for a new savings scheme, expanding the remit of the Bank of England to support the move to zero emissions and creating eight new freeport regions to attract business investments.

But Ron said there were some glaring omissions with fuel duty frozen for an 11th consecutive year, while the Green Homes Grant and National Nature service, a Government training programme, providing paid work in environmental improvement, were not even mentioned.

“The Government is moving very slowly in a greener direction which is worrying after the Prime Minister Boris Johnson told the UN Security Council last month that climate change is as big a threat to world peace as war,” he added.

This is what Ron, of Noreus Ltd on the University of Keele Science and Innovation Park, thought of the Chancellor, Rishi Sunak’s budget measures.

Firstly, the new £15bn Green Gilt sovereign bond savings bond, which will be available this summer from National Savings & Investments, to encourage green savers to support the fight against climate change is a good idea. But as the interest rate is yet to be disclosed, it will need to perform as well, or better than other investments to be a success.

Secondly, the approval of eight freeports to attract investment for offshore wind, electric vehicles and the zero-production of carbon was also a step in the right direction. The sites are at Plymouth, Solent, Thames, Felixstowe and Harwich, Humber, Teesside, Liverpool and East Midlands Airport.

Thirdly, expanding the remit of the Bank of England to include supporting the government’s net zero carbon ambition alongside its longstanding responsibility to keep inflation in check is a sensible measure.

But Ron was concerned that there were no plans to reform and extend the £2bn Green Homes Grant (GHG), which a few months ago the Chancellor said would support more than 100,000 jobs.

Green issues were only a footnote in last week’s Budget by the Chancellor Rishi Sunak when they should have been centre stage. Picture: Wikipedia.

Instead, Rishi Sunak has clawed back money from the environmental scheme which offers money to people to help insulate their homes and install low carbon heating to cut their bills.

But many householders couldn’t contact installers, and some installers didn’t get paid because the system was problematic. Only 6 per cent or £94.1 million of the £2 billion pot has been spent and only 22,165 grants given out compared to an initial target of 600,000.

Many wanted the money to be rolled over, but the scheme will be withdrawn as planned at the end of March after less than a year.

“Another solution would have been to cut VAT for green home improvements. We know it is politically possible for hospitality, so why not for the environment, especially as green investment in jobs is the most effective way of getting the UK economy moving?

“It sends outs all the wrong signals, especially when the UK is hosting the United Nations Climate Change Conference in Glasgow this November,” said Ron Fox, of Noreus Ltd.

For more details about green energy call Ron on 01782 756995.