UK: Autumn Statement 2023: summary of energy-related announcements

The Chancellor of the Exchequer presented his Autumn Statement to Parliament on Wednesday 22 November 2023. The building of “domestic and sustainable energy” was one of the Government’s five areas of focus in line with its broader aims to boost economic growth, reduce debt and lower inflation by half. 

Overall, the Autumn Statement confirms the Government’s position that support for green industries will focus on facilitating growth in sectors where the UK can make the most headway (including CCUS, hydrogen, offshore wind, electricity networks and nuclear as well as low-emissions vehicle manufacturing) rather than responding directly to the US Inflation Reduction Act 2022 or EU Net Zero Industry Act. There was no announcement on a UK Carbon Border Adjustment Mechanism but a separate policy announcement on this is anticipated soon. 

The key announcements of interest to the energy sector are highlighted below. 

The Grid

• The Chancellor addressed the delay experienced by clean energy businesses in accessing the electricity grid, announcing plans to reform the planning system to speed up approvals and to reduce the time it takes for new projects to connect to the grid. The Chancellor stated that these reforms could lead to an extra £90 billion of business investment in the next decade.
• On the same day as the Autumn Statement was delivered, the Government published its response to Nick Winser’s report on the electricity transmission network (see our previous article here for more detail), comprising an Action Plan to reduce grid connection delays and reduce electricity bills for residents in close proximity to transmission network infrastructure by a maximum of £10,000 over a period of 10 years.

Manufacturing and Green Energy Investment

• The Autumn Statement confirmed the Government’s plans (announced previously) to provide £4.5 billion to boost investment in strategic manufacturing sectors, which will run over a period of five years beginning in 2025-2026.
• The funding plan includes £2 billion of support for the automotive sector, particularly in relation to zero emission vehicles, £975 million for aerospace and £520 million for life sciences. 
• Green industries will also be provided with £960 million of funding via the Green Industries Growth Accelerator to support clean energy manufacturing in sectors including CCUS, hydrogen, offshore wind, electricity networks and nuclear.

Growth Sectors Apprenticeships Pilot

• The Government is committing a further £50 million for a two-year pilot to stimulate training in green industries, advanced manufacturing and other key growth sectors and address barriers to entry in high-value apprenticeships.

We continue to follow developments on energy policy and regulation. Please do not hesitate to get in touch to talk to one of our energy experts.