UK 2024 Autumn Budget: A Bold Step Towards a Clean Energy Future
In her first Autumn Budget, Chancellor Rachel Reeves of the newly elected Labour government outlined a bold strategy to propel the UK’s clean energy transformation. With a substantial focus on renewable energy infrastructure, nuclear power, and advanced carbon capture, the Budget reflects Labour’s ambition to position the UK as a global leader in green energy while ensuring energy security and economic resilience. Key measures include establishing Great British Energy, boosting green hydrogen production, accelerating grid connections, and securing private investment to drive forward these initiatives.
💼 Investment in Clean Energy Companies and Infrastructure
Great British Energy (GBE)
£8.3bn from the National Wealth Fund over the next five years to support GBE's establishment and expansion.
£125m to establish the public body, including £100m capital funding for clean energy projects in 2025/26 and an additional £25m to set up the headquarters in Aberdeen.
Securing Private Investment for Clean Energy
£34.8bn in private investment secured for the UK's clean energy sector through the International Investment Summit.
🌞 Renewable Energy Project Approvals and Budget Allocations
Port Infrastructure for Floating Wind
£134m dedicated to port infrastructure upgrades to support the deployment of floating offshore wind projects.
Reversal of Onshore Wind Ban
The government reversed the de facto ban on onshore wind projects in England, aiming to increase the supply of clean, affordable energy across the UK.
Solar Power Projects
Approval of four major solar projects with a combined capacity of nearly 2GW, supporting job creation and clean energy goals.
Increased Contracts for Difference (CfD) Budget
A record budget allocated for the sixth round of the Contracts for Difference scheme, enabling a record number of contracts to promote renewable energy production.
⚛️ Carbon Capture, Hydrogen, and Nuclear Energy Initiatives
Sizewell C Nuclear Project
£2.7bn allocated for Sizewell C's development through 2025/26, positioning nuclear as a vital component of UK energy security. The equity and debt raise process is nearing final stages, with a Final Investment Decision expected in Phase 2 of the Spending Review.
Carbon Capture, Usage and Storage (CCUS)
£3.9bn in funding earmarked for 2025/26 to develop the UK’s first carbon capture and storage clusters, targeting industrial decarbonization.
Hydrogen Production Projects
£2bn allocated for 11 green hydrogen projects through Hydrogen Allocation Round 1, plus support for electrolytic hydrogen production contracts.
UK Fusion Energy Research
Additional funding in 2025/26 to support UK fusion energy research, strengthening the UK’s position in sustainable nuclear energy innovation.
🔧 Policy and Regulatory Changes Supporting Clean Energy Transition
Energy Profits Levy (EPL) Increase for Oil and Gas
EPL rate will increase from 35% to 38%, the 29% investment allowance will be removed, and the levy extended to 31 March 2030. The government will consult on adjusting the oil and gas tax regime in response to price shocks after the EPL ends.
Accelerating Grid Connections and Infrastructure
A government initiative with the National Energy System Operator (NESO) and Ofgem to accelerate grid connections and infrastructure, ensuring timely connections for viable projects and unlocking private investment across energy, AI, data centres, and manufacturing.
🏡 Home and Building Efficiency
Public Sector Decarbonisation Scheme
Over £1 billion of funding over three years to deliver hundreds of local energy schemes aimed at decarbonising the public estate.
Warm Homes Plan Commitment
Initial £3.4 billion dedicated to heat decarbonisation and household energy efficiency over the next three years, part of a broader effort to combat fuel poverty.
£1.8 billion allocated to help over 225,000 households reduce energy bills by more than £200.
Increased funding for the Boiler Upgrade Scheme in England and Wales to meet high demand and support heat pump manufacturing supply chains in the UK.
🚗 Vehicle and Transport Innovation
Electric Vehicle Charging Infrastructure
Over £200m allocated for 2025/26 to support the rollout of EV charging infrastructure, including on-street charge points across England.
Electric Van and Accessible EV Support
£120m provided in 2025/26 to support new electric van purchases through the plug-in vehicle grant and facilitate production of wheelchair-accessible EVs.
Support for Sustainable Aviation Fuel
Extension of the Advanced Fuels Fund to support sustainable aviation fuel producers, promoting cleaner alternatives in the aviation sector.
