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A welcome set of announcements today from @hmtreasury.
It is a stimulus - so key conditions are: timely and focused and job-sustaining.
Most of the green spending announced by @RishiSunak today must be spent in *this* financial year, so the sums are pretty big over 9 months.
It is a stimulus - so key conditions are: timely and focused and job-sustaining.
Most of the green spending announced by @RishiSunak today must be spent in *this* financial year, so the sums are pretty big over 9 months.
It prompts two immediate questions:
- How will we get the money out of the door quickly?
- What's the exit plan, so the green jobs created by this spending can endure?
The announcement today was light on this detail, but we're promised more from @beisgovuk on delivery soon.
- How will we get the money out of the door quickly?
- What's the exit plan, so the green jobs created by this spending can endure?
The announcement today was light on this detail, but we're promised more from @beisgovuk on delivery soon.
The big spending announcements today were on energy efficiency. The Chancellor should be congratulated for that.
Making energy efficiency the focus was our plea to Government in our recent progress report. It's labour-intensive and geographically spread.
So it's the right focus
Making energy efficiency the focus was our plea to Government in our recent progress report. It's labour-intensive and geographically spread.
So it's the right focus
The biggest green measure is the £2 billion "Green Homes Grant".
£2 for every £1 spent on energy efficiency up to £5k per household. And 100% grant for low income households up to £10k per home.
Looks like it might be modelled on the old Green Deal Home Improvement Fund.
£2 for every £1 spent on energy efficiency up to £5k per household. And 100% grant for low income households up to £10k per home.
Looks like it might be modelled on the old Green Deal Home Improvement Fund.
Deploying £2 billion for domestic energy efficiency over 9 months is a tall order. We have to hope the supply chains can scale up quickly, but these are high quality installer jobs, which can endure with the right policy framework after 2021.
No detail on qualifying criteria yet
No detail on qualifying criteria yet
There's a further £1 billion for energy efficiency improvements to the public estate. Again in this financial year.
Delivery within the timeframe required will be a challenge, but I understand that @SalixFinance will be tasked with channeling funding. That seems sensible.
Delivery within the timeframe required will be a challenge, but I understand that @SalixFinance will be tasked with channeling funding. That seems sensible.
There’s also welcome funding for jobs in the natural environment – woodland creation and habitat restoration. Notable that this extends to green spaces in cities and towns.
This is another of our recommendations. And £40m over a year is a pretty substantial employment creator.
This is another of our recommendations. And £40m over a year is a pretty substantial employment creator.
Worth noting an announcement hidden in the small print on “last resort business interventions” (corporate bailouts).
Companies receiving support will need to agree appropriate conditions, including on climate change.
That’s potentially very significant for high carbon emitters.
Companies receiving support will need to agree appropriate conditions, including on climate change.
That’s potentially very significant for high carbon emitters.
What’s *not* here is the new big ticket infrastructure stuff.
Seems we'll have to wait to see a new infrastructure plan in the autumn (and we’ve already waited a while). That’s where I expect to see critical announcements on CCS, Nuclear, Renewables, Hydrogen etc.
Seems we'll have to wait to see a new infrastructure plan in the autumn (and we’ve already waited a while). That’s where I expect to see critical announcements on CCS, Nuclear, Renewables, Hydrogen etc.
We should also see more soon from Ofgem on how they might accelerate regulated energy network investment for Net Zero.
And more from @DefraGovUK on flood defences soon too?
So we may not be done with the stimulus yet.
And more from @DefraGovUK on flood defences soon too?
So we may not be done with the stimulus yet.
(Whither the long-lost Energy White Paper? Hopefully later in the year too.)
*Clearly* this isn’t the full package necessary to get us on track for Net Zero and better climate resilience, but it’s focused on the right things to boost short-term green employment.
The challenge is now to make policies that ensure these jobs endure beyond 2021.
The challenge is now to make policies that ensure these jobs endure beyond 2021.
Here's what @theCCCuk said a few days ago:
https://www.theccc.org.uk/publication/reducing-uk-emissions-2020-progress-report-to-parliament/
Chapter five has our recommendations for the recovery. Looking down the list, many of them were addressed today - and in the the PM's recent speech.
https://www.theccc.org.uk/publication/reducing-uk-emissions-2020-progress-report-to-parliament/
Chapter five has our recommendations for the recovery. Looking down the list, many of them were addressed today - and in the the PM's recent speech.
And here is the document from @hmtreasury with today's "Plan for Jobs". It's pretty concise , so I'd recommend reading it. https://www.gov.uk/government/publications/a-plan-for-jobs-documents
Final point is that much of the spending announced today is England-only. So there will be Barnett consequentials, which means more money to spend in Scotland, Wales and Northern Ireland.
We look forward to seeing how that money is spent in a complementary way.
We look forward to seeing how that money is spent in a complementary way.
