The Chancellor has earlier today unveiled a plan to grow the UK economy.
Jeremy Hunt explained this new strategy would focus on four pillars, or four “Es” – enterprise, education, employment and everywhere.
Mr Hunt said a big growth area for the UK is the clean energy sector.
Responding to the Chancellor’s commitment to growing the UK’s green economy in his keynote speech this morning, RenewableUK’s Executive Director of Policy Ana Musat said:
“To create the economic optimism and momentum which the Chancellor is seeking, we need a clear plan focussing on green growth. Mr Hunt must ensure that the UK can complete on a level playing field with the US and the EU, both of which are offering generous stimulus packages to attract private finance from the innovative companies which are spearheading the clean energy transition.
“The Chancellor needs to provide businesses with clarity on how the UK will bring forward new renewable energy capacity, bolster clean energy supply chains and maximise investment in skills.
“As a first step, the Chancellor should use the Spring Budget to announce a reform to our capital allowances regime to avoid Britain losing out in the global race for investment. The US Inflation Reduction Act offers $216 billion (£174bn) in tax credits to companies investing in clean energy and transport.
“Even if we can’t match their tax breaks, we need to compensate for this with an attractive policy and regulatory environment: planning reform to enable quick deployment, reducing disruptions to electricity markets through sudden policy changes like the imposition of the Electricity Generator Levy, as well as investment in key infrastructure, including ports and the transmission grid.”
Tony Danker, CBI Director-General, said: “After doing so much to stabilise the economy at the end of last year, the Chancellor has rightly now shifted gear to renew his focus on growth.
“It’s only by improving the UK’s languishing performance on productivity that we can realise the huge economic potential in every corner of the country.
“There is much to get behind here with the Chancellor’s emphasis on using innovation as the foundation of the UK’s future economy and championing the strengths of the UK tech sector.
“He now has a strong framework for growth. And we hope the Budget in less than two months will show strong actions to move us forward.”
The REA has welcomed the Chancellor’s references to renewables as a UK success story and his recognition of the sector’s growth.
However, the association has stressed that these warm words must be solidified by policy that sends clear signals to market and stimulates low carbon investment.
Dr Nina Skorupska, Chief Executive at the REA, said: “These warm words must urgently be reinforced by policy and a continued lack of certainty has risked sending the wrong signals to low carbon investors.
“The REA stresses that growth in our sector is not guaranteed to continue without commitment from government and the upcoming Spring Statement must be used to ensure an attractive market for global green investment in the UK.”
