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Industry reacts to Autumn Statement

The industry has broadly welcomed positive announcements made by Chancellor Rachel Reeves in her Autumn Statement this week, but some industry stakeholders have pointed to some missed opportunities.

Chancellor of the Exchequer Rachel Reeves

Charlotte Lee, chief executive of the Heat Pump Association said: “Given the challenging economic climate, it’s promising to see an initial commitment of £3.4bn towards heat decarbonisation and household energy efficiency over the next three years, as well as an increase in funding for the Boiler Upgrade Scheme for the next two years. However, more needs to be done to support the acceleration of the electrification of heat if the UK is to stay on track and meet the carbon emission reduction targets in line with the legal obligations. We therefore await the details of Phase 2 of the Spending Review with interest.”

Steve Molloy, Daikin’s sustainability and commercial solutions manager, stated: “Committing over £1 billion to the Public Sector Decarbonisation Scheme, is a positive step for UK Net Zero. Heat Pumps will play a key role as an alternative to fossil fuels. Making them more affordable will help the public sector play its role in the nation’s greener future.”

“We also welcome the Chancellor’s commitment to provide £3.4 billion to fund low-carbon heating and to improve household energy efficiency. The decision to increase funding for the Boiler Upgrade Scheme will help thousands of households decarbonise their home heating over the next three years. We look forward to working with the Government to deliver their Warm Homes Plan.”

Russell Dean, deputy divisional manager, living environmental systems at Mitsubishi Electric said: “Decarbonising the built environment is vital for the UK to reach its ambitious goal of Net Zero carbon by 2050, and changing how we heat the UK's housing stock will be instrumental in this. This Budget was the new Labour government's opportunity to demonstrate its commitment to clean energy and decarbonisation, and the investment into Great British Energy and the Warm Homes Plan is a welcome step. But we urge the government to go further in outlining a clear, long-term strategy to reach Net Zero.

'The government’s commitment to building 1.5 million new homes is welcome, but these new homes must be future-proofed, through initiatives like the Future Homes Standard, and not need retrofitting in just a few years as standards change. We must also do more to convey urgency around the need for house builders to prioritise renewables now.

'We also call for a rebalancing of electricity levies or the decoupling of the price of electricity and gas, to bring down the price of electricity and make all-important renewable technologies, like heat pumps, a more affordable option for homeowners.”

Chris Claydon, chief executive of JTL Training said: 'JTL welcomes much of what has been announced today, including support for skills challenges in key sectors which the Government acknowledges is holding back growth across the country. It is imperative that Independent Training Providers can also access the funding pledged to work towards a more level playing field.

'Apprenticeships in the electrical and plumbing trades directly support the growth the Chancellor has pointed to today, such as infrastructure development and delivering new homes. The skills pipeline created by apprenticeships is a lifeline to industry and training providers are straining to meet demand. While there is no doubt the sector will rise to the challenge of future demands, we need a systems-thinking approach from the heart of government to get there.'

Yselkla Farmer, chief executive of BEAMA, the UK trade association for energy infrastructure and systems, said: 'The Chancellor’s budget has stepped up urgently needed investment tackling the UK’s key decarbonisation heating and transport challenges. Reaffirming the £3.4bn Warm Homes Plan investment is positive but it is essential the Government fleshes out the practical details of its approach with cost-effective, impactful measures such as on heating controls and improving indoor air quality to protect health.

'Making big investment pledges sends a valuable political signal but the Government urgently needs to grasp the nettle on trickier details that will drive decarbonisation in people’s lives and bring long term financial and quality of life benefits. The UK’s £14bn turnover Net Zero supply chain is ready to support this but needs a more ambitious policy and regulatory framework to match these financial signals.

'The commitment to 1.5 million new homes is encouraging, but immediate clarity is needed on the Future Homes Standards is crucial so that developers and housebuilders, especially SME housebuilders, can cost and plan accordingly for future much needed housing developments.'

Kevin Wellman, chief executive officer at the Chartered Institute for Plumbing & Heating said: “The announcement for greater funding into apprenticeships and our education system is very welcome news. The UK is at a critical turning point in our history where we need to ensure our workforce is being trained for the jobs of the future, whether that is in sustainability and efficiency or digital and tech.

George Webb, chief executive of Liquid Gas UK, said: “This Budget was missed opportunity for the Government to support the development of new technologies that can play a key role in the decarbonisation of rural Britian. Hundreds of thousands of homes across the UK need a practical pathway to Net Zero that doesn’t break the bank. However, without Government backing, those living in our rural towns and villages will be left without an easy and affordable way to decarbonise their homes.” 

Thomas Farquhar, co-founder of Liverpool-based low-carbon start-up Heatio said: 'This Budget is a mixed bag in terms of the government’s commitment to Net Zero. On the positive side, funding for heat pumps has been extended as well as key investment supporting domestic manufacturing of the technology. There are also welcome, clear ambitions in the Warmer Homes scheme, which promotes solar and heat pump installations.

“However, it is disappointing there is nothing new about deploying more low-carbon tech in British homes; the Clean Heat Market Mechanism is also absent, which will undoubtedly kick-start fossil fuel boiler manufacturers in supplying heat pumps and supporting consumers to transition to green heating technology for their homes.

“The lack of action or clarification on the Future Home Standards is also a missed opportunity. Continuing to build new homes without the basics required to combat climate change makes no sense. The Future Homes Standard should include heat pumps, solar panels and batteries as a standard requirement. The government has also missed the opportunity to bring forward fossil fuel boiler bans on new builds and retrofits.'

31 October 2024

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