Autumn Statement lacks ambition, says environment campaigners

Campaigners have reacted to say the Autumn Statement announced today and are calling for urgent action on energy efficiency to combat both the climate and the cost-of-living crises.  

After much anticipation, the statement outlining the government’s financial plans was announced by chancellor Jeremy Hunt in parliament. 

Alongside tax rises and benefits and pensions being raised in line with inflation, the government has said it will increase a windfall tax on oil and gas firms from 25% to 35% until March 2028.  

Hunt also mentioned issue of energy efficiency in his speech: ‘Over the long term, there is only one way to stop ourselves being at the mercy of international gas prices: energy independence combined with energy efficiency.’  

But environmental campaigners say the energy efficiency proposals are ‘far too little and far too late’, as the Chancellor said it wouldn’t be until 2025 that a further £6 billion would be invested in driving energy efficiency. 

Friends of the Earth’s head of policy, Mike Childs, said: ‘Kicking the can down the road on home insulation for another two years, means millions of people will continue to suffer cold homes and sky-high energy bills.  

‘The government should have listened to its own climate advisors, the Climate Change Committee, who only last week called for an urgent and rapid roll out of loft and cavity wall insulation. 

‘A £5 billion a year street-by-street, home insulation programme, focussing on those most in need first, would reduce the nation’s use of expensive gas, slash energy bills, create jobs and cut carbon emissions.’  

Polly Billington, Chief Executive of UK100, echoed these thoughts and highlighted the results of a recent YouGov poll which showed 69% would support an energy efficiency plans focused on social housing.  

This could be based on the current Social Housing Decarbonisation Fund, but instead of local authorities competing for funds, money could be given out on a needs basis. This could lead to 550,000 social houses being upgraded by 2028, supporting 40,000 jobs and helping residents to save £1,500 in the first year alone.  

‘We would urge the Chancellor to look at our new #EndTheWaitInsulate report,’ said Billington. ‘It sets out an oven-ready, cost-neutral plan to urgently upgrade the energy efficiency of social housing across the country to protect some of the most vulnerable households from soaring energy bills. 

‘Ultimately, we’re glad to see the message is slowly getting through on energy efficiency. But we need more urgency and detail. We also want reassurance that local leaders are a part of the plan. Any focus on energy efficiency amidst the energy crisis is welcome, but we need to move quickly to end the wait and insulate.’  

The windfall tax was also criticised, as the Chancellor failed to close a loophole allowing fossil fuel firms to avoid paying tax of they invest in more oil and gas, while barriers blocking onshore wind were not lifted.  

‘Tax on renewable energy companies risks reducing investment into much needed clean energy,’ said Mike Childs.  

Plans for controversial developments the Sizewell C nuclear power station, Northern Powerhouse rail and HS2 are also set to go ahead, according to Hunt. 

This despite Tory MP Esther McVey saying she would not back tax rises if HS2 were to ahead at PMQs yesterday, saying money was being wasted on an ‘unnecessary vanity project.’  

Photo by Ása Steinarsdóttir