This week’s budget signalled a continued commitment to positioning the UK as a leader in clean energy. With substantial investments across carbon capture, green hydrogen, and renewable energy infrastructure, it’s clear that the government is setting ambitious goals for a sustainable energy future.
Among the highlights, the UK’s first carbon capture and storage clusters will receive £3.9 billion in funding for 2025/26, a major step toward reducing carbon emissions on a national scale. Similarly, the budget’s support for green hydrogen projects—some of the earliest large-scale projects in the UK and among the first in Europe—paves the way for sustainable energy innovations that could redefine our approach to clean fuel production. These investments signal the growth of new technologies that could play a vital role in our energy transition.
The budget also brought changes on the economic front, with tax reforms likely to impact a wide range of businesses. A notable adjustment is the rise in employers’ National Insurance contributions alongside a reduction in the NI threshold. For larger businesses, this change will likely increase operational costs, compounding existing financial pressures. However, the increase in the employment allowance from £5,000 to £10,500 aims to support smaller businesses by offsetting National Insurance expenses, giving them some relief amidst the broader cost increases.
The minimum wage increase represents a positive step for workers but adds further cost pressures for businesses managing these operational changes. While beneficial for employees, these adjustments require careful consideration for businesses adapting to rising payroll costs alongside tax hikes.
Finally, the establishment of Great British Energy, expected to receive £8.3 billion from the National Wealth Fund over the next five years, reflects a national commitment to energy independence and developing clean energy solutions. The allocation of £134 million to bolster port infrastructure, specifically supporting floating wind technology, strengthens the UK’s position in renewable energy production and creates a strong foundation for future advancements in offshore wind.
Overall, the budget reinforces a focus on scaling up clean energy resources and infrastructure while balancing economic challenges. We’re closely following these developments, ready to support clients in aligning with the UK’s evolving energy landscape.