This week’s Autumn Budget has delivered a bold vision for a cleaner, more resilient UK economy, with it packed full of commitments across renewables, infrastructure, and environmental resilience – but will it be enough to meet the UK’s ambitious targets for net zero and economic growth?
Leading the Clean Energy Transition
The Budget’s direction is clear: clean energy is central to the UK’s future.
With restrictions on onshore wind already having been lifted and almost 2GW of new solar capacity authorised, there’s an unmistakable push towards renewables.
Establishing Great British Energy (GBE) in Aberdeen, with £125 million in initial funding, is meant to serve as a central driver for scaling up projects and attracting private investment but, as with any grand strategy, the details will be telling.
“The ambition is there, but the deployment speed is what counts,” says Johnathan Reynolds, Opergy’s Managing Director. “It’s a step in the right direction, but we’ve seen how critical it is to get projects moving quickly enough to meet real demand. GBE’s establishment signals a positive structure, but I think the real work will be in ensuring project timelines don’t falter.”
Nuclear – a steadying force
Amid the renewables push, the Budget also allocates £2.7 billion to Sizewell C, reinforcing the government’s commitment to nuclear as a source of steady, low-carbon power.
This is reassuring from an energy security perspective – showing the government does recognise nuclear’s role in balancing intermittent renewable sources.
“Nuclear is non-negotiable in the net zero journey,” says Johnathan. “We’ve long supported nuclear, particularly Sizewell C and Hinkley Point C, and I believe it’ll play a crucial role in the broader energy mix.”
Baseload power is set to be pivotal as renewables will fluctuate, with nuclear having all the potential to provide that stability, but Johnathan argues there is a need to look further ahead still.
“How are we building the pipeline for future nuclear projects? GB Nuclear acquired the Wylfa and Oldbury sites, so I was hoping to see something on starting to develop those sites, but perhaps that’s one for the Spending Review in Spring.”
The shifting landscape for oil and gas
This year’s Budget brings a nuanced approach to fossil fuels.
Extending the Energy Profits Levy (EPL) to 2030 and raising it to 38% is the government sending a clear signal: it’s time to pivot. That having been said, there is still a fine balance to strike considering just how many skills workers there are tied to traditional energy.
A just transition is vital to avoid unsettling them and regional economies.
“The EPL clearly reinforces the shift to net zero at pace,” explains Johnathan. “But the oil and gas industry remains integral to the current landscape. The government has a duty to ensure this transition is phased, so jobs and skills are transferred effectively.
“At Opergy, we work with many clients in the traditional energy space, helping them explore new opportunities in clean energy without losing their foothold in the market.”
Innovation and investment in emerging technologies
Emerging technologies are central to the Budget, with significant funding for carbon capture, hydrogen and floating offshore wind infrastructure.
This will not only help create a diverse, resilient and greener energy system, but also one adaptable to the UK’s unique geographic and industrial needs.
“CCUS and hydrogen could be game changers,” says Johnathan. “CCUS investments address emissions for sectors that can’t easily electrify, while hydrogen is beginning to make its mark as a versatile energy source, particularly in the transport fuels space.”
On the floating offshore wind backing, Johnathan describes them as similarly strategic. “Floating offshore wind allows us to tap into deeper waters, which is vital given the UK’s geography, but we also need to see greater support for the manufacturing supply chain of turbines, foundations, cables and more. These steps signal a new chapter for UK energy, but execution and infrastructure are going to be everything.”
Building climate resilience and protecting natural resources
Essential commitments have also been made in relation to the broader environment. There is £2.4 billion for flood resilience and £400 million for tree planting and peatland restoration – investments that go beyond energy, helping to build climate resilience and safeguard the UK’s natural resources.
There is also £5 billion for sustainable farming practices and water management over two years, helping to support long-term agricultural resilience which is a welcome move.
“It’s encouraging to see an emphasis on environmental resilience beyond energy,” Johnathan reflects. “Biodiversity, flood resilience, sustainable agriculture – these are central to a thriving ecosystem that can support future generations. A cleaner energy system is part of the puzzle, but we also need to consider the land, water, and natural resources that underpin it all.”
Paving the way for green economic growth
Beyond specific energy measures, the Budget’s fiscal policies show a commitment to long-term green investment too.
By establishing fiscal rules, including the “stability rule” to balance spending and the “investment rule” to limit borrowing to infrastructure projects, the Budget is positioned to foster a stable, investment-friendly climate.
There is over £100 billion earmarked for infrastructure investments, with green gilts and planning reforms that are designed to attract private capital.
“The Budget creates the conditions for stability, but I’d argue it’s a starting point,” says Johnathan. “Infrastructure, transport, R&D – these are necessary, but partnerships between the public and private sectors are what will drive long-term growth. Opergy’s been playing a role to bring these pieces together at the regional and national levels, helping our clients take advantage of green finance and investment to make a meaningful impact.”
Tax changes and general business measures
There are also notable tax implications for businesses across sectors in the Budget.
An increase in Employer’s National Insurance Contributions (NICs) to 15% and a lowered threshold for NIC payments will have an impact on operational costs. Similarly, changes to Capital Gains Tax (CGT) could affect business investment strategies.
For energy sector businesses, while these changes may seem peripheral, they are likely to impact cash flow and operational budgets across the board.
“The rising NICs and CGT adjustments are part of the bigger picture,” explains Johnathan. “For companies in transition – whether that’s moving into renewables or scaling up to support clean tech – any added cost can create friction. It’s essential for businesses to factor these changes into their long-term planning, especially with costs increasing across the board.”
The path forward
While the Autumn Budget 2024 provides a foundation, realising these ambitions requires action beyond what’s in the Budget itself.
National Energy System Operator (NESO), Ofgem, and Great British Energy (GBE) will be critical in transforming the UK’s grid and ensuring that the energy transition isn’t just aspirational but achievable.
The forthcoming “Clean Power 2030 Action Plan” will likely provide more direction, detailing how these strategies will be implemented.
In summary
The Autumn Budget 2024 paints a picture of a cleaner, more resilient UK, with the government pledging serious support across renewables, nuclear and emerging technologies.
“But,” adds Johnathan. “The challenge is in making sure these initiatives don’t stay on paper but transform into real, measurable change.”
At Opergy, we believe the Budget sets the stage, but it’s up to industry, policymakers and communities alike to carry the momentum forward, ensuring that the UK remains a leader in the global clean energy transition.
