The Autumn Budget was announced on the day that parts of Spain received one year's worth of rainfall in eight devastating hours, causing more than 217 deaths and millions in damages. Against this backdrop, the Chancellor's Autumn Budget lacks the vision and urgency needed to advance a just transition, protect public health and address the government’s priorities for climate and nature.
There are some welcome investments. Notably the 25% budget rise over the next five years for the Department for Energy Security and Net Zero; a crucial £200 million per year for tree planting and peatland restoration; a tax hike for private jets and commitment to fund important rail projects like the TransPennine Route Upgrade and East West Rail.
However, the 50% increase in the bus fare cap, and above inflation rise in rail fares continues the long-term trend of rising public transport costs, disincentivising low-carbon travel options. The failure to lift the thirteen year freeze on fuel duty and decision to keep the 5p cut made by Conservatives in 2022, also sends the wrong message about the future of travel. Not least because this tax relief is estimated to have raised UK greenhouse gas emissions by 7% since 2010.
The government has committed £1 billion of funding over three years for the Public Sector Decarbonisation Scheme, and £3.4 billion for the Warm Homes Plan between the financial years 2024-25 and 2027-28. This is significantly lower than their manifesto pledge of £13.2 billion between 2024 and 2029, and insufficient to address the 27 million UK homes that require retrofitting in order to meet 2050 net zero commitments.
Our Open Letter to the Chancellor on 13th September pointed out the ways in which the budget could have been ambitious in its approach to tax arrangements to address the climate crisis. We also feel that this would have been a chance to align with our Building Blocks policies and commit to investment in a full circular economy transition, but is a disappointing missed opportunity.
The Autumn Budget was an opportunity for the government to show that addressing the climate and biodiversity emergencies are central to a thriving nation and a successful economy. The piecemeal and unambitious spending announcements fail to reflect the urgency and gravity of the crisis we face.
7 November 2024