As Rachel Reeves announced the UK budget yesterday, we were on tenterhooks to see if Net Zero support for businesses would feature. Sadly, it failed to reach the newspaper headlines, so we’ve taken a more detailed look to understand if and what support might be available to help businesses on their journey.
In this blog we highlight a few relevant headlines for businesses.
The government is firmly committed to supporting the transition to EVs by making electric cars accessible for everyone
The drive to move from petrol/diesel to electric continues with 100% relief for eligible electric vehicle charging points and electric vehicle only forecourts via business rates.
The government confirmed an additional £1.3bn of funding for the Electric Car Grant
Providing buyers with up to £3,750 off the upfront cost of a new car up to 2030. However, electric vehicle drivers will soon be charged 3p per mile, which they will need to pay annually alongside their regular vehicle excise duty, possibly decentivizing employees to switch to a greener commute.
The government is taking significant steps to deliver on its modern Industrial Strategy commitments to reduce electricity prices for business
From 2027, some businesses will experience reduced electricity costs by c.£35-40/MWh through the British Industrial Competitiveness Scheme, however this isn’t universal. To truly safeguard from energy fluctuation, on-site energy generation such as installing solar panels are an effective alternative which on average pay back in 5-8 years.
The government is making changes to the Plastic Packaging Tax to further reduce use of plastic
To incentivise businesses to use recycled materials instead of new plastic in packaging, the government will increase the Plastic Packaging Tax rate in 2026-27 as well as consulting about the introduction of mandatory certification for mechanically recycled plastic packaging.
Several smaller, regional initiatives remain in place, providing funded guidance and support or match funding for Net Zero initiatives, however nation-wide funded schemes are unlikely to be introduced any time soon.
It is disappointing to not see climate change, energy efficiency and decarbonisation featured more strongly in the budget; however, it is an important reminder not to delay action waiting for government backed initiatives.
Pressure to reduce environmental impact will remain from customers, employers and partners as we see carbon reporting and implementation of reduction initiatives up and down the supply chain.
If you need help making a sustainability plan for your business, contact us today to schedule a free one-hour call with one of our sustainability consultants.