Leading industry figures react to yesterday’s Autumn Statement
Posted by: electime 23rd November 2023
Following yesterday’s (Wednesday 22nd November) Autumn Statement 2023 speech, delivered by Chancellor Jeremy Hunt, leading companies in the electrical industry share their thoughts:
Dr Hilary Leevers, Chief Executive, Engineering UK, says:
“The chancellor highlighted the importance of skills in his autumn statement, yet there was little to address widespread issues in the skills systems. We welcome the modest announcement of £50 million for engineering apprenticeships, but are concerned that this is limited to a two-year pilot to explore ways to stimulate training in these sectors and address barriers to entry in high-value standards.
“As outlined in our recent report ‘Fit for the Future’, we need large scale investment in getting more apprenticeships for young people off the ground now and to ensure that the country has the engineering and technology workforce it needs for the future. We urge the government to take a bolder approach.”
Brian Berry, Chief Executive of the FMB sad:
“The Autumn Statement will be welcomed by small builders, with the Government finally taking steps to support micro and SME businesses in a sector which has faced significant difficulty in recent years. However, this must only be the start if the Government is serious about tackling the challenges we continue to face. Measures to reform the way local authorities process planning applications is good news, as are plans to help fund local authorities tackle nutrient neutrality mitigation. However, substantial increases in funding for local authority planning departments are needed if we are to see real progress.
“There were some surprising outcomes, like the changes to permitted development rights, which will bring work for house builders and the repair, maintenance, and improvement sector. Buried in the details is additional support for housing associations to deliver energy efficiency improvements. This support should also be rolled out to the owner occupier sector to help improve the UK’s leaky housing stock.
“Financial support for SMEs represents another positive step, along with other announcements to boost SME growth, such as adopting digital technology. It is good to see that skills training has received a boost, with additional funding announced to increase the number of apprenticeships undertaken.”
Stuart Lemmon, CEO of EcoAct, comments:
“The UK’s approach to achieving net-zero remains unconvincing. While the £4.5 billion investment into strategic manufacturing sectors to spur net-zero and the maintenance of the tax break for capital investment are most welcome, there remains an overreliance on unproven technology solutions. Meanwhile properly addressing domestic high-carbon activities directly has once again been missed, undermining the country’s position as a leader on climate change.”
Griff Thomas for GTEC, says:
“Despite not getting much mention during his address to parliament, Mr. Hunt did offer a few positives in the full autumn statement when it comes to encouraging the take-up of renewables and removing some of the barriers.
“VAT relief available of energy saving materials, such as Air Source Heat Pumps (ASHPs), is being expanded to include their water source counterparts, plus other technologies; the full details of which will be published in February. I hope to see battery storage added to this list, a real gamechanger for solar PV owners, dramatically increasing the amount of self-generated power they can use and therefore accelerating the return on investment.
“Essentially, the grid needs home energy producers to back up its supply, so I’d be surprised if Electrical Energy Storage Systems (EESS) don’t benefit from VAT relief in the new year.
“Drivers to speed up renewable take-up include the removal of planning constraints for EV charging infrastructure and heat pumps. The government plans to consult on introducing new permitted development rights to end the blanket restriction on heat pumps one metres from a property boundary in England, something that has stalled mass deployment in towns and cities.
“Businesses have been encouraged to go green, with Permanent Full Expensing (claiming 100 per cent capital allowances on qualifying main rate plant and machinery investments) extended to decarbonisation measures, such as solar panels and heat pumps, as well as green plant and machinery.
“Growth relies on more than tax-relief and red tape removal, however. A skilled workforce is an essential part of the jigsaw puzzle. For sole traders and the self-employed, the statement outlined plans for HMRC to rewrite guidance on around the tax deductibility of training costs, in order to give individuals confidence that expanding skill-sets and keeping pace with technological advances are allowable costs for tax purposes.
“£50 million was also pledged to deliver a two-year apprenticeships pilot to simulate training in ‘growth’ sectors – I just hope that the low carbon arm of building services is considered in these plans. I would like to see more robust, specific and widespread support for upskilling existing installers to meet the demands of the sector; it is, after all, essential to the UK’s Net Zero ambitions and the success of the wider economy.”
Andy Ryan – eMobility Segment Lead of Lucy Electric: “Yesterday’s news that the government is removing planning barriers for EV infrastructure and charging hubs is a positive development and, coupled with further investment into the new green industries growth accelerator, shows the government is listening to calls for ongoing commitment to the EV industry and essential low carbon technologies. However, this is just a small step toward fixing the issues surrounding infrastructure and EV charging in the UK.
Enhancement and reinforcement of electricity network infrastructure are also essential. A huge amount of investment is needed to ensure the network is upgraded for future demand in the years to come, only then can we meet the challenge of supplying sufficient and cost-effective EV charging solutions.
The other challenge is public opinion, much of the general population is yet to be convinced that the eMobility revolution either matters or will be sustained. There needs to be a reasoned, convincing argument that sweeps the public along with the generally accepted industry view that eMobility and renewable energy are the only ways we can meet these challenges. Our net zero future depends on it.”
