Industry welcomes Budget’s policy costs move

Chancellor Rachel Reeves’ decision to move some energy costs from consumers’ bills into general taxation has been welcomed by industry leaders.

As part of measures announced during the Budget, 75% of the cost of the Renewables Obligation (RO) scheme will be removed for the next three years, and the Energy Company Obligation efficiency scheme will be scrapped.

Jane Cooper, Deputy Chief Executive at trade body RenewableUK, said: “It’s fairer, as it’s based on people’s ability to pay, so families on low incomes will benefit most.”

The Chancellor’s commitment to invest in measures to speed up the planning system which will help roll out new clean energy projects was also welcomed

But the industry questioned the merits of introducing a 3p-per-mile tax on electric vehicles (EVs).

Frank Gordon, Director of Policy at the Renewable Energy Association, said the fairest approach would be for all types of vehicles to be included.