The UK Government’s 2024 Autumn Budget has landed, packed with policy shifts that will ripple across business energy costs, environmental regulations, and the pathway to Net Zero. For decision-makers committed to staying ahead, here’s the essential breakdown.
Energy pricing was front and centre in this year’s budget, as global market instability continues to drive up costs. The government raised the Energy Profits Levy for oil and gas producers to 38% and scrapped the 29% investment allowance. This policy will pump more revenue into the Treasury, but at a potential cost to businesses reliant on traditional energy sources.
But there’s a glimmer of relief for companies transitioning to greener options. The government has announced ongoing support for electric vehicle (EV) uptake and infrastructure. With incentives like 100% First Year Allowances for zero-emission vehicles and charge points still in place, businesses can look to trim operational costs while taking strides on their sustainability journey. These schemes aren’t just good for budgets - they’re a signal that the move to decarbonise fleets is gaining speed and traction.
The Budget made it clear; accountability in environmental regulation is on the rise. Higher duties are being floated for polluting sectors, such as aviation, where private jets may soon face heftier Air Passenger Duty rates. Duties on non-draught alcohol are also set for adjustment, aligning with the government’s environmental priorities.
The message is clear: sustainable practices aren’t just encouraged, they’re expected. And for businesses engaged in renewable energy or emissions-reducing projects, this is a prime moment to seize the opportunity. Increased investment in wind and solar initiatives opens doors for public-private partnerships, green contracts, and pathways to align with the UK’s sustainability objectives.
The Net Zero targets remain rock-solid, with the government backing its commitment with over £100 billion in green infrastructure funding over the next five years. This investment in renewables, EV infrastructure, and energy efficiency projects aims to reduce costs and widen access to sustainable technology.
Corporate tax policies add to the allure of green investment. The Budget caps corporate tax at 25% for the remainder of this Parliament, bringing a touch of stability for companies planning long-term sustainability strategies. This predictability can be invaluable for firms undertaking large-scale energy transitions, making financial planning more straightforward as they pivot towards carbon neutrality.
Facing heightened costs and stricter regulations, businesses need to rethink their approach to sustainability. The 2024 Budget presents an opportunity to transition from 'business as usual' to future-ready strategies.
If you’re ready to ramp up your Net Zero ambitions, the Budget’s support for renewable energy, stable corporate tax rates, and clear incentives for EV adoption provide the framework to act. Whether you’re optimising energy procurement, electrifying your fleet, or stepping into green infrastructure projects, now is the moment to lead with clarity and purpose.