Chancellor George Osborne delivered his Autumn Statement to the House of Commons today (November 25, 2015).
Mr Osborne told the House of Commons: “We are committed to the low carbon sector and we show our commitment to the Paris talks next week (Dec 2015). But we believe going green should not cost the earth.”
Major Budget Cuts at DECC
The Department of Energy and Climate Change (DECC) will see its budget will be reduced by 22% by 2019-20. This will be delivered through: “efficiencies in corporate services and reducing the cost of contracts”.
According to the Spending Review and Budget Statement, DECC’s settlement will include…
- Doubling DECC’s innovation programme to £500 million over 5 years – this will strengthen the future security of supply, reduce the costs of decarbonisation and boost industrial and research capabilities.
- The government will provide £295 million over 5 years to improve the energy efficiency of schools, hospitals and other public sector buildings.
- Resource savings of 22% by 2019-20 delivered through efficiencies in corporate services and reducing the cost of contracts.
- Over £300 million of funding for up to 200 heat networks will generate enough heat to support the equivalent of over 400,000 homes and leverage up to £2 billion of private capital investment.
- Between 2016-17 and 2019-20 the government will save over £1 billion by making efficiencies and savings in the NDA through; better value contracts; top class commercial procurement; delaying non-safety-critical projects; and cancelling a project that is no longer needed due to a world-first breakthrough in nuclear decommissioning research.
For more information on any aspect of energy please contact us.