Mixed response to UK budget
Budget measures on enterprise zones, education and training could translate into supply chain growth, particularly around UK ports. Photo by Peter Barker
The Conservative led UK Coalition Government’s second budget delivered a mix of hope and disappointment last month to those with an interest in marine energy.
Measures on planning designed to promote economic growth (including a 12 month deadline for decisions), which could have a positive impact on onshore wind farm applications, underline industry estimates that around £1 million from each installed megawatt stays at regional and local level during the life time of the wind farm. Funding for a Green Investment Bank was trebled to £3bn, with a start date next year but unable to borrow money until 2015.
The renewable energy trade association, RenewableUK, welcomed the budget as containing a number of policies encouraging long term sector growth. However, the organisation warned that these should be considered an initial step, requiring further refinement and action. The organisation also warned that ‘sustainable development’ needs to be defined closer, as it is set to significantly impact the planning process
Dr. Gordon Edge, RenewableUK policy director said, ‘The Government made the right decision to set up the GIB as a bank, rather than a fund, with the powers to borrow money post-2015. The fact that the GIB funds will be underwritten by the Treasury shows Government commitment to attracting long term investment.’
While supporting the £30 per ton carbon-floor price, which will make low carbon electricity more competitive with electricity from coal and gas, the industry called for a longer term indication of post-2020 levels. RenewableUK also called for a commitment to reinvest proceeds (projected at over £3bn in 2013-2016) in low carbon transition programmes and green energy R&D.
Measures on enterprise zones and education and training could translate into supply chain growth, particularly around UK ports. RenewableUK has called for more action in encouraging entrants not just at apprentice and graduate levels, but also for mature employees looking to transfer skills.
Prime Minister David Cameron pledged that his coalition administration would be ‘the greenest government ever’ upon its arrival in May 2010. But the UK’s first and only Green MP, Caroline Lucas, called last month’s budget a betrayal of the environment. In particular she cited the Green Investment Bank as a lost opportunity, claiming it could have unlocked £450bn in finance required for renewable energy over the next 15 years.
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