Phillip Hammond delivered the Autumn budget on Wednesday afternoon (Nov 22nd). Brexit, the housing market and Britain’s intention to forge ahead in Innovation and Technology were among the key headlines.
Specific to the energy industry, Hammond elaborated on the Spring budgets commitment to an innovative transferable tax history policy to encourage investment in the North Sea Gas and Oil fields.
The government remains confident that the total carbon price created by the EU Emissions Trading Scheme and the Carbon Price Support is set at the correct level and will continue to target a similar carbon until unabated coal is no longer used. This will deliver a stable price and limit cost on business. In addition, it will freeze the Climate Change Levy main rate for LPG at 2019-20 level until 2022.
There was commitment to keeping energy costs as low as possible with continued support for low carbon electricity as it becomes more cost competitive. To protect consumers there will be no introduction of new low carbon electricity levies until the burden of such costs fall, meaning no levy until 2025.
Furthermore, to support transition to zero emission vehicles, regulation will accompany the roll out of charging infrastructure with a proposed £400 million Charging Investment Infrastructure Fund and £100 million to continue the Plug in Car Grant to 2020.