Autumn Budget 2024: A Transformative Shift for Local Climate Action?
In a landmark moment, the first female chancellor in British history delivered a momentous budget that signals a clear direction of travel. Walking an economic and political tightrope on Halloween, the government tried to avoid dishing out too many treats or tricks, but there was plenty to feast on in the historic fiscal statement.
A New Chapter in Local Government Finance
The Chancellor has announced a commitment to shift how the government works with local authorities. The promise to end short-term competitive funding pots — long identified by UK100 members as the single biggest barrier to local climate leadership — marks a significant change in approach.
The £1.3 billion uplift for local governments is welcomed, but will not completely plug the £2 billion gap. With many councils facing financial strain after substantial cuts, this extra funding and the commitment to multi-year financial settlements is a positive step. UK100 will be closely monitoring the upcoming English Devolution White Paper.
Warm Homes and Energy Efficiency
The government's £3.4 billion commitment to the Warm Homes Plan over three years marks an important step towards addressing the UK's energy-inefficient housing stock. This includes £1.8 billion to support fuel poverty schemes, expected to help over 225,000 households reduce their energy bills by more than £200.
In a notable shift from previous schemes like the Social Housing Decarbonisation Fund, all applications meeting the new scheme's minimum requirements will be awarded funding. However, if demand exceeds available funds, applicants may not receive their full requested amount. Local authorities can now submit expressions of interest.
We wait to see if the new process overcomes the barriers to take up.
Local Energy and Infrastructure
The Department for Energy Security and Net Zero (DESNZ) will see a 10% real-terms increase in its budget to £8.4 billion by 2026-27. This includes an anticipated £600 million per year for local authorities to fund local energy projects through the Local Power Plan. UK100 will be working closely with GB Energy to ensure the scheme effectively supports member ambitions.
Additional Key Announcements Include:
- £1 billion over three years for local energy schemes to decarbonise public buildings through the Public Sector Decarbonisation Scheme
- £46 million to support recruitment and training of 300 graduates and apprentices in local planning authorities
Looking Ahead
In UK100's response to the Budget, Christopher Hammond, Chief Executive, notes: "The investments in planning, local government and green infrastructure can provide the foundations for prosperity, but the Government must link the three. Planning reform that supports action on climate change, local growth plans that harness renewable energy, and renewable projects that work with communities. Linking the National Planning Policy Framework to the Climate Change Act and resourcing Local Area Energy Plans in the next spending review is the way to do that."
With economic growth forecast to average just 1.5% over the next five years, focusing investment on green infrastructure and local clean energy projects could help defy such sluggish forecasts — particularly given that the net zero economy is growing nine times faster than the wider economy, with place-based climate action representing a potential £140bn saving to the Treasury.
UK100 welcomes the intention to deliver integrated funding settlements to Combined Authorities from 2025-26 and looks forward to seeing more detail in the upcoming English Devolution Bill on how this will support local climate action.
What Does the Budget Mean for You?
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