LONDON, 31 October 2024 — "The Autumn Budget makes welcome announcements on warm homes, local energy, and planning while marking a commitment to transformative reform in how councils are funded. But it is still just that - a commitment - and a lot of it won't be revealed until forthcoming legislation and the upcoming Spending Review is published," says Christopher Hammond, Chief Executive of UK100.
UK100, the UK's only cross-party network of local leaders committed to ambitious climate action, welcomes several key announcements in yesterday’s Autumn Budget, particularly the commitment to reform local government finance and end competitive funding pots which have long hampered local climate action.
The commitment to increase core spending power for local authorities by 3.2% in real terms cannot be understated. After a decade of decline, a real-term increase in councils' budgets will start to mend the cracks in its financial foundations. Although the £1.3 billion uplift falls short of plugging the estimated £2 billion local government shortfall in 2025/2026, the increase and move away from a short-term competitive funding model will be welcomed by the sector.
Ending the culture of funding short-termism was a key recommendation of UK100’s new report: ‘Local Net Zero 2.0: The Moment to Deliver’, launched at the network’s recent “Local Leaders: Clean Energy Superpower Summit”.
Hammond says:
"The Chancellor has signalled a welcome shift in how government works with local authorities. The promise to end short-term competitive funding pots, which has choked local climate leadership for decades, is significant. Since UK100's founding in 2016, our members have consistently identified competitive funding pots as the single biggest barrier to local climate leadership.
After a decade of decline and increase in demands, Councils will see a real terms increase that starts to mend the cracks in their financial foundations.”
Ahead of the budget, UK100 set out three key tests; empowering local leaders to deliver against their ambitions, support for retrofit and local energy, alongside funding reform to unlock green growth. The budget is a positive change in direction, but the government can take further steps to unlock local climate action and the economic growth it brings.
The network welcomes the Chancellor's pledge to provide £3.4 billion for the Warm Homes Plan over three years, including £1.8 billion to support fuel poverty schemes that will help over 225,000 households reduce energy bills by over £200. This represents an important step towards addressing the UK's energy-inefficient housing stock.
Hammond continues:
"This is another step in the right direction. The £3.4 billion Warm Homes Plan and £1 billion for local energy schemes to decarbonise public buildings will accelerate emissions reductions across the country and bring down the bills for the people and organisations benefitting from this action.
“Changing the debt rules to invest in renewable energy is good for the climate and good for growth. Our members welcome the 25% increase for Net Zero projects, which will flow to local authorities through the Local Power Plan, and hope this initial investment is a sign that the UK is serious about becoming a Clean Energy Superpower.
"The financial freedoms offered in the trailblazer deals are welcome, but it must go further. With economic growth forecast to average just 1.5% over the next five years, focusing investment on green infrastructure and local clean energy projects would help defy such sluggish forecasts with the net zero economy growing nine times faster than the wider economy — and place-based climate action representing a £140bn saving to the Treasury."
Hammond concludes:
“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.”
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.
The network will continue working with its members and government to advocate for local and national collaboration to deliver both economic growth and climate action through the next phase of the Spending Review
About UK100
UK100’s primary purpose is to support a local-led rapid transition to Net Zero and Clean Air. We do this through collaboration.
To accelerate action, we believe in bringing together the most influential leaders across the country to learn together and agree on priorities for legislative and regulatory change while empowering them to engage with national decision-makers.
We provide our network with the knowledge, tools and connections to make this happen.
