Despite media speculation The Autumn Statement failed to deliver on key energy policy announcements when it was made on 23rd November.
As stated by the previous Chancellor, George Osborne, Chancellor Phillip Hammond confirmed the Carbon Price Support would be capped at £18/tonne, uprating this with inflation in 2020-21. The government would, Hammond said, “continue to consider the appropriate mechanism for determining the carbon price in the 2020s”.
It was also revealed that a decision on the Levy Control Framework (cap on renewable subsidies) would not be made until next year. The Chancellor also alleged that the government remained ready to intervene in markets that were not functioning effectively for consumers and that he would be publishing a Green Paper on the subject next year.
Commenting, Nick Molho, executive director of green business organisation the Aldersgate Group said: “It is positive to see greater focus from Government on linking up local authorities with businesses with further funding provided to LEPs. The new industrial strategy must allow the Government to play a greater co-ordination role to link up businesses with the growing low carbon opportunities taking place across Britain and grow the UK’s low carbon supply chain.”