Business leaders across the industry have responded to the chancellor’s Autumn Statement that was announced last week.
OPEN GOAL MISSED ON ENERGY BILLS
Mike Foster, CEO of the Energy and Utilities Alliance, said: “The chancellor confirming the energy price cap will see a whopping increase up to £3,000 in April will inevitably worry millions of hard-pressed families. Our recent consumer survey found 78% of Brits support keeping the price cap on energy bills in place, so an increase that plunges millions into fuel poverty is not what any households wanted to see.
“This is particularly immoral while the government’s own Boiler Upgrade Scheme, that is still in place, hands out £5000 subsidies to the well-off to change their heating, while millions struggle to pay their bills. They have missed an open goal to solving some of the energy bills turmoil plaguing the British public. Redistributing these millions of pounds in pointless heat pump subsidies into insulation, efficiency measures, and bills support is really a no brainer.”
“With news of renewed investment in nuclear, this budget also reinforces our view that longer-term we need to move away from fossil gas and switch our network over to hydrogen. Not only will this help to reduce emissions – which the chancellor pointed out was a priority in his speech – this level of energy independence would also free us from the global gas markets that Putin’s war has significantly impacted.”
HELP FOR HOUSEHOLDS?
Adam Scorer, chief executive at National Energy Action, said: “Boosting welfare payments and the targeted support that has been announced for energy bills will help some of the poorest households and at-risk groups, that’s important, but there are big gaps in these measures especially for low-income households not on means-tested benefits. The reductions in universal support will make these gaps even more challenging.
“Many other vulnerable groups — those with medical health conditions and carers for example, who could have been targeted for additional direct support, are now at acute risk of being left out in the cold unless they are supported by local authorities. With deficit budgets and nothing left to ration, too many could fall further into overwhelming debt or go without energy entirely, to the acute detriment of their health and wellbeing. Even those who will receive cost-of-living payments will find it practically impossible to sit on this cash payment and only channel this money towards soaring energy bills.
“The chancellor did make some welcome commitments to boosting energy efficiency but promises of bigger programmes in two years’ time won’t make homes warmer or cheaper to run soon enough. Any new resources also need to help the government meet its legal requirements to fuel poor households as a priority.”
TURBULENT TRADING CONDITIONS
Damian Walters, CEO of the British Institute of KBB Installation, said: “Our members are already facing commercial challenges through inflated operating costs, ludicrous price increases in materials, supply chain struggles, falling revenue, and shrinking availability of affordable finance. Add to this the rising trend of late payments and being owed money as a result of customers going into administration, it is clear that BiKBBI members, along with thousands of other SMEs, are forecasting turbulent trading conditions for the foreseeable future.
“Measures introduced in the Autumn budget could add even further burden to the hardworking businesses owners servicing a vital sector of the home improvements industry.”
FOCUS NEEDED ON TAX
Henk van Den Berg, strategic business manager for heating and renewables at Daikin UK, added: “We all know that helping to make homes greener and more energy efficient will help to reduce bills in the long term. But more immediately, the Treasury can shore up its coffers by focusing tax rises specifically on higher-carbon sectors, generating funds to invest more in sustainable options.
“The chancellor could also set out plans to shift the Climate Change Levy’s focus away from electricity to gas, which would be another tool in driving consumers towards more sustainable energy. This would drastically shorten the payback time for innovative solutions like heat pumps.
“But this should not be at the expense of existing support to people to improve the energy efficiency of their homes and businesses, such as the Boiler Upgrade Scheme and Sustainable Warmth competition.”