Today Chancellor Rishi Sunak opened his red briefcase to reveal the Autumn Budget and Spending Review.
In his speech at the House of Parliament, Mr Sunak recognised the backdrop of rising inflation, stating that the majority of this rise in inflation can be explained by two global forces: rising demand for goods as economies around the world reopen and surge in global demand for energy.
Mr Sunak stated: “In the year to September, the global wholesale price of oil, coal and gas combined, has more than doubled.
“The pressures caused by supply chains and energy prices will take months to ease.
“It would be irresponsible for anyone to pretend that we can solve this overnight.”
However, he said the UK’s economy is expected to return to pre-Covid levels earlier than previously predicted, ‘at the turn of the year.’
Some of the measures featured in the Budget and Spending Review included:
- £6.1 billion to back the Transport Decarbonisation Plan, boosting the number of zero emission vehicles, helping to develop greener planes and ships, and encouraging more trips by bus, bicycle and foot.
- Up to £1.7 billion of direct government funding to enable a large-scale nuclear project to reach a final investment decision this parliament, subject to value for money and approvals. The government is in active negotiations with EDF over the Sizewell C project.
- £380 million for the offshore wind sector.
- Confirmed funding for the £1 billion Net Zero Innovation Portfolio, as announced in the Ten Point Plan, which is accelerating near-to-market low-carbon technology innovations and the aligned £385 million Advanced Nuclear Fund which is developing the next generation of small and advanced modular reactor technologies.
- £3.9 billion to decarbonise buildings, including £1.8 billion to ‘support tens of thousands of low-income households to make the transition to net zero while reducing their energy bills.’
- A further £625 million for the Nature for Climate Fund, ensuring total spend of more than £750 million by 2024-25 to help meet government commitment to plant at least 7,500 hectares of trees every year in England by 2025 and restore 35,000 hectares of peatland during this Parliament.
- More than £250 million to protect and restore nature in England in support of the UK target to halt biodiversity decline by 2030.
More information about the Autumn Budget and Spending Review 2021 is available on the UK Government website.