The recent UK Autumn Budget from Rachel Reeves, Chancellor of the Exchequer, reflects the government’s increasing focus on sustainability. This budget has significant implications for SME leaders like you who are striving for both sustainability and economic growth in a challenging environment. Below, we’ve summarised the key points and what they might mean for your business.
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Green Industries Growth Accelerator Fund and Clean Energy Support
- What’s new: £120 million has been allocated to the Green Industries Growth Accelerator (GIGA) fund, supporting supply chains in clean tech sectors, including offshore wind and carbon capture. Eleven new hydrogen projects across the UK also receive backing, with substantial support for Great British Energy, the newly established national energy company.
- For your business: This funding could pave the way for reduced energy costs and improved infrastructure, directly supporting SMEs that integrate clean energy solutions. The government’s focus on fast-tracking electrical grid connections may also reduce the time to implement these technologies.
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Transport and EV Infrastructure
- What’s new: While there’s increased vehicle excise duty for petrol and diesel vehicles, critics argue that EV infrastructure remains underfunded. The need for a massive rise in EV chargers by 2030 is unmet in this budget.
- For your business: For SMEs considering EVs in their fleets, this may mean continued challenges in accessing sufficient charging points. If you’re planning a green fleet, start researching local charging infrastructure and any regional incentives available to bridge this gap.
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Support for Decarbonisation in Housing and Retail
- What’s new: £242 million is allocated for urban projects like Barking Riverside and Canary Wharf. Additionally, the Warm Homes Plan will target energy efficiency in homes, with £3.4 billion over three years.
- For your business: Energy efficiency measures aren’t limited to homes, but direct SME funding was absent. However, improving your premises’ efficiency remains vital to reduce costs. The enhanced Boiler Upgrade Scheme may still be relevant if you have older heating systems on-site.
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Circular Economy and Packaging
- What’s new: The government has allowed mass balance accounting for recycled content, enhancing incentives for circular packaging. This opens up new markets for advanced recycling.
- For your business: If you rely on packaging, this change supports a shift to sustainable, recycled materials that comply with the Plastic Packaging Tax. Switching to recycled packaging can boost your sustainability credentials and appeal to eco-conscious consumers.
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Industrial and Manufacturing Support
- What’s new: The government is bolstering support for UK manufacturing, with initiatives like the Industrial Energy Transformation Fund and Made Smarter programme.
- For your business: Access to funding and guidance for sustainable manufacturing and energy transformation offers pathways for reducing costs and improving operational efficiency. Review available grants and schemes to find options aligned with your goals.
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Key Areas for Improvement – Missed Opportunities
- What’s lacking: No major updates on energy efficiency for commercial buildings, a VAT cut for public EV charging, or significant funding for electric vehicle infrastructure. There’s also limited detail on nature-based solutions or sustainable farming initiatives.
- For your business: These gaps mean SMEs may continue to face high energy costs and EV adoption barriers. It’s essential to stay informed about regional incentives or future policy changes that might help bridge these gaps.
The Takeaway
While the budget includes substantial investments in green energy, there are still gaps, especially around support for small businesses. However, the emphasis on clean energy, hydrogen, and industrial support reflects an opportunity for SMEs to align with the government’s long-term sustainability goals.
At Sustainable X, we understand the complexities of sustainable transformation for SMEs. We’re here to help you turn budget policy into practical steps for your business. Whether it’s transitioning to greener technologies, adopting circular economy practices, or boosting your energy efficiency, our team can provide the tools, guidance, and hands-on support you need. Get in touch on info@sustainablex.co.uk