Smith Mordak, Chief Executive Officer of the UK Green Building Council, said:

Rachel Reeves’ £3.4 billion ‘first step’ towards the Government’s Warm Homes plan, seems more like a tiptoe. She’s left a huge gap to fill in the spring Comprehensive Spending Review. The Government knows how much money is needed to fix draughty, cold gas-guzzling homes for low-income families – Labour got it right in opposition, initially committing to £60 billion over 10 years. After cutting winter fuel payments, even in the face of high gas prices again this winter, pressure will build for a real long-term solution in the spring.  

The Chancellor should also look again at stamp duty. Just a nudge to reflect the energy performance of homes bought could drive billions into insulation, heat pumps and solar panels.  

The UK can’t meet its climate goals without decarbonising our gas-dependent homes.

On public investment, both Keir Starmer and Rachel Reeves doubled down on their downbeat ‘fiscal responsibility’ and ‘tough decisions’ narrative at September’s Labour Party conference. Without a shift in Treasury support for upgrading our nation of draughty homes – treating them as a national infrastructure priority, the Government’s ambition to reduce heating bills, deliver a clean electricity grid by 2030, and meet climate commitments, will remain out of reach. Our National Retrofit Investment Calculator shows sums needed are much closer to Labour’s previous commitment to £60bn over 10 years than the current £6.6bn over 5 years. Such public investment, alongside private and household investment, incentivised through tax changes like moving energy bill levies from electricity, would deliver vast year-on-year benefits to health, climate, electricity grid costs, and skilled jobs.

We’re encouraged to see confirmation of additional funding for planning officers and upskill local planning authority capacity to begin to tackle the huge shortfall in numbers and expertise that has built up over the past years. But 300 planning officers is less than one per local authority and much more will be needed to plug gaps in salaries and skillsets if we are to unblock the system and achieve more reliable decision-making.

There was a commitment of £400 million for tree planting and peatland restoration. This planting strategy should set clear goals for local authorities and support urban greening factor initiatives. The £2.4 billion towards flood resilience is welcome, but this must include upgrading our existing buildings and future-proofing new ones to protect communities across the country from the impacts of flooding.

We welcome this funding to address pollution in our rivers. This will need to be backed up by proper enforcement of water companies’ duty to upgrade wastewater treatment works. In areas of new development, the highest standards of sewage works and sustainable drainage will need to be in place before new developments are occupied. 

This certainly hasn’t been a ‘climate budget’, and small policy and investment decisions won’t be enough. From fixing the planning system and new build standards to upgrading the country’s draughty homes and workplaces, success or failure, public support or opposition, will rest on bold decisions in line with the climate science. Dialling-up investment in our net zero future is not just the consensus recommendation of the vast majority of industry, business, and society – it is central to Labour’s promise to bring down household energy bills and revitalise the UK’s towns, cities, and infrastructure.

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