Autumn Statement – Missed Opportunities

The Chancellor’s Autumn Statement has to be read in line with the Office for Budget Responsibilities report, that’s published immediately after, this provides the context to the speech.

The most vulnerable in society need immediate support with the cost of energy and to keep warm, yet no new measures were announced. Despite various announcements for tax cuts and benefit increases it’s striking that the OBR indicate that the living standards per person are forecast to be 3% lower in 2024-25 than their pre-pandemic level, even after taking into account the 2% cut announced on National Insurance.

Unfortunately there was no urgency in the actions required to address fuel poverty, with an assumption from the OBR that gas prices will continue to fall. Today the energy price cap was increased by OFCOM by 5%. The forecast from Cornwall Insight shows that high gas and electricity prices are here for the next 5 years at least.

Long term investment in more sustainable sources of energy to help make the cost of heating homes more affordable and to minimise negative environmental impacts is therefore essential. Therefore it was encouraging to see capital allowance changes for strategic business investment.

Ørsted, the Danish based energy company, that is contemplating building the world’s biggest offshore wind farm (Off the Yorkshire coast) will be pleased at the Chancellor’s announcements of tax breaks for green investments.

It would have been good to have seen additional short to medium term measures to retrofit homes, to make them more energy efficient.