6 November 2024 - If the key message from government at the Budget was 'invest, invest, invest', businesses' message in return is 'deliver, deliver, deliver', writes Beverley Cornaby in BusinessGreen.
This week's Autumn Budget was a mixed bag - depending on who you speak to.
Ask a student and they may be delighted the price of beer has gone down. Ask someone working in a hospital or a school and they will be calculating to see what the increase in spending looks like day to day.
Ask a business, and the initial response will likely be one of angst. Chancellor Rachel Reeves' announcement that there will be a hike in national insurance, for example, will result in many companies having to absorb increased costs. While many larger businesses can manage this, not all will be able to take the hit, and it might be painful in the short-term.
What this Budget had to achieve was a way to raise funds when health and education services are cash-strapped, and to demonstrate to people that they can improve their quality of life. It has done that by asking the wealthiest to pay up, which in turn - Prime Minister Keir Starmer says - will lead to growth in the economy.
This was never going to be a ‘green' Budget, but it ended up containing a number of promises that make it clear Labour is committed to climate action, by harnessing the power of private investment.
Reeves' budget followed the recent International Investment Summit. There, the government managed to secure £63bn in private investment, which is expected to create 38,000 jobs for the UK. It also saw the launch of the Industrial Strategy green paper, asking businesses to help shape a ten-year plan for boosting investment in industries like manufacturing, clean energy industries and digital technologies.
What did the Budget do best? It's extremely positive to hear there will be 11 new green hydrogen projects announced across England, Scotland and Wales, £3.4bn for the Warm Homes Scheme and a freeze on the road tax to incentivise more electric cars.
And of course, the introduction of Great British Energy in Aberdeen. GB Energy will own, manage and operate clean power projects, such as wind farms, up and down the country. Crucially, this will be paid for by a windfall tax on oil and gas giants.
Businesses are seeking clarity and certainty, both of which have been missing on climate policy in the last few years, to support them in delivering against their own climate targets. And while the key message coming from the budget is "invest, invest, invest", businesses' message in return is: "deliver, deliver, deliver".
The corporate world doesn't just want promises from the government. It wants and needs accelerated implementation. The delivery of infrastructure needed for electrification, markets, skills and homes should be the most important areas of focus.
With the COP29 Climate Summit set to kick off in just over a week, it is vital that the UK regains its climate leadership position and sends an even clearer signal to investors that Britain is serious about getting to net zero.
What we have seen from the Budget is that Labour's ambitious domestic policies leave it well placed to lead by example. But it needs to ensure it shows up strong and with consistent messaging from all levels of government, not just at COP29, but before and beyond it as well.
After a long, drawn out period of mixed messaging in politics, business will be listening carefully and will be quick to notice if inconsistencies start to creep in.
First published in BusinessGreen.
