PwC head of energy & utilities, Steve Jennings, said the £2bn committed to green homes grants will accelerate home insulations, particularly because 60% of UK consumers said they are keener to curb their energy used than before the lockdown.
Jennings believes the stimuli are “critical” to any widespread energy efficiency programme, it will also “quickly create jobs, which is hugely important to the economic recovery following the Covid-19 crisis.” Britain’s current job retention scheme will not be extended by the Treasury, but firms will be offered £1,000 for each furloughed worker they allow to return.
Quest for sharper focus on ‘green recovery’
The energy consultancy Delta-EE said they welcomed the “direction of travel” but added the Chanceller has “missed a trick on the environment.” The fossil fuel industry remains supported to the tune of millions of pounds annually, with analysts urging the Government to divert some of this to renewables.
“We understand the need for a focus on jobs, but a £3bn grant in support of energy efficiency installations can’t be the only step,” said Charmaine Coutinho, head of consulting at Delta-EE. While welcome to see support and interest in energy efficiency (...) we should be creating more jobs through support for renewable energy, EVs and decarbonising heat.”
Calls for E-vehicle funding grow louder
The industry is also calling for support for electric vehicles and charging infrastructure. “The Chancellor has shown he can cut VAT in some sectors, so we’d welcome the same move for clean technology,” Ms Coutinho said.
Banks, however, are hesitant and question whether the Chancellors measures will be enough to quickly rekindle the crisis-struck economy. Not least because the International Monetary Fund (IMF) had warned the UK’s gross domestic product (GDP) could drop by 10.2%.
Hence, some market observers have repeatedly urged the Chancellor to poor at least £200 billion into the economy to “secure” Britain’s swift economic recovery.