Chancellor of the Exchequer Rishi Sunak has laid out the UK’s covid-19 recovery plan that includes £8.8 billion of new infrastructure funds with £1 billion for greener public buildings and £3 billion for insulation and energy efficiency.
The Chancellor’s 8 July announcement of funding is the second phase of the government's three-phase plan to jumpstart the UK economy amid the covid-19-linked downturn.
The news comes following the implementation of a £160 billion support package that included funding for the NHS as well as loan guarantees and tax cuts for businesses.
Energy efficiency
The government has earmarked about £3 billion for green building upgrades in the latest budget.
As part of this package, homeowners and landlords in England will be able to apply for a £2 billion Green Homes Grant scheme from September.
The funds can be used towards home improvements such as loft, wall and floor insulation.
The grants are billed as “creating thousands of jobs for tradespeople” while saving on energy bills.
In addition, a £1 billion programme will provide funding for greening public buildings, including schools and hospitals, helping the country meet its 2050 net-zero target.
Net-zero plans, electric vehicles and heat networks
The Treasury also plans to give £10 million in 2020-21 to support the design and delivery of net zero policies and programmes.
It confirmed the extension of the plug-in electric vehicle grant until 2023, and added £96 million for the final year of the Heat Networks Investment Project, which ends in March 2022.
After this, the government will invest a further £270 million in a new Green Heat Networks Scheme, enabling new and existing heat networks to decarbonise and “connect to waste heat.”
The budget also will fund the continued running of the Domestic Renewable Heat Incentive (RHI) in Great Britain, which funds boiler and energy efficiency upgrades for homes, until its replacement is announced in Spring of 2022. For businesses, the treasury additionally plans to introduce a new allocation of flexible tariff guarantees to the Non-Domestic RHI in Great Britain in March 2021.
Greenpeace critique
Head of politics at Greenpeace Rebecca Newsom told US news broadcaster CNBC that the Chancellor is only "making the right noises” on a green recovery.
“But instead of digging deeper to deliver on this promise, he seems to have downed spades with the job only part done,” she said.
“The £3 billion announcement on energy efficiency is an important start but it can only be a beginning and is dwarfed by green recovery commitments in Germany and France.
“We need more and sustained investment in energy efficiency, transport and nature than we got today.”
