The Budget 2016 in brief; Content Coms lays out the key points
George’s Osborne’s 2016 Budget reforms carbon taxes and sets out cash for renewables, but doesn’t yet define the precise new taxation system on carbon and energy.
During his speech to Parliament, George Osborne failed to specifically mention the importance of either the environment or climate mitigation.
The Chancellor’s key moves
Carbon Reduction Commitment abolished
“Many retailers have complained bitterly to me about the complexity of the Carbon Reduction Commitment (CRC),” said Osborne. “To make good the lost revenue CCL will rise from 2019, but steel remains protected and I am extending climate change agreements that help many others.”
Support for renewable electricity
The government will auction up to £730 million of support for offshore wind and other less established renewable technologies this parliament for projects generating electricity in 2021 to 2026. The ﬁrst auction will offer £290 million of support.
On energy and demand side response
Following the National Infrastructure Commission’s report Smart Power, the government will allocate at least £50 million for innovation in energy storage, demand side response and other smart technologies over the next 5 years.
Petroleum revenue tax
“I am effectively abolishing petroleum revenue tax,” said Osborne.
EDIE writes the Government will launch the first stage of a competition to identify a small modular nuclear reactor (SMR) to be built in the UK, and will publish an SMR delivery roadmap later this year. It will also allocate at least £30m of funding for R&D in advanced nuclear manufacturing.
More change to come
The Budget document says the Government; ‘Will significantly streamline the business energy tax landscape by moving to a system where businesses are only charged one energy tax administered by suppliers, rather than CRC participants being required to forecast energy use, buy and surrender allowances.’
Crucially, Osborne will consult later in 2016 on a simplified energy and carbon reporting framework for introduction by April 2019.