Policy update from CE National – June 16 2023
Energy Profits Levy to remain in place until March 2028
Last Friday (9 June), HM Treasury announced that the Energy Profits Levy will remain in place until March 2028. Put in place to tax extraordinary profits made by industry following record high prices of oil and gas driven by Russia’s invasion of Ukraine, the Energy Profits Levy has raised around £2.8bn to date and is expected to raise almost £26bn by March 2028 – helping to fund the measures to assist with the cost of living, such as the Energy Price Guarantee. As part of the announcement, the Government also announced that it would introduce a new Energy Security Investment Mechanism to protect domestic energy supply and help safeguard some tens of thousands of jobs reliant on the sector. Based on the independent Office for Budget Responsibility’s (OBR) forecast the Energy Security Investment Mechanism won’t be triggered until before the tax’s planned end date in March 2028.
Membership of the Energy Security and Net Zero Committee announced
On Monday (12 June), the membership of the new Energy Security and Net Zero Committee was announced. The Committee, which will be chaired by SNP MP Angus Brendan MacNeil, includes: Hilary Benn MP (Lab), Vicky Ford MP (Con), Barry Gardiner MP (Lab), Mark Garnier MP (Con), Sir Mark Hendrick MP (Lab), Mark Jenkinson MP (Con), Dr Dan Poulter MP (Con), Lloyd Russell-Moyle MP (Lab) and Alexander Stafford MP (Con).
Labour scales back plans to borrow £28bn a year to invest in green jobs and industry
Last Friday (9 June), the Shadow Chancellor Rachel Reeves delayed plans for a green prosperity fund to start in the first year of a Labour government, saying it would “ramp up” by the middle of a first Parliament. With the party leadership attempting to prove its fiscal credibility, Reeves pointed towards the poor economic backdrop and rising interest rates, while claiming that she could not have predicted the market crash caused by the former Prime Minister Liz Truss’ plan for unfunded borrowing cuts last autumn. Reeves once again reiterated that her priority was to stick Labour’s fiscal rule, that debt must be falling as a share of national income after five years.
Energy Security Secretary announces £4.3 million government funding for solar power development
As part of London Tech Week, on Tuesday (13 June) the Energy Security Secretary Grant Shapps announced the leading UK universities and technology companies that would receive a share of £4.3 million government funding to drive forward innovation in the solar power industry. The winning projects include Cambridge University, who will develop ultra-lightweight solar panels for the satellites that can function in the high-radiation conditions of space, and Queen Mary University in London, who are working on a wireless system to enable the solar power collected in space to be transferred to earth. Other institutions and companies receiving the funding include MicroLink Devices UK Ltd, the University of Bristol, Satellite Applications Catapult Ltd, Imperial College London and EDF Energy R&D UK Centre Ltd.
By-election dates announced for Boris Johnson and Nigel Adams’ constituencies after they quit as MPs
The by-elections for former Prime Minister Boris Johnson’s Uxbridge and South Ruislip seat and Nigel Adams’ Selby and Ainsty seat will be held on the 20th July.
Government vetoes project bank account proposal
The Government has blocked an attempt to amend the planned Procurement Bill to include mandatory project bank accounts for all jobs valued at over £2m.
Product Availability Statement
Statement from John Newcomb, CEO of the Builders Merchants Federation and Peter Caplehorn, CEO of the Construction Products Association, co-chairs of the Construction Leadership Council’s Product Availability working group. Product Availability Statement – Construction Leadership Council
Monthly construction output is estimated to have decreased 0.6% in volume terms in April 2023
Monthly construction output is estimated to have decreased 0.6% in volume terms in April 2023; this follows two months of consecutive growth. Monthly construction output is estimated to have decreased 0.6% in volume terms in April 2023 – Construction Leadership Council