Following the Emergency Budget presented by the Chancellor of the Exchequer George Osborne today, the Aldersgate Group stated that the continued growth of the low carbon economy was vital to the UK’s long-term economic prospects and that the government should do more to back it.
Today’s Emergency Budget, which contained very few proposals to support the growth of the UK’s low carbon sector, came a day after the Aldersgate Group published its latest report A Brighter, More Secure Future. In this report, businesses from a wide range of economic sectors called on the government to provide enough policy clarity to support continued investment in the UK’s low carbon infrastructure and help investors to continue cutting the cost of new technologies.
Nick Molho, Executive Director of the Aldersgate Group said: “The government’s understandable focus on tackling the annual budget deficit and the national debt shouldn’t come at the expense of failing to support those sectors of the economy that are key to the UK’s long-term growth and competitiveness prospects. With the global low carbon goods and services sector already worth US$5.5 trillion and international momentum building to accelerate cuts in carbon emissions, the UK economy can’t afford to drop out of the low carbon race."
With the UK’s low carbon economy already reaching a turnover of £122bn in 2013, the Aldersgate Group added that rapidly providing sufficient funding under the levy control framework to invest in low carbon infrastructure after 2020 and extending energy efficiency policies would help accelerate the cost reductions of new technologies such as renewables and continue the low carbon sector’s positive contribution to the UK economy.
Nick Molho added: “Yesterday, business leaders from all across the economy showed that they were willing to make significant investments in the UK’s efficiency and low carbon infrastructure, reduce the cost of new technologies and deliver economic growth. If it wants to unlock this much needed investment, the government must use the upcoming spending review to show its commitment to rapidly growing the UK’s energy efficiency and low carbon infrastructure.”