On 30 October, Chancellor of the Exchequer Rachel Reeves delivered her first Budget in Parliament.

The general consensus from the electrical sector is that although the Budget contains positive moves, such as encouraging house building and taking up low carbon technologies, a more specific roadmap with practical details needs to be forthcoming for it to ensure meaningful change.

Here, we have assembled some of the responses from key industry stakeholders and voices.

 

ECA Chief Operating Officer Andrew Eldred:

“ECA welcomes the Chancellor’s commitment to invest in industry, housing and electric transport. And her commitment to refocus levy funding away from Masters’ degrees towards trade apprenticeships, as announced earlier this year. These steps align with our call for a skills system that delivers on the practical needs of integrating green technologies for net-zero.

“However, this budget lacks crucial detail on how it will support skills access for smaller firms, which make up 99% of the electrical contracting sector. These businesses will now also carry the higher burden of Employer National Insurance and higher apprentice costs.

“As outlined in our Charter to Recharge Electrical Skills, a system responsive to local and future demand is essential, as is industry’s role in shaping pathways and qualifications that lead directly to employability. Robust support for green skills is critical to preparing a workforce that can meet the demands of the net-zero transition, and we urge government collaboration with industry to close regional gaps and build a strong, skilled talent pipeline.”

 

NAPIT managing director Frank Bertie:

“Any moves to encourage house building and the take up of low carbon technologies is good for our members, offers economic benefits and will help with the transition to net zero. We are also pleased to see the government’s commitment to improving building safety and accelerating the remediation of unsafe housing in response to the Grenfell Tower fire.

“The Warm Homes Plan will transform homes across the country making them cleaner and cheaper to run, from installing new insulation to rolling out solar and heat pumps. These are important first steps which will hopefully create opportunities for our skilled members.

“However, more clarity is needed around some of the initiatives, particularly on if and when the Government will introduce the Future Homes Standards which will mandate what low carbon technologies are installed in those new homes.

“If the Government is serious about meeting its target to build 1.5 million new homes this Parliament it seems to make total sense to install solar panels, heat pumps and EV chargers when they are built instead of retrofitting them at a later date adding additional costs and inconvenience to householders.”

 

Yselkla Farmer, CEO of BEAMA:

“The Chancellor’s budget has stepped up urgently needed investment tackling the UK’s key decarbonisation heating and transport challenges. Reaffirming the £3.4bn Warm Homes Plan investment is positive but it is essential the Government fleshes out the practical details of its approach with cost-effective, impactful measures such as on heating controls and improving indoor air quality to protect health.

“Incentivising EV uptake for company cars through tax relief is positive for decarbonising transport and alongside the £2bn for UK EV manufacturing will boost this vital sector. However, the freezing of fuel duty continues to send mixed messages to motorists.
“Making big investment pledges sends a valuable political signal but the Government urgently needs to grasp the nettle on trickier details that will drive decarbonisation in people’s lives and bring long term financial and quality of life benefits. The UK’s £14bn turnover Net Zero supply chain is ready to support this but needs a more ambitious policy and regulatory framework to match these financial signals.
“The commitment to 1.5 million new homes is encouraging, but immediate clarity is needed on the Future Homes Standards is crucial so that developers and housebuilders, especially SME housebuilders, can cost and plan accordingly for future much needed housing developments.”
Kelly Becker, president, Schneider Electric UK and Ireland, Belgium and Netherlands:

“The Government has made good progress to support UK business and manufacturing. Schneider Electric welcomes the commitments to deliver an Industrial Strategy and the Budget’s commitments to maintaining funding for the Industrial Energy Transformation Fund, the Public Sector Decarbonisation Scheme, and Made Smarter. We also welcome clarity on the future tax landscape, including a cap on Corporation Tax at 25% for this Parliament and retention of full expensing as well as a commitment to explore extending it to leased assets when fiscal conditions allow. These measures will support manufacturers and wider business to continue to invest in the UK.”

“However, we would have liked to see commitments to supporting the manufacturing supply chain that will play a key role in delivering the industrial and green growth ambitions set by the Government. Whilst we welcome the support for residential and public sector building decarbonisation, the UK also needs a clear roadmap for decarbonising the commercial and industrial sectors.”

Chris Claydon, Chief Executive of JTL:

“JTL welcomes much of what has been announced , including support for skills challenges in key sectors which the Government acknowledges is holding back growth across the country. It is imperative that Independent Training Providers can also access the funding pledged to work towards a more level playing field.

“Apprenticeships in the electrical and plumbing trades directly support the growth the Chancellor has pointed to today, such as infrastructure development and delivering new homes. The skills pipeline created by apprenticeships is a lifeline to industry and training providers are straining to meet demand. While there is no doubt the sector will rise to the challenge of future demands, we need a systems-thinking approach from the heart of government to get there.”