» Back to listing The Chancellor's 2011 Autumn Statement

George Osborne delivered his 2011 Autumn Statement this week. In his statement he explained what action the Government will take to safeguard the UK from global instability and the euro area crisis and build a stronger, more balanced economy for the future. 

From an Environmental perspective the following were of importance:

• Heavy industries are to get £250m assistance in the form of relief from carbon-related taxes, measures to reduce the impact on them of the electricity market reforms, and easing of the carbon price floor.  Osborne: "I am worried about the combined impact of the green policies adopted not just in Britain, but also by the European Union, on some of our heavy, energy-intensive industries. We are not going to save the planet by shutting down our steel mills, aluminium smelters and paper manufacturers. All we will be doing is exporting valuable jobs out of Britain
• The climate change levy discount on electricity for climate change agreement participants available from 1 April 2013 will be increased to 90%
• up to £100 million over the Spending Review period will be made available to them to mitigate the impacts of the carbon price floor on electricity costs, from April 2013 (subject to state aid approval)
• up to £110 million over the Spending Review period, will also be made available, from existing departmental budgets, to provide compensation to them for the indirect impacts of the EU Emissions Trading System (EU-ETS) on electricity costs from January 2013, and
• the government will also look into ways of reducing the impact of electricity costs arising as a result of Electricity Market Reform policies, including the Feed-in Tariffs, on these high energy users
• The planned 3.02p per litre fuel duty increase that was due to take effect on 1 January 2012 will be deferred to 1 August 2012, and the inflation increase that was planned for 1 August 2012 (expected to be 1.92p per litre) will be cancelled.
• A threat to water down some of the regulations on protected habitats for wildlife and plants, by reviewing the implementation of the EU habitat and wild birds directive between now and next March. Osborne: "We will make sure that gold-plating of EU rules on things like habitats aren't placing ridiculous costs on British businesses."
• The waste, and in particular energy-from-waste, industry received support from the Chancellor too, both generally in terms of a commitment to "continue efforts to free up the planning process to speed delivery" and specifically by recognising the importance of new waste treatment facilities and the role they can play in stimulating green growth.