Institute responds to 2025 UK Budget

Commenting on the Chancellor’s Budget today, Bob Ward, Policy and Communications Director at the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science, said:

“The Chancellor is right to remove the costs of the Renewables Obligation Certificate, which supports the earliest generations of clean power, from current electricity bills. These are legacy costs associated with the establishment of renewable energy and at present are covered by a relatively regressive form of revenue-raising through electricity bills, which constitute a higher proportion of household expenditure by poor consumers.

“While it is right that drivers of electric vehicles contribute to the maintenance costs of roads, it is unfortunate that new charges were announced today alongside a further freeze in fuel duty, the next signal from which is to slow down the switch away from petrol and diesel vehicles.”