So Chancellor Reeves has played her hand and yesterday’s Spending Review sets out mainly long term growth goals and budgets.
Here’s a summary of what’s been set out…
Major clean‑energy investment
- Sizewell C: Chancellor confirmed £14.2 billion for the Sizewell C nuclear plant, part of a broader £19 billion nuclear package including £2.5 billion each for Rolls‑Royce small modular reactors (SMRs) and a fusion prototype
- Great British Energy pivots to nuclear: The £2.5 billion SMR funding comes from GB Energy’s clean‑energy budget, signalling a shift from geothermal and solar toward large‑scale nuclear
Energy efficiency and home insulation maintained
- Warm homes scheme: The £13.2 billion programme to insulate homes, subsidise solar panels and cut energy bills survives Treasury pressure – reaffirming net‑zero and bill‑cutting commitments .
Energy support for industry conspicuously absent
- Despite pressure, the review did not include new measures to tackle high industrial energy costs.
- Business groups pointed to missing detail on how the industrial strategy will help energy‑intensive sectors beyond existing schemes
Net Zero narrative confirmed
- Reeves framed the energy measures as cornerstone of national security and industrial renewal, ending “decades of delay” in clean‑energy investment .
- Net‑zero pledges remain intact, with nuclear and insulation investments central to the broader ambition to reduce household energy bills by 2030.
So is it positive or negative? Here’s a selection of reactions…
Energy UK
Dhara Vyas CEO commented: “The significant investment in nuclear through support for Sizewell C, the Small Modular Reactor (SMR) programme and research in fusion will bolster our energy independence and help power our economy, businesses and homes over the coming decades as well as creating jobs, growth and opportunities throughout the UK.
“The funding for the Acorn and Viking carbon capture projects means we can reap the rewards from taking the lead in this developing technology which will also play a crucial role in supporting the transition of our industries to clean energy – while GB Energy has the potential to support further exciting innovation in communities across the country.”
“It’s also very important that millions of customers will see a direct benefit from today’s announcements.”
RenewableUK
Executive Director of Policy Ana Musat said:“The Chancellor’s announcement that the Inverness and Cromarty Firth Green Freeport has been fully approved by the UK and Scottish Governments, with a focus on offshore wind, sends a clear signal that the energy transition is offering new opportunities for workers in parts of the country who have transferable skills from other areas within the energy sector.
“This is further demonstrated by her confirmation that the North East Scotland Investment Zone will be based in Aberdeenshire, focussing on floating wind and green hydrogen.
“The Government should also confirm that it will not pursue zonal pricing as part of its Review of Electricity Market Arrangements.”
Heat Pump Association
Chief Executive, Charlotte Lee, supported the plan: “Confirmation of the full £13.2 billion of funding for the Warm Homes Plan, to invest in schemes to support the rollout of heat pumps alongside other measures, is great news for the industry.
“Coupled with last week’s announcement on the Future Homes Standard which will see low carbon heating become standard in new builds, the recent announcements on long term funding and policy direction are encouraging for the heat pump sector.’
ADE
Caroline Bragg, Chief Executive at ADE, stated: “This funding is a tectonic shift, proof the UK is betting big on clean energy. Now we must ensure every pound we invest goes towards slashing bills.
“The Warm Homes Plan must harness waste heat from factories to warm communities through heat networks and the National Wealth Fund must prioritise projects that cut energy costs for industry.”
Carbon Capture and Storage Association
Olivia Powis, CEO, said: “The CCSA welcomes this statement of support for CCUS with allocation of funding for the build out of HyNet and the East Coast Cluster and development funding to progress the Acorn Project and Viking CCS.
“CCUS is critical to decarbonising our industrial heartlands, supporting clean power and enabling low-carbon hydrogen. It also plays a key role in protecting and creating thousands of high-quality jobs across the country in critical industries like cement, chemicals and refining, and the power system — all of which are essential for meeting the Government’s commitments on new infrastructure and housebuilding. ”
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