Financial services firm Hargreaves Lansdown (HL) has called on Chancellor Jeremy Hunt to prioritise the green economy and net zero in next week’s spring budget.
The Bristol-based company said the UK was “lagging” behind other countries when it comes to investment in green technology, adding “more needs to be done” to incentivise the transition to cleaner energy.
The FTSE 100 firm warned the government if the areas were not made “key budget priorities” it could lead to “yet another missed opportunity” for job creation and economic growth.
HL called for a revamp of the Electricity Generator Levy (EGL), a windfall tax on the renewable energy sector, to allow an investment allowance for clean energy technology.
The company argued that oil and gas producers had been given the opportunity to offset their windfall tax through investment in new projects, a move the company described as “short-sighted”. It added that it made “little sense” not to extend this to those working to reduce the UK carbon’s footprint.
HL also said the Budget on March 15 provided an opportunity for “renewed commitment” to the much-delayed HS2 high speed rail network.
The firm called for “a clear and transparent” disclosure of government plans, particularly around procurement, which it said would allow British businesses the opportunity to position themselves to win contracts.
The company said “no amount of money” would make a difference in achieving net zero unless what it described as energy efficiency “shortcomings” were addressed.
HL said uptake on existing efficiency upgrade schemes had been “poor”, adding a more accessible programme that focused on improving insulation across the board was “essential”.
Laura Hoy, ESG analyst at Hargreaves Lansdown, said only a third of the £6bn pledged by the government for energy efficiency improvements through 2025 has been spent.
Ms Hoy said providing a further £6bn would be “meaningless if no one claims it and it’s rolled back into treasury funds.”
She added: “There is no greater opportunity to position the UK economy for success in the future than the push toward net zero. The UK is lagging its peers when it comes to committing to growing green technology, and that will leave us on the back foot when these technologies are scaled up in the coming years. Now’s the time to play catch up or risk being left behind in yet another key trend that would open the door to economic growth.
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