Rachel Reeves did not deliver a climate focused budget on November 26 2025. The Chancellor’s statement was framed around growth, productivity and the cost of living. Climate change and net zero were not primary headings. The word “climate” barely featured in her speech.
Yet dig into the budget document and climate was everywhere. The government announced the end of the energy company obligation (ECO), a long-standing scheme funding energy efficiency and low-carbon home upgrades.
The budget also introduced a new per-mile levy on electric vehicles from 2028. It extended the 5p fuel duty cut, kept the windfall tax on North Sea oil and gas at 78% until 2030, created new permissions for drilling near existing oil fields, committed billions to nuclear power, extended the UK emissions trading scheme to maritime routes, and introduced a carbon border adjustment mechanism from 2027.
