Pippa Heylings

As we head into winter with bills rising again in January, households and businesses across the country are worried. This Budget needed to match the scale of the energy and climate challenges, but we as Liberal Democrats are concerned that it does not. While the standing charge removal and the proposed energy bill cost control framework are welcome, struggling households cannot wait until the next spending review in 2027 for policy costs to be taken off bills—one of the quickest ways to reduce bills while supporting electrification. The Government could have introduced the Liberal Democrat essential energy guarantee to protect basic household energy needs. If we are truly to break free from the volatile fossil fuel prices driven by despots and Trump’s stupid wars, we must accelerate renewables, grid connections and electrification. That is why I am disturbed by the seeming inconsistencies in the approach taken in the Budget. First, the Treasury says that it is setting an entirely new path on energy, while Ministers tell us that their clean energy ambitions remain unchanged. With the allocation round 8 auction budget due within weeks, Ministers must urgently clarify what that means for investment certainty in floating offshore wind and port regeneration, which is critical for supply costs and supply chains. Secondly, cheaper energy does not automatically lead to electrification on its own. As winter approaches, why is the Treasury cutting the flagship warm homes plan—the surest way to electrify heating in our homes and reduce wasted wind energy? The Budget slashes £1 billion of capital funding from the programme and reintroduces VAT on clean technologies from 2027, effectively creating a solar panel and heat pump tax. I ask the Minister to confirm or deny reports that a further £1.5 billion could be removed from the warm homes plan’s financial transactions funding. That is the very zero-interest loan schemes that have just been launched and lauded. With 90% of domestic bill increases since 2020 linked to wholesale gas price spikes, despite and contrary to all the protestations from the Conservatives and Reform, the answer is clear: a national electrification strategy, making it easier, not harder, for households to move away from fossil fuels. This Budget should have advanced that mission; instead, it risks setting Britain back.