The REA is pleased to share our response to the 2025 Autumn Budget. Members can read the full response below.

The REA proposed a number of key asks across renewables and clean technologies. We believe our proposals will not only help decarbonise the economy but also enhance energy security and lower costs for consumers.

We grouped specific recommendations across four decarbonisation pillars — Power and Flexibility, Transport, Heating and Cooling, and Circular Bioresources. Within each pillar, we highlighted five actions that the Government could take to support each of these areas, thereby contributing to the full decarbonisation of the economy.

On Power and Flexibility, we highlight the need for a clear Contracts for Difference allocation timetable, with a dedicated budget, aligned with the Government’s 2030 Clean Power Mission. Alongside this consideration should be given as to how existing generation projects coming to the end of their Renewable Obligation contracts can be helped to repower. In addition, there are calls to finalise long-running workstreams on bioenergy carbon capture and storage.

In Transport, our proposals focus on reducing VAT for public EV charging, creating funds to electrify fleet depots, and improving public charge point maintenance. We also recommend ramping up Renewable Transport Fuel Obligation targets and creating incentives for the use of renewable liquid fuels through the introduction of duty differences.

For Heating and Cooling, we propose expanding the Boiler Upgrade Scheme, with options for low-interest loans to pay for the remainder of the work and be repaid through a salary sacrifice scheme. Looking towards the commercial and industrial sector, we highlight the need for a Fuel Switching Tariff and Heat CfD, and we call for confirmation of future incentives for biomethane production and geothermal developments.

Concerning Circular Bioresources, we call for further progress towards a circular economy. This includes funding to ensure the Simpler Recycling food and garden waste collections are high performing, through centralised public campaigns. As well as highlighting the need to properly resource both the Environment Agency and DEFRA for the delivery of critical waste management programmes. Finally, we call for exemptions for certified compostable plastic packaging from the Plastic Packaging Tax.

Members can login to view the REA’s full Autumn Budget Submission.

Password Protected Content