The UK Chancellor of the Exchequer’s Spring Budget 2025 was a chance to offer clarity and progress on key economic and social issues, particularly as the Labour Government had campaigned on bold promises to invest in green energy and tackle climate change.
However, despite previous rhetoric of change, Chancellor Reeves’ budget made no mention of renewable energy or climate action, leaving many wondering whether Labour’s green ambitions have been quietly sidelined.
Compounding the misery of homes in fuel poverty
For BHESCo, one of the most pressing concerns arising from the budget is the issue of fuel poverty. The Government has announced a £4.8 billion cut to benefits at a time when energy prices are rising sharply.
Community energy groups, such as BHESCo, have assisted thousands of people in the past year who are already unable to afford their bills.
Since Labour came to power in July 2024, energy prices have increased by nearly 10% and are set to rise by another 6% on 1st April 2025. The decision to cut benefits could push even more households into financial distress.
This stark reality is even more disappointing given Labour’s election promise to cut household energy bills by £300 per year. Not only has that commitment not materialised, but rising energy costs and welfare cuts will likely worsen the crisis for millions. The budget was silent on these pressing issues, leaving the public with uncertainty and no clear support plan.
Lots of money for the military
The Government reaffirmed its commitment to increasing military spending to 2.5% of GDP, positioning the UK as a ‘Defence Industrial Superpower.’ While national security is important, Labour originally campaigned on making the UK a ‘Clean Industrial Superpower.’
Yet, there was no mention of investments to achieve this vision. The contrast between the two priorities raises concerns that the Government’s focus has shifted away from green industrial development.
"Impatient for change"
Chancellor Rachel Reeves acknowledged that “the British people are impatient for change after 14 years of Tory rule”, and she’s right, we are impatient or change.
We want a change from extortionate energy prices and planet polluting fossil fuels.
However, the lack of progress on the Local Power Plan and the Warm Homes Plan is frustrating for those who expected immediate action on climate change and renewable energy.
In the Autumn Budget, Reeves had committed £100 billion to GB Energy over five years, but there remains a glaring absence of detail. Who will be able to access these funds? How much will be available for local energy initiatives? What is the process and timeline for distribution? The silence on these fundamental questions suggests that Labour’s energy strategy is still undefined.
Culture wars
Moreover, the budget completely ignored the ongoing debate around the UK’s net zero commitments.
Recently, Leader of the Opposition Kemi Badenoch has cast doubt on the feasibility of the UK’s Net Zero targets, prompting fears of a new ‘culture war’ over the country’s decarbonisation strategy.
There was an opportunity in the Spring Statement for Labour to reaffirm its commitment to climate action and provide concrete plans to transition towards renewable energy. Instead, the words ‘climate change’ and ‘renewable energy’ were not mentioned once.
Living in uncertain times
While Reeves pointed out that “the global economy has become more uncertain,” the Government failed to acknowledge the long-term economic uncertainty that is inevitable if we do not take inaction on climate change. A failure to invest in sustainable energy solutions now will lead to even greater uncertainty in the future, both environmentally and economically.
The omission of climate policies from the Spring Statement 2025 raises serious questions about Labour’s commitment to its own manifesto pledges. With energy costs rising, net zero goals under scrutiny, and no clear roadmap for renewable energy investment, the Government’s silence is not just disappointing—it is alarming.
The UK cannot afford to delay action any longer. If Labour truly intends to lead the country toward a greener future, it must start by putting climate action at the heart of its economic strategy, rather than allowing it to fade into the background.
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