The UK is considering cuts to its flagship Warm Homes Plan to fund higher defense spending, seeking over £2 billion in savings from the Department for Energy Security and Net Zero. The £15 billion program, launched in January under Ed Miliband, aims to upgrade up to 5 million homes by 2030 with insulation, solar panels, batteries, and heat pumps. Carbon capture and storage and hydrogen spending are also under scrutiny.
No final decisions have been made ahead of the Oct. 28 budget. Officials may delay rather than cancel projects due to long-term spending plans. New Energy Secretary Miatta Fahnbulleh faces a dilemma trimming a policy central to her priority of cutting household bills.
The plan was recently tied to Labour’s devolution agenda, with promises to transfer spending to local governments. Desnz recorded a £29 million underspend last year due to hydrogen program delays. The government is redirecting climate funds toward domestic priorities, including using overseas climate aid to cap bus fares in England.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing