Chancellor John Healey used the Budget to pivot UK energy policy from clean power targets to household cost reduction, marking what allies call the biggest shift in two decades. The move deprioritises Ed Miliband’s 2030 clean power mission, with Prime Minister Andy Burnham focusing on easing living costs. Healey pledged “a new course on energy” to drive down bills, acknowledging a trade-off between rapid decarbonisation and affordability.
The government approved North Sea gas production at Jackdaw and hinted at support for Rosebank, while cutting £1bn from the Warm Homes Plan and reducing funding for heat pumps, hydrogen, and carbon capture. Climate experts warn these cuts may breach legally binding carbon budgets. The Treasury will now tie renewables subsidies to bill-lowering criteria, signalling a pragmatic, cost-first approach over Miliband’s climate-focused legacy.
Source: Financial Times Companies · Summarized by HeadlinesBriefing