Road Ahead: what to expect for the Green Economy in Reeves' Budget announcement 

In the wake of a UK Investment Summit which began rather anxiously but ended on a more positive note for the government, next week Chancellor Rachel Reeves will deliver her first Budget. But what can we expect her to announce for the green economy?

Much speculated on reforms to the government’s fiscal rules could play an important role in freeing up investment towards long overdue grid upgrades to enable record levels of new green energy generation to connect.

Further steps to bolster the green economy are likely to include a higher windfall tax on oil and gas companies' profits. From November, the Energy Profits Levy is expected to increase from 35% to 38%, with the tax remaining in place until 2030. The increase is intended to redirect some of the substantial profits of fossil fuel companies towards the transition to renewable energy.

To accelerate this transition, funding allocations for the National Wealth Fund and the publicly owned GB Energy are likely to be confirmed, delivering an injection of £14 billion into the green economy. The government’s hope is that this investment will serve as a catalyst for further funding from private sector investors.

Together, these policy measures would represent a significant shift towards energy security, sustainable growth, and reduced emissions – though questions still remain over whether the government will be able to meet its ambitious target of net zero electricity by 2030.