Mini Budget - PwC comments on energy measures

Elisabeth Hunt, Energy & Infrastructure Deals Tax Lead at PwC UK, said: 

“Today’s fiscal event has unveiled an extensive package of tax cuts with a view to enhancing the overall attractiveness of the UK’s fiscal regime and boosting growth in productivity. Many of these tax measures, combined with the various energy relief measures previously announced, will be welcome news to businesses across the UK. However, funding for these measures will require a substantial increase in government borrowing, so it will be important to deliver on the intended future growth ambitions.

“It was encouraging to see a number of measures intended to support investment in infrastructure and energy efficiency, including confirmation that the annual investment allowance for capital expenditure would be maintained at £1m per year and not reduced to £200k, as had previously been planned. This, combined with the creation of investment zones (many of which are focussed around ports, airports and other transport hubs) which will benefit from a number of tax incentives, the proposed shake-up of the planning laws to stimulate infrastructure building and an acceleration of a number of pending infrastructure projects should further support much needed and continued investment in the sector."

Vicky Parker, Head of Power and Utilities at PwC UK, adds:

“The Chancellor has announced today that the cost of the combined energy schemes, the Energy Price Guarantee for households and the Energy Bill Relief Scheme for businesses will total £60bn over the next six months; split near-equally between the two schemes. No estimate has been provided for the total cost of the EPG over the full two years which will fluctuate as wholesale gas and electricity prices change."

View our full fiscal event reactions