Chancellor John Healey Cuts Energy Budget by £3bn

Chancellor John Healey announced more than £3bn in budget cuts to the energy department to provide funding for a defense investment plan. The reductions target several key green initiatives, including £741m from the boiler upgrade scheme, which provides subsidies for replacing gas boilers with electric heat pumps. Other affected programs include the warm homes plan, hydrogen schemes, and carbon capture technology.

Under the new funding model, the boiler upgrade scheme will only increase in line with inflation. Experts warn this shift makes it likely that Britain will miss its target of 250,000 annual heat pump installations by 2030. Furthermore, the government will now only approve future renewable projects that can demonstrate grid readiness and cost reductions.

Critics argue these measures dismantle the green agenda previously championed by former energy secretary Ed Miliband. However, government sources maintain that prioritizing affordability and cost-efficiency will ultimately benefit the transition to clean power.