Latest news with #SpendingReview2025
Scotsman
30-06-2025
- Business
- Scotsman
Welcome certainty for important CCUS sector
Increased funding for carbon capture and storage projects in the UK announced in the annual Spending Review 2025 provides much-needed certainty for the market. Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Increased funding for carbon capture and storage projects in the UK announced in the a The UK Government has said it will provide funding for the Acorn project in Scotland, the Viking project in Humberside and the expansion of two previously funded Carbon Capture, Usage and Storage (CCUS) clusters across the UK. Advertisement Hide Ad Advertisement Hide Ad The £9.4 billion of funding follows a previous commitment to invest up to £21.7bn over 25 years to support the implementation of the two 'track 1' CCUS clusters in the UK. This first tranche of funding was allocated between HyNet in North West England and the East Coast Cluster in Teesside. The government must seize the chance to help create a Europe-wide carbon dioxide storage market, says Stacey Collins The government designated the Acorn and Viking projects as 'track 2' CCUS clusters, but further funding was required to enable these projects to go forward and be deployed in line with the UK's target to reduce its greenhouse gas emissions to net zero by 2050. The Acorn project – a joint venture being developed by Storegga, Shell UK, Harbour Energy and North Sea Midstream Partners – is expected to store at least 5 million tonnes of carbon dioxide per year by 2030 and create more than 10,800 direct and indirect jobs as construction activity takes place. A further 4,700 long-term jobs will be required to maintain the project's operations. In March, business leaders and organisations including the Confederation of British Industry and the Scottish Chambers of Commerce signed a letter urging Chancellor Rachel Reeves to back the Acorn project, arguing it was a vital opportunity for Scottish industry to decarbonise. Advertisement Hide Ad Advertisement Hide Ad The CCUS sector went into the spending review with a degree of nervousness and despite the strong progress that has been made in recent months, there were concerns about whether the Labour government would stand by the prior government's commitment to develop at least four CCUS clusters. In that context, it is great news to see £9.4bn in capital budgets committed to support the expansion of the two track 1 clusters. However, the announcement spelled mixed news for the track 2 clusters as there's limited detail on what the development funding will look like, and the future of track 2 will be decided at a later date. In some respects, it's an unconvincing message to the potential track 2 projects, although it sounds a bit like the government is challenging track 2 to make its case in the coming months. The focus on CCUS impact in terms of jobs, energy security and clean power in the Spending Review shows how it fits well with the government's wider priorities, and CCUS remains a sector where the UK can still be a leader and reap the benefits accordingly. Those would not just be in terms of the direct advantages which would arise from a domestic CCUS sector – significant though those are – but also in terms of the UK's ability to export skills and technology, and to import carbon dioxide for storage. Following the Spending Review, the government must not miss the opportunity to forge ahead with its commitment to helping create a Europe-wide carbon dioxide storage market. As well as clarity on what the announcement means for progress on UK projects, we also need to see continued progress on linking the UK and EU emission trading schemes and removing regulatory barriers which will allow a European storage market to come forward. nnual Spending Review 2025 provides much-needed certainty for the market.
Yahoo
12-06-2025
- Business
- Yahoo
UK Spending Review 2025 delivers 'mixed bag'
Owen Mapley, CEO of the Chartered Institute of Public Finance and Accountancy (CIPFA), has called the Spending Review 2025 a 'mixed bag'. 'Much to welcome, but long-term sustainability remains unresolved for many public services,' Mapley said in response to the UK government's Spending Review announced on 11 June 2025. Mapley noted that while additional funding for the NHS and defence was confirmed, many unprotected areas received little relief. 'For frontline services, significant pressures and concerns around long-term stability are likely to endure,' he said. Local government was highlighted as a sector set to benefit from a longer-term funding settlement. However, Mapley expressed reservations, stating: 'Serious concerns remain about the sector's overall sustainability.' He said that key challenges including funding gap for social care remain unaddressed. On the NHS, Mapley acknowledged the positive impact of increased investment but cautioned that 'the demands on these resources will be immense.' He emphasised that delivering transformation through technology and modernisation would be crucial for the NHS to achieve sustainability and support the forthcoming ten-year health plan. Mapley concluded by noting the complexity of the review, saying, 'Crunching the Spending Review numbers, and considering the multiple documents released alongside the review, may reveal a clearer picture. CIPFA looks forward to considering the details over the coming days and weeks.' Chancellor Rachel Reeves announced an additional £29bn per year for the NHS in England, alongside increased funding for defence and housing, as part of the government's spending plans extending to the end of the decade. Reeves also pledged further investment in artificial intelligence and transport projects. However, the review brought tighter budgets for some departments, with the Foreign Office and environment department facing constraints on day-to-day spending. "UK Spending Review 2025 delivers 'mixed bag'" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
