Womble Bond Dickinson' responds to the Autumn Statement

 Commenting on the Chancellor’s Autumn Statement, Fiona O’Kane, Partner and head of law firm Womble Bond Dickinson’s Bristol office, said: “Whilst the Chancellor’s announcement and associated measures will be perceived by many as painful, the tough decisions made leading up to today’s announcement certainly seem to have long-term financial stability for the UK economy at the heart. Right now, stability is what the region’s business community needs most as we all prepare for the challenges that come with a period of recession and economic strain.

“With detail around some key announcements yet to be made available, there was no silver bullet announced for businesses or individuals in relation to rising costs. The focus on energy efficiency, education and the NHS were rays of light, but confirmation that the planned investment zones will be pulled may come as a blow for the levelling up agenda, although we wait with anticipation to learn what the government now considers to be the country's knowledge-intensive clusters with the highest potential for growth and where the corresponding local research strengths sit.

“Whilst the Chancellor made no direct reference to freeports, investment in infrastructure forms one of three pillars, alongside energy security and investment in technology.”

Chris Towner, partner in the Energy team at Womble Bond Dickinson, commented: "The references to supporting new wind and solar developments, along with the infrastructure that will be required to support those developments in an area such as the South West is positive for the developers of new electricity generation projects. The promise of changes to the National Policy Statements that influence the planning regime for new, innovative projects, such as the proposed floating offshore windfarms in the Celtic Sea will also give confidence to potential investors in those projects.  On the other hand, the 45% Electricity Generators Levy that will fall on the owners of some existing wind and solar projects is likely to be less welcome and will create concern among investors over the stability of the regulatory regime for UK energy projects.

Similarly, the announcement of £6bn of public funding for energy efficiency projects will be very helpful and is much needed across many parts of the South West, but that funding is only due to start in 2025.  You could wonder whether a publicity campaign to encourage consumers to use less energy this Winter, or advising them on how to do so, could achieve similar goals in a shorter period of time and at a lower cost. 

Fiona O'Kane added: “Throughout 2022, businesses have seen an unprecedented frequency and unpredictability of political upheaval and announcements. This has undoubtedly added to the stresses and strains for businesses cross-sector. Restoring growth and stability appear to be  at the heart of this government's policy, so let’s hope at the very least it will fuel further conversation and engagement around wider support for both the region and wider UK businesses in the weeks and months ahead.”