A shorter version of this article first appeared o 20 December on the Sustainable Building web site.
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In Parliament, Barry Gardiner, a former special advisor on climate change to Labour leader, and now a shadow environment minister, Ed Miliband, asked “while the Chancellor was speaking, 30-year-high storm surges have been battering the coast of Britain. If he looks at the national infrastructure plan, he will find that the rate of coastal realignment is happening, in the view of the Energy and Climate Change Committee, at only one fifth of the pace necessary to avoid wholesale flooding that will cost billions of pounds to the economy. Will he look at that issue again, and at the funding for flood defences that this year has been reduced from £633 million to £527 million?, to be told by Mr Osborne: “I will certainly look at the report [he] mentions. …On the broader point, we are investing in flood defences. We have recently increased the investment going into flood defences, and that is all part of the long-term infrastructure plan that this country needs.
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A week before the Autumn
Statement, insulation company Rockwool issued an open letter
to Mr Cameron pressing him not to abandon the Energy Companies
Obligation (ECO) scheme that requires electricity suppliers to fund energy
efficiency makeovers for vulnerable households. This followed similar moves by
the UK Green Building Council and the Association for the
Conservation of Energy (ACE) who warned that up to 10,000 jobs could be at
risk if the ECO scheme is diluted.
The call coincided with the Office
for National Statistics's release of new figures showing cold weather
caused an estimated 31,000 additional deaths in England and Wales last year,
with people over 75 the most vulnerable. This presents a 29% increase on the
previous winter.
The updated Infrastructure UK plan, unveiled on 4
December, also detailed investment for energy, flood defence, waste, water,
transport, and communications infrastructure up to 2030 and beyond, the
Treasury proclaimed. The Chancellor conceded
next day in Parliament that the Office
for Budget Responsibility is “absolutely right today to draw attention to
the weakness of housing supply in this country.”
The Chancellor George Osborne told Parliament that “Britain’s economic plan is working, but
the job is not done. We need to secure the economy for the long term, and the
biggest risk to that comes from those who would abandon the plan.”
He added “There
were those who said it was a “fantasy” to believe that businesses could create
jobs more quickly than the public sector would have to lose them. What they
should have said was that it would be fantastic if it happened. So I have good
news for them. Businesses have already created three jobs for every one lost in
the public sector, and the OBR report today forecasts that this will continue,
with 3.1 million more jobs being created by businesses by 2019, which, in its
words, “more than offsets” the million or so reduction in the public sector
headcount.”
He told MPs
that the autumn statement was “fiscally neutral.” In a subsequent Parliamentary
answer on 17 December, junior Treasury minister Nicky Morgan revealed to Labour MP Paul Flynn that no
sustainability assessment of the Autumn Statement had been conducted.
Mr Osborne stressed that ministers “are going to be
spending more on capital as a proportion of national income on average over
this decade than over the whole period of the last Government,” adding “ We have to say that we are prepared
to push the boundaries of scientific endeavour, including in controversial
areas, because Britain has always been a pioneer.” Going green, he stressed,
does not have to cost the earth
He asserted that “some of the most
important infrastructure for British families is housing and we must confront
this simple truth: if we want more people to own a home, we have to build more
homes,” claiming “our hard-won planning reforms are delivering a 35% increase
in approvals for new homes, but we need to do more.”
To coincide
with Autumn Statement the Government announced £1 billion package of loans to unblock
large housing developments on sites mainly in Manchester and Leeds. He also announced
that Aldermore and Virgin, two challenger banks, were
expected to join the Help-to-Buy scheme this month.
Responding, shadow chancellor Ed Balls accused Mr Osborne
of “all boasts and
breathtaking complacency.” On energy bills,
he said “after the Government’s panicked and half-baked attempt to steal
Labour’s clothes, we know that they are not only not very good at shooting
badgers, but not very good at shooting other people’s foxes either.”
He begged the
question: Does he really think he can get away with tinkering at the edges,
moving green levies his own party introduced off the bills and on to the
taxpayer, and—surprise, surprise—letting the energy companies completely off
the hook? Instead, he argued, “they have shown that they are willing to stand up for
the interests of the energy companies.”
Lib Dem deputy leader, Simon Hughes ( now a justice minister) asked
the Chancellor “when he does his
review, promised in the autumn statement, of local councils’ ability to deliver
more affordable housing, will he look at some very good examples of housing
associations that, by using private sector investment and private sales, have
hugely increased their capacity to build social housing—not just at affordable
rents, but at social and target rents as well?
Mr Osborne
responded that “money
should be available on a competitive basis to those councils that are going to
work with housing associations, for example, to deliver the sort of innovative
schemes that he champions.”
Senior Labour backbencher and former
energy minister, Dame Joan Ruddock, asked George Osborne:
"Why does the Chancellor think it is appropriate to reduce the number of
solid wall insulation tasks for energy companies, thus destroying thousands of
newly created jobs, rather than tackling the excessive profits of the greedy
energy companies that have their hands in all our pockets?"
Osborne responded: "To
compensate for the fact that we are rolling back some of the levies... we have
set out schemes today that will reward home owners who use energy efficiency
measures to improve the efficiency of their home. Those include an additional
bonus for solid wall insulation. There is also extra money for public sector
organisations and private landlords to make their buildings more
efficient."
In a subsequent Parliamentary answer on 17 December, junior
Treasury minister Nicky Morgan revealed to Labour MP Paul Flynn
that no sustainability assessment of the Autumn Statement had been
conducted.
Home Insulation
The consumer watchdog Which? estimates that around 14 million homes - over half the total housing stock - still do not have adequate insulation.
The consumer watchdog Which? estimates that around 14 million homes - over half the total housing stock - still do not have adequate insulation.
Andrew Warren, director of ACE, said Which? is right to highlight
that few homes have been insulated to date, but pointed out that the average
British home is now using 25% less energy than it was eight years ago.
"This great improvement is largely down to the measures
installed under mandated schemes," he added. "What needs to happen is
that these energy saving measures are installed swiftly in the 11 million homes
yet to benefit."
Reaction
Former Green Party leader Dr Caroline Lucas observed: "The Chancellor has turned doublespeak into a new art form today with his mind-boggling claim to be helping the fuel poor by slashing the very programmes they depend on to insulate their homes"
Former Green Party leader Dr Caroline Lucas observed: "The Chancellor has turned doublespeak into a new art form today with his mind-boggling claim to be helping the fuel poor by slashing the very programmes they depend on to insulate their homes"
Paul Ellis, chief executive of the Ecology Building Society,
said: "It's right that the government should seek to address the shortage
of housing in this country, but again, we need to see energy efficiency as an
intrinsic consideration of these developments... We need to see a longer
perspective from the government, rather than a focus on quick wins."
David Nussbaum,
chief executive of WWF-UK, asserted: "The prime minister has
just come back from China, where this year already more than half of the new
power capacity added to the grid has come from renewable energy. Sadly, he
returns to find his own chancellor determined to push Britain back to ever more
reliance on fossil fuels."
Infrastructure investment
The updated Infrastructure UK Plan, unveiled on 4 December, contained information on over £375bn of planned public and private sector infrastructure investment including flood defence, up to 2030 and beyond. This was bolstered by the announcement that six major insurers plan to collectively invest £25bn in UK infrastructure over the next five years.
The updated Infrastructure UK Plan, unveiled on 4 December, contained information on over £375bn of planned public and private sector infrastructure investment including flood defence, up to 2030 and beyond. This was bolstered by the announcement that six major insurers plan to collectively invest £25bn in UK infrastructure over the next five years.
Chief Secretary to the Treasury, Danny
Alexander, said: "[This announcement] is a massive vote of confidence
in the UK economy. It supports the wider £100 billion public investment to
rebuild Britain over the next seven years that I announced at the Spending
Round 2013. Underground, overground, on shore, offshore, wired or wireless,
tarmac or train track. You name it, we're building it right now."
The contracts will be delivered from
within the Levy Control Framework, and is consistent with the plans announced
this week reducing the average household bill by £50 a year by early 2014.
Moreover, a £1bn package of loans is
intended to unblock large housing developments on sites mainly in Manchester
and Leeds. Aldermore and Virgin, two challenger banks, are
expected to join the Help to Buy scheme this month.
The Autumn Statement also
announced the creation of a new specialist planning court to fast-track key
strategic decision, that is expected to come into operation in the middle of
2014.
In Parliament, Barry Gardiner, a former special advisor on climate change to Labour leader, and now a shadow environment minister, Ed Miliband, asked “while the Chancellor was speaking, 30-year-high storm surges have been battering the coast of Britain. If he looks at the national infrastructure plan, he will find that the rate of coastal realignment is happening, in the view of the Energy and Climate Change Committee, at only one fifth of the pace necessary to avoid wholesale flooding that will cost billions of pounds to the economy. Will he look at that issue again, and at the funding for flood defences that this year has been reduced from £633 million to £527 million?, to be told by Mr Osborne: “I will certainly look at the report [he] mentions. …On the broader point, we are investing in flood defences. We have recently increased the investment going into flood defences, and that is all part of the long-term infrastructure plan that this country needs.
Otto Thoresen, director general of the Association of British Insurers, said: “Insurers have a key role to
play in contributing to the UK’s economic growth, as providers of long-term
capital investment. Providing capital for infrastructure projects will help
drive a competitive, healthy and resilient UK economy. The future
infrastructure pipeline - which only includes projects and programmes worth
over £50 million - shows that planned
investment in infrastructure has increased to over £375 billion from £309
billion last year. Of the 646 projects and programmes in the updated pipeline
291 are already under construction.”
The 2014 budget will be on 19 March
2014.