Budget 2025 – Friends of the Earth reaction

Commenting on today's Budget, Friends of the Earth’s head of policy, Mike Childs, said: 

“Removing some of the policy costs that successive governments have loaded onto energy bills will be welcomed by low-income households, who are struggling to stay warm and put food on the table – but bills will still be far too high. All policy costs should have been removed and funded through general taxation, so those with the broadest shoulders pay the most.  

“But cutting energy-efficiency funding is a backward step that reduces the money needed to stop vulnerable families freezing in damp and draughty homes. Alongside spending on roads and expanding airports, this move makes hitting the UK’s climate targets even harder – and potentially impossible.  

"Affordable clean energy is critical for reducing the cost-of-living pressures and boosting the UK’s economic competitiveness. To get there, the UK must speed up the building of more cheap renewable energy and reform a broken electricity market where expensive gas sets the price – despite only accounting for less than a third of the power generated." 

Commenting on a rise in fuel duty, Mike Childs, said:  

“Even a small rise in fuel duty hits low-income households hardest, especially those who rely on cars in areas where bus services have been slashed over the past 15 years – often by more than a half outside London. Ministers must do more to invest in reliable public transport, particularly in rural communities. 

“Likewise, introducing per-mile charges for electric vehicles from 2028 will be premature if public charging remains disproportionately expensive. The cost of public charging needs to be brought more in line with home-charging before this measure is implemented. 

“A rapid shift to EVs is vital for cutting carbon and cleaning up our air. As the government’s own climate plan makes clear, progress happens faster with incentives, not penalties.” 

Commenting on North Sea plans published alongside the Budget, Mike Childs, said:

“The Chancellor was right to reject fossil fuel industry calls to cut the Energy Profits Levy early. These companies made eye-watering profits off the back of households during the energy crisis, and they should pay their fair share of taxes. 

“It is also encouraging to see the government reaffirming its commitment to no oil and gas licences,  alongside a North Sea jobs service to help workers transition into other well paid jobs, including offshore wind. 

Those calling for more North Sea extraction must be honest: it won’t cut bills, but it will fuel the climate crisis. The extreme weather we see across the world is a direct result of our dependence on fossil fuels and the slow shift to cleaner energy. 

Future generations will not thank us for drilling for more oil and gas when the warning signs of climate breakdown are plain to see.”

Commenting on the absence of polluter pay taxes, Mike Childs, said: 

“The government has missed a golden opportunity to make the biggest polluters pay for the damage they cause – a move that would curb pollution and help fund real solutions. They should have introduced progressive measures like a frequent-flyer levy and used the money raised to boost much depleted bus services.” 

ENDS