Finance & Leasing Association27 July 2023
Confirmation that the Government appears to be sticking to the 2030 deadline to phase out petrol and diesel cars is good news. For the car industry it provides the certainty needed to plan ahead (which on the manufacturing side is very much in train). For other associated sectors, including the charging infrastructure, it provides a timely reminder that the clock is ticking.
But what of progress in other areas? Earlier this week the Government announced nearly £9 million of funding to train up people to boost energy efficiency in England’s homes. This is a start but far more investment is needed if targets are to be met. It is widely reported that the UK is short of some 270,000 retrofitters if it is to meet the 2050 Net Zero deadline.
The Government is mindful of the costs to households to finance greener heating systems. Under current plans, no new home built after 2025 will have a gas boiler but the leading alternative – heat pumps – is far more costly and take up has been poor in spite of the availability of grants. Higher take up must also be matched by qualified engineers to service these. Far less has been written about the 2035 target to ban the installation of new gas boilers but is this at risk if the enabling infrastructure is not in place?
The Government has suggested it may relax implementation dates for landlords to meet “C rating” for tenancies. Trying to reach a balance between its responsibility to future generations in a challenging economic environment for households will in the end be one of the areas on which Rishi Sunak’s Government will be judged heading into the next General Election.
Published 27 Jul 2023
