A summary of Powering Up Britain – The UK Government’s latest announcements on net zero and adaptation

  • By Zak Bond

Overview 

On Thursday 30th March the UK Government published a collection of new policy documents relating to climate change. The cornerstone of the suite is “Powering Up Britain”, which comprises:  

  • A “Net Zero Growth Plan” outlining the Government’s plans to reach net zero and unlock the financial benefits that this can bring 
  • An “Energy Security Plan”, which sets out the steps that the government is taking to improve the UK’s energy system resilience, particularly in the current geopolitical context 
  • The Government’s response to the Independent Review of Net Zero (the Skidmore Review)  
  • The Government’s response to the Climate Change Committee’s 2022 progress report 
  • A Carbon Budget Delivery Plan setting out a package that will enable Carbon Budgets 4 -6 (covering 2023 – 2037) to be met 

The Government also published ‘Mobilising Green Investment: 2023 Green Finance Strategy’. 

This short briefing highlights the key local government aspects of these documents. For a full summary of other issues, this briefing from Grayling or this summary from Carbon Brief are recommended. 

Across the almost 3000 pages there was some recognition of the key role that local government is already playing in the national shared mission to reach net zero, including our ability to unlock private investment. However, we have not seen enough commitment to changes in policy, governance or funding to truly unlock councils’ ability to drive forward holistic placed-based decarbonisation and adaptation. London Councils will be continuing to advocate around this to central government, particularly on the need to secure effective local government funding and embedding our role as a key delivery partner. 

Background 

The High Court previously ruled that the UK Government’s Net Zero Strategy was unlawful and instructed them to come back with more detail on how they would reach legally binding targets. These documents respond to that legal need. At the same time, Powering Up Britain takes the opportunity to provide a strategic approach to building UK energy security, in light of the war in Ukraine and the related cost of living crisis, and reflecting the creation of the new Department for Energy Security and Net Zero. 

The Skidmore Review was published earlier this year, with a tranche of strong recommendations which London Councils’ welcomed. (This Members’ Briefing was produced summarising this review.) Government committed to responding in full to the review’s recommendations, which they have done in an annex to the main documents.  

The Government is legally required to respond to the Climate Change Committee’s annual progress reports, and to provide a plan that can meet forthcoming Carbon Budgets. The calculations in the revised plans show that they will only deliver 92 per cent of the emissions reductions needed to meet the 2030 goal, and 97 per cent of the reductions needed by 2037. 

Analysis  

The role of local government 

The Net Zero Growth Plan (“the plan”) contains a Local Net Zero section which recognises that “Local areas play an integral role in supporting the transition to net zero” and that “local authorities have strong powers, assets, and responsibilities across many of the areas where emissions reductions are needed.” 

This strongly aligns with London Councils’ view that local government is a key delivery partner for net zero. However, beyond the plan provides no new mechanisms or support to accelerate the scale of local government net zero or climate adaptation delivery. 

Central government engagement with local government 

The Net Zero Growth Plan says that government will “strengthen the partnership with local government through ongoing engagement in the Local Net Zero Forum”. Whilst an ongoing commitment to the forum is important, it is disappointing that more details on how engagement will be improves are not outlined. Further, the plan does not contain stronger commitments to all departments working effectively in partnership with local government. 

The Green Finance Strategy references the Forum’s work on developing “models for how place-based approaches to net zero can work, and how blending public and private sector finance can contribute to these” but doesn’t provide a timeline or further resources for this work. 

Funding and financing net zero 

The Plan states that government will explore simplification of the net zero funding landscape for local authorities where this will deliver better outcomes for net zero. 

London Councils has consistently argued that central government should reduce the complexity of net zero funding to local government and ensure that long-term commitments are made to future programmes. In our media response to the announcement we outlined that we stand ready to work with government to collaborate on an effective way to fund local net zero action at a fast pace. 

The plan recognises that “Local government is also uniquely placed to attract private sector net zero investment that wouldn’t otherwise be obtained”. The Green Finance Strategy builds on this, recognising the potential of blended finance models (i.e. those that use public and private financing in tandem to increase the attractiveness of such investments), and noting that “Local authorities and other local organisations can often face a lack of resources and skills needed to develop commercially viable investment propositions for investors.” 

However, disappointingly there is only a glancing reference to the Government’s funding of an Outline Business Case for the 3Ci Net Zero Neighbourhoods model. Instead, support to local authorities is to be delivered through the Local Net Zero Hubs and ‘Net Zero Go’. Whilst valuable, these do not deliver on the breadth of local climate investment needs. 

Transport decarbonisation 

The Government have, positively, committed to implementing the Zero Emission Vehicle (ZEV) mandate in 2024, which sets the road map towards the end of the production of Internal Combustion Engines vehicles by mandating car manufacturers produce a certain percentage of electric vehicles.  

They also committed to continuing to fund EV charging infrastructure, and after these documents were published London Councils and the GLA announced that London has been given £35.7m to invest in its electric vehicle charge points. 

Commentary 

Unfortunately, this tranche of new policy documents does not do enough to recognise local government’s key role in reaching net zero, nor to empower local government to take holistic place-base climate action commensurate with our ambition and as a critical plank in the overall national target.  

On a range of areas, including simplification of net zero funding, place-based funding and financing, and enabling councils to raise private financing, the Government has proposed only incremental steps forward. 

London Councils will be continuing to make the case with central government departments on the changes to policy, governance and funding that are required, particularly on the need to secure effective local government funding and embedding our role as a key delivery partner. This will include what an effective response to the US Inflation Reduction Act, and the equivalent EU package, would look like for London. 

Mayor Philip Glanville, London Councils Executive Member for Climate Change, Transport and Environment responded on the day on behalf of London Councils, read his quote here.