How does the governments spending review affect the energy industry?

George Osbourne has pledged that the conservative government will be investing in energy infrastructure over the next four years during his spending review. However, he also confirmed that the Department of Energy and Climate Change (DECC) will see a 22% cut to its budget, a move that has been strongly criticised.

Shale

Mr Osbourne also announced that the conservative government will be supporting the creation of a shale gas industry. As part of these plans the government will be creating a ‘shale wealth fund’, putting aside money generated from the shale industry and investing in in the communities that will be directly affected by fracking.

Climate change

Ahead of the UN Climate Change Conference in Paris next month, the government has been keen to show that they are tackling climate change in the UK. They are doing this by increasing the support for climate finance over the next five years by 50%.

Renewables

The government will continue with their current policy on renewables, with them believing ‘‘going green should not cost the earth’’. The conservatives have said that support for renewables will more than double with more focus on research and development.