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Budget 2020: Key points for the Energy & Infrastructure sector

Ben Sheppard, Partner in the Energy & Infrastructure Group at Walker Morris summarises some key points for the Energy & Infrastructure Sector from the 2020 Budget.

Taxes on pollution

  • From April 2022, the climate change the levy is to be frozen on electricity and increased on gas
  • Support for the most energy-intensive industries to transition to net zero, by extending the climate change agreements scheme for a further two years
  • A new plastics packaging tax from April 2022: manufacturers and importers will be charged £200 per tonne on packaging made of less than 30% recycled plastic

Natural habitats

  • £640m for a new nature for climate fund to protect, restore and expand natural habitats like woodlands and peat bogs – also capturing carbon
  • Over the next five years, to plant around 30,000 hectares of trees – a forest larger than Birmingham – and restore 35,000 hectares of peatland

Flood defences

  • £120m available immediately to repair defences damaged in the winter floods
  • £200m of funding directly to local communities to build flood resilience
  • Doubling investment in flood defences over the next six years to £5.2bn

Low carbon transport

  • Promise to spend £500m to support the rollout of new rapid charging hubs for electric cars
  • Invest £300m in tackling nitrogen dioxide emissions in towns and cities
  • A package of tax and spend reforms to make it cheaper to buy zero or low emission cars, vans, motorbikes and taxis

Carbon capture and storage

  • £800m to be invested to create two more carbon capture clusters


  • Announcement to build broadband, railway, roads
  • £5bn to get gigabit-capable broadband into the hardest to reach places
  • £510m of new investment into the shared rural mobile phone network
  • £2.5bn to repair 50 million potholes


  • Extension of the Affordable Homes Programme with a new, multi-year settlement of £12bn
  • Cutting interest rates on lending for social housing by one percentage point to support local authorities to invest in their communities
  • More than £1bn of discounted loans available for local infrastructure
  • Nearly £1.1bn of allocations from the Housing Infrastructure Fund to build nearly 70,000 new homes in high demand areas across the country

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