Spring Statement 2022—key Energy and Environment announcements

Article summary

On 23 March 2022, the Chancellor of the Exchequer, Rishi Sunak, delivered the Spring Statement 2022, in which he announced that for a five-year period, starting from April 2022, installations of energy saving materials (ESMs), such as solar panels, heating pumps and roof insulation, will benefit from 0% VAT, while wind and water turbines will be added to the list of eligible ESMs following the reversal of the Court of Justice of the European Union’s ruling which restricted VAT relief for such installations. In addition, Sunak confirmed that the duty on petrol and diesel will be cut by 5p per litre across the UK for 12 months from 6 pm on 23 March 2022, and brought forward the business rate exemptions and reliefs announced during the Autumn Budget 2021 for certain plant and machinery used in on-site renewable energy generation and storage and eligible low-carbon heat networks with their own rates bill to April 2022,...