Headline announcements included new £63 million of funding to help swimming pool facilities invest in new energy efficiency measures. There was also confirmation that the Climate Change Agreements Scheme (CCA) will be extended for a further two years, and open to new applicants. Climate change agreements are voluntary agreements made between UK industry and the Environment Agency to reduce energy use and carbon dioxide emissions, in return for a discount on the Climate Change Levy.
There were also energy efficiency tax break announcements. The Super Deduction Tax Relief Scheme ends this month, but the Chancellor announced a three-year extension to the 50% First Year Allowance Scheme. It was due to end on 31 March 2023, but will now be extended to 31 March 2026, with a view to making it permanent. It lets taxpayers deduct 50% of the cost of other plant and machinery, known as special rate assets, from their profits during the year of purchase. This includes long life assets such as CHP units.
In reaction to the Spring Budget, Keith O’Connor, Founder and CEO of Fleetsolve said:
“It’s critical that the Chancellor implements a series of measures that will enable and support UK business throughout their energy transition on the journey to net-zero. We are pleased to see the Spring Budget announcement of energy efficiency funding for swimming pools. This will provide a much needed shot in the arm to those community facilities particularly threatened by high energy costs. CHP is a tried and tested technology that generates lower-cost electricity and heat simultaneously in one highly efficient process. As such it is ideal for energy intensive environments like swimming pools that require a lot of heat. We are poised to help local authorities and leisure providers take advantage of this funding as soon as it becomes available.
We also welcome confirmation that the Climate Change Agreement (CCA) scheme will be extended for a further two years, and opened to new applicants. This, combined with the extension of the 50% First Year Allowance will free up some budget to invest in energy efficiency measures such as CHP, increasing resilience and allowing firms to operate more sustainably.
As a proud Wirral business, we are also pleased to see the announcement of 12 Investment Zones, one of which will be in the Liverpool City Region. We know first-hand that our vibrant region has huge potential for further growth, and we welcome funding that will catalyse this.”