Autumn Budget 2025: Key Points for Business Energy and Net Zero

Today’s Autumn Budget followed a week of speculation, including leaked OBR forecasts pointing to weaker productivity and limited fiscal headroom.

With this in mind, many (ourselves included) expected bold action on energy and net zero. The Chancellor’s speech, however, offered very little detail on either. Most of the substance sits quietly in the full Budget document.

Below, we breakdown what was announced, what wasn’t, and what it means for your energy and sustainability plans.

Key Takeaways

• The government is scrapping the Energy Company Obligation (ECO) and shifting some legacy renewable costs off household bills.
• There are long-term commitments to nuclear and renewable investment, but no new incentives for business energy efficiency or decarbonisation.
• Non-commodity cost reform remains limited, with commercial energy users seeing little direct relief.
• EVs will be taxed from 2028 at 3p per mile (1.5p for hybrids), impacting long-term fleet planning.
• No major updates were made on grid reform, SME support, or corporate net-zero reporting.

Ending the Energy Company Obligation (ECO)

What’s been announced:

The government will end the Energy Company Obligation and will fund 75% of the domestic Renewables Obligation (RO) cost through general taxation for three years. Combined, these changes will remove around £150 a year from average household bills from April 2026. 

Why this is happening:

The aim is to reduce the amount consumers pay through their electricity bills by moving legacy policy costs into general taxation.

Impact on businesses:

• No direct reduction in commercial levies or non-commodity costs
• Less policy-driven support for national retrofit and insulation activity
• Uncertainty around future energy efficiency funding streams
• Potential slowing of domestic retrofit supply chains

What businesses should do now:

• Reassess the commercial case for efficiency and electrification without ECO-driven demand

• Factor continued non-commodity cost pressure into procurement strategies

• Monitor for any successor scheme or consultation on business-facing support

Capital investment in renewables

What’s been announced:

The Budget confirms more than one hundred and twenty billion pounds of capital investment across infrastructure over the Parliament, including continued support for UK renewables and nuclear expansion.

Why this is happening:

Government intends to strengthen energy security and accelerate the shift away from imported fossil fuels.

Impact on businesses:

• Positive long term signal for the UK’s clean energy mix

• No new incentives for on site generation or battery storage

• No change to payback periods for low carbon heat or efficiency upgrades

• Strategic certainty without immediate financial support

What businesses should do now:

• Continue evaluating solar, storage and low carbon heat based on commercial returns
• Build long term net zero strategies around expected grid mix changes
• Use stability in policy direction to plan multi year investments

EV charging and road pricing

What’s been announced:

From 2028, electric vehicles will be taxed at 3 pence per mile, with hybrid vehicles taxed at 1.5 pence per mile

Why is this happening:
Fuel duty income is falling as drivers switch to lower emission vehicles, so the government is introducing a replacement system to secure long term revenue.

Impact on businesses:

• Clearer long term total cost of ownership modelling for fleets
• Better visibility for lease planning and vehicle replacement cycles
• No impact on near term EV benefits or incentives
• Greater certainty for budgeting and infrastructure decisions

What businesses should do now:

• Revisit fleet decarbonisation plans
• Assess public vs on-site charging strategies
• Model long-term EV operating costs

What wasn’t mentioned in the Autumn Budget 2025?

While today’s Autumn Budget touched on several key areas for UK businesses, there were also some notable gaps. There were no updates on SME energy efficiency support, no progress on grid connection reform, no new incentives for low carbon heat and no changes to corporate sustainability reporting. These omissions matter because they shape the long-term landscape for investment, net zero planning and operational costs.

Gaps like these can delay investment decisions or make long-term planning harder, but they also highlight the importance of building strategies that focus on efficiency, resilience and smarter energy use, so your business is prepared even when government policy is uncertain.

Ready to understand what the Autumn Budget means for your organisation? We’re here to help you cut costs, reduce carbon and plan with confidence. Speak to our team today and take the next step towards a credible, actionable and future-proof energy strategy.