UK Chancellor Rachel Reeves has introduced the first spending review under the new Labour administration, outlining significant investments in nuclear energy, energy efficiency, and carbon capture and storage (CCS).
The spending plan defines financial priorities and budget limits for each government department throughout the remainder of this Parliament.
The Department for Energy Security and Net Zero (DESNZ) saw one of the most substantial increases in capital funding.
Among the headline commitments is a £14.2 billion (~$19.2 billion) investment in the Sizewell C nuclear facility in Suffolk, which will be the first state-financed nuclear project in the UK in decades. Funding is also being directed toward improvements in public transport infrastructure and further CCS development.
The UK has previously committed up to £21.7 billion (~$29.3 billion) over the next 25 years to support five CCS hubs — large-scale industrial “clusters” designed to trap and store carbon emissions.
While the bulk of this financing will be drawn from consumer levies, the government is also contributing direct public funding to help kick-start these efforts.
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The new review adds another £9.4 billion (~$12.7 billion) in capital expenditures through 2029, aimed in part at maximizing the use of CO2 storage capacity in the first two funded CCS hubs.
Additionally, the government is backing the development of two new projects — Acorn in northeast Scotland and Viking in the Humber — targeted to come online during the 2030s.
These two emerging clusters will receive initial development funding, with final investment decisions expected later in the current parliamentary term, depending on their readiness and cost-effectiveness.
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Industry players have already voiced their support of the new spending announcement. Mike Maudsley, CEO of enfinium, a UK energy-from-waste operator, said: “enfinium welcomes the UK Government’s announcement today of increased funding for carbon capture, alongside further backing for Wales in its efforts to transition to net zero.”
“Leveraging this support, our Parc Adfer energy from waste facility in North Wales could play a critical role in removing up to 120,000 tonnes of carbon a year from the atmosphere, support green jobs and advance Wales’s ambition to be a circular economy leader.”
However, public spending on CCS remains controversial. Earlier this year, the Public Accounts Committee raised concerns about the technology’s maturity, warning that such investment carries substantial financial risk.
