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Budget 2009
The Government has announced over £1.4 billion additional targeted support for the low-carbon sector, this compromises:

• £365 million for energy and resource efficiency in business, public buildings and households over next two years, of which
- £100 million extra to improve the insulation for 150,000 homes in the social sector through the Decent Homes programme in England,
- £100 million, as part of the new housing package, for the construction of new homes at higher energy efficiency standards
- £100 for low cost loans for SMEs through the Carbon Trust
- £65m energy efficiency in public buildings
• £405 million to support the development of a world-leading low-carbon and advanced green manufacturing sector in the UK;
• £60 million to fund engineering and design studies for carbon capture and storage;
• £70 million to support decentralised small-scale and community low-carbon energy;
• £525 million uplift in investment support over the period 2011 to 2014, through the Renewables Obligation, for offshore wind projects reaching financial close in the next two years.

Also mentioned in the Budget in relation to housing:

• £120 million to bring an estimated 12,000 properties up to the Decent Homes standard; £180 million to be spent on critical regeneration through the Homes and Communities Agency and the Regional Development Agencies (RDAs); and £150 million to fund additional investment in homes for social rent

Carbon budgets
• A Carbon budget, the world's first, as required by the new Climate Change Act, has set a legally binding 34% reduction in emissions by 2020 with respect to 1990 levels to put the UK on track to meet an 80 per cent reduction in emissions by 2050.

Energy and Climate Change Strategy
• In the summer, as required by the Climate Change Act, the Government will publish an Energy and Climate Change Strategy, setting out the policies that will deliver these budgets, and continuing progress towards 2050 goals. The strategy will strengthen the long-term policy framework, taking account of recent consultations on heat and energy saving, renewable energy and zero-carbon homes.

Renewables
• The UK renewable and energy projects stand to benefit from up to £4 billion of new capital from the European Investment Bank, removing blockages in project financing;
• An additional £45 million for small-scale renewable electricity and heat technologies, primarily through the Low-Carbon Buildings Programme.
• Extending support for combined heat and power through climate change levy exemptions, helping bring forward £2.5 billion of investment and 3 GW of capacity by 2015, and supporting employment

Small-scale renewable and community energy
• £25 million in funding for low-carbon community heating schemes

Carbon capture and storage
• A new funding mechanism to support up to four carbon capture and storage demonstration projects, and £90 million to fund detailed preparatory studies.

Employment
• The low carbon and environmental goods and services sector in the UK is projected to grow by up to £45 billion by 2015, taking its total up to £150 billion. By then the sector could employ 1.3 million, up by 400,000 from today.

Other
• £250 million will be allocated from the new Strategic Investment Fund (the fund totals £750m) to help UK industry benefit from low-carbon investment opportunities.
• Winter Fuel Payments will remain as £250 for the over 60s and £400 for the over 80s for another year.


For full details of the Budget 2009 visit: http://www.hm-treasury.gov.uk/bud_bud09_repindex.htm in particular Chapter 7.


Emily Bacon
Assistant Partnership Co-ordinator
Energy Efficiency Partnership for Homes
c/o Energy Saving Trust
21 Dartmouth Street
London SW1H 9BP

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