Autumn Budget 2025: local investment and energy bill reform
Today’s budget brings welcome news of new investment in local people and places, a commitment to upgrade buildings vital for public services and to work with social investors to deliver the highest value for money. But it falls short on tackling the energy crisis for charities, instead pushing the sector deeper into relative fuel povert
We strongly welcome the government’s continued focus on investing in communities, including the announcement of devolved investment funding, the youth guarantee and the commitment to work with social and impact investors and the impact economy to unlock neighbourhood growth. Having supported community organisations for more than 20 years, we know just how important they – and their buildings – are for delivering the government’s missions at a local level. From increasing productivity, to creating quality jobs for those furthest from steady employment, and providing public services that strengthen communities, the social sector is at the heart of building a fairer society.
The commitment to upgrade and renew public buildings for new neighbourhood health services is welcome, as is the commitment to exploring partnership approaches to renewal of the public estate. With more than half of all local service delivery charities working out of buildings leased by local authorities, and many of these failing to meet modern efficiency standards, these assets are in urgent need of investment to safeguard local services that communities rely on.
However, despite today’s significant investment in communities and the clear focus on neighbourhoods as the places in which health, wealth and growth need to be delivered, this budget will do nothing for charity energy bills, instead pushing the sector deeper into relative fuel poverty. The Warm Homes Plan must come soon and ensure it brings vital relief and investment for the sector that is too often overlooked.
The reforms to lower energy bills announced today exclude charities, and follow just weeks after new policy costs were added to electricity adding hundreds, or even thousands to charity energy bills each year. The sector already faces unmanageable bills, with some organisations forced to spend half their entire budget on utilities. Today’s announcements will bring no relief to those organisations struggling to keep the lights on as they deliver vital public services.
The increased capital budget for the Warm Homes Plan is welcome. This Plan must not be delayed any further, and we look forward to working with the government to ensure this funding, and the expanded Boiler Upgrade Scheme, delivers the investment the charity and social sector desperately needs to improve the efficiency and sustainability of their buildings, and to continue delivering vital public services long into the future.
