What does the Autumn budget mean for the energy and renewables sector?

What does today's budget mean for the energy and renewables sector?

In today’s Autumn Budget (26 Nov 2025), the UK government signalled continued support for renewables through investment in EV charging and household energy bill relief, but also retained the windfall tax on oil and gas, meaning mixed implications for the energy sector.

Key impacts on Energy & Renewables

• Windfall tax retained

• Chancellor Rachel Reeves confirmed the windfall tax on oil and gas companies will remain

• This is seen as a blow to North Sea operators, but it reinforces the government’s commitment to funding the energy transition
  

• Boost for EV charging infrastructure

• The Budget included funding to accelerate the rollout of electric vehicle charging points, supporting the UK’s net‑zero transport goals

• Household energy bill relief

• Measures announced to cut household energy bills, easing pressure on consumers while encouraging uptake of cleaner energy sources

• Business energy support

• Up to 4 million UK businesses could benefit from relief on soaring energy bills, helping SMEs in hospitality, retail, and manufacturing

• Renewables investment signals

• The Budget emphasised positioning the UK as a world‑leading destination for infrastructure investment, with renewables highlighted as a growth area

What this means for the sector:

• Positive for Renewables - Funding for EV charging, household bill relief, and infrastructure investment signals strong government backing for clean energy

• Challenging for Oil & Gas - The continued windfall tax may deter investment in fossil fuels, accelerating the shift toward renewables

• Opportunities for SMEs - Energy bill relief could free up capital for small businesses to invest in solar, efficiency upgrades, or green procurement

• Mixed Investor Sentiment - While renewables gain momentum, uncertainty around taxation in the wider energy sector may temper enthusiasm

Key takeaway:

For the UK renewables sector, today’s Budget is a clear show of support. With new investment in infrastructure and measures to help consumers directly, the government is signalling that clean energy isn’t just on the agenda, it’s at the centre of the country’s growth plans. By keeping the pressure on fossil fuel operators while opening up more opportunities in solar, wind and EV infrastructure, the Budget sets the stage for real expansion and innovation.