Response to the Fiscal Statement from Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG

“The Chancellor announced today that the energy support package is expected to cost around £60 billion over the next 6 months, but there is a very wide margin of error around this. The eventual cost will depend on what happens with global gas prices, how cold this winter is, and wider economic activity, meaning the Government is effectively writing a blank cheque, significantly increasing government borrowing, at a time when long term interest rates on UK gilts are rising sharply.

“It is clear a more targeted approach is going to be needed beyond this winter that focuses help and financial support on those that need it most: poorer households, and energy intensive firms and small businesses. Moreover, the cheapest way to permanently reduce bills and improve energy security is a step change in energy efficiency and the small amount of extra funding (£1bn over the next 3 years) announced today, though welcome, will not be enough to deliver this.

“The commitment to bring consenting for onshore wind in line with other infrastructure is welcome, as onshore wind is one of the cheapest forms of low carbon energy and can be deployed quickly, supporting jobs, investment and growth around the country.”

For further information please contact

KPMG Media Relations

Rob Smyth

Rob.smyth@kpmg.co.uk

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 15,300 partners and staff. The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021. KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 145 countries and territories with more than 236,000 partners and employees working in member firms around the world.