Given today's focus on #Treasury delivering a #GreenRecovery, here's a short thread on the 5 things I would be advising the Chancellor to do if I was still there. As an ex-Treasury official there will be too few ££s for some, but hopefully still ambitious.
thetimes.co.uk/edition/news/c…
thetimes.co.uk/edition/news/c…
#1 Dig what’s shovel ready: Target precious public funds at the things that will actually spark economic activity now. Focus should be on immediately deployable technologies, like energy efficiency measures, heat-pumps and EVs (not a diesel scrappage scheme).
#2 Try before you buy: In areas where strategic case not settled, announce series of large-scale pilots in regions where economic activity is most impacted by pandemic. Major hydrogen trials and industrial decarbonisation in key clusters are low-regret and politically attractive.
#3 Answer the big questions: To get private capital flowing, vital to give certainty on key technologies. Govt could set clear approach (incl. financing model) for new nuclear and CCUS to unleash investment. Could also signal increased role for regulator in driving to net-zero.
#4 Sort the supply side: Focus support for apprenticeships, retraining and skills on the technologies that will power the future economy, incl. offshore wind and EVs. We know that major infrastructure requires labour supply issues to be sorted, now is a real chance to do so.
#5 Raise some green cash: Start the process of properly pricing carbon across the economy. Critical not to backslide on fuel duty, but could look to rebalance taxes towards high-carbon fuels and activity. Approach will need to be progressive to avoid political backlash.
