IET responds to Autumn Budget 2024: Industrial Strategy, Skills, Warm Homes and Hydrogen

James Bamborough, Sustainability and Net Zero Policy Manager at the Institution of Engineering and Technology (IET) said: “We’re pleased to see that one of the measures in the 2024 Autumn Budget is a review into barriers facing greater adoption of transformative technologies that could enhance innovation and productivity." 

"It is vital that the findings of this review are supported in the Industrial Strategy to maximise the potential of technology and digitalisation for the public good, thereby delivering a more productive and resilient economy."

“However, if we are to take full advantage of emerging technologies then we need the skilled workforce to fully utilise them. The UK is currently facing a shortage of 173,000 STEM workers and 49% of employers say there is a skills shortage among existing employees. We hope that Skills England will recognise the vital importance of engineers and proactively close the skills gaps."

“It is also very encouraging to hear the Chancellor deliver £3.4 billion for the Warm Homes plan over the next three years. 80% of the houses we will be living in in 2050 are currently in use, representing 95% of the decarbonisation required in our homes. However, if Britain is to fix the foundations of its housing stock, decarbonise homes, lower energy bills and boost health we must see exactly how this money will be spent. This must include an understanding of technologies and geographical implications of said technologies to ensure that the best solutions are used in the correct way."

“The Government’s commitment to 11 new green hydrogen plants will also support their goal of making Britain a clean energy superpower. However, transitioning to hydrogen will require a range of technical skills in addition to academic and industrial researchers though to project management and customer-facing skills. The deployment of green hydrogen must be part of a holistic approach to the energy transition and the £6.1bn support for core research funding in engineering will help nurture groundbreaking technologies and innovation in the energy sector.”

Expert commentary – carbon capture and storage, and hydrogen plans

Dr Robert Sansom

Member of the IET Sustainability and Net Zero Policy Centre said

“Carbon Capture and Storage (CCS) is going to be a vital tool in hitting the UK’s Net Zero targets and the UK has the potential to take a lead in it. This investment is a step in the right direction, but it must be met with a holistic approach that delivers the skills needed to grow the CCS sector. CCS should be seen as supporting the transition to Net Zero until alternatives can be found to address the hard to decarbonise sectors. There have been concerns raised over methane leakage but the UK along with Norway (where most of our gas imports come from) is well advanced in reducing this to very low levels. Growing the UK’s CCS capacity will further embolden this, but we must ensure that enduring imports from other areas meet comparable levels.

“For hydrogen, this has not been deployed at scale anywhere in the world and so any projects will need to compensate for this. It’s vital we gain commercial scale experience of this technology, which is critical to our commitment to delivering net zero. Electrolysis hydrogen in particular is less suited for producing large volumes and costs are currently higher, so this will need to be considered.”

Titi Oliyide

Energy expert, IET member and Young Woman Engineer of the Year, said

The announcement on the funding confirmation of the hydrogen projects is a step in the right direction to facilitate the achievement of Britain’s 2030 decarbonisation targets (which are currently forecast to be missed). The funding needs to be accompanied by detailed plans, appropriate policy and regulatory frameworks and funding of other renewable energy projects, such as energy efficiency and wind infrastructure to ensure that lost grounds are recovered. 

ENDS

Notes for editors

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