Autumn budget 2025

As Chancellor of the Exchequer Rachel Reeves announces the Autumn Budget, experts from the Institution of Engineering and Technology (IET) share their thoughts. 

• Strong support for electric vehicles (EVs) with investment in charging infrastructure key to decarbonisation 
• Free apprenticeships for under 25s in SMEs will help address critical skills gaps and bolster small businesses 
• Energy bill cuts welcome but need for greater focus on efficiency  
• Missed opportunity to tackle cyber resilience for SMEs and ensure UK’s global competitiveness 

Free apprenticeships for under-25s could help tackle skills gap 

Dr Graham Herries, Chair of the IET’s Policy Oversight Committee, said: “Our recent Skills Survey* shows that large engineering organisations are more likely than SMEs to report strong apprenticeship outcomes. Among large employers, 43% said over half of their apprentices completed training (compared to 32% of SMEs), and 48% said those apprentices remained employed after training (versus 28% for SMEs). 

“Whilst it’s welcome news that training for apprentices under-25 will be fully funded for SMEs, government must work with businesses and local training providers to ensure that the new Growth and Skills Levy provides young apprentices and SMEs with the support they need to complete their training.  

“A stable business environment will also be critical for SMEs to have the certainty they need to be able to offer secure long-term jobs to the young people they spend time training.” 

Investment in EV infrastructure key to decarbonisation

James Bamborough, Sustainability and Net Zero Policy Manager at the IET, said: “EVs represent one of the simplest wins for decarbonisation – but only if incentives and infrastructure keep pace. We welcome the focus on charging infrastructure and the extension of the grant scheme until 2030. 

“EV adoption in the UK faces a complex reality, with infrastructure maturity varying widely across regions. There is no one-size-fits-all approach – different boroughs and cities operate under different rules and policies, creating significant barriers to uptake. 

“For those unable to charge at home, costs are higher, and options are limited. Expanding reliable street charging must therefore remain a key priority.” 

Cuts to energy bills welcomed, but efficiency must be prioritised.

James Bamborough, Sustainability and Net Zero Policy Manager at the IET, said: “Today’s budget brings welcome news that household energy bills will be cut through scrapping levies on household bills such as the Energy Company Obligation, supporting those who need it most. However, to tackle the energy crisis, we can't just focus on energy supply, but also on reducing demand.  Improving energy efficiency, particularly through targeted home insulation and retrofitting, is the best way to lower consumption and costs. We need to develop the capability for improving building efficiency. Above all, the energy sector needs long-term stability with predictable policy and taxation. ” 

Lack of cyber support for SMEs raises competitiveness concerns  

Jayne Black, Digital Futures Policy Manager at the IET, said: “The Government has missed the opportunity to provide much needed support for SMEs alongside the Cyber Security and Resilience Bill. Businesses recognise that cyber skills are critical for success with 38% citing cyber skills as the most important and 2/3 public stating that government need to prioritise cyber security. Tax breaks would have bolstered SMEs to invest in reskilling their workforce and increase cyber defences. Large and small enterprises in supply chains face a clear and persistent threat from hackers, in the UK and globally, which presents vulnerabilities to larger companies. This severely impacts the economy in the event of a breach. Supply chains can be broken by the weakest link. What the Government now needs to look to, is ensuring that response plans in the event of an attack are prioritised just as much as prevention in the Cyber Security and Resilience Bill.”  

Dr Graham Herries, Chair of the IET’s Policy Oversight Committee, added: “Maintaining international advantage in innovation and technology is not a given, in fact the UK faces fierce competition globally. Although it benefits from a good basis of intellectual capability, the ecosystem must be right – including infrastructure, keeping down rising costs for businesses and ensuring the UK is an attractive place to invest. Without strengthening the entire entrepreneurial supply chain, the UK risks falling behind. We look forward to contributing to the review into strengthening the role of entrepreneurs in the UK.” 

ENDS

Notes to Editor

*Source: IET Skills Survey 2025 (2025 UK Engineering and Technology skills survey) 

About the IET

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