Rishi Sunak's net zero curveball makes vital target less achievable and more expensive: Beckie Hart

Because what was said in the speech makes the implementation of our long-term net zero target less achievable and more expensive in the long run.

The most significant and eye-catching of these new policies was the extension of the phase out date for internal combustion engine vehicles from 2030 to 2035. Although the PM conceded that he expected electric vehicles to be as affordable as their fossil fuel equivalents by the end of the decade, he said he didn’t want to restrict consumer choice.

For firms investing in the sector though, the 2030 phase-out date and pathway to it was regarded as a “gold standard” policy, setting us apart from international competition and providing a clear demand signal on a realistic timeframe. It’s been cited as an important factor in recent investment announcements in vehicle and battery manufacturing facilities in the UK.

Firms will have to assess how the new phase-out date impacts their long-term investment plans. For their part, Labour have confirmed they would revert to a 2030 phase out day should they come to power at the next General Election.

The PM also scrapped plans to introduce minimum energy efficiency standards for homes in the private rented sector, which would have helped millions of households use less energy and cut their bills.

That can has now been kicked a little further down an already long road.

A 50 per cent increase in the subsidy available to switch to a heat pump through the Boiler Upgrade Scheme was better news. But the real bright spark was the PM’s announcement that the government would be introducing changes to significantly speed up planning and the process of obtaining a connection to the electricity grid.

As a perennial blocker for investment, it’s something the CBI has been talking about with government since July. Firms will be eager to see the detail in the weeks ahead and swift implementation beyond this.

But, overall, businesses have been left confused and frustrated by both the substance and the narrative surrounding the PM’s net zero speech.

Especially when they see other countries boldly doubling down on policies and incentives designed to capture green investment. CBI members acknowledge the challenges in the net zero transition but are also convinced of vast economic opportunities that UK businesses are well-placed to capitalise on.

Realising that remains a top priority for the CBI. Our recent Going for Green report put forward solutions on how we can outsmart, rather than outspend, other countries on net zero. In our Autumn Statement submission, sent to the Chancellor in early September, we included bold messages on improving grid connectivity. And we’ll continue to push to see more from government in support of net zero investment as we approach a General Election.

Because without clear policies and plans to curb emissions this decade, crucial private investment will flow elsewhere, delivering an own goal for our environment and our economy.

Beckie Hart is the CBI’s regional director for Yorkshire and Humber