On Wednesday 28 October 2026, the Chancellor of the Exchequer John Healey presented the Autumn Budget, reinforcing the Government’s commitment to long-term energy security, accelerating the transition to net zero and upgrading the UK’s energy network.
While many measures focus on supporting household energy costs, several developments could have significant implications for businesses, particularly those in energy-intensive sectors or planning investment in electrification and renewables.
At Procure Smart, we have reviewed what the announcements could mean for businesses across the UK.
Investment in clean energy
One of the most notable commitments is the creation of a £2 billion Energy Wealth Fund, designed to support renewable and low-carbon infrastructure projects linked to future North Sea revenues. Alongside this, over £85 million has been committed to the Offshore Renewable Energy Catapult’s testing facilities in Blyth, further strengthening the North East’s position as a leading hub for clean energy innovation.
For businesses operating within the renewable energy supply chain, engineering, manufacturing and professional services sectors, these investments could create new opportunities to secure contracts, attract investment and participate in major infrastructure projects. The continued focus on offshore wind, hydrogen and carbon capture technologies demonstrates that the government’s long-term direction of travel remains firmly focused on low-carbon growth.
Faster grid connections
Access to electricity network capacity has been a challenge for businesses. Long wait times for grid connections have delayed expansion plans, renewable energy projects and wider electrification initiatives.
The government’s commitment to reforming grid and network infrastructure, introducing greater competition in delivery and prioritising strategically important projects is a welcome step. Businesses looking to install on-site generation, electric vehicle charging infrastructure, heat pumps or other electrified technologies could benefit from faster and more predictable connection processes in the future.
While the success of these reforms will depend on their implementation, reducing connection delays has the potential to unlock investment and remove one of the most significant barriers facing businesses pursuing decarbonisation projects.
High energy costs a concern
Despite the positive announcements around infrastructure and energy investment, many businesses will be disappointed that the government’s most immediate support measures continue to focus primarily on households rather than businesses.
Commercial energy users continue to face some of the highest energy costs in Europe, with many organisations still feeling the impact of elevated wholesale prices and wider costs.
The government’s commitment to develop a Cost Control Framework ahead of the 2027 Spending Review is encouraging, but many businesses will be hoping for more immediate action to reduce operating costs.
Industrial decarbonisation continues, questions remain
The government has confirmed continuing support for major carbon capture and hydrogen projects, including priority projects in Teesside. However, this sits alongside reductions in national capital grant funding for both hydrogen and carbon capture initiatives.
While future support mechanisms, including loan and equity financing options, remain under consideration, businesses investing in low-carbon technologies will be looking for greater certainty around funding timelines and eligibility criteria before committing significantly.
What should businesses do next?
Electrification, renewable energy generation, energy efficiency and low-carbon infrastructure remain at the centre of the UK’s long-term economic and energy strategy.
For businesses, now is the time to review energy procurement strategies. If your strategy is something new, working with an experienced partner like Procure Smart can validate your strategy ahead of time. We can help you to save considerable time and maximise the impact of your strategy.
We continuously monitor policy developments and market changes to help businesses reduce costs and manage risk in an increasingly complex energy landscape. If you would like to understand how these announcements could affect your organisation, our team is here to help.
If you want to stay ahead and #GetSmart get in touch with us today.
