🔎 Key Net Zero & Clean Energy Takeaways from the UK’s 2025 Spending Review

The UK Government’s 2025 Spending Review has landed, with sweeping commitments aimed at accelerating the country’s transition to a net zero economy. Covering approximately 40% of all public spending, the review outlines significant investments in clean energy, sustainable transport, and green manufacturing — reinforcing the UK’s climate and industrial ambitions.

At GLEG, we’ve taken a closer look at the headline figures and what they mean for the future of energy and infrastructure. Here are the key takeaways:

⚛️ A “Golden Age” for Nuclear & Next-Gen Technologies

The government has declared a bold new era for nuclear energy:

• £14.2 billion for Sizewell C — the UK’s first state-backed nuclear project in over 30 years.
• £2.5 billion to scale up Small Modular Reactors (SMRs), with Rolls-Royce SMR named the preferred bidder.
• £2.5 billion over five years for fusion energy, with funding directed to the STEP prototype in Nottinghamshire.
• £9.4 billion to expand carbon capture, usage and storage (CCUS), supporting major projects like the Acorn and Viking clusters.

These initiatives mark a critical step toward long-term energy security and a diversified low-carbon power mix.

🌊 Offshore Wind & Infrastructure Gains

Floating offshore wind also features prominently, with £80 million committed to upgrading port infrastructure at Port Talbot, a key enabler for scaling up deployment. This investment supports both green industrial growth and local economic regeneration.

🏠 Warm Homes Plan: Supporting Households & Energy Efficiency

After months of speculation, the Chancellor reaffirmed a £13.2 billion commitment to the Warm Homes Plan, spanning 2025–2030. Funding will support low-carbon technologies such as:

• Heat pumps
• Solar panels
• Battery storage
• Insulation upgrades

The plan aims to reduce fuel poverty and improve domestic energy efficiency, with more details due by October 2025.

🚆 Greener Transport: EVs, Rail, and Active Travel

A substantial push toward transport decarbonisation includes:

• £2.6 billion for electric vehicle adoption and charging infrastructure (including HGV support)
• £616 million to enhance walking and cycling networks
• Continued support for sustainable aviation fuels (SAFs)
• A combined £28.1 billion for public and rail transport, including:

🏭 Clean Industrial Growth on the Horizon

The review paves the way for the upcoming Industrial Strategy, due to be published in June. Ahead of this, the government has earmarked over £3 billion (2026–2030) to strengthen domestic manufacturing capabilities in:

• Zero-emission vehicles
• Battery production
• Ultra-low and zero-carbon aviation

This strategic focus will play a pivotal role in scaling clean tech supply chains across the UK.

To discuss this topic further get in touch with us at hello@gleg.co.uk — we’d love to hear from you.