Spring Statement – 26th March 2025

The Chancellor has delivered the Spring Statement 2025; please find enclosed details of those policies that may affect our clients:

Introduction

The government is focused on securing Britain’s future through its Plan for Change – driving economic growth, building an NHS fit for the future and keeping the country safe.

At the Budget last autumn, the government reset public spending, including by addressing £22 billion of in-year pressures, the vast majority of which were recurring. It put the public finances on a sustainable path, underpinned by tax reforms that protected working people and new, robust fiscal rules that embed stability, while supporting sustainable investment in public services and growth.

Climate Change Levy (CCL)

Consultation on the treatment of electrolytic hydrogen in CCL and the changing energy context – The government is committing to removing CCL costs from electricity used in electrolysis to produce hydrogen and is consulting on the best route to do so via legislative changes. The government will also conduct a wider CCL review.

The Government has confirmed that the rates of Climate Change Levy (CCL) will change from the 1^st April 2026 and the current Carbon Price Support (CPS) rates have been extended to the 31^st March 2027.

The main rates of the Climate Change Levy (CCL) for gas, electricity, and solid fuels will be uprated in line with Retail Price Index (RPI) from the 1^st April 2026. The main rate for liquefied petroleum gas will continue to be frozen. The reduced rates of CCL will remain at an unchanged fixed percentage of the main rates.

Carbon Price Support (CPS)

Maintain the freeze of CPS rates at the equivalent of £18 per tonne of CO2 until the 31^st March 2027.

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