IOM3 responds to Autumn Budget 2025
UK Chancellor has delivered her Budget to Parliament.
UK Chancellor Rachel Reeves has outlined her economic priorities in the 2025 Autumn Budget. Backing businesses and unlocking innovation featured early in her speech with commitments to make it easier for businesses to start, scale and stay in the UK.
IOM3 Chief Executive Dr Colin Church CEnv FIMMM said, ‘We are at a pivotal moment in UK policy development, and the vital role of materials, minerals and mining is unmistakably clear – from the government’s Industrial Strategy and recently published Critical Minerals Strategy, to the forthcoming Circular Economy Growth Plan for England. It is essential that the government’s economic priorities enable effective delivery across these areas and support the step change required to transition the UK to a low-carbon, resilient and resource-efficient society.
It is, therefore, disappointing not to see greater recognition of our key industries and the value they bring in today’s budget speech. However, the emphasis on supporting businesses to develop in the UK and ongoing investment in clean energy and advanced materials is welcome.’
Key announcements relevant to IOM3 members’ work include:
Regional
- Up to £14.5 million in Grangemouth, Scotland, to support industrial projects.
- The UK’s first small modular reactors in Anglesey in North Wales, were reconfirmed.
- £4.2 million for the remediation of brownfield land in Port Talbot.
- £30 million Kernow Industrial Growth Fund to invest in Cornwall’s comparative sectoral advantages, including critical minerals, renewable energy and marine innovation.
- £10 million will be invested in South Wales' world-leading semiconductor technologies cluster.
Energy & net-zero
- The carbon border adjustment mechanism (CBAM) will still be introduced on 1 January 2027, but the inclusion of indirect emissions will be delayed until 2029 at the earliest.
- Publication of the North Sea Future Plan, which sets out how the government intends to support ongoing investment opportunities in oil and gas.
- Classification of Sizewell C as Mega Projects Capital Annually Managed Expenditure and recognising income generated through the Regulated Asset Base levy.
- Publication of government’s response to the Nuclear Regulatory Taskforce final report, including a commitment to implementing recommendations within two years.
- Green Financing Framework updated to include nuclear energy to be eligible for green gilts and retail Green Savings Bonds
- British Coal Staff Superannuation Scheme (BCSSS) – the government will transfer the Investment Reserve Fund in the British Coal Staff Superannuation Scheme to the scheme’s Trustees. This will be paid out as an additional pension to members of the scheme.
- A call for evidence on the fuel sector is to be published, recognising the role refineries play in energy security in the UK.
- From 2027, the British Industrial Competitiveness Scheme will reduce electricity costs by c.£35-40/MWh.
Automotive
- Introduction of an Electric Vehicle Excise Duty (eVED), a new mileage charge for electric and plug-in hybrid cars, with effect from April 2028.
- An additional £1.3 billion funding and extension of the Electric Car Grant to 2029-2030.
- An additional £1.5 billion funding and extension of the Drive25 programme to support the development of UK capability in next-generation, zero-emission technology.
- An additional £100 million in EV charging infrastructure.
- Allocating £100 million of resource funding to local authorities and public bodies to support training and deployment of specialist staff.
- A 1-year extension of the 100% first-year allowances for qualifying expenditure on zero-emissions cars and plant or machinery for electric vehicles.
Packaging
- The Plastic Packaging Tax rate for 2026-27 will increase in line with CPI inflation.
- The government will consult in early 2026 on the introduction of mandatory certification for mechanically recycled plastic packaging for businesses to claim an exemption from Plastic Packaging Tax.
- Consultation in early 2026 on proposals to measure the performance and effectiveness of local authorities’ use of pEPR fees and appointing a Producer Responsibility Organisation by March 2026.
Innovation
- Increased eligibility for the Enterprise Management Incentives (EMI) to allow scale-ups, as well as start-ups, to access the scheme from 6 April 2026.
- Publication of a call for evidence seeking input from across the scale-up and investor community on the impact of existing schemes and options to provide further support.
- The British Business Bank will invest at least £5 billion in growth-stage funds and scale-up companies.
- Innovate UK to launch a new Growth Catalyst programme worth £130 million.
Education & skills
- A new levy on higher education providers’ income from international students.
- £820 million for the Youth Guarantee.
- £725 million for the Growth and Skills Levy.
- Fully funded SME apprenticeships for eligible people under 25.
- Reforms to the apprenticeship system, including removing the additional uplift to levy accounts, changing the expiry window to 12 months, changing the government’s co-investment rate to 75% for levy-paying employers once they have exhausted all their funds, and working with employers to streamline the suite of apprenticeship standards available.
Defence
- £1.5 billion investment in energetics and munitions, with 13 potential factories for manufacturing identified.
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