Follow the dollar

Posted on October 9, 2007 
Filed Under Small is Beautiful

It can sometimes be tricky figuring out which way the political wind is blowing. Today for example was the Pre-Budget Report which is one of the three times per year that major policy initiatives are launched (the others being the Budget and the Queen’s Speech). For energy folks, there were two bits of news: an additional £170 million for low-carbon energy technologies and progress towards a CCS demonstration project.

However today also marked the release of the 2007 Comprehensive Spending Review. This review of government spending over the next three years sets out the government’s highest priorities, written in the form of Public Service Agreements.


PSAs are essentially declarations of government intent. They identify major policy priorities across departments, set targets for implementation and most importantly provide associated funding. So what do the PSAs released today tell us about the prospects for a dramatic change in the UK’s energy system? Well…

So to recap, economic growth and “stronger communities” are the main priorities and climate change gets an explicit mention in 1 of the 30 PSAs. Now to be fair, the full specification of the climate change PSA does set out a number of important initiatives and targets related to energy and climate. But on the whole, I would argue that the relative mix and short-form wording of the PSAs gives the clearest picture of government priorities. And rightly or wrongly, it appears that the economy will almost always take precedence over sustainability issues.

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