64. Government must provide the long-term certainty that allows businesses and individuals to make plans, confident in the knowledge that UK policy or funding will not rapidly change without very good reason. The absence of this certainty has been one of the most striking themes of the evidence provided to the Review. It is a clear barrier to action for businesses and individuals.15 This matters on the international stage too. The UK must demonstrate that its ambitions are being matched by credible delivery plans if it is to show the international community that we are serious about our leadership role in the net zero transition. As COP26 President, the UK worked with international partners to mobilise the transition from coal and pledged support to protecting vulnerable countries like Pakistan. Certainty about the UK's commitment to international climate initiatives is critical for the UK to continue to provide leadership.
65. On a local level, differing approaches between boroughs or local authorities create barriers for businesses to invest and predict demand. On an individual level, the Government has an important role in helping people understand what is being asked of them, and to shape major life decisions such as what skills they could develop, or what they buy. Changing positions creates confusion and disengagement.
66. Based on the evidence presented to the Review, the actions the UK must take to deliver certainty are:
• Create a stable environment for businesses to plan and invest
• Provide long-term funding certainty
• Well-designed funding schemes
• Well-designed, smart regulation
• Provide support via government-owned investment banks
Government should publish an overarching financing strategy covering how existing and future government spending, policies, and regulation will scale up private finance to deliver the UK's net zero enabled growth and energy security ambitions. This should include setting out the role of UKIB, BBB, BII, and IPA and UKEF in the transition. |