Which of the Conservatives’ green policies have been scrapped by Rishi Sunak?

Published

2 years ago

September 20, 2023

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In 2019, the government put the goal of reaching net zero by 2050 into law, but recently the future of the Conservative Party’s green agenda has been the subject of intense debate.

Sparked by its narrow win in the Uxbridge and South Ruislip by-election – a battle fought and won by the Conservatives’ opposition to London’s Ultra Low Emission Zone (ULEZ) scheme – some in the party have been calling for a rethink of their current climate commitments, while others demanded the government stayed on track with its pledges.

But the former camp seems to have won over the prime minister, with Rishi Sunak announcing his plans to ditch or delay a number of climate policies.

Making a surprise speech in Downing Street, he insisted he believed in achieving the net zero goal, but said there needed to be a change in approach or we would “risk losing the consent of the British people” for the policies.

Standing in front of a lectern promising “long-term decisions for a brighter future”, he said families should not face “unacceptable costs” to go green, adding: “No one in Westminster politics has yet had the courage to look people in the eye and explain what’s really involved. That’s wrong, and it changes now.”

So what were the climate pledges from the government? And which ones are now being axed by Mr Sunak?

Reaching net zero by 2050

The overarching promise from the Conservative government was to ensure the UK reduced its greenhouse gas emissions by 100% from 1990 levels by 2050.

The measure was made law by Theresa May in the dying days of her premiership back in 2019 and it was backed by Boris Johnson throughout his time in Number 10.

But when Liz Truss entered Downing Street, she ordered a review into the target – though her stint ended before it came to pass – showing not everyone in the party was on board.

Mr Sunak has insisted he is committed to the pledge – even after the changes he has announced.

But questions have been raised over whether the government is doing enough to even meet the target, with the Climate Change Committee warning progress had been “worryingly slow”, and time is “very short” to correct the path.

Phasing out petrol and diesel cars by 2030

In 2020, then prime minister Mr Johnson made a commitment to ban the sale of new petrol and diesel cars in the UK after 2030 – bringing the target forward by 10 years.

The £12bn plan promised to accelerate the rollout of charge points for electric vehicles, as well as the development and mass production of electric vehicle batteries, in an attempt to lower emissions and clean up the air.

Number 10 was saying as recently as August that Mr Sunak was committed to the 2030 date, though they hinted the ban was to be kept under review to ensure the prime minister’s promise to be “proportionate and pragmatic” with climate policies was kept.

Levelling Up Secretary Michael Gove also doubled down over the summer on keeping to the pledge, saying the target is “immoveable”.

But Business Secretary Kemi Badenoch was understood to be pushing back on one element – fining car manufacturers if they don’t meet the target of making at least 22% of the cars they sell electric by 2024.

Current rules would mean a company would be subject to a £15,000 fine for every vehicle that does not comply.

Now, Mr Sunak has confirmed the deadline will be pushed back by five years to 2035 – despite calls from the industry to keep the measure.

He said by 2030 “the vast majority of cars sold” would be electric, but he said he believed that “at least for now, it should be you the consumer that makes that choice, not government forcing you to do it”.

Energy efficient landlords

Another pledge made by Mr Johnson in 2020 was to ensure all privately rented homes had an energy efficiency rating of C or better – where A is the best and G is the worst – by 2028.

While the plan could be costly for landlords, it would lead to a reduction in bills for many renters and stop leaky homes adding to emissions.

Mr Gove, the former environment secretary who is now the minister in charge of housing, said back in July he wanted to see the government “relax the pace” of the 2028 deadline, adding: “We’re asking too much too quickly”.

But Mr Sunak has now insisted no property owners would be “forced” into making “expensive upgrades”, and will only have to do so “when they can”.

The future of boilers

The ambition for all new heating system installations to be low carbon by 2035 – accompanied by a pot of £450m to help with household grants – is being watered down.

The prime minister confirmed there would be a new exemption for around a fifth of homes, so that “households who will most struggle to make the switch to heat pumps or other low-carbon alternatives won’t have to do so”.

However, he said the grant available for boiler upgrades for those who do want to change to a greener alternative would increase from £5,000 to £7,500.

There had been a target in place to ensure all new homes were built with an alternative to a gas boiler – such as a heat pump – after 2025, but Downing Street would not confirm if that target remained in place.

But Mr Sunak did announce that the plan to ban all off-grid oil boilers by 2026 was now being delayed to 2035.

Hydrogen levy

Another move that already appears to have been shelved is the introduction of an annual levy to cover the cost of producing low-carbon hydrogen, instead of using fossil fuels, for energy at home.

The fee – which was expected to cost households around £118 a year – was due to be added to bills in 2025, and would help cut emissions by cleaning up the energy market.

But former energy security secretary Grant Shapps – who was recently appointed defence secretary – made numerous protestations about the cost being borne by people rather than companies, and has pledged numerous times to find another way of funding the change.

What else is being chopped?

A number of policies that hadn’t been announced have been pre-emptively scrapped by Mr Sunak.

He said he would rule out policy ideas requiring people to share cars, eat less meat and dairy, or have seven bins to hit recycling targets.

The prime minister also said he would not put forward any plans to discourage their flying by taxing it further.

“There will be resistance – and we will meet it,” he said.

What about the other parties?

When it comes to Labour, one of Sir Keir Starmer’s missions for government is to “make Britain a green energy super power”.

The party said, if it got into power, it would cut bills and increase energy security by making all electricity zero-carbon by 2030, and carry out upgrades to 19 million homes to make sure they are insulated.

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It would also create a new publicly owned company called GB Energy, tasked with championing clean energy, increasing jobs and building better supply chains.

But Labour has backtracked on its £28bn a year investment pledge to accelerate the shift towards net zero, with shadow chancellor Rachel Reeves blaming rising interest rates and the “damage” the Conservatives had done to the economy since the announcement was made.

The Liberal Democrats have a raft of green policy proposals, including upgrading insulation in all existing homes by 2030 and ensuring all new builds are “eco friendly”.

Other measures include investing to get 80% of the UK’s electricity from green energy by 2030, and creating a £20bn Clean Air Fund to create walking and cycling routes to schools, and investment in pollution-free public transport.

Politics

Budget 2025: Hospitality pleads for ‘lifeline’ as Rachel Reeves accused of imposing ‘stealth tax’

Published

1 hour ago

November 29, 2025

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Budget 2025: Hospitality pleads for 'lifeline' as Rachel Reeves accused of imposing 'stealth tax'

Rachel Reeves has been accused of failing to “support the great British pub” as she promised in the budget, with owners facing skyrocketing business rates bills.

In her speech in the House of Commons on Wednesday, the chancellor said she was backing small businesses by introducing “permanently lower tax rates for over 750,000 retail, hospitality and leisure properties – the lowest tax rates since 1991”.

But while the government gave itself the powers to discount the business rates bills for high street businesses through legislation earlier this year, the chancellor only implemented a reduction of a quarter of what the government is able to, and she is being accused of imposing a “stealth tax”.

It has left small retail, hospitality, and leisure businesses questioning whether their businesses will be viable beyond April next year.

A Treasury spokesperson said: “We’re protecting pubs, restaurants and cafes with the budget’s £4.3bn support package – capping bill rises so a typical independent pub will pay around £4,800 less next year than they otherwise would have.

“This comes on top of cutting licensing costs to help more venues offer pavement drinks and al fresco dining, maintaining our cut to alcohol duty on draught pints, and capping corporation tax.”

Business rates, which are a tax on commercial properties in England and Wales, are calculated through a complex formula of the value of the property, assessed by a government agency every three years, combined with a national “multiplier” set by the Treasury, giving a final cash amount.

Over the last few years, small businesses were given business rates relief of 75% to support them over the COVID pandemic, and Ms Reeves reduced that to 40% at last year’s budget.

The idea was that at the budget this year, the chancellor would remove that remaining relief in favour of reforming the business rates system to compensate for that drop, while shifting the tax burden on to much bigger businesses and companies like Amazon with lots of warehouse space.

However, the chancellor only announced a 5p in the pound discount for small retail, hospitality, and leisure businesses, rather than the assumed 20p drop which the government gave itself the powers to implement, and which trade bodies had been lobbying for.

On top of that, small businesses have seen the government-assessed value of their property increase dramatically, which wipes out the discount, and sees their business rates bill shoot far above what they had previously been paying.

One pub owner near Hull, Sam Caroll, has seen the assessed value of one of his two properties increase from £67,000 to £110,000 in just three years – a 64% increase.

He told Sky News that there is a “continual question” of business viability, and while he thinks they can “adapt” in the short term, “there will be a tipping point at some point”. Even at the moment, packing out their pubs seven nights a week, “it’s difficult for us to break even”, he said.

There will be a discount for small businesses to transition to the higher business rates level, but by year three, almost the full amount is expected to be payable, and Mr Carroll described it as “getting f***** slowly, instead of getting f***** overnight”.

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Sean Hughes, who owns multiple hospitality venues in St Albans, has also seen vast increases in the assessed value of his properties, and was sharply critical of the transitional arrangements the government is implementing.

He told Sky News: “Fundamental business rate reform was promised and we have total chaos. If [the system] was fair, why would they need transitional relief periods?”

A spokesperson of the Valuation Office Agency (VOA), which assesses the value of commercial properties for business rates purposes, told Sky News: “At the last revaluation, some sectors including hospitality were significantly affected by the pandemic, which resulted in much lower rateable values than they would have seen otherwise. Businesses that have now seen a recovery in trade are also likely to see an increase in their rateable value.”

However, Sky News has seen evidence of businesses whose assessed value did not decrease when assessed during the pandemic, but actually rose, and has risen dramatically this year.

Data compiled by the Pubs Advisory Service, shows that the number of pubs in the UK has decreased by nearly 5% in three years, but the average value of the properties has risen by an average of 36.82% per pub.

And analysis by UK Hospitality, the trade body that represents hospitality businesses, has found that over the next three years, the average pub will pay an extra £12,900 in business rates, even with the transitional arrangements, while an average hotel will see its bill soar by £205,200.

The body adds that by 2028/29, an average pub’s business rates will have increased by 76% and an average hotel’s by 115%, compared to 16% for a distribution warehouse like the ones the web giants use.

It’s not just the business rates rise that is worrying owners – it is the increase in employers’ national insurance implemented at the last budget, the increase in energy bills over the last few years, and the rise in the minimum wage, particularly for young people.

With the budget set to squeeze disposal income, there is little room for price increases to make up the shortfall either.

In a letter to the chancellor on Friday, Liberal Democrat deputy leader Daisy Cooper said small business owners “have been pushed to tears as they’re hit with the bombshell of higher business rates bills”, noting that “the government has chosen not to use the full powers it gave itself to throw high streets a lifeline”.

She added that businesses had been promised “permanently lower business rates”, but it appears the government has “broken yet another promise, by imposing a stealth tax not just on people, but on treasured high street businesses too”, and called on ministers to “throw our high streets and Britain’s hospitality sector a lifeline”.

Conservative shadow business secretary Andrew Griffith published his own analysis of the government’s budget measures on Friday morning, that found they will “hammer British pubs”.

Of the chancellor, he said: “She pretended in her budget speech to be supportive, whilst the true detail is that a combination of rate revaluations and scrapping reliefs will leave most pubs paying thousands of pounds more than they cannot afford.”

Kate Nicholls, Chair of UKHospitality, said in a statement: “The government promised in its manifesto that it would level the playing field between the high street and online giants. The plan in the budget to achieve this is quickly unravelling, and will deliver the exact opposite.”

She said they “repeatedly warned the Treasury” of the impending impacted of the value reassessment, but nonetheless, hospitality businesses are now facing “eye-watering increases”.

She added: “We agree with its reforms to deliver permanently lower business rates for hospitality and we appreciate the package of transitional relief, but its current proposal is not delivering lower bills. A 20p discount for hospitality would. We urge the chancellor to revisit.”

Politics

Polymarket puts December rate-cut odds at 87% as crypto stocks climb

Published

8 hours ago

November 28, 2025

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Polymarket puts December rate-cut odds at 87% as crypto stocks climb

Several crypto-linked stocks climbed on Friday as prediction-market odds of a December rate cut surged to 87% on Polymarket, the highest level this month.

Three US-listed Bitcoin miners led the rally, with Cleanspark, Riot Platforms and Cipher Mining all rising in the session and showing double-digit gains over the past five days.

Federal Reserve, United States, Predictions — *Probability of a US rate cut in December. Source:* *Polymarket*

Yahoo Finance data showed Circle, the issuer of USDC, jumped nearly 10% in early trading, while Michael Saylor’s Strategy and Coinbase notched more modest increases at the time of writing.

Bitcoin (BTC) was also up around 7% on the week, after dropping to around $82,000 on Nov. 21, according to CoinGecko data.

Much of the volatility in prediction-market pricing this month has been driven by comments from Federal Reserve officials.

On Oct. 29, Fed Chair Jerome Powell said a December cut was “not a foregone conclusion,” a remark investors took as hawkish — which means the Fed could delay rate cuts and keep conditions tight. Polymarket odds slipped from 89% the day before to as low as 22% by Nov. 20.

Sentiment shifted on Nov. 17 after Fed Governor Christopher Waller said the central bank should consider cutting rates next month, arguing that “the labor market is still weak and near stall speed” and that inflation is now “relatively close” to the Fed’s 2% target.

Prediction markets expand as demand surges

Prediction markets, such as Kalshi and Polymarket, which enable bettors to wager on the outcomes of real-world events, have expanded their reach and influence this year.

On Nov. 13, Polymarket inked a multi-year agreement with TKO Group Holdings to serve as the official prediction-market partner for the Ultimate Fighting Championships and Zuffa Boxing. The partnership came shortly after it partnered with North American fantasy sports operator PrizePicks.

The same month, Kalshi raised $1 billion from Sequoia Capital and CapitalG, pushing its valuation to $11 billion, according to a TechCrunch report citing a person familiar with the deal. The new round followed a $300 million raise in October.

On Nov. 19, rumors emerged that Coinbase is developing its own prediction-market platform after tech researcher Jane Manchun Wong posted screenshots of an unreleased site. Wong’s images indicated the product would be offered through Coinbase Financial Markets and backed by Kalshi.

On Wednesday, Robinhood said prediction markets have quickly become one of its fastest-growing revenue drivers, with more than one million users trading nine billion contracts since the product launched in March through a partnership with Kalshi.

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