Chancellor John Healey has announced a “new course on energy” for the UK, focused on keeping bills low amid the global crisis triggered by war in the Middle East.

As he laid out his first budget, Healey said the Labour government would still prioritise the expansion of clean power and remain “unshakably committed to net-zero”.

The budget sets out what the chancellor calls a “radical reform of energy”, including a longer-term effort to “break the grip of gas on bills”.

There are also a variety of short-term measures to curb energy bills, including a council-tax rebate and the removal of the gas “standing charge”, though these fell far short of pre-budget calls to tackle high prices.

Moreover, in order to fund defence spending, the government is cutting £1bn from its “warm homes plan” and £700m from hydrogen and carbon capture and storage (CCS) projects.

The budget also appears to cut up to another £4.7bn from the warm homes plan – as well as ending zero-rated VAT for solar panels and extending a “temporary” 5p cut in fuel duty.

Finally, the government set out plans to ensure new data centres meet strict environmental regulations, while leaving the door open to on-site fossil-fuel power generation.

Below, Carbon Brief runs through the key climate- and energy-focused announcements from the budget.

Conflict in the Middle East has driven up energy bills for people in the UK, as the global trade in oil and gas has been thrown into disarray.

In this context, the new budget sets out a “shift in the government’s approach to energy”, focusing on “cheaper energy” as the main priority.

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