High Interest Rates: £29bn Annual Increase in UK Energy Bills, but Green Transition Still Vital - Resolution Foundation
The Resolution Foundation report suggests that persistent high-interest rates could add approximately £29 billion annually to UK household energy bills by 2050, primarily due to increased borrowing costs for green energy infrastructure investments.
This is a result of the global trend of central banks raising interest rates to combat inflation following the easing of pandemic lockdowns and the Russian invasion of Ukraine.
A think tank is calling for a fourfold increase in investment in the UK's power sector to accelerate the country's green transition, despite the high costs of current energy.
The investment is necessary to decarbonize the economy, and the think tank suggests a plan to fund this investment if interest rates remain high.
The call for increased investment comes as some politicians push back against green policies due to perceived high costs.
Labour recently reduced its green investment plans due to concerns over borrowing costs and Conservative criticism.
However, the think tank argues that the savings from the green transition will still outweigh current energy costs.
The Resolution Foundation emphasizes the importance of the green transition, acknowledging the higher costs of investment.
The decarbonization of the power sector is crucial for addressing global heating and reducing Britain's dependence on unstable fossil fuel supplies, which could expose households to energy price shocks similar to those experienced after the Russian invasion.
A think tank is calling for a fourfold increase in investment in the UK's power sector to accelerate the country's green transition, despite the high costs of current energy.
The investment is necessary to decarbonize the economy, and the think tank suggests a plan to fund this investment if interest rates remain high.
The call for increased investment comes as some politicians push back against green policies due to perceived high costs.
Labour recently reduced its green investment plans due to concerns over borrowing costs and Conservative criticism.
However, the think tank argues that the savings from the green transition will still outweigh current energy costs.
The Resolution Foundation emphasizes the importance of the green transition, acknowledging the higher costs of investment.
The decarbonization of the power sector is crucial for addressing global heating and reducing Britain's dependence on unstable fossil fuel supplies, which could expose households to energy price shocks similar to those experienced after the Russian invasion.
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