Problems ahead for DECC?

Our analysis of the impact of spending reductions
Problems ahead for DECC?
Our 2015 report, What new spending reductions could mean for DECC, analysed the impact of proposed departmental spending reductions on the government’s ability to deliver planned energy reforms and climate policy.

Our research revealed how large historic liabilities from the nuclear and coal industries, a commitment to protect capital expenditure and the 'roller coaster' effect of applying spending reductions early on in the parliament could have reduced the then Department for Energy and Climate Change's (DECC's) budget by half by 2017-18; and its resource budget, which paid for programmes and staff, by 90 per cent by 2018-19.

These reductions would have had a major impact on DECC staffing, innovation research and energy efficiency spending. Our analysis also highlighted that reducing spending on staffing and innovation could also raise energy costs to consumers, by making it harder for government to negotiate good deals for back up capacity, low carbon generation and other energy services.

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