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Skidmore report requests local authority net zero support

Author: ICAEW Insights

Published: 19 Oct 2023

After the UK government scaled back key green policies, a new report makes recommendations on how it can give agency to local authorities to help deliver net zero.

The government’s Independent Review of Net Zero, published in January this year by former Energy Minister Chris Skidmore, was clear that local delivery of net zero is of paramount importance for the UK to achieve its net zero targets. Now a follow-up report highlights the continued challenges facing the local delivery of net zero, but presents a framework for ensuring local authorities and regions have the certainty to achieve their net zero ambitions.

To help accelerate the UK’s journey to a net zero future, Skidmore, together with Lord Ben Houchen, the Mayor for Tees Valley, established the Local Mission Zero Network, which gauged the views of a range of public and private sector organisations and individuals to create this latest The Future is Local report.

Recognising that a staggering 85% of UK emissions fall within the sphere of local influence, it highlights the need to empower local decision-making in the nation’s climate action and presents practical policy recommendations to ensure that local authorities and regions have the tools and support needed to realise their net zero ambitions.

To facilitate the transition to net zero emissions, the report calls on the establishment of frameworks and funding mechanisms that empower local authorities and councils to accelerate their climate action plans.

The Future is Local puts forward 31 recommendations organised under five overarching themes. Headline recommendations include the introduction of a local net zero charter, calls to simplify and enhance net zero funding, and the need for an urgent review of the National Planning Policy Framework (NPPF) in 2023.

A local net zero charter

The local net zero charter would establish a clear set of standards and commitments for local authorities. It would serve as a manifesto for local net zero action, underlining how local authorities plan to meet their net zero goals and how the UK government can support their endeavours. By adopting this charter, local authorities can reiterate their commitment to prioritising net zero locally and call on the government to catalyse local action further.

Funding local net zero

The report acknowledges that communities and local authorities often lack the resources needed to execute ambitious climate action plans. It highlights the value of “technical assistance” programmes, which provide funds to establish local energy teams. These teams have demonstrated their ability to deliver successful investment programmes, leading to significant returns on investment.

The report also has the complex funding landscape for local net zero delivery in its sights. The need for greater simplicity and coordination of funding was also highlighted by the National Audit Office in its Local Government and Net Zero report, which stated that there were 22 grant funds related to net zero totalling around £1.2bn but with vastly unequal distribution to local authorities.

To simplify the funding landscape, the report suggests consolidating different funding pots; there are eight related to retrofitting alone. It recommends that next month’s spending review should seek to establish a consolidated Local Net Zero Fund. This fund should be “both long-term and agile, coordinate across departments and be non-competitive, while at the same time allowing local authorities greater lead-in times to apply for funding, and a longer time scale in which to deliver outcomes”.

Aligning the National Planning Policy Framework with net zero

The National Planning Policy Framework (NPPF) sets out the government’s planning policies for England. However, recent research commissioned by the Climate Change Committee (CCC) indicates that the current NPPF does not sufficiently prioritise the essential objectives of net zero and climate adaptation goals, a concern highlighted by the report.

The government has committed to reviewing the NPPF to ensure it contributes fully to mitigation and adaptation. This alignment will be critical to ensuring that planning decisions prioritise climate action with the urgency required to meet net zero goals.

As the world continues its fight against climate change, the practical guidance for local authorities contained within The Future is Local report is a reminder that meaningful climate action begins at the local level, and empowering local decision-making is central to the UK's journey towards a greener, more sustainable future.

Richard Spencer, ICAEW Director for Sustainability, fully supports the recommendations in this report. He believes all levels of government have an important role to play in ensuring a just, nature-positive transition to net zero.

“We have repeatedly been calling for a coherent transition plan that is supported by stable, long-term funding. We fully support the report’s call for greater certainty, consistency and clarity. We have had numerous government reports and analysis over the past few years and the OBR has made it crystal clear that inaction will be most costly in the long term. It is time for action now,” Spencer says.

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