As a continuity budget, with relatively small changes, the Chancellor’s emphasis was on energy reform and incremental measures. Electrical businesses will be pleased with the continuing commitment to the electrification of the UK and the offer of some respite from increasing costs,  including the extension of the fuel duty freeze for a further nine months.  

The Electrical Contractors' Association (ECA) also welcomes the £500 million backing for AI safety and security, support for sovereign AI, and the new Data Centre Covenant. ECA Member businesses are critical to delivering the electrical systems that underpin data centres and other critical infrastructure.

For family-owned electrical contracting firms inheritance tax is a key concern. Changes to the IHT system, announced today and which ECA has pressed for,  will make it easier for owners to pass viable businesses on to the next generation, safeguarding business continuity, jobs and investment. 

ECA has long campaigned for lower electricity costs to bring the UK closer to our European neighbours and bringing gas and electricity bills to parity.  

Jane Dawson, ECA’s Head of External Affairs said:

“The budget announcements reforming standing charges on energy bills is welcome. But we need clarity on when in 2027 domestic electricity levy changes will match the changes to gas pricing announced today, and which businesses will qualify for the proposed 25% reduction in electricity costs.” 

The Good Growth Funds and devolution of tax revenues are expected to offer local opportunities for businesses. However, there are many questions about how fiscal devolution will work in practice, what that means for electrical firms in different areas, and how contractors operating across local boundaries will be treated.  

Look out for ECA’s further analysis assessing the full impact on Electrical Contracting firms.