National Grid
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of Full Expensing on private investment in national significant grid infrastructure.
Answered by Dan Tomlinson
The government is working with delivery partners to speed up delivery of network infrastructure and increase grid capacity through reforms to planning, support for communities and strategic network design.
Ofgem is responsible for incentivising investment in electricity networks to achieve government strategic priorities, whilst ensuring it delivers value to consumers. Ofgem anticipates £71bn of investment in GB's electricity transmission networks between 2026-2031 as part of their RIIO-ET3 price control.
Whilst the government does not publish forecasts for specific investments or industries, in their November 2023 Economic and Fiscal outlook, the OBR estimated that the move to Permanent Full Expensing will add 0.2 percent to capital stock and generate a net additional £13.9 billion in cumulative real business investment up to 2028-29.
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