Green finance body warns energy price surge could stoke inflation after Spring Statement

Oliver Dean | 6th March 2026 | Politics
Reeves boasted of a growth in fiscal headroom at the Spring Statement (Photo by Paul Grover - WPA Pool/Getty Images)
Reeves boasted of a growth in fiscal headroom at the Spring Statement (Photo by Paul Grover - WPA Pool/Getty Images)

UKSIF Chief warns that the Chancellor must double down on green energy, after energy prices surge because of conflict in the Middle East

The UK Sustainable Investment and Finance Association (UKSIF) has urged the government to maintain its commitment to clean energy investment following Chancellor Rachel Reeves's Spring Statement, warning that rising energy prices driven by conflict in the Middle East risk reigniting inflation. Delivering the Spring Statement on 3 March, Reeves pointed to falling inflation and lower borrowing costs as evidence that her economic plan was working. However, the backdrop was far from calm: the Office for Budget Responsibility (OBR) flagged that ongoing conflict in Iran could have significant impacts on global energy markets, while the OBR also trimmed its GDP growth forecast for 2026 from 1.4% to 1.1%. UKSIF chief executive James Alexander said the Chancellor was right to flag the inflationary threat posed by energy price volatility, but argued that the long-term solution lay in reducing the UK's dependence on imported fossil fuels. "Our dependency on imported fossil fuels has previously left households and businesses exposed to spiralling bills tied to the international energy markets," Alexander said. "Investment in clean energy infrastructure won't just help to insulate the UK from economic shocks but has the power to drive growth and create jobs throughout the country." Alexander called on the government to ensure the UK remains an attractive destination for green finance, warning that the right policy conditions must be in place to sustain investor confidence....

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