Ceres Power surges on Budget hydrogen mention
Shares in green hydrogen electrochemical specialist Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) jumped 8% to top the FTSE 350 leaderboard after the Autumn Budget announcement.
Chancellor Rachel Reeves said the UK’s clean energy sector will benefit from £3.9 billion of funding in 2025‑26.
The statement made mention of funding for carbon capture, usage and storage projects and for 11 new green hydrogen projects – though the wording was unclear
The government has also confirmed support for the first round of electrolytic hydrogen production contracts, with two electrolytic hydrogen projects in Scotland, in Cromarthy and Whitellee, and two in Wales, in Milford Haven and Bridgend.
Another £2.7 billion of funding was provided to continue the development of the Sizewell C nuclear plant through 2025-26, with the equity and debt raise process for this project shortly due to conclude in the spring.
There was £125 million funding the next tax year for Great British Energy, which will be headquartered in Aberdeen.
The Treasury also said the government is working with the new National Energy System Operator and regulator Ofgem to develop a robust grid connection process.
Ondo InsurTech PLC (LSE:ONDO) CEO Craig Foster joined Steve Darling from Proactive to share news the company has has ramped up production capacity for its LeakBot devices at its UK contract manufacturing facility in response to surging demand, especially in the U.S. market.
LeakBot, the company’s signature claims-prevention technology for home insurers, addresses water damage claims by detecting and preventing leaks before they escalate. Foster shared with Proactive that Ondo is in advanced discussions with several major U.S. insurance companies regarding new contracts and significant expansions of current partnerships, with further updates expected soon.
To support this demand, Ondo is investing in a second dedicated production line at its manufacturing partner, Asteelflash, in Bedford, England, quadrupling its output capacity from 10,000 to 40,000 units per month. This expansion is expected to align production with the anticipated rise in demand from the U.S.
Reactions to Reeves’ Budget from the hospitality industry have not been overly positive.
While she declared a 1.7% cut to the duty on draft alcoholic beverages and a semi-continuation of business rates relief, increases to employers’ National Insurance Contributions (NICs) and the minimum wage at 1.2 percentage points and 6.7% respectively will do a lot of work in offsetting the good contents of the Budget.
For trade body UKHospitality, the Budget “is the latest blow for hospitality businesses”.
“Rising taxes, increasing costs and fragile consumer confidence risk bringing growth to a grinding halt.
“In the short-term, the tsunami of employment costs coming in April will ultimately do more to hamper growth than incentivise it.
Bradda Head Lithium Ltd (AIM:BHL, OTC:BHLIF, TSX-V:BHLI) has started reworking a new metallurgical particle sorting study on the composite samples collected in 2023 from San Domingo drill core using novel AI-based techniques.
The purpose of this new test-work plan, which builds on earlier metallurgical work in 2023, is to move Bradda Head closer to a potential production decision later in 2025, said the statement.
Canadian group ABH Engineering, an international leader in the scoping, design, and installation of mineral processing facilities for the mining industry, will supervise the study.
Its focus will be to increase mill feed grade, reduce product impurities and reject barren rock before it enters any milling process to reduce cut-off grades and increase potential profit.
Ian Stalker, executive chairman, stated:
“We’re excited to embark with this new AI-powered analysis which we believe will add to the positive gravity concentrate metallurgical results from 2023.
“We believe we’re on the path towards developing mineable resources at San Domingo, and these additional mineral and metallurgical results may well be pivotal towards unlocking the near-term value of this US-based pegmatite project.”
Huzzah, we can all look forward to a cheaper pint with the lads and ladies after Chancellor Reeves declared a 1.7% cut to the duty on draft alcoholic beverages.
That’s a roughly 1p-per-pint saving that publicans can, if they so wish, pass onto patrons.
There was semi-decent news for the sector with the continuation of business rates relief for the retail and hospitality sectors, albeit at a reduced 40% rate, down from 75% previously.
That is likely to be taken as a win for the sectors though, given the speculation that rates relief was going to be scrapped entirely.
Shares in pub chain JD Wetherspoon PLC (LSE:JDW) added 2%; Marston’s PLC (LSE:MARS) rallied nearly 6%; Mitchells & Butlers PLC (LSE:MAB) added 2.5% and Loungers PLC (AIM:LGRS) initially surged more than 3%, before much of the froth was removed as trading continued.
Don’t go running down to the nearest ‘Spoons too fast though, for while Reeves did giveth with one hand, she did taketh with the other.
Increases to employers’ National Insurance Contributions (NICs) and the minimum wage at 1.2 percentage points and 6.7% respectively will do a lot of work in offsetting the good contents of the Budget.
NICs went up, but at least NICs didn’t go up
More than half of Labour’s £40 billion tax grab will be funded by increases to National Insurance contributions (NICs).
Businesses themselves will see their NICs increase by 1.2 percentage points to 15% from April 2025, and the threshold for when employers begin paying NICs will also reduce from £9,100 to £5,000.,
The OBR suggested that it will increase employer payroll costs by just under 2%, though that is still an extra bill for Britain’s hospitality businesses to pay, and one which Labour will have a hard time selling to voters.
Especially since a debate over the semantics of Labour’s election pledge not to increase NICs has already erupted. Did this pledge only relate to employees’ NICs contributions, or the whole spectrum of NICs?
More importantly, there is the concern that employers’ higher NICs contributions will end up hitting workers anyway.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said:
“Heaping extra costs on employers, alongside a planned uplift in the minimum wage will likely result in lower wage increases over the longer term.
“This will impact people’s day-to-day spending as well as their ability to save for the future. We could also see employers look to restrict the wider benefits they offer due to increased costs.”
The latest blow
Going by the market reaction, the Budget was not the apocalypse some in the hospitality sector were expecting.
Pub chain JD Wetherspoon PLC (LSE:JDW) added 2%; Loungers PLC (AIM:LGRS) initially surged more than 3% (before coming back to 0.2%); Marston’s PLC (LSE:MARS) rallied nearly 6%; and Mitchells & Butlers PLC (LSE:MAB) added 2.5%.
But what about the little guys?
For trade body UKHospitality, the Budget “is the latest blow for hospitality businesses”.
“Rising taxes, increasing costs and fragile consumer confidence risk bringing growth to a grinding halt.
“In the short-term, the tsunami of employment costs coming in April will ultimately do more to hamper growth than incentivise it.
“Increases to employer NICs and wages will make it harder for businesses to support employment and invest in their businesses.
“Avoiding the business rates cliff-edge next April was critical and it was important that some relief has been extended. However, the reduced level of 40% is another cost that businesses have to deal with. For those small- and medium-sized operators, their rates bills will still go up in April.”
A £500mln increase
For Emma McClarkin, chief executive of the British Beer and Pub Association, “it is hard to see how this Budget will unlock growth and the critical investment needed to deliver it”.
“The cumulative impact of today’s announcement means a £500m increase to the cost of doing business for the industry putting pubs, brewers, investment and jobs at continued risk.”
McClarkin called on the government to “do more to comprehensibly back our sector that is so vital to the lifeblood of our communities economically and socially”.
In the meantime, patrons can do their bit by raising a 1p-cheaper pint at their nearest local.
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Ceres Power surges on Budget hydrogen mention, source
