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UK FACT CHECK POLITICS
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From: Budget 2026 live: Latest updates, analysis and fact checks

Hydrogen cluster backers question viability after Budget drops levy support

Backers of the UK's two in-development hydrogen clusters are assessing whether their projects remain viable, Utility Week reports.

According to Utility Week, the Budget said support for planned hydrogen transport and storage networks through the Gas Shipper Obligation (GSO) levy will no longer be introduced. Support will instead come from government funding. Utility Week's report does not say how much government funding will replace the levy.

Cluster representatives described the change as "disappointing" and "a blow", and said hydrogen may never reach scale in the UK, the trade publication reports.

Dr Angela Needle, director of strategy at Cadent, a member of the HyNet consortium, called the decision "disappointing".

The detail of the change has not been independently checked against the Budget documents.

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