4 Policy decisions 4.1 This chapter sets out all of the policy decisions announced as part of the Growth Plan 2022. 4.2 For measures that are not UK-wide, funding for the devolved administrations will be determined through the normal operation of the Barnett formula and Block Grant Adjustments. It is for the devolved administrations to decide how to spend any additional funding on priorities in Scotland, Wales and Northern Ireland. 4.3 Table 4.1 shows the current estimated direct costs in 2022-23 of the schemes the 1 government has announced to support households and businesses with the cost of energy. The costs of this policy are highly uncertain, particularly in 2023-24 and 2024-25, as they are sensitive to volatile future energy prices. The costs will also be impacted by the wider action the government plans to take to help reduce energy costs. As a result, costings are shown for 2022-23 only at this stage. The costings do not include any estimate of the positive fiscal benefits that would result from the impact of these policies on the economy. More detailed costings and an assessment of their impact on the economy will be included in the next Office for Budget Responsibility (OBR) forecast. Table 4.1: The Growth Plan 2022 energy package (£ million) Head 2022-23 Tackling energy prices1 1 Energy Price Guarantee: support for households through a cap on the unit rate of electricity Spend -31,000 and gas bringing average household energy bills to £2,500 2 Energy Bill Relief Scheme: support for businesses for a six month period Spend -29,000 1 Costings are based on market prices taken from the ten workings days between 29 August and 12 September, after also taking green levies off of bills. 4.4 Table 4.2 sets out provisional costings for the policies announced in the Growth Plan. The costings take account of the direct behavioural response expected to result from the measures, where appropriate. For instance, cancelling the increase in the rate of Corporation Tax is expected to result in companies shifting less profit overseas, and the costing takes account of the additional revenue that results from this. Unless stated otherwise, the costings have been produced using the OBR’s economic forecast from the Spring Statement 2022, as this is the latest available official forecast. These costings will be finalised and accounted for in the public finances at the next OBR forecast. It should be noted that for some policies, for instance Investment Zones, full details on implementation are yet to be determined meaning that it is not possible to publish a costing at this stage. Such policies will be included in the public finances at a future OBR forecast, once there is sufficient certainty about their implementation. 1 Energy bills support factsheet, September 2022 The Growth Plan 2022 25