Brown's Green Budget

The Chancellor stressed the need to tackle climate change with the introduction of measures including an additional £50m to fund micro-generation and subsidised insulation for 250,000 homes and £50m to fit schools and hospitals with solar panels and wind turbines.

Michael Ankers, chief executive of the Construction Products Association, welcomed the environmental theme but stressed that the measures "fall far short of what the Association believes is necessary".

Ankers said the CPA wanted the government to develop a clear long-term strategy for making the existing building stock more energy efficient, including encouraging householders to upgrade their heating boilers.

A new National Institute of Energy Technology will be created in partnership with oil and energy companies to provide £1bn of research into low carbon and secure energy sources.

The Construction Industry Council welcomed the focus on Britain becoming a world leader in the development of low carbon technologies and in the development of new sources of energy, but in a statement said "the rhetoric does not appear to be matched by sufficient funds, which appear to be pitifully low".

The CIC also said that £50m funding for micro-generation would not go far "as there is much to be done in the area".

The Renewable Energy Association welcomed the £50m boost for micro-renewables. Seb Berry, the REA's head of micro renewables said: "The new money nearly trebles the amount of government support available for capital grants under the DTI's new Low Carbon Buildings Programme".

Other green measures include an increase in the climate Change Levy in line with inflation from 1 April 2007, a continuation in the increase in landfill tax, £5m allocated for "smart" metering and a promised consultation on carbon capture technology to store CO2 for power stations.