There were also references back to Labour’s clean energy mission, including the significant investment that is to be made in carbon capture and storage (CCS) and 11 new green hydrogen projects, with the Chancellor also committing to increase the windfall tax on oil and gas profits to 38%.
Funding of £2bn for the automotive industry, primarily targeted at developing the electric vehicles market, was also announced, alongside reannouncements on establishing Great British Energy.
But overall, there were few specific interventions on climate and the natural environment in Rachel Reeve's carefully orchestrated speech.
Digging into the detail of the Budget documentation posted on HM Treasury's website shortly after the Chancellor sat down, there are some interesting points to note.
There is confirmation of £5 billion over two years to support the transition towards a more productive and environmentally sustainable agricultural sector in England and over £400 million of support for tree planting and peatland restoration.
The government will also invest £2.4 billion over two years in flood resilience to support the building of new flood defences alongside the maintenance of existing assets to protect communities.
Reports heading into the Budget had claimed that Defra were facing overall cuts of 20%.
However, the settlement outlined in the Budget detail provides total DEL funding of £7.5 billion in 2025-26 for Defra, which it says is the equivalent to an annual average real-terms growth rate of 2.7% from 2023-24 to 2025-26.
One thing is certain. We desperately need bold action and investment.
This extends into areas including nature restoration, biodiversity and circular economy. The government’s narrative around the poor finances that it inherited of course can’t be ignored, but we must not become fixated.
Not least, because we know that investing in green is compatible with economic growth. History tells us this. From 1990 GDP grew by approximately 40%, whereas during the same period GHG emissions fell by 47%.
Regardless of what was or wasn’t in the Budget today, we can and must get on with the job at hand.
The government’s decision to review the Environmental Improvement Plan (EIP) – the overarching strategy for protecting and enhancing the environment over the long-term – is the right one.
The EIP has been failing since its introduction in early 2023. Engaging business is key to reigniting it, with many IEMA corporate partners, for example, reporting a lack of awareness or understanding in terms of how they can act.
Underpinning the delivery of the EIP is of course the need to have in place the pipeline of green skills and jobs. The establishment of Skills England was included in the Budget announcement, but there was nothing substantial in relation to green skills and jobs, and the need for a cross-sectoral approach.
On Monday I’ll be hosting a webinar to dissect the implications of Budget for the UK’s long-term climate and environmental goals. I’ll be joined by Zachary Leather, Economist, Resolution Foundation and Holly Brazier Tope, Head of Politics, Green Alliance. For more information and to register please visit here.
IEMA’s representation for the Budget can also be accessed here.
