Lack of focus on "green growth" in the UK Government's Spring Statement

26th March 2025

With the UK Government placing planning reform at the centre of efforts to grow the economy, IEMA questioned the lack of focus on green growth.

Martin Baxter, Deputy CEO at IEMA said: “The government campaigned at the 2024 election on a growth ticket, yet key economic analysis suggests that the UK is some way off realising this.

“There is a fantastic opportunity for government to embrace the benefits of investing in the green economy, rather than positioning the environment as a barrier to growth. Recent analysis published by the CBI showed that the net zero sector grew faster that the rest of the UK economy and that jobs supported by net zero businesses were 38% more productive than the UK average.  

“Net zero, nature restoration and the circular economy are all areas in which policy and investment gaps remain and the headlines from the Chancellor's Spring Statement have done very little to address this.

“Rather, the Chancellor's comments on the government's planning reforms have simply compounded fears that the natural environment will suffer as a consequence. This is enormously frustrating as we know that we can deliver both the housing and infrastructure that we need, whilst restoring and enhancing nature at the same time.

“Economic growth can be green growth with the right policy and investment, yet we now approach the comprehensive spending review in June with much trepidation.”

Image: Chancellor of the Exchequer Rachel Reeves leaving 11 Downing Street, London, for the House of Commons to deliver her spring statement to MPs. Stefan Rousseau/PA Wire