Recommendation 64

At present, the impact of Government policies and projects on nature is not adequately factored into spending decisions. As a result, the Government is not on track to meet its nature recovery goals. On aggregate, HM Treasury and other departments spending decisions must support not undermine the realisation of the Government’s environmental goals and legal commitments. The Treasury has tried to prioritise the environment better in spending decisions through updating its Green Book guidance on evaluating projects. Through the Treasury’s Net Zero Review, its continuing response to the Dasgupta Review and new guidance on the valuation of biodiversity, the Treasury aims to integrate climate and environmental considerations further into spending decisions. At present, departments are not doing this consistently and environmental considerations are not embedded in the spending review process. The Government’s £27 billion road-building programme is an example of the type of policy decision likely to conflict with goals on nature recovery. Contrary to this Committee’s recommendations, when making policy on spending, taxation and the allocation of resources, Ministers do not have to apply the Environmental Principles. To achieve the transformational change necessary to address biodiversity loss, nature must be considered to ensure the best balance in policy-and decision making. Failure to do so will mean we continue to over-exploit nature, to the detriment of the natural world and ourselves.