Recommendation 66

The Government has the opportunity to create a fiscal framework focused on delivering well-being, sustainability and economic stability. The current fiscal rules focus on managing the budget, public sector investment and debt. There is scope to extend this so balancing our demands on nature with nature’s capacity to meet these demands, becomes central to government’s economic objectives. This can help to deliver a stable economy in the long-term which is resilient to nature- related financial risks. The Treasury has not stress tested the 2021 Budget and 2020 Spending Review against net zero or nature goals. Without sustainability tests on spending decisions, we risk moving further away from realising environmental targets.