Select committee: Public Accounts Committee

Recommendation 16

22nd Report - Government’s support for biomass Published 25 Apr 2025 Addressed to HM Treasury
Recommendation (the committee's words)
DESNZ noted that global biomass prices would strongly influence how significant a role biomass would play and in what sectors, given that there are several areas in which it can be used.45 Higher biomass prices could encourage a growth in domestic production, but this could reduce the amount of land available for food production in the UK.46 The Department for Environment, Food & Rural Affairs is currently consulting on this issue in advance of producing a ‘land use framework’. which will look at how to reduce the risk of competition between biomass production and food production.47 For example, the government has committed to at least maintain current levels of UK food production and to achieve a degree of reforestation by 2050, both of which will reduce land availability for growing biomass feedstocks.48 We heard from stakeholders that there is a need for a more pragmatic approach to promoting domestic biomass production and that biomass can be cultivated on marginal land that is not used for food production.49

From: Public Accounts Committee, 22nd Report - Government’s support for biomass (HC 715), 25 April 2025

Government response

Latest Treasury Minutes progress report to the Committee of Public Accounts on the Twenty-second Report of Session 2024-26

The government responded to the whole report on 4 June 2026.

Read the government's response ↗ Report an error

Treasury minutes: Government response to the Committee of Public Accounts on the Twenty-second report from Session 2024-25

Published 10 July 2025.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government agrees with most of the Committee's recommendations on biomass, with target implementation dates between autumn 2025 and spring 2027, but disagrees on adding BECCS transition clauses to the Drax contract and says the KPMG reports are not a matter for it.

  • On assessing its sustainability assurance approach, the government agrees, with a target date of autumn 2025, and says it is reflecting on evaluation and audit processes for the new Drax contract. It states the Ofgem investigation is evidence "the current assurance regime is working well".
  • On a new oversight regime, the government agrees (target December 2025) and is "considering options to publish" its sustainability enforcement plans under the new Drax contract. It says any additional Ofgem oversight responsibilities "must be considered in the round".
  • The government disagrees with adding clauses to the transitional support agreement to prompt Drax to transition to BECCS. It says such requirements would expose the government to "an unacceptable level of legal risk" until a full assessment of power BECCS is finalised.
  • On the KPMG reports, the government says "This is not a matter for the government to consider", as the reports remain Drax's property and it is for Drax to decide whether to release them.

Read the government's response ↗ Report an error