The UK’s environmental sector is bracing for significant financial constraints as upcoming budget cuts to the Department for Environment, Food, and Rural Affairs (Defra) loom large.
Environment Secretary Steve Reed urged farmers and conservationists to adapt, highlighting that they would need to “learn to do more with less” as the government grapples with what he described as a “difficult” fiscal environment.
Speaking at the COP16 climate summit in Colombia ahead of the Chancellor’s budget statement, Reed assured attendees that Defra’s flagship Environment Land Management Scheme (ELMS) — which incentivizes nature-friendly farming practices — would continue despite anticipated reductions in funding. This scheme, seen as a “world-leading” initiative, compensates farmers for establishing wildlife habitats and contributing to biodiversity preservation.
However, the overarching message was one of caution. Reed stressed the need for “efficiency and effectiveness” across environmental projects as the government faces a tight fiscal landscape.
Addressing the conference, he emphasized, “The Prime Minister and chancellor have been very clear this is going to be a difficult budget, right across the board.” His remarks are reflective of a larger fiscal tightening that has been exacerbated by rising costs and other pressures on public finances.
Nature and Development
One of the key components of the government’s strategy is the biodiversity net gain (BNG) initiative, which mandates that new building projects demonstrate a 10% net increase in natural habitat or biodiversity as part of their approval.
Reed highlighted that anticipated growth in housing development would contribute valuable revenue to Defra’s coffers through BNG, though he conceded that environmental priorities could face pressure as resources are reallocated.
A significant point of Reed’s address was his commitment to introducing a land-use framework to optimize food security and biodiversity goals.
By employing a holistic approach, the government aims to balance the UK’s limited land resources to achieve sustainable agricultural practices, protect nature, and secure food supplies for a growing population.
This initiative, Reed noted, would involve public consultation and reflect a commitment to the UN’s “30 by 30” target — a global goal to protect 30% of land and sea by 2030, marking a renewed focus on biodiversity conservation.
“The UK is one of the most nature-depleted countries in the world,” Reed remarked. “Nature underpins everything … the economy, health, food, and society as we know it.” He warned that current practices leave the country as an “outlier” in biodiversity conservation, signaling a call to action.
Cuts Hit Home for Nature Conservation
Historical data shows that Defra has borne significant budget reductions in past years, with its budget shrinking by 45% in real terms from 2009/10 to 2018/19. Reports indicate that nature and flood protection initiatives are particularly vulnerable in this round of cuts.
Reed’s response, however, emphasized that ELMS will remain a critical tool, which he described as the government’s “main lever” for supporting biodiversity.
The consultation on land use is expected to foster a balanced strategy, ensuring that both food security and environmental targets are met. “We have a relatively small amount of land for the size of our population,” Reed explained. “We will be publishing the land-use framework initially as a consultation document, but it will be looking at how we balance the many different demands that we make of our land.”
Defra’s ambitious agenda seeks to align private sector support and community input in safeguarding the environment. The government’s commitment to the UN’s biodiversity agreement underpins this strategy, Reed affirmed, framing it as an essential step to reverse the UK’s declining natural resources.
Despite the uncertainty surrounding the budget, Reed’s speech conveyed determination. By restructuring land use and prioritizing essential projects, he expressed confidence that the UK could meet its “30 by 30” targets. “By being much more explicit within the framework about how we’re going to ensure we meet all of our objectives, including nature’s recovery, we have a much better chance of achieving it.”
While the specifics of the chancellor’s budget are yet to be revealed, Reed’s remarks suggest an approach to environmental policy that, while tempered by financial constraints, aims to retain focus on critical initiatives.
READ ALSO: CalBank and NewGold ETF Among Top Movers on GSE as Market Opens
