The UK Government’s 2025 Spending Review, published last week, sets out spending plans through 2028. While it reaffirms high-level commitments to Net Zero and economic stability, environmental groups warn that the Review fails to match ambition with the funding needed to deliver meaningful environmental progress.
DEFRA faces budget cuts
The Department for Environment, Food and Rural Affairs (Defra) will see a real-terms cut to its core funding. Although exact figures vary depending on how inflation is accounted for, reports suggest Defra’s budget will shrink by up to 10% by 2028.
This reduction could limit the department’s ability to enforce environmental protections, manage land use, and deliver on key policies like the Environmental Land Management Schemes (ELMs) and biodiversity net gain.
Commitment to farming, but uncertainty around delivery
In a separate blog post, Defra reaffirmed its commitment to support farmers delivering environmental outcomes. However, it gave little detail on how funding would scale to meet ambitious climate and biodiversity targets, especially under tightened fiscal conditions. Stakeholders have expressed concern that this may impact the delivery of sustainable farming schemes.
Mixed signals on climate and energy
The Spending Review maintains existing commitments to Net Zero and energy security, including support for offshore wind, nuclear, and grid infrastructure. However, the lack of new investment in home insulation, heat pumps, and public transport suggests a plateau in ambition.
According to Carbon Brief, the review confirms previously announced support for clean energy transition, but offers no major new funding to accelerate decarbonisation across housing or transport sectors, which are two of the UK’s highest-emitting areas.
Green Alliance: review falls short on long-term environmental goals
A briefing by think tank Green Alliance notes that while the government maintained core climate funding, it failed to provide the step-change in investment needed to meet environmental targets. They argue that capital allocations were not aligned with long-term environmental resilience, particularly in areas such as nature recovery, pollution control, and green jobs.
Waste and recycling: progress at risk
Circular Online reported that local authorities fear the cuts to Defra will delay the rollout of waste reforms, including extended producer responsibility (EPR) and consistent recycling collections. Councils are expected to take on greater responsibilities, but with fewer resources to deliver change.
Conclusion
The 2025 Spending Review reinforces some existing environmental commitments but lacks the fresh investment and clarity needed to accelerate progress. With Defra facing real-terms cuts and no major new funding for key sectors like housing, transport, and nature restoration, there are legitimate concerns that the UK risks falling short of its climate and biodiversity goals. While the rhetoric of sustainability remains, the resources to deliver it appear increasingly constrained.
