Last week’s Budget was designed to “fix the foundations of our economy”, but views on how it will help fix the environment are mixed. Defra’s overall funding will rise slightly in real terms, although its day-to-day budget will see a small decrease, with officials warning that farming and flood defence budgets face £600 million in “funding pressures.”

The Budget maintains farming spending at existing levels, around £5bn for England’s farming budget over two years, of which £1.8 billion will be used to bolster environmentally friendly farming. However, conservationists are warning of a “monumental gap” between current funding and what is needed to help nature.

Photo credit: Red Zepplin

Instead of payments based on land size as with the previous EU subsidy scheme, the Environmental Land Management Schemes (Elms) will fund nature-friendly farming practices and habitat creation. An additional £400 million is earmarked for tree planting and peatland restoration.

Reeves also announced the windfall tax on North Sea oil and gas producers will increase to 38% from 35% and the levy will be extended by one year. This takes the headline tax rate on oil and gas activities to 78%, among the highest in the world. Additionally, air passenger duty will increase by up to £2 for each economy short-haul flight, and private jets will face an extra 50% fee, up to £450 per passenger for a flight.