London Daily

Focus on the big picture.
Wednesday, Nov 04, 2026

Rishi Sunak’s budget is gambling with the climate crisis

Rishi Sunak’s budget is gambling with the climate crisis

Analysis: No serious investment in UK’s green future means chancellor is hoping market will deliver
In failing to make any serious new government investment in the UK’s green future, Rishi Sunak has chosen to gamble that the market will deliver instead. That is a very high-stakes bet in the face of a climate emergency.

Four days before the UK hosts the crucial Cop26 climate summit, the virtual absence of the climate crisis from Sunak’s budget speech was startling. The most eye-catching announcement was the halving of taxes on domestic flights, which are already far cheaper and more polluting than trains.

Sunak appeared to splash the cash for public transport in the UK’s city regions. But only £1.5bn turned out to be new money. The Green Alliance estimates £7.6bn a year is needed. Meanwhile, he announced £21bn for roads and a freezing of the duty on fossil fuels used by cars for the 12th year in a row.

It could have been different. “This government chooses to invest” in a high-wage, hi-tech “economy fit for a new age of optimism”, said Sunak in his budget speech. He just wasn’t talking about the low-carbon economy.

The UK government set out its net zero strategy last week. “Clearly, it’s a very market-led strategy,” said Chris Stark, head of the Climate Change Committee (CCC), the government’s official advisers. “We shall see how that fares.”

Cutting emissions from homes is vital, but Sunak will part-subsidise just 30,000 heat pumps a year for three years. Will that get us to the government’s 600,000 a year in just six years’ time? Not many would take that wager, with the Green Alliance estimating funding needs to be three times higher.

The government’s previous flutters on energy efficiency have been also-rans. The recent green homes grant was botched, according to the Public Accounts Committee. The earlier green deal also failed, despite clear prior warnings. “We think there is a significant risk in leaving it to the market, as that has never worked anywhere in the world and is unlikely to happen in the UK,” said Stark’s predecessor way back in 2011.

One big punt Sunak is taking with taxpayers’ money is on a new nuclear power station, to be seeded with “up to £1.7bn of new direct government funding”. Energy bill payers will also pay upfront for the power plant, described as “writing a blank cheque that the consumer is on the hook for” by the BBC’s business editor.

But nuclear power stations have an appalling record of delays and ballooning costs. In 2017, two nuclear power plants in South Carolina, funded by energy bill payers in a similar way, were abandoned, half-built, with billions of dollars down the drain.

The cut in domestic air passenger duty follows the net zero strategy having nothing to say on curbing the growth of flying or reducing the amount of meat and dairy people eat. Ignoring these areas is another gamble, making hitting climate targets “more difficult and riskier”, the CCC said.

“The recent net zero strategy was seen as a big step forward, but if the chancellor really wants to get the UK on track to net zero, an extra £21bn a year in public investment is needed,” said Sam Alvis, of the Green Alliance. The government has provided about half that but says it will leverage new private investments of up to £90bn by 2030.

The Labour party has pledged £280bn of green capital investment by 2030, equivalent to half the defence budget, and by far the party’s biggest spending pledge.

There is always an argument to be had about the relative roles of the state and private sector in investment. Sunak railed against “reckless unfunded pledges” on Wednesday and said “governments should have limits”. But Alvis said: “The fiscally responsible approach is to invest now rather than facing huge risks to the economy and environment later.”

Four days from the most important global climate summit in history, Sunak mentioned Cop26 just once in passing. On Tuesday, economist Prof Nicholas Stern said: “The move to net zero [emissions] can be the growth story of the 21st century.”

Missing this economic opportunity by playing roulette with climate action is shooting ourselves in the foot. But risking the catastrophic impacts of global heating means Sunak is playing Russian roulette – we may be shooting ourselves in the head.
Newsletter

Related Articles

0:00
0:00
Close
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
National Health Service Digital Reports Major Breakthrough in Reducing Elective Waiting Lists Across England
Chancellor Rachel Reeves Outlines Infrastructure Spending Reforms to Boost Regional Economic Growth Across Northern England
Bank of England Holds Baseline Interest Rate at Five Percent Amid Persistent Core Inflation Pressures
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
Treasury Officials Review Taxation Frameworks and Capital Gains Rules Ahead of Autumn Budget Disclosures
National Health Service Leaders Warn of Winter Capacity Pressures Across Acute Care Facilities
Bank of England Prepares for Key Interest Rate Decision Amid Sticky Inflation and Fiscal Policy Pressures
Home Office Expands Border Security Operations and Intelligence Sharing With European Partners
Office for National Statistics Reports Modest Retail Sales Growth Ahead of Crucial Christmas Trading Season
Welsh Government Unveils Strategic Plan to Boost Regional Technology Innovation and Digital Skills Training
Department for Environment Food and Rural Affairs Implements New Agricultural Subsidies Framework for English Farmers
Scottish First Minister John Swinney Announces Major Regional Infrastructure and Green Energy Investment Strategy
National Health Service Leaders Warn of Severe Winter Pressures and Mounting Accident and Emergency Backlogs
Bank of England Monetary Policy Committee Signals Cautious Interest Rate Path Amid Persistent Services Inflation
Chancellor of the Exchequer Rachel Reeves Finalizes Autumn Budget Framework Aiming to Close Public Sector Fiscal Gap
Department for Science, Innovation and Technology Prepares Enhanced Artificial Intelligence Safety and Cyber Defense Frameworks
United Kingdom Government Expands International Sanctions Framework Against Russian Shadow Fleet and Financial Enablers
Institute of Directors Reports Sharp Post-Budget Drop in Business Confidence Despite Long-Term Investment Intention Shifts
Chancellor John Healey Defends Sweeping Fiscal Adjustments and Household Support Packages Following Autumn Budget
Parliamentary Petitions Committee Schedules Major Legislative Debates on Special Educational Needs and Non-Stun Meat Labelling
Regional Devolution and Good Growth Fund Frameworks Reshape Local Government Funding Across English Regions
×