‘The new Chancellor can define a new economics, with nature at its core’

As the UK gets a slight reprieve from the latest summer heatwave, the new Prime Minister is starting his first days on the job staring headfirst into an alarming future for our climate and nature. But what he and his new Chancellor must not forget is that this is as much an economic problem as an environmental one.

June’s heatwave is estimated to have cost the UK £2.36bn in lost output. Environmental degradation could lead to a 6% reduction in GDP by 2030. Yet despite these stark warnings, and our sweltering cities and burning landscapes, we are continuing to spend down one of our most important economic assets, our natural capital. A £1.625 trillion (ONS) asset that could provide the lasting solutions we need.

From peatlands and wetlands that reduce flood risk and store carbon, to urban green spaces that cool our towns and cities, nature gives us the resilience and relief that we need to adapt. It is national infrastructure – equally as important as transport, housing and energy, and it requires vital investment in the same way.

READ MORE: Climate change is no longer tomorrow’s problem

Currently the UK faces a shortfall of £5-6billion a year over 10 years to achieve its nature priorities – a timeline that aligns closely with the ten-year plan Andy Burnham promised to deliver later this year when he spoke outside Downing Street on Monday.

Nature is a no brainer for investment. Back in 2021, Partha Dasgupta’s treasury-commissioned review set out the unequivocal value of our natural world. Multiple studies have built on this. Most recently research commissioned by the RSPB, found that plugging the £5-6bn per year investment gap would support an incredible £80bn of economic output over the next decade and create 80,000 long-term, skilled and productive jobs, many of which would be in communities currently with lower employment opportunities – growth in every postcode.

The wider impacts on society are also immeasurable. Increased public health and wellbeing through more and more equal access to nature, improved air quality, clean water, natural flood management, better places to live, wealth, improved national security, I could go on.  Nature is so often the answer, wholly or in part, to many of the challenges facing our society today. Overall, £59bn of nature recovery investment could generate £236bn to £1tn of wider value for society. These are numbers it would be foolish to ignore.

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Aside from the economics, we also know people care deeply about nature. 43% of British people are more likely to vote for a party that prioritises nature conservation – across our political divides. Over 7 million people are members of nature conservation charities like the RSPB. Nature can give growth in every postcode AND hope in every heart.

Every Chancellor inherits economic challenges. This Labour Chancellor also inherits a rapidly changing climate, depleted natural assets and growing pressure to build a more resilient economy.

As John Healey steps up, he must redefine what economic resilience looks like in the 21st century. He has the opportunity to shape a distinct new model of economic growth with nature at its core. A bold legacy for this Labour government, as well as communities across the UK and the vulnerable wildlife we all value so much. 

For too long nature has not been a priority, but investing in nature now is investing in all our futures. And by doing so, it will deliver a more equal, fair and prosperous country.

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