MPs have launched a new inquiry into whether Treasury fiscal rules are holding back investment in climate action and environmental protection.
The cross party Environmental Audit Committee will examine how decisions taken at the centre of government shape the UK’s approach to net zero, nature loss and sustainability and whether current policy is aligned with legal environmental targets.
The focus is on whether the Treasury treats climate and nature as economic risks and growth opportunities or as costs constrained by spending rules.
The inquiry will look at how fiscal limits affect funding for green investment and how measures such as natural capital are weighed against traditional metrics like GDP.
It will also assess whether environmental duties are being properly applied in Treasury decisions and review progress on recommendations from the Dasgupta Review.
Chair Toby Perkins MP said: “Decisions made in the Treasury have an extraordinary influence on the environment. Without funding and support major initiatives such as the net zero transition will falter.”
He added: “How do fiscal rules impact investment in tackling climate change and are there cases where Treasury decisions might undermine its environmental aims.”
The inquiry will test whether economic policy is aligned with environmental ambition or quietly constraining it.
Copyright © 2026 Energy Live News LtdELN