This Government is committed to encouraging resource efficiency. The resource and waste management sector has grown faster than the wider economy over the past two decades, while waste arisings have fallen. We are extracting significantly more economic value from each tonne of waste managed by the sector, a 43% increase from £32 to £46 per tonne since 2004. As such, there are already a number of incentives in place to promote resource efficiency, for example:

• Landfill Tax has reduced the amount of waste going to landfill by approximately 65% since its introduction in 1996, and has contributed to a threefold increase in household recycling;

• Enhanced Capital Allowances enable the cost of investment in water and energy-efficient equipment to be written off against taxable profits of the period in which the investment is made;

• Government–funded Innovate UK is to invest up to £800k in feasibility studies into the business case for retaining value in durable goods through reuse, remanufacture or leasing/maintenance. This competition opened on 2 March 2015;

• Government is funding Action Based Research projects to explore innovative ways for businesses to develop more resource-efficient systems and products. £1.2m of support is being provided over the lifetime of the current round of projects; and

• Government are providing £17.9m funding in 2014-15 for the Waste and Resources Action Programme (WRAP) to support English businesses, industry, civil society organisations, as well as local authorities and households in realising the benefits of resource efficiency and improved resource management.

The Government takes natural capital very seriously. It has set long-term goals to stop decades of decline in wildlife and habitats, which have already resulted in improvements. Since 2010, it has helped to create over 150,000 acres of field margins, wetlands and woodlands; woodland cover is at its highest level in 700 years.

The Government’s environmental objectives are reflected in the National Infrastructure Plan. Its Top 40 Priority Infrastructure Investments include rail electrification, renewable energy and Smart Meters. These projects support a transition to a less resource intensive economy.

Economic growth and improving the environment go hand-in-hand, and the Natural Capital Committee has made a range of recommendations on how we manage the environment in a way that will enhance it for future generations whilst meeting our economic needs.

Given the significance of this work, the Government is carefully analysing the recommendations made in the Natural Capital Committee’s report, and will respond in due course. As part of that response, we will set out how Government plans to integrate natural capital into wider policy making and reporting.

The Government takes natural capital very seriously. We have set long term-goals to stop the decades of decline in wildlife and habitats, and have already seen some improvements. Since 2010 we have helped to create over 150,000 acres of field margins, wetlands and woodlands, and woodland cover is at its highest level in 700 years.