The government has been warned that it is “going backwards” on its green growth agenda.

Tony Darker, Director-General of the Confederation of British Industry (CBI), said: “The big policy lever that’s missing is around green growth. That has taken a backward step since Boris Johnson left because I think he was the personal champion in the cabinet for that.”

The Prime Minister and Chancellor have stabilised financial markets but must act to boost long-term growth, according to the latest CBI economic forecast.

Mr Darker added: “Given that it is by far and away the largest economic growth prize for Britain, the government is strangely silent and reticent on all the levers for green growth, across the clean energy opportunity, decarbonisation of other sectors, the role of the City of London to genuinely be the world capital for sustainable finance.

“In crude terms, most businesses think the government is going backwards on green, having spent the last five years going significantly forwards on green. They are confused and disappointed.”

Alpesh Paleja, CBI Lead Economist, said: “Another recession in the space of two years is tough going. A second year of high – albeit falling – inflation will hit households hard, especially those lower down the income distribution. With cost pressures remaining high, many businesses will also be operating in a tough trading environment.”

ELN has contacted BEIS for comment.