Although the effects of public austerity have been the subject of a significant literature in recent years, the changing role of the state as a partner in collaborative environmental governance under austerity has received less attention. By employing theories of collaborative governance and state retreat, this paper used a qualitative research design comprised of thirty-two semi-structured interviews within the case study UNESCO Biosphere Reserve in the United Kingdom to address this lacuna. Participants perceived that the austerity period has precipitated negative changes to their extant state-orientated funding regime, which had compelled changes to their organisational structure. Austerity damaged their relationships with the state and perceptions of state legitimacy whilst simultaneously strengthening and straining the relationships between intra-partnership non-state governance actors. This case offers a critical contemporary reflection on normative collaborative environmental governance theory under austerity programmes. These open up questions about the role of the state in wider sustainability transitions.