Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of the Bank of England introducing a dual interest rate policy with a lower rate for lending to green projects.

The Chancellor most recently reaffirmed the Monetary Policy Committee’s (MPC) remit at the Autumn Statement on 22 November 2023.

The Government recognises the importance of not overly expanding the MPC’s remit to allow the MPC to focus on its primary objective of price stability, as it rightly has. It is for the MPC to judge how it can best support the Government’s economic objectives using its monetary policy tools, subject to achieving its primary objective of price stability.

The Government has taken world-leading action to green the financial system, and we remain fully committed to that work.