Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of introducing new rules for ISAs requiring that savings be invested in Government-backed green bonds to be eligible for tax relief.

The Government plans to issue £10.0 billion of green gilts in 2023-24, subject to demand and market conditions. This is alongside the NS&I’s retail Green Savings Bonds which retail investors can purchase to contribute to financing the fight against climate change and other environmental challenges.

The Government recognises the popularity of ISAs, which provides savers a generous tax-free allowance of up to £20,000 per annum. Around 11.8 million Adult ISA accounts were subscribed to in 2021 to 2022. ISAs form part of the Governemnt’s commitment to support all people at all stages of life to save, and it is important that ISAs continue to be a core savings and investment product that incentivises greater saving.

The government has no plans to restrict ISAs to government backed green bonds.