Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent discussions he has had with the Secretary of State for Energy Security and Net Zero on Remit and Recommendations of the Financial Policy Committee of the Bank of England.

HM Treasury ministers have regular discussions with their colleagues across Government on climate change, including on the implementation of the Green Finance Strategy. The breadth of work the Government is doing through the Strategy will reinforce the UK’s status as a leading centre for green finance.

The Chancellor of the Exchequer is responsible for setting the Remit for the Financial Policy Committee (FPC) once per year, and may also make recommendations regarding matters the FPC should consider as relevant to its primary financial stability objective and its secondary objective to support the Government’s economic policy.

The FPC's remit is an important accountability mechanism to ensure the Committee has a clear framework through which it can make policy decisions and consider any trade-offs. This is important given the complexity of the FPC’s work.

Yearly updates to the Remit ensure that it reflects the current economic context, the Government’s policy, as well as the FPC’s responsibilities and powers. Climate change is an important part of the FPC's remit: both due to the relevance of climate related risks to the Committee’s primary financial stability objective, and because increasing long-term energy security and delivering Net Zero are included as key parts of the Government’s economic policy and are therefore relevant to its secondary objective.