Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of the proposals in the Budget on annual levels of carbon emissions in the UK.

At fiscal events, including the recent Spending Review 2021 (SR21), all departments are required to prepare their spending proposals in line with the Green Book on Appraisal and Evaluation issued by HM Treasury. The Green Book already mandates the consideration of climate and environmental impacts in spending. It was updated in 2020 to emphasise that policies must be developed and assessed against how well they deliver on the Government’s long-term policy aims such as net zero.

HM Treasury also carefully considers the climate change and environmental implications of relevant tax measures. The Government incorporated a climate assessment in all relevant Tax Information and Impact Notes (TIINs) for measures at Budget and will continue to do so in future TIINs. For example, the TIIN for the new Plastic Packaging Tax incorporates an assessment of anticipated carbon savings. In addition, HMRC is exploring options to further strengthen the analytical approach to monitoring, evaluating, and quantifying the environmental impacts of tax measures, including their wider impacts.