Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to her Department's consultation on the UK Green Taxonomy, published in November 2024, what assessment she has made of (a) the potential regulatory costs of a UK Green Taxonomy and (b) the duplication with other regimes.

Answered by Emma Reynolds - Economic Secretary (HM Treasury)

The government has set out its ambition for the UK to be the world leader in sustainable finance. This includes delivering a regulatory framework to support sustainable growth and enable the private sector to realise the opportunities of the transition. Through the consultation, the government was keen to explore whether a UK Green Taxonomy can be a useful tool in contributing to this ambition.

The government is reviewing and analysing the consultation responses, this includes considering the potential costs and how it fits in with existing regulation and regimes. We will publish a formal consultation response in due course which will set out next steps.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, which Department is responsible for the (a) UK Climate Transition Benchmarks and (b) UK Paris-aligned Benchmarks.

Answered by Emma Reynolds - Economic Secretary (HM Treasury)

HM Treasury is responsible for financial services policy, including financial benchmarks.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to paragraph 2.45 of the Spring Statement 2025, 26 March 2025, CP1298, what the monetary value is of the baseline spending on administrative budgets on which the 15% saving will be based; what the baseline spending on back-office functions is on which the £2.2 billion savings in 2029-30 will be based; and whether the £2.2 billion is a cumulative saving over the period.

Answered by Darren Jones - Chief Secretary to the Treasury

The 15% saving on administration budgets will be made against the counterfactual assumption that these budgets would have remained flat in real terms over the period 2025-26 to 2029-30. The £2.2 billion represents the value of this 15% saving in the final year only rather than being a cumulative total.

Further details will be published as part of the Spending Review later this year.

Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, whether he plans to reduce spending on (a) civil service communications staff, (b) external marketing and (c) external advertising.

Answered by Georgia Gould - Parliamentary Secretary (Cabinet Office)

The Government regularly evaluates the effectiveness of all communication activities to ensure they are delivering and providing the best value for money for taxpayers. An example of this is the recent comprehensive communications Spending Review that delivered savings of £85 million in 2024-25 and up to £96 million in 2025-26.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the cost of the 2024-25 civil service pay settlements.

Answered by Darren Jones - Chief Secretary to the Treasury

Pay for civil servants outside of the Senior Civil Service is not set centrally; rather, departments and bodies have freedom to make decisions on pay within the parameters of the Pay Remit Guidance published annually by the Cabinet Office. The Pay Remit Guidance for 2024/5 can be found using the following link: https://www.gov.uk/government/publications/civil-service-pay-remit-guidance-2024-to-2025/civil-service-pay-remit-guidance-2024-to-2025.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 4 March 2025 to Question 33375 on Environment Protection: Finance, whether the Taskforce for Climate-related Financial Disclosures rules for listed companies to refer to the new International Sustainability Standards Board standards will allow for investments in (a) defence companies and (b) companies supporting Trident nuclear deterrent renewal.

Answered by Emma Reynolds - Economic Secretary (HM Treasury)

The new International Sustainability Standards Board (ISSB) Standards, so called S1 and S2, are designed to replace the Taskforce for Climate-related Financial Disclosure (TCFD) framework.

These are disclosure standards that ask firms to disclose financially material climate related risks to their business. The objective of these is to provide investors with consistent, comparable and reliable information about companies' sustainability-related risks and opportunities. These standards are designed to enhance transparency and do not dictate how a company should invest. They do not prevent or impose restrictions on investment in specific sectors, including defence or the Trident nuclear deterrent.

The previous government committed to establishing a framework to assess the suitability of ISSB Standards for endorsement in the UK. A Technical Advisory Committee of external experts have conducted a detailed assessment of the ISSB’s inaugural standards, and this process has now concluded. The government aims to consult on the UK Sustainability Reporting Standards (UK SRS) shortly, after which point they will be made available for use later in 2025.

Question to the Ministry of Defence:

To ask the Secretary of State for Defence, pursuant to the Answer of 4 March 2025 to Question 33375 on Environment Protection: Finance, what assessment his Department has made of the potential impact of (a) divestment and (b) the UK green finance framework on (i) the economic viability of the UK defence industry and (ii) defence procurement costs.

Answered by Maria Eagle - Minister of State (Ministry of Defence)

This Government is clear that we see no conflict between sustainable investment and investment in our world-leading defence sector. The new Defence Industrial Strategy will align the UK’s economic and security priorities and unlock the potential of every region and nation across the UK. This will include creating the conditions needed for the private sector to invest more, and pro-actively, in the defence sector.

The Trade Association ADS’s first Defence Environment, Social and Governance Charter Report highlighted the positive contribution that the defence industry is making to supporting our environment and our communities.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 9 April 2025 to Question 43449 on Trident Submarines: Procurement, if she will make it her policy to amend assimilated EU law under the UK Benchmarks Regulation to remove the EU legacy law references to controversial weapons; and if she will make an assessment of the potential impact of doing so on levels of investment by companies which provide (a) goods and (b) services relating to Trident renewal.

Answered by Emma Reynolds - Economic Secretary (HM Treasury)

As set out in the recent Call for Evidence on the Financial Services Growth and Competitiveness Strategy, having an effective regulatory environment is key to maintaining and enhancing our position as a global financial centre so that it can support growth across the wider UK economy. That includes regulations inherited from the European Union, such as the Benchmarks regulation.

The government remains open to views from industry on how we can continue to progress reforms to assimilated law as part of this work creating an effective regulatory environment.

More broadly, the government does not see a conflict between sustainable investment and investment in the defence sector.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of EU green finance regulations on levels of investment from Europe into UK defence (a) firms and (b) shares.

Answered by Emma Reynolds - Economic Secretary (HM Treasury)

This Government does not see a conflict in green and sustainable investment contributing to our world-leading defence sector. There is considerable work to support the sector ongoing across government, including through the Chancellor’s growth mission and in the development of a new Defence Industrial Strategy.

In a time of increasing geopolitical instability, maintaining a robust and thriving defence sector is essential to our national security. The government is committed to supporting the defence sector and supporting investment opportunities in it. Private investment in the defence sector is crucial for fostering innovation, boosting economic growth and enhancing national security.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment his Department has made of the potential impact of the EU Corporate Sustainability Due Diligence Directive on (a) Northern Ireland, (b) UK firms trading with the EU and (c) levels of divestment in the UK defence industry.

Answered by Douglas Alexander - Minister of State (Cabinet Office)

Responsibility for assessing the impact of EU legislation ultimately lies with the European Commission, who have published their own impact assessment of the Corporate Sustainability Due Diligence Directive (CSDDD).

CSDDD will apply to UK companies generating over €450 million in turnover within the EU. The Government has noted the recent Omnibus proposal updating CSDDD, which was published on 26 February.

We will continue to assess and monitor the effectiveness of the UK’s existing measures, alongside the impacts of emerging policy tools, including in the EU, to ensure we can best promote responsible business practices and take action where appropriate.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the answer of 4 March 2025 to Question 33375 on Environment Protection: Finance, whether the defence sector will be included in the UK Green Taxonomy.

Answered by Emma Reynolds - Economic Secretary (HM Treasury)

The government has set out its ambition for the UK to be the world leader in sustainable finance. This includes delivering a regulatory framework to support sustainable growth and enable the private sector to realise the opportunities of the transition. Through the consultation, the government was keen to explore whether a UK Green Taxonomy can be a useful tool in contributing to this ambition.

The government is reviewing and analysing the consultation responses, this includes considering the potential costs and how it fits in with existing regulation and regimes. We will publish a formal consultation response in due course which will set out next steps.

At this stage in the consultation process, the government was not seeking feedback on the detail of the sectors for inclusion. Instead, the government are focused on the bigger picture of whether and how this can be a useful tool for companies and investors. Therefore, at this stage issues around activities and sectors, such as defence, are out of scope.

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Found: meeting Members present: Dame Meg Hillier (Chair); Dame Harriett Baldwin; Rachel Blake; Bobby Dean; John Glen

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Found: Shah Antonia Bance Jess Asato Kirsteen Sullivan John Grady Bradley Thomas Sir Desmond Swayne John Glen

Found: Shah Antonia Bance Jess Asato Kirsteen Sullivan John Grady Bradley Thomas Sir Desmond Swayne John Glen

Found: Shah Antonia Bance Jess Asato Kirsteen Sullivan John Grady Bradley Thomas Sir Desmond Swayne John Glen

Found: Shah Antonia Bance Jess Asato Kirsteen Sullivan John Grady Bradley Thomas Sir Desmond Swayne John Glen

Found: Shah Antonia Bance Jess Asato Kirsteen Sullivan John Grady Bradley Thomas Sir Desmond Swayne John Glen

Found: Shah Antonia Bance Jess Asato Kirsteen Sullivan John Grady Bradley Thomas Sir Desmond Swayne John Glen

Found: Shah Antonia Bance Jess Asato Kirsteen Sullivan John Grady Bradley Thomas Sir Desmond Swayne John Glen

Found: Shah Antonia Bance Jess Asato Kirsteen Sullivan John Grady Bradley Thomas Sir Desmond Swayne John Glen

Found: Shah Antonia Bance Jess Asato Kirsteen Sullivan John Grady Bradley Thomas Sir Desmond Swayne John Glen

Found: Shah Antonia Bance Jess Asato Kirsteen Sullivan John Grady Bradley Thomas Sir Desmond Swayne John Glen

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