Greenhouse Gas Emissions: Tax Strategy

Lord Lea of Crondall Excerpts

Tuesday 6th July 2021 Lords Chamber

[Lord Lea of Crondall (Non-Afl)]

My Lords, in April, I asked in Grand Committee whether it would be useful to introduce a metric for reducing greenhouse gas emissions in the UK as a coefficient of GDP growth. The Minister said that he would look into it. What progress has been made on inquiries into the practical merits of such a metric?

[Baroness Penn (Con)]

My Lords, I undertake to follow up on the noble Lord’s point from Grand Committee. I know that, as far as the Treasury approaches these things, it is undertaking constant review of its Green Book guidance to ensure that net-zero commitments are incorporated into our fiscal decision-making. Although GDP remains one of our most important economic indicators, we are working on other wider indicators. For example, we are looking at taking the importance of the natural environment into account when we look at our public finances as well.