Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the his Department's policy paper entitled Net Zero Review Final Report, published on 19 October 2021, what recent progress his Department has made on building macroeconomic modelling capability.

As outlined in the Net Zero Review final report, HM Treasury is building its governance, capabilities and processes to support our transition to Net Zero. This includes developing a range of analytical approaches in order to develop our understanding of the many complexities of the economics of net zero and associated policy choices. Integrating the climate into macroeconomic models is an ongoing global effort and much of the international work is preliminary. HM Treasury is leading these discussions and will endeavour to use the best available evidence and analytical tools to carry out its economic assessment of net zero. Significant progress has already been made on building this analytical capacity.