Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will take steps to discourage banks regulated in the UK from supporting businesses which receive income from industrial livestock companies contributing to deforestation.

The Government is committed to working with UK financial institutions to further tackle deforestation-linked finance.

On 9 December at COP28 Nature Day, the Government announced the next steps on the Forest Risk Commodities Scheme which will be introduced through provisions under the Environment Act 2021. This new due diligence legislation will see businesses that have a global annual turnover of over £50 million and use over 500 tonnes of regulated commodities a year banned from using them if sourced from land used illegally.

As set out in the Financial Services and Markets Act 2023, HM Treasury will also conduct a review to assess if the financial regulatory framework is adequate for the purpose of eliminating the financing of illegal deforestation, and to consider what changes to the regulatory framework may be appropriate.