Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate her Department has made of the potential economic impact of extreme weather events related to climate change on the level of economic growth since 1 January 2020; and what steps she is taking with Cabinet colleagues to help reduce those costs through (a) adaptation and (b) resilience measures.

The Government recognises that preparing for the future means adapting to the effects of climate change. Without action, extreme weather, flooding, coastal erosion and other climate hazards will pose greater risks to lives, livelihoods and people’s wellbeing.

The Office for Budget Responsibility’s latest Fiscal Risks and Sustainability report estimates the potential fiscal costs to the UK from climate damage across a range of warming scenarios. Their analysis includes both direct costs in response to physical damages and indirect costs arising from additional demands on public services. Estimates show that without action, physical damages from climate change could lower GDP by around 5% by the early 2070s under a below 3°C scenario. The UK’s Third Climate Change Risk Assessment also provides an evaluation of the climate risks facing the UK, with impacts across infrastructure, health and the economy.

As set out at Phase 2 of the Spending Review, the Government is investing in climate adaptation to protect the economy from the impacts of climate change, confirming investment of £4.2 billion over three years (2026-27 to 2028-29) to improve flood resilience.

The Government is committed to strengthening the nation’s resilience. A 10 Year Strategy, published on 19 June 2025, set out its plan to review existing resilience standards across critical national infrastructure sectors by the end of 2026, and then to update these standards where existing standards do not provide the coverage necessary to ensure resilience and underpin growth. The Government is also exploring how stronger adaptation objectives can be set to improve preparedness for the impacts of climate change. This will inform the fourth National Adaptation Programme, due in 2028.