Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of using additional economic indicators to reflect measurements of (a) well-being and (b) environmental impact.

The Treasury uses a range of data and indicators when analysing the economy and setting economic policy.

The Treasury also considers indicators of environmental impact when making spending decisions. All departments are required to prepare their spending proposals in line with the Green Book on Appraisal and Evaluation, which mandates consideration of climate and environmental impacts in spending, and was recently updated to emphasise that policies must be developed and assessed against how well they deliver on long-term policy aims such as net zero. Similarly, the Treasury carefully considers the environmental implications of relevant tax measures. The Government incorporated a climate assessment in all relevant Tax Information and Impact Notes (TIINs) for measures at Budget and will continue to do so in future TIINs. For example, the TIIN for the new Plastic Packaging Tax incorporates an assessment of anticipated carbon savings.

Additionally, the Treasury commissioned an independent, global review on the economics of biodiversity, culminating in the publication of the Dasgupta Review February 2021. In line with the report’s recommendations, the Treasury has committed to working with the ONS to improve the way nature is incorporated into our national accounts.