Source · Select Committees · Public Accounts Committee
Recommendation 8
8
HM Treasury also said that two years ago it had been asked to prepare a...
Conclusion
HM Treasury also said that two years ago it had been asked to prepare a report on the costs and benefits of transition to net zero.12 This report was due in autumn 2020 but has been delayed.13 An interim report was published in December 2020.14 HM Treasury 6 C&AG’s Report, paras 4–5; HM Revenue and Customs, Annual Report and Accounts 2019 to 2020, HC 891, November 2020, pages 185, 191 7 C&AG’s Report, para 2.19 8 Ev 1, The Association of Accounting Technicians, paras 3.41–3.45 9 Ev 3, OVO Energy, pages 2–3 10 Ev 2. Green Alliance, page 1 11 Qq 39–40 12 Qq 9, 17 13 HM Treasury, HM Treasury’s review into funding the transition to a net zero greenhouse gas economy: terms of reference, November 2019, https://www.gov.uk/government/publications/net-zero-review-terms-of-reference/ hm-treasurys-review-into-funding-the-transition-to-a-net-zero-greenhouse-gas-economy-terms-of-reference, accessed 6 April 2021 14 C&AG’s Report, para 2.21 10 Environmental tax measures said the interim report set out that tax is one of a range of levers, including regulation, legislation and public spending, the government has to support transition to next zero. HM Treasury now expects to publish the final report soon.15
Government Response
Not Addressed
HM Government
Not Addressed
1.2 HM Treasury is already playing an active role in supporting the government’s environmental goals, including delivery of the legally-binding net zero commitment. As well as its role in relation to tax and spend policy and the financial services sector, HM Treasury is conducting an analytical review exploring the key issues and trade-offs as the UK decarbonises. Against a backdrop of significant uncertainty on technology and costs, as well as changes to the economy over the next 30 years, the Net Zero Review (NZR) focuses on the potential exposure of households and sectors to the transition, and its final report will highlight factors to be taken into account in designing policy that will allocate costs over this time horizon.