Written questions by Anderson.

What assessment her Department has made of the potential impact of the outcomes of the UK-China Financial Working Group on UK-China trade flows.

The agreements reached at the first UK‑China Financial Working Group in Beijing will strengthen cooperation with China in ways that support the UK’s position as an open, competitive and well‑regulated international financial centre, supporting jobs and growth in the UK. As set out in HM Treasury’s press release and the joint readout of the first UK-China Financial Working Group meeting (FWG), the FWG provides a new formal mechanism for structured, substantive and technical dialogue between UK and Chinese financial authorities on issues including financial stability and resilience, capital markets, market development and sustainable finance. Specific outcomes include the designation of Bank of China’s London Branch as the UK’s second renminbi (RMB) clearing bank, which will broaden the range of services available to UK businesses trading with China and strengthen London’s role as a leading international financial centre. Technical discussions were also held on long-term initiatives to support the UK’s capital markets, as well as green finance and asset management sectors. Alongside the FWG and the Prime Minister’s visit, the UK and China also agreed to pursue new cooperation on innovative financing, such as RMB-denominated sovereign biodiversity bond issuances, cementing the City's role as the global hub for green finance.

What mechanisms she will use to monitor the implementation of agreements reached on innovative biodiversity financing with China.

The agreements reached at the first UK‑China Financial Working Group in Beijing will strengthen cooperation with China in ways that support the UK’s position as an open, competitive and well‑regulated international financial centre, supporting jobs and growth in the UK. As set out in HM Treasury’s press release and the joint readout of the first UK-China Financial Working Group meeting (FWG), the FWG provides a new formal mechanism for structured, substantive and technical dialogue between UK and Chinese financial authorities on issues including financial stability and resilience, capital markets, market development and sustainable finance. Specific outcomes include the designation of Bank of China’s London Branch as the UK’s second renminbi (RMB) clearing bank, which will broaden the range of services available to UK businesses trading with China and strengthen London’s role as a leading international financial centre. Technical discussions were also held on long-term initiatives to support the UK’s capital markets, as well as green finance and asset management sectors. Alongside the FWG and the Prime Minister’s visit, the UK and China also agreed to pursue new cooperation on innovative financing, such as RMB-denominated sovereign biodiversity bond issuances, cementing the City's role as the global hub for green finance.

What steps she has taken to ensure UK firms are impacted the designation of the Bank of China’s London Branch as the UK’s second renminbi clearing bank.

The agreements reached at the first UK‑China Financial Working Group in Beijing will strengthen cooperation with China in ways that support the UK’s position as an open, competitive and well‑regulated international financial centre, supporting jobs and growth in the UK. As set out in HM Treasury’s press release and the joint readout of the first UK-China Financial Working Group meeting (FWG), the FWG provides a new formal mechanism for structured, substantive and technical dialogue between UK and Chinese financial authorities on issues including financial stability and resilience, capital markets, market development and sustainable finance. Specific outcomes include the designation of Bank of China’s London Branch as the UK’s second renminbi (RMB) clearing bank, which will broaden the range of services available to UK businesses trading with China and strengthen London’s role as a leading international financial centre. Technical discussions were also held on long-term initiatives to support the UK’s capital markets, as well as green finance and asset management sectors. Alongside the FWG and the Prime Minister’s visit, the UK and China also agreed to pursue new cooperation on innovative financing, such as RMB-denominated sovereign biodiversity bond issuances, cementing the City's role as the global hub for green finance.

What assessment she has made of the potential impact of the agreements from the first UK-China Financial Working Group in Beijing on UK financial services.

The agreements reached at the first UK‑China Financial Working Group in Beijing will strengthen cooperation with China in ways that support the UK’s position as an open, competitive and well‑regulated international financial centre, supporting jobs and growth in the UK. As set out in HM Treasury’s press release and the joint readout of the first UK-China Financial Working Group meeting (FWG), the FWG provides a new formal mechanism for structured, substantive and technical dialogue between UK and Chinese financial authorities on issues including financial stability and resilience, capital markets, market development and sustainable finance. Specific outcomes include the designation of Bank of China’s London Branch as the UK’s second renminbi (RMB) clearing bank, which will broaden the range of services available to UK businesses trading with China and strengthen London’s role as a leading international financial centre. Technical discussions were also held on long-term initiatives to support the UK’s capital markets, as well as green finance and asset management sectors. Alongside the FWG and the Prime Minister’s visit, the UK and China also agreed to pursue new cooperation on innovative financing, such as RMB-denominated sovereign biodiversity bond issuances, cementing the City's role as the global hub for green finance.

What discussions she has had with relevant stakeholders on targets that have been set for the UK Social Investment Fund in terms of measurable outputs for each of the next three financial years.

The Social Investment Fund was launched by M&G on 21st January and aims to invest up to £1 billion into the UK economy over the next three to five years to support new affordable homes, regeneration projects and infrastructure. This commitment aligns with the Government’s aim to encourage LGPS assets to be invested to boost UK economic growth.The Chancellor has discussed the fund with M&G and supports their intention to align it with the government’s Missions including urban regeneration, clean energy and essential infrastructure that improves health and community wellbeing. It is private finance and M&G will manage the fund in the best interests of investors, to deliver measurable impact across the UK.

What discussions she has with Mansion House Accord signatories on publishing firm-by-firm assessments of commitments made versus capital deployed.

The organising bodies of the Accord have committed to working with government and regulators to ensure that data demonstrating progress against the Accord will be tracked.

What assessment she has made of how changes to the discount rate methodology might affect the appraisal of major infrastructure projects in different UK regions.

The independent review of the Green Book discount rate will be published in the summer 2026. Changes to the Green Book discount rate methodology will affect the appraisal of major infrastructure projects that involve benefits and costs well into the future. The discount rate review will inform the government’s decisions on major projects at the next Spending Review. It will help to ensure that the government makes fair assessments of transformational projects that provide long-term benefits. HM Treasury’s terms of reference for the discount rate review note that the lead authors should look at international comparisons to better inform their judgements on the UK approach.

What analysis her Department has undertaken on the potential fiscal implications for future public spending decisions of altering the declining discount rate regime.

The independent review of the Green Book discount rate will be published in the summer 2026. Changes to the Green Book discount rate methodology will affect the appraisal of major infrastructure projects that involve benefits and costs well into the future. The discount rate review will inform the government’s decisions on major projects at the next Spending Review. It will help to ensure that the government makes fair assessments of transformational projects that provide long-term benefits. HM Treasury’s terms of reference for the discount rate review note that the lead authors should look at international comparisons to better inform their judgements on the UK approach.

What steps she is taking to ensure delivery of pledged additional risk capital by signatories to the Mansion House Accord.

In May 2025, 17 of the largest workplace pension providers signed the Mansion House Accord and voluntarily committed to invest at least 10 per cent of their defined contribution default funds in private markets by 2030, with at least half of that invested in the UK.The organising bodies of the Accord have committed to working with government and regulators to ensure that data demonstrating progress against the Accord will be tracked.The government has a broad programme of reform which will facilitate pensions investment across the UK. The British Business Bank has launched an investment vehicle, the British Growth Partnership (BGP), and the new Venture Link initiative, to help pension funds invest more in UK venture opportunities. The Sterling 20 partnership was also established last year. The investor-led partnership between 20 of the UK’s largest pension funds and insurers is working with the government and the City of London Corporation to help ensure pension schemes have visibility of the range of investment opportunities in productive assets.The government is also legislating in the Pension Schemes Bill for a reserve investment power, to act as a backstop to the Accord.

How her Department plans to account for international approaches to social discounting in informing the UK review of discounting in the Green Book.

The independent review of the Green Book discount rate will be published in the summer 2026. Changes to the Green Book discount rate methodology will affect the appraisal of major infrastructure projects that involve benefits and costs well into the future. The discount rate review will inform the government’s decisions on major projects at the next Spending Review. It will help to ensure that the government makes fair assessments of transformational projects that provide long-term benefits. HM Treasury’s terms of reference for the discount rate review note that the lead authors should look at international comparisons to better inform their judgements on the UK approach.

What processes HM Treasury uses to co-ordinate Green Financing Framework reporting with other government departments.

In 2024-25, the government raised £10.0 billion through green gilts and green savings bonds. The government plans to issue a total of £10.0 billion of green finance in 2025-26, subject to demand and market conditions. The amount of Green Financing to be issued in each financial year will be announced by HM Treasury as part of the annual government financing remit. The Green Financing Framework, published in 2021 and updated in 2025, explains how proceeds from green gilts and NS&I’s retail Green Savings Bonds will finance public expenditures that demonstrate a direct and positive environmental impact. The Framework includes guidelines on the types of expenditures that can be included in the Programme and commits the government to annual allocation reporting. Eligible expenditures are drawn from departments’ confirmed Spending Review settlements and assessed on the basis of their contribution to the government’s climate and environmental objectives. Details of the allocation of expenditure are normally published each year in the Green Financing Allocation Report, most recently published in October2024.

What estimate she has made of the proportion of future sovereign financing expected to be raised under the Green Financing Framework.

In 2024-25, the government raised £10.0 billion through green gilts and green savings bonds. The government plans to issue a total of £10.0 billion of green finance in 2025-26, subject to demand and market conditions. The amount of Green Financing to be issued in each financial year will be announced by HM Treasury as part of the annual government financing remit. The Green Financing Framework, published in 2021 and updated in 2025, explains how proceeds from green gilts and NS&I’s retail Green Savings Bonds will finance public expenditures that demonstrate a direct and positive environmental impact. The Framework includes guidelines on the types of expenditures that can be included in the Programme and commits the government to annual allocation reporting. Eligible expenditures are drawn from departments’ confirmed Spending Review settlements and assessed on the basis of their contribution to the government’s climate and environmental objectives. Details of the allocation of expenditure are normally published each year in the Green Financing Allocation Report, most recently published in October2024.

What assessment she has made of the data-gathering requirements needed to support future green bond issuances.

In 2024-25, the government raised £10.0 billion through green gilts and green savings bonds. The government plans to issue a total of £10.0 billion of green finance in 2025-26, subject to demand and market conditions. The amount of Green Financing to be issued in each financial year will be announced by HM Treasury as part of the annual government financing remit. The Green Financing Framework, published in 2021 and updated in 2025, explains how proceeds from green gilts and NS&I’s retail Green Savings Bonds will finance public expenditures that demonstrate a direct and positive environmental impact. The Framework includes guidelines on the types of expenditures that can be included in the Programme and commits the government to annual allocation reporting. Eligible expenditures are drawn from departments’ confirmed Spending Review settlements and assessed on the basis of their contribution to the government’s climate and environmental objectives. Details of the allocation of expenditure are normally published each year in the Green Financing Allocation Report, most recently published in October2024.

What assessment her Department has made of the potential impact of limiting interest-earning reserves on the commercial viability of pound-backed stablecoins.

The government is committed to making the UK a global hub for digital assets. It recognises the huge potential posed by tokenised asset innovation, and for stablecoins to support innovation in both retail payments and wholesale settlement. That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets, including stablecoin, and maintaining a close and ongoing dialogue with the financial regulators as they develop detailed rules and guidance. This legislation complements other measures being taken forward by the government on digital assets, including: the Digital Securities Sandbox, which supports settlement using distributed ledger technology; the Digital Gilt Instrument pilot issuance; and the publication of the Wholesale Financial Markets Digital Strategy.

What discussions she has had with regulators on permitting multi-jurisdiction reserve models for pound sterling stablecoin issuance.

The government is committed to making the UK a global hub for digital assets. It recognises the huge potential posed by tokenised asset innovation, and for stablecoins to support innovation in both retail payments and wholesale settlement. That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets, including stablecoin, and maintaining a close and ongoing dialogue with the financial regulators as they develop detailed rules and guidance. This legislation complements other measures being taken forward by the government on digital assets, including: the Digital Securities Sandbox, which supports settlement using distributed ledger technology; the Digital Gilt Instrument pilot issuance; and the publication of the Wholesale Financial Markets Digital Strategy.

What assessment her Department has made of the potential impact of the regulatory approach on investor adoption of pound sterling based stablecoins.

The government is committed to making the UK a global hub for digital assets. It recognises the huge potential posed by tokenised asset innovation, and for stablecoins to support innovation in both retail payments and wholesale settlement. That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets, including stablecoin, and maintaining a close and ongoing dialogue with the financial regulators as they develop detailed rules and guidance. This legislation complements other measures being taken forward by the government on digital assets, including: the Digital Securities Sandbox, which supports settlement using distributed ledger technology; the Digital Gilt Instrument pilot issuance; and the publication of the Wholesale Financial Markets Digital Strategy.

What assessment her Department has made of the potential impact of restricting stablecoin use in wholesale markets on the development of tokenised settlement systems.

The government is committed to making the UK a global hub for digital assets. It recognises the huge potential posed by tokenised asset innovation, and for stablecoins to support innovation in both retail payments and wholesale settlement. That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets, including stablecoin, and maintaining a close and ongoing dialogue with the financial regulators as they develop detailed rules and guidance. This legislation complements other measures being taken forward by the government on digital assets, including: the Digital Securities Sandbox, which supports settlement using distributed ledger technology; the Digital Gilt Instrument pilot issuance; and the publication of the Wholesale Financial Markets Digital Strategy.

What steps is taking to support UK participation in digital settlement markets.

The government is committed to making the UK a global hub for digital assets. It recognises the huge potential posed by tokenised asset innovation, and for stablecoins to support innovation in both retail payments and wholesale settlement. That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets, including stablecoin, and maintaining a close and ongoing dialogue with the financial regulators as they develop detailed rules and guidance. This legislation complements other measures being taken forward by the government on digital assets, including: the Digital Securities Sandbox, which supports settlement using distributed ledger technology; the Digital Gilt Instrument pilot issuance; and the publication of the Wholesale Financial Markets Digital Strategy.

Whether she plans to establish benchmarks for improving access to affordable financial services among vulnerable consumers.

The Government recognises that action on financial inclusion requires a joined-up approach and will work collaboratively across local, central, and devolved governments, as well as regulators, industry, and civil society to deliver the recently published Financial Inclusion Strategy. The Strategy sets out the Government’s plans to improve financial inclusion and resilience for underserved groups across the UK. It outlines action to address a range of barriers individuals face in accessing financial products, with a key focus on access to banking services and recognition of the important links with the National Payments Vision and the opportunities this presents to embed and support financial inclusion To deliver the Strategy effectively, the Government will monitor levels of financial inclusion. There are a number of useful resources which were used in the development of the Strategy and which the Government will continue to monitor as the Strategy is delivered, including the Financial Conduct Authority’s (FCA) Financial Lives Survey and research carried out by the Money and Pensions Service (MaPS). The Strategy’s implementation will be reviewed in two years’ time to provide an update on progress and relevant outcomes-based metrics, which will reflect on the progress made across the sector.

What assessment she has made of the adequacy of mechanisms in place to co-ordinate financial inclusion delivery across (a) central government and (b) regulators.

The Government recognises that action on financial inclusion requires a joined-up approach and will work collaboratively across local, central, and devolved governments, as well as regulators, industry, and civil society to deliver the recently published Financial Inclusion Strategy. The Strategy sets out the Government’s plans to improve financial inclusion and resilience for underserved groups across the UK. It outlines action to address a range of barriers individuals face in accessing financial products, with a key focus on access to banking services and recognition of the important links with the National Payments Vision and the opportunities this presents to embed and support financial inclusion To deliver the Strategy effectively, the Government will monitor levels of financial inclusion. There are a number of useful resources which were used in the development of the Strategy and which the Government will continue to monitor as the Strategy is delivered, including the Financial Conduct Authority’s (FCA) Financial Lives Survey and research carried out by the Money and Pensions Service (MaPS). The Strategy’s implementation will be reviewed in two years’ time to provide an update on progress and relevant outcomes-based metrics, which will reflect on the progress made across the sector.