Tuesday, February 13, 2024

UK Greens brand Labour’s £28bn U-turn a ‘climate betrayal’

Chris Jarvis 12 February 2024


The UK’s Green Parties have hit out at Labour’s decision to abandon its planned £28 billion investment in the green transition.

The Scottish Greens said Labour has ‘betrayed our climate’, and accused Keir Starmer of throwing future generations under a ‘diesel engine bus’.

Scottish Green Party co-leader Lorna Slater said: “Labour have betrayed our climate, and they have betrayed Scottish voters. This investment was urgently needed to put us back on track to meeting our climate commitments and to renew our economy. This is a catastrophic mistake that will not be forgotten given the far reaching consequences it will have.

“At a stroke Keir Starmer has thrown future generations under a diesel engine bus, and shredded any commitment his party had towards building a greener economy and supporting a just transition. It is clear they cannot be trusted to take the tough decisions that are needed to ensure a liveable planet, when they are ditching all kinds of previous policies at a rate of knots.”

Green Party of England and Wales co-leader Carla Denyer, meanwhile, called the move a ‘massive backward step’. She said: “This is a massive backward step – for the climate, for the economy and for good quality jobs. Both the security of our planet for future generations and the UK’s future prosperity is dependent on greening our economy and that requires large scale investment.

“Labour have chosen to wear their fiscal rules as a millstone around their neck. A different approach through tax reforms, in particular by introducing a wealth tax on the super-rich, could help pay for the green transition. There is more than enough money in the economy to pay for this. Indeed, the Green Party would go further and faster, investing at least double what Labour originally pledged, so we can turbo charge the transition to a green economy.

“Greens recognise that investing in a green future will provide people with economic, social and environmental security. By decarbonising industry, insulating buildings, and ramping up renewable energy infrastructure, the UK can drastically reduce emissions, cut household bills and create new, good quality, well-paid and secure jobs in every corner of the country.

“Investing in this secure future is a political choice. By ditching its green investment plan, and making a series of other U-turns, Labour has clearly signalled that it is turning its back on a fairer, greener future. It is clear we are going to need a group of Green MPs in parliament after the next election pushing whoever forms the next government to do the right thing.”

Ex-Bank of England economist 'laments' Labour U-turn on £28bn green pledge

Andy Haldane told Sky's Politics Hub With Sophy Ridge that the policy had been 'big, bold and world-leading'. He said the decision to scrap the target would slow investment and the UK's transition to net zero if Labour were to win the next election.

Jennifer Scott
Political reporter @NifS
Monday 12 February 2024 


A former chief economist at the Bank of England has expressed disappointment at Labour's decision to axe its £28bn green investment pledge.

Andy Haldane, who is now the managing director of the Royal Society of Arts, told Sky's Sophy Ridge that the original promise "led the world" in its ambition, and would have benefitted the country - both in achieving its net zero goals and stimulating growth.
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But the decision by Sir Keir Starmer last week to bin the target showed how politicians are "scaling back our plans in the UK at the same time as other countries have stepped up their plans," he said.

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The pledge to spend £28bn every year until 2030 on green investments, from new technologies to planting trees, was made by shadow chancellor Rachel Reeves during the Labour Party conference in 2021.

But she scaled it back to a target last summer, with Ms Reeves blaming high inflation and interest rates following former prime minister Liz Truss's disastrous mini-budget.

Last week, Sir Keir confirmed Labour would scrap the headline figure entirely. He said: "Because of the damage the Tories have done, we can't now do everything that we wanted to do" if he got the keys to Number 10.

However, he was criticised by some within his party - as well as opposition MPs - for U-turning on such a key policy.



Asked about Labour's decision in an exclusive interview for the Politics Hub With Sophy Ridge - airing at 7pm tonight on Sky News - Mr Haldane said: "I think it's a shame. I mean, I think back to when that green prosperity plan was first hatched. It was big, it was bold, ambitious. It led the world, actually, in terms of its scale.

"And we now have seen a number of other countries playing catch-up, putting forward their own plans.

"So I think the scaling back of our plans in the UK at the same time as other countries have stepped up their plans is unfortunate for two reasons.

"One, it slows our transition to net zero, which is really important. And two, we do need that investment. And the green prosperity plan was about that extra dose of investment to stimulate growth.

"So I rather lament the sort of paring back of those plans."



Politics Hub with Sophy Ridge

Sky News Monday to Thursday at 7pm. Watch live on Sky channel 501, Freeview 233, Virgin 602, the Sky News website and app or YouTube.Tap here for more

Mr Haldane appealed to whoever takes charge at the next election to show "a little more boldness about the economy and boldness around investment".

He added: "I understand the fiscal constraints, but I also think the rules that we have boxed ourselves in on might not be as effective as they need to be to stimulate and support that investment."

The former economist said growth had to be the priority after the economy had "stood still" for two years.

"That has put huge pressure on households, huge pressure on public services, huge pressure on local governments," he said.

"And the only way to break free from the constraints of that is by us growing our economy sustainably in a way that hasn't happened for the past 24 months."

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