Labour has dropped their £28bn green investment pledge, which was proposed as a means to grow green jobs and targets
The Labour party is no longer planning to spend £28bn a year as part of its flagship green investment pledge, it has been announced.
First announced by shadow chancellor Rachel Reeves in September 2021, the pledge has been subject to several changes, often thought to be in response to the given political atmosphere.
As Labour gears up for a general election later this year, it is thought the green investment pledge was dropped due to what critics considered reckless spending and the party’s desire to appear fiscally responsible.
The green investment would have boosted infrastructure spending
At various points over the policy’s lifetime, Labour’s green investment plans included:
- Boosting everyday infrastructure such as home insulation, cycle paths, tree planting and flood defences
- Investing in gigafactories to build batteries for electric vehicles, the hydrogen industry, offshore wind turbines
- Creating a publicly-owned green power company
- “Scaling back” all of the above
- Building up to the £28bn spend a year gradually, rather than immediately
The news received a mixed political response
Former shadow energy secretary Barry Gardiner described the move as “strategically incompetent” to the BBC.
Prime minister Rishi Sunak said the u-turn was emblematic of Starmer’s lack of consistency: “This was the flagship plank of Labour’s economic policy and it now looks like he’s trying to wriggle out of it.”
The UK is falling behind on sustainable energy security, warns industry
Thomas Farquahr, co-founder of clean tech start up Heatio said: “For years now, commitment to a low carbon future and energy security in UK homes has been a can kicked further and further down the road. No government has fully grasped the issue and it’s disappointing to see Starmer drop such an innovative plan that would have helped kickstart the economy, provide countless jobs, a low carbon future and energy security for UK consumers.
“The rest of Europe is flying ahead with heat pump technology that is successfully and efficiently warming homes in cold climates. Instead, the UK is stalling. We are still installing 1.7m gas boilers, and are handcuffing ourselves to high gas prices that spike – leaving more and more people in fuel poverty.
“As a clean tech start-up, confidence in a green future is key for securing investment. Starmer’s move is a blow to those raising capital in such an innovative and exciting industry that can make such a difference to both climate change and consumer’s pockets.”
RIBA president Muyiwa Oki said:
“With the climate emergency intensifying, 19m UK homes are still in dire need of upgrading. Ambitious and sustained investment from whomever forms the next Government, and the private sector, will be critical to address the scale of this challenge.
“And there’s a solution. We must futureproof homes with a well-funded National Retrofit Strategy – a long-term plan that will also create jobs, boost green skills and level up the country.
“Act now, or future generations will pay the price. As ever, we stand ready to contribute to creating a more sustainable and resilient built environment – to making the future a better place.”
