Labour leader changes stance on green investment pledge
Sir Keir Starmer drops £28 billion green investment commitment
By [Editor’s Name]
Published on 8 February 2024
Updated 1 hour ago
Video caption: Keir Starmer confirms Labour is dropping its £28bn spending commitment
Labour leader Sir Keir Starmer has come under scrutiny after abandoning Labour’s £28 billion green investment pledge. In a recent interview with the BBC, Starmer justified the U-turn, claiming that the economic downturn caused by the Tories had made the commitment unaffordable. Despite the change, Starmer maintained that Labour would still allocate more funds towards green projects than the Conservatives if they win the election.
Response from Prime Minister Rishi Sunak
Prime Minister Rishi Sunak criticized Labour’s U-turn, stating that it demonstrated their lack of a coherent plan. Sunak argued that Labour’s inability to stick to their commitments hindered their ability to bring about meaningful change. He also highlighted past instances in which Starmer had reversed his stance on important issues.
Scaling back of green investment plans
Labour’s decision to abandon the £28 billion spending pledge represents a significant downsizing of their plans for green investment. The change in strategy, which amounts to an extra £4.7 billion per year, comes after prolonged confusion surrounding the policy. The Conservatives have attacked the proposed borrowing required to fund the plans, suggesting that it would necessitate higher taxes.
Labour’s revised plans
Labour has clarified that their revised green investment package will rely on taxes on energy firms’ profits, rather than solely on government borrowing. The party hopes to raise £10.8 billion over five years through a proposed “windfall” tax. Despite the scale-back, Labour has pledged continued investment in battery factories, “clean” steel production, grants for green companies, and funding for renewable-ready ports. However, grants for home insulation will be scaled back, covering only five million homes over five years instead of the previously planned 19 million homes over a decade.
Criticism and reaction
Labour’s decision to abandon their original spending pledge has drawn criticism from various quarters. The left-wing campaign group Momentum and Unite, Labour’s largest union backer, have both expressed discontent with the U-turn. They perceive the decision as a concession to right-wing interests. Other critics, including Carla Denyer, co-leader of the Green Party, argue that Labour’s change in stance is detrimental to the environment, the economy, and job creation.
Where does this leave Labour’s plans?
It is difficult to gauge the specific impact of Labour’s scaling back of their green investment plans, as the party had not provided detailed explanations of how and where the money would be allocated. The revision does, however, reduce the originally planned number of homes eligible for grants to improve insulation. Limited funds of £13.2 billion over five years, double the current government allocation, will be allocated to this program. Meanwhile, pledges for renewable-ready ports, battery factories, and “clean” steel production remain largely unchanged.
Although Labour made the decision to abandon their initial £28 billion investment pledge, they are confident that their revised plans will remain fully funded, preventing the economic missteps the Conservatives have been accused of.
