Labour is today set to scrap its £28bn green investment pledge after weeks of speculation.
Party leader Sir Keir Starmer is expected to make an announcement on the much-debated figure, according to multiple reports by The Guardian and the BBC.
The pledge had previously seen Labour promise to invest £28bn per year in delivering its green prosperity plan, which aimed to bring about Britain’s eco-friendly energy transition and meet Labour’s goal of clean power by 2030 while creating new job opportunities for workers.
Starmer is anticipated to disentangle the green prosperity plan from the amount of cash – aiming to focus on what the policy package can deliver, rather than how it will be paid for.
It has already come in for criticism, with Shaun Spiers, from the Green Alliance, telling Radio Four that “the certainty the private sector’s been looking for… has been damaged”.
While former Blair-era advisor John McTernan told Newsnight: “It’s probably the most stupid decision the Labour Party’s made… what’s the change Labour now offers?”
First unveiled in 2021, following economic turmoil the amount was adjusted last year, with senior figures saying the spending target would be met in the second half of the first parliament, rather than straight away, if the party entered government after the next election.
Labour has since insisted the £28bn is subject to its fiscal rules, which include getting debt falling as a percentage of the UK’s GDP, in a bid to soothe voters’ fears over the economy.
In recent weeks, Labour heavyweights have struggled to offer clarity over the figure, with shadow Chancellor Rachel Reeves refusing to commit to the number ten times in an interview with Sky News last week during Labour’s business conference at the Oval.
Shadow business secretary Jonathan Reynolds said it was unclear “if we can get there” and shadow chief Treasury secretary Darren Jones firmly tied it “to the state of the economy”.
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However, this week, Starmer confirmed the £28bn was “desperately needed” and a party spokesperson yesterday said the party was committed to “£28bn, subject to fiscal rules and subject to what the government leaves on the table”.
Chief Secretary to the Treasury Laura Trott said: “This is a serious moment which confirms Labour have no plan for the UK, creating uncertainty for business and our economy.
“On the day that Labour are finalising their manifesto, Keir Starmer is torpedoing what he has claimed to be his central economic policy purely for short-term campaigning reasons.”
She added: “He must explain how he can keep the £28bn spending when he is finally admitting he doesn’t have a plan to pay for it.”