Why has Labour U-turned on its green investment pledge?

  • 📰 BBCScienceNews
  • ⏱ Reading Time:
  • 63 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 53%

Business News News

Business Business Latest News,Business Business Headlines

With the cost of borrowing up, the £28bn of investment is more expensive to deliver, says the BBC's Iain Watson.

, shadow chancellor Rachel Reeves announced her ambition to be the UK's first "green" chancellor.

And Ms Reeves wants to emphasise that if any spending commitments clash with her fiscal rules, the rules would win every time.In their own detailed briefing on their fiscal rules, Labour said: "It is essential that for our future prosperity that we retain the ability to borrow for investing in capital projects which over time will pay for themselves.So borrowing to invest in the future technology and jobs shouldn't fall foul of that fiscal rule.

One of the other justifications for the change of position is that £28bn shouldn't be poured in to the economy straight away. Engagement with investors convinced them the government itself may not need to pump in a huge amount of cash straight away - the private sector would provide green jobs without state help.

One concern was that the amount to be borrowed - the £28bn - was better known than what the money would buy - from home insulation and heat pumps to new carbon capture technology. As one Labour shadow minister put it: "They [the Conservatives] will be pulling their hair out that one of their attack lines has failed."Rachel Reeves says Labour will now "ramp up" its plan to spend £28bn a year on green industries

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 87. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Labour waters down £28bn green investment pledgeLabour scales back £28bn a year green investment pledge, as Shadow Chancellor Rachel Reeves tells BBC 'Tories crashed economy'
Source: BBCNews - 🏆 3. / 97 Read more »

Labour waters down £28bn green investment pledgeRachel Reeves says she cannot be 'reckless' with spending and will ramp up investment to reach the figure by 2027.
Source: BBCScienceNews - 🏆 87. / 53 Read more »