Labour’s jobs strategy relies on private sector investment, says minister

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Decarbonising the economy must be undertaken, said Secretary of State for Wales Jo Stevens, but it should be seen as an opportunity to help rather than damage it

The Secretary of State for Wales Jo Stevens says the Government will ensure new jobs under the green transition will be in areas where old industry is dying If handled correctly, she said, it will boost the economy, create jobs in parts of the country where they are most needed, and provide the country with energy security, while helping tackle climate change.

For this specific case, the Government has set aside a total of £500m to support the transition including money to help people losing jobs to find new employment. Under the Government’s plans for a new “national wealth fund” and the recently-launched Great British Energy, private investment will be courted to fund the introduction of new green industries.“We have got the National Wealth Fund and we are looking to crowd in private investment. For every one pound of government money that is invested, we will draw in three pounds from the private sector, and that will create jobs right across the United Kingdom,” Ms Stevens said.

“But there are other areas where things like advanced manufacturing or nuclear or compound semiconductors – lots of different sectors of the economy where we know that we have real potential and ambition and skills and people – where we want to make a really successful future. In South Wales, Tata jobs will be replaced by electric steel production and the introduction of floating offshore wind.

While pushing the idea of private-public investment, the reality is that if the Labour government wants to keep to its fiscal rules, without significantly increasing taxes, it does not have the spending power alone to enact the policies it has promised.

 

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