Labour has rowed back on its pledge to invest £28bn a year in green industries if it wins power, saying it needs to be "responsible" with the public finances.Instead shadow chancellor Rachel Reeves said she would now ramp up investment over time from a 2024 election win, reaching £28bn a year by 2027.
Factors including the war in Ukraine have seen inflation soar and the Bank of England has increased interest rates, making borrowing more expensive, in an attempt to tame rising prices. Since then the economic picture has changed considerably, with interest rates and borrowing costs soaring. The source added there were "still issues with the pledge" and "a lot of deadweight cost where the private sector would've invested anyway".Rachel Reeves toured the New York Stock Exchange on a three-day visit to the US last monthon his visit to Washington this week.
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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'
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