Labour has made changes to its commitment to investing £28 billion per year in green industries, opting for a more cautious approach.
Shadow Chancellor Rachel Reeves announced that the party would gradually increase investment from 2024, reaching the full £28 billion per year after 2027.
The decision comes in response to concerns about the responsible management of public finances.
During an interview with the BBC, Reeves emphasised the need to avoid “reckless” spending, attributing the economic instability to the Conservatives‘ mismanagement.
Labour’s Green Prosperity Plan, unveiled in 2021, aimed to fund projects like offshore wind farms and the development of electric vehicle batteries through borrowing.
However, the changing economic landscape and mounting borrowing costs have prompted Labour to reassess the feasibility of their initial pledge.
Commenting on the announcement, Greg Hands, the Chairman of the Conservative Party, tweeted: “Last week, I wrote to Rachel Reeves outlining concerns with Labour’s £28 billion per year unfunded spending pledge.
“Today, she announced a change in policy. The electorate should be under no illusions; this is not a U-turn. This is a different timetable for the same reckless spending.”
Labour will build a better economic future.
Our Green Prosperity Plan will ramp up investment to deliver good jobs and economic security across Britain. pic.twitter.com/x5RoBDMr9e
— Rachel Reeves (@RachelReevesMP) June 9, 2023
Last week I wrote to @RachelReevesMP outlining concerns with Labour’s £28bn per year unfunded spending pledge. Today she announced a change in policy. The electorate should be under no illusions; this is not a U-turn. This is a different timetable for the same reckless spending. pic.twitter.com/IOqS8C6Dph
— John Glen MP (@JohnGlenUK) June 9, 2023