Labour have officially back tracked on its £28bn ‘Green Prosperity Plan’.
Originally announced in September 2021, Labour’s ‘Green Prosperity Plan’ was a key part of the parties’ plan to reach climate targets and secure new net zero jobs.
The plan is not supposed to be dropped altogether but Labour will no longer commit £28bn to the target.
The U-turn was already anticipated by various political commentators.
In separate interviews Labour Leader Sir Kier Starmer, Shadow Chancellor Rachel Reeves, and Shadow Business Secretary Jonathan Reynolds all gave different answers about Labour’s commitment to the plan.
Starmer reaffirmed Labour’s commitment, Reeves said Labour couldn’t commit to the £28bn pledge, whilst Reynolds neither confirmed nor denied either stance.
The plan was already set to be watered down in June 2023.
The £28bn commitment was being planned to be met halfway through its first term, instead of its first year.
The Institute of Fiscal Studies think tank have said Labour’s plan would have delivered high levels of public investment by current UK standards.
Whilst the £28bn project has been u-turned, Labour have clarified where some of their renewable funding will go.
£6bn a year will be spent on loans and grants for families needing home insulation with a further £500m a year on grants for companies bringing in green jobs.
A further £8bn is set to be provided for investment funding, £2bn for 8 battery factories, £1.8bn for 9 ‘renewable ready’ ports, and £3bn for 6 ‘clean steel’ plants.
It is important to note this £8bn is a one-off investment figure.
Despite Labour’s new investment plans for renewable projects, the U-turn has come under heavy criticism.
Co-Leader of the Green Party, Carol Denyer said this about the U-turn:
“This is a massive backward step – for the climate, for the economy and for good quality jobs. Both the security of our planet and future generations and the UK’s future prosperity is dependent on greening our economy and that requires a large-scale investment.”
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