The Labour Party have scaled back proposals to borrow £28 billion a year to spend on green industries this morning
Shadow chancellor Rachel Reeves has seemingly delayed the planned delivery of £28bn green prosperity fund as a result of poor economic backdrop.
In interviews this morning Reeves blames the delay on Tories “crashing” economy and insisted that fiscal stability comes first.
The fulll investment has now been delayed until the second half of a first Labour term.
“We’ll ramp up and get to the investment in the way that is needed. But I will never be reckless with the public finances”. she said
In a piece in this morning’s Times newspaper Reeves writes that
“Our green prosperity plan is vital to achieving our mission. We will invest in good jobs in the industries of the future, tacking crippling energy bills and securing our economy. I first announced this plan over 18 months ago. Since then, Russia’s invasion of Ukraine, and the exposure of the vulnerability of our energy system, has proven how necessary it is.”
However she adds
“To make sure there is time to build the supply chains we need, skill our workforce, and ensure the taxpayer gets value for money, the right way to deliver our green prosperity plan is to ramp up the investment over time reaching a total of £28 billion a year in the second half of the parliament at the latest.” and says
“My commitment to Labour’s fiscal rules, including ensuring debt is failing, has always been non-negotiable – and it will remain that way. Within that framework of fiscal responsibility, it right to borrow to invest, not for unfunded tax cuts or day to day spending, but to build the economy of the future.”
