In a significant policy shift, a senior Labour frontbencher has confirmed that the party has abandoned its commitment to allocate £28 billion annually for green investment initiatives if it emerges victorious in this year’s election.
Darren Jones, the shadow chief secretary to the Treasury, made the announcement on Friday, stating that Labour would determine the financial allocation for environmental programs based on individual schemes and the overall economic situation once in government.
This declaration marks the first public acknowledgment by a shadow minister that the party is no longer adhering to the £28 billion figure, which had become a symbolic representation of Labour’s green aspirations but had also faced repeated criticism from the Conservative Party.
As reported by The Guardian on Thursday, Labour leader Keir Starmer decided to abandon the commitment and shift the focus to the party’s pledge to achieve clean power by 2030.
Speaking to Sky News, Jones explained, “The number that we will get to, if we are in government, will be subject to two things. Firstly, it will be subject to the state of the economy.” He added that the amount spent would depend on various factors, including the nature of projects, partnerships with the private sector, and the country’s ability to deliver on those projects.
Jones emphasized that the investment figure “will move around just as a matter of fact” and would be contingent on economic strength, affordability, and case-by-case evaluations working with the private sector.
Party officials have been deliberating for weeks on the fate of the £28 billion commitment, initially made by shadow chancellor Rachel Reeves in 2021 but gradually scaled back since then. Despite recent downgrades from a “pledge” to an “ambition,” Starmer had continued to express commitment to the £28 billion target.
However, Jones’s comments indicate a shift in strategy, with the party now opting to abandon the £28 billion figure and concentrate on previously announced schemes. These initiatives include a home insulation rollout and the establishment of a publicly owned energy company. Nevertheless, the combined cost of these schemes amounts to just under £10 billion per year, effectively downsizing the party’s green ambitions by two-thirds.
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