Labour scrap £28bn green investment promise

Labour party leader, Sir Kier Starmer, will today confirmed that they will be ditching their policy pledge to spend £28bn a year on a green investment plan. It's being widely regarded as a major U-turn.

Updated at 17.39 to add the Labour quote in paragraph three.

The so-called Green Prosperity Plan will not be dropped completely, but Labour will no longer commit to investing £28bn a year in it should they win the election. This means the plans to create a publicly-owned green power company, are at risk.

In a statement, the party said: "due to the Conservatives’ crashing the economy and Jeremy Hunt’s plans to ‘max out’ the country’s credit card, it would not be possible to reach the previous commitment of £28bn a year."

Labour's position on the subject has fluctuated in recent weeks, with some senior officials refusing to use the £28bn a year figure in many different press interviews - most notably Shadow Chancellor of the Exchequer Rachel Reeves in the past week. However, Starmer himself has continued to mention the figure as recently as Tuesday.

The plan to spend £28bn a year on green energy projects, like offshore wind farms and developing electric vehicles, was first announced by shadow chancellor Rachel Reeves in September 2021.

That pledge was watered down last June, with the £28bn target adjusted so that a Labour government would meet it about halfway through its first term rather than in its first year.

Labour are now arguing that they have to focus on being a responsible steward of the economy, rather than committing to a high spending pledge. They have already trimmed down on other pledges for another reason, wanting to "bombproof" themselves from Tory attacks.

Green party MP Caroline Lucas said on X: "So deeply depressing - not only bad for climate & environment, but for economy too. Public investment in green transition would bring in private finance, create jobs, reduce fuel bills, cut emissions & make lives better. Starmer should stand his ground not bow to Tory pressure.

How will Labour explain to future generations why they chose to ignore the climate emergency? Sorry, a liveable planet just didn't "make the cut"?"

This news comes the day after Conservatives claimed that, using Treasury analysis, another Labour policy to insulate homes, would cost double what Labour claimed it would. Labour have rejected the claim as "bogus".