Labour Set to Scale Back Flagship £28bn Net Zero Pledge

Labour is set to scale back its £28 billion Net Zero investment pledge amid concerns that the Conservatives are going to pursue a “scorched earth” strategy and splurge on tax cuts and other items. The Times has the story.

Labour is preparing to significantly scale back its £28 billion green investment pledge amid concerns that the Conservatives are poised to pursue a “scorched earth” strategy and spend every penny available on tax cuts and other pre-election giveaways.

Jeremy Hunt, the Chancellor, is weighing up billions of pounds of cuts to income and inheritance tax in the spring budget. The Tories could also hold another fiscal event before the election.

Rachel Reeves, the Shadow Chancellor, believes that the Government will attempt to leave Labour with “no room for manoeuvre’’, forcing the party to scale back the policy.

A final decision will be made after the budget on March 6th but it is likely that the figure will be significantly reduced. Labour sources have already emphasised that its commitment includes £10 billion of the Government’s existing Net Zero policies. They said that they have repeatedly emphasised that meeting the party’s fiscal rules must come first.

Sir Keir Starmer, the Labour leader, described the £28 billion figure as a “confident ambition” rather than an explicit pledge. He said it would be subject to Labour’s fiscal rules, which will include reducing debt as a proportion of national income over five years. …

The Conservatives are likely to seize on any decision to scale back the pledge. They will argue that even if Labour drops the £28 billion figure the party will need the money to meet its commitment to get all of Britain’s electricity from clean power sources by 2030. The Tories have made the same commitment but for 2035.

Should the country leave itself without reliable, affordable energy in six years’ time or 11 years’ time? What a choice awaits us at the next election.

Worth reading in full.