Labour’s decision to row back on its £28bn green growth plan is being seen by insiders as a “timely injection of sense” to defuse a “time bomb” that could have threatened the party’s election campaign 🔴 singharj, paulwaugh and HugoGye report:
The U-turn comes after growing scrutiny of Labour’s plans to increase spending, which it has said will not be funded by a significant increase in public borrowing for day-to-day expenditure, and renewed pressure on the party over fiscal responsibility.
The green growth plan was earmarked as capital expenditure that would not count towards that goal but Liz Truss’s , which increased borrowing heavily to fund tax cuts and energy subsidies, was seen by some senior Labour figures as a warning of the potential consequences of loosening the spending taps.programme she could not give a “final set of numbers” until the Government has laid out its own long-term spending plans and blamed the Tories for “crashing out economy” and contributingthat are 12 times higher than when the pledge was first made in 2021, dramatically increasing the cost of borrowing.
A senior Labour source said that despite the scaling back of the plan, the party was still committed to 100 per centTwo sources said the decision had been in the works for some time, with Sir Keir Starmer, Ms Reeves and shadow Climate Change Secretary, Ed Miliband, recognising the need to recalibrate the plans after Ms Truss’s premiership.
But insiders acknowledged that increased scrutiny of Labour’s spending plans in the media, including an
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Labour's Rachel Reeves backtracks on £28bn green prosperity schemeThe shadow chancellor said 'economic stability must come first' as she scaled back plans to accelerate the shift to net zero - in a move critics branded a 'broken promise'.
Read more »
Labour's Rachel Reeves rows back £28bn green prosperity plan as Tories 'crashed the economy'Labour has ditched proposals to borrow £28 billion a year to fund its green prosperity plan, with Rachel Reeves saying 'economic stability' must come first.
Read more »
Labour scraps £28bn green plan amid mounting scrutiny over spending pledgesShadow Chancellor Rachel Reeves said the party’s green spending would “ramp up” over time rather than coming into force immediately if Labour wins the next election HugoGye reports
Read more »
Labour waters down £28bn green investment pledgeLabour scales back £28bn a year green investment pledge, as Shadow Chancellor Rachel Reeves tells BBC 'Tories crashed economy'
Read more »
Labour waters down £28bn green investment pledgeRachel Reeves says she cannot be 'reckless' with spending and will ramp up investment to reach the figure by 2027.
Read more »
Labour scales back commitment to £28bn green plan\n\t\t\tJournalists in 50+ countries follow the constant flow of money made and lost in oil & gas while\n\t\t\ttracking emerging trends and opportunities in the future of energy. Don’t miss our exclusive\n\t\t\tnewsletter, Energy Source.\n\t\t
Read more »