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The Labour Party has watered down its flagship £28bn green prosperity plan, blaming rising interest rates and the “damage” the Conservatives have done to the economy.

Shadow Chancellor Rachel Reeves said “economic stability, financial stability, always has to come first”.

The party had pledged to invest £28bn per year to accelerate the shift towards net zero emissions by 2050, but Ms Reeves said the economic situation had changed since she first made the promise.

Speaking to BBC Radio 4’s Today programme, Ms Reeves said: “The Tories have crashed our economy, and as a result interest rates have gone up 12 times, inflation is now at 8.7% and I’ve always said our fiscal rules are non-negotiable.

“Economic stability, financial stability, always has to come first and it will do with Labour.

“That’s why it’s important to ramp up and phase up our plans to get to the investment we need to secure these jobs so that it is also consistent with those fiscal rules to get debt down as a share of GDP and to balance day-to-day spending.”

Former Tory chairman lashes out at civil servant ‘blob’ – politics latest

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Rishi Sunak promised he’ll take responsibility if inflation in the UK has not halved by the end of 2023, saying:

Ms Reeves clarified that the £28bn figure previously aimed for by Labour would be a target to work towards rather than a figure allocated for the plan in the first year of government, as it was originally stated.

However, she denied accusations of a U-turn, saying the figure for spending would not be “zero”.

Asked if Labour could end up not borrowing at all in its first year of government for the plan, she said the party was “more ambitious than that” – but refused to give a rough number.

“Who knows what more damage the Conservatives are going to do to our economy,” Ms Reeves said.

“We haven’t had the final set of numbers by the government so we’re not going to give our final set of numbers.”

And pressed on why she made the pledge in the first place, the shadow chancellor said: “The truth is I didn’t foresee what the Conservatives would do to our economy – maybe that was foolish of me.”

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The move comes following reports in The Times that Labour leader Sir Keir Starmer was under pressure to ditch the plan as the party also faced criticism for a proposal to ban new oil and gas developments in the North Sea and for taking donations of Dale Vince, a key backer of campaign group Just Stop Oil.

Ms Reeves sought to quell speculation of a rift with shadow climate change secretary Ed Miliband, whom she said was on the “same page”.

“Keir, Ed and me are all on the same page on this,” she said.

“We know that unless we have this green prosperity plan those jobs and investments will go elsewhere, but that everything we do must rest on these pillars of economic responsibility and fiscal responsibility.”

Mr Miliband tweeted: “Some people don’t want Britain to borrow to invest in the green economy. They want us to back down.

“But Keir, Rachel and I will never let that happen. Britain needs this £28bn a year plan and that is what we are committed to.”

Chancellor Jeremy Hunt said the change was “superficial” and “still adds around £100billion to our national debt – meaning higher mortgages for families and higher debt interest bills for taxpayers”.

“A responsible approach should tackle inflation, not fuel it,” he added.

Conservative Party Chair Greg Hands said Sir Keir’s economic policy lay “in tatters – after even he and Rachel Reeves realised it would lead to disaster”.

The SNP’s Westminster leader Stephen Flynn said the move was the “latest in a long line of broken promises from the pro-Brexit Labour Party – and one that could have very real and damaging consequences for Scotland’s green energy potential”.

“The best way to secure economic growth is to properly invest in the renewables gold rush and rejoin the EU – the Labour Party has now turned its back on both and it will be ordinary families who pay the price as the UK economy falls behind and the cost of living soars,” he said.

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Jess Phillips condemns ‘idiot’ councils that don’t believe they have grooming gang problem

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Jess Phillips condemns 'idiot' councils that don't believe they have grooming gang problem

Safeguarding minister Jess Phillips has told Sky News that councils that believe they don’t have a problem with grooming gangs are “idiots” – as she denied Elon Musk influenced the decision to have a national inquiry on the subject. 

The minister said: “I don’t follow Elon Musk’s advice on anything although maybe I too would like to go to Mars.

“Before anyone even knew Elon Musk’s name, I was working with the victims of these crimes.”

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Elon Musk. Pic: Reuters
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Elon Musk. Pic: Reuters

Mr Musk had called Ms Phillips a “rape genocide apologist” in one of a series of inflammatory posts on X in January and said she should go to jail.

Mr Musk, then a close aide of US President Donald Trump, sparked a significant political row with his comments – with the Conservative Party and Reform UK calling for a new public inquiry into grooming gangs.

At the time, Ms Phillips denied a request for a public inquiry into child sexual exploitation in Oldham on the basis that it should be done at a local level.

But the government announced a national inquiry after Baroness Casey’s rapid audit on grooming gangs, which was published in June.

Asked if she thought there was, in the words of Baroness Casey, “over representation” among suspects of Asian and Pakistani men, Ms Phillips replied: “My own experience of working with many young girls in my area – yes there is a problem. There are different parts of the country where the problem will look different, organised crime has different flavours across the board.

“But I have to look at the evidence… and the government reacts to the evidence.”

Ms Phillips also said the home secretary has written to all police chiefs telling them that data collection on ethnicity “has to change”, to ensure that it is always recorded, promising “we will legislate to change the way this [collection] is done if necessary”.

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Operation Beaconport has since been established, led by the National Crime Agency (NCA), and will be reviewing more than 1,200 closed cases of child sexual exploitation.

Ms Phillips revealed that at least “five, six” councils have asked to be a part of the national review – and denounced councils that believed they don’t have a problem with grooming gangs as “idiots”.

“I don’t want [the inquiry] just to go over places that have already had inquiries and find things the Casey had already identified,” she said.

She confirmed that a shortlist for a chair has been drawn up, and she expects the inquiry to be finished within three years.

Ms Phillips’s comments come after she announced £426,000 of funding to roll out artificial intelligence tools across all 43 police forces in England and Wales to speed up investigations into modern slavery, child sex abuse and county lines gangs.

Some 13 forces have access to the AI apps, which the Home Office says have saved more than £20m and 16,000 hours for investigators.

The apps can translate large amounts of text in foreign languages and analyse data to find relationships between suspects.

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Prince Harry cleared of bullying claims by report into ‘damaging dispute’ at his charity

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Prince Harry cleared of bullying claims by report into 'damaging dispute' at his charity

The Charity Commission has found no evidence of bullying or harassment at a charity set up by Prince Harry.

But it has found that an internal dispute at Sentebale “severely impacted the charity’s reputation”.

Earlier this year its chair, Dr Sophie Chandauka, accused the Duke of Sussex of “harassment and bullying at scale”.

Her comments followed the departure of the prince and several others from the organisation in March.

They had asked her to step down, alleging it was in the “best interest of the charity”.

Dr Chandauka told Sky News that Harry had “authorised the release of a damaging piece of news to the outside world” without informing her or Sentebale directors.

The Duke and Duchess of Sussex declined to offer any formal response.

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Why was Prince Harry accused of ‘bullying’?

‘Strong perception of ill-treatment’

The Charity Commission said it was reporting after a “damaging internal dispute emerged” and has “criticised all parties to the dispute for allowing it to play out publicly”.

That “severely impacted the charity’s reputation and risked undermining public trust in charities more generally”, it said.

But it found no evidence of “widespread or systemic bullying or harassment, including misogyny or misogynoir at the charity”.

Nevertheless, it did acknowledge the “strong perception of ill-treatment felt by a number of parties to the dispute and the impact this may have had on them personally”.

It also found no evidence of “‘over-reach’ by either the chair or the Duke of Sussex as patron”.

‘Confusion exacerbated tensions’

But it was critical of the charity’s “lack of clarity in delegations to the chair which allowed for misunderstandings to occur”.

And it has “identified a lack of clarity around role descriptions and internal policies as the primary cause for weaknesses in the charity’s management”.

That “confusion exacerbated tensions, which culminated in a dispute and multiple resignations of trustees and both founding patrons”.

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Why was Prince Harry accused of ‘bullying’?

Harry: Report falls troublingly short

A spokesperson for Prince Harry said it was “unsurprising” that the commission had announced “no findings of wrongdoing in relation to Sentebale’s co-founder and former patron, Prince Harry, Duke of Sussex”.

They added: “Despite all that, their report falls troublingly short in many regards, primarily the fact that the consequences of the current chair’s actions will not be borne by her, but by the children who rely on Sentebale’s support.”

They said the prince will “now focus on finding new ways to continue supporting the children of Lesotho and Botswana”.

Dr Chandauka said: “I appreciate the Charity Commission for its conclusions which confirm the governance concerns I raised privately in February 2025.”

But she added: “The unexpected adverse media campaign that was launched by those who resigned on 24 March 2025 has caused incalculable damage and offers a glimpse of the unacceptable behaviours displayed in private.”

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Police investigating grooming gangs given AI tools to speed up cold case work

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Police investigating grooming gangs given AI tools to speed up cold case work

All police forces investigating grooming gangs in England and Wales will be given access to new AI tools to help speed up their investigations.

The artificial intelligence tools are already thought to have saved officers in 13 forces more than £20m and 16,000 hours of investigation time.

The apps can translate large amounts of text in foreign languages from mobile phones seized by police, and analyse a mass of digital data to find patterns and relationships between suspects.

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Grooming gang inquiry: ‘Our chance for justice’

‘We must punish perpetrators’

The rollout is part of a £426,000 boost for the Tackling Organised Exploitation (TOEX) programme, which supports officers to investigate complex cases involving modern slavery, county lines and child sex abuse.

The increased access to the AI technology follows Baroness Casey’s recommendation for a national operation to review cold grooming gang cases.

That operation will review more than 1,200 closed cases of child sexual exploitation.

“The sexual exploitation of children by grooming gangs is one of the most horrific crimes, and we must punish perpetrators, provide justice for victims and survivors, and protect today’s children from harm,” said safeguarding minister Jess Phillips.

“Baroness Casey flagged the need to upgrade police information systems to improve investigations and safeguard children at risk. Today we are investing in these critical tools.”

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Key takeaways from the Casey review

Lack of ethnicity data ‘a major failing’

Police forces have also been instructed by the home secretary to collect ethnicity data, as recommended by Baroness Casey.

Her June report found the lack of data showing sex offenders’ ethnicity and nationality in grooming gangs was “a major failing over the last decade or more”.

She found that officials avoided the issue of ethnicity for fear of being called racist, but there were enough convictions of Asian men “to have warranted closer examination”.

The government has launched a national inquiry into the abuse and further details are expected to be announced in the coming weeks.

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