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Rishi Sunak has confirmed he will be easing a series of green policies under a “new approach” designed to protect “hard-pressed British families” from “unacceptable costs”.

Delivering a speech from Downing Street, he said he is still committed to reaching net zero by 2050, but the transition can be done in a “fairer and better way”.

Announcing a raft of U-turns, the prime minister confirmed he will delay a ban on the sale of new diesel and petrol cars by five years and a weakening of targets to phase out gas boilers.

He also said a “worrying set of proposals” that had emerged during debates on net zero would be scrapped, including:

  • For government to interfere in how many passengers you can have in your car
  • To force you to have seven different bins in your home
  • To make you change your diet and harm British farmers by taxing meat
  • To create new taxes to discourage flying or going on holiday

“Our destiny can be of our own choosing,” Mr Sunak said – while calling for politicians to be “honest” about the costs of green policies on families.

Politics live: Rishi Sunak gives speech from Downing Street

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‘No rights to impose costs on people’

The measures have faced criticism from across the political spectrum as well as from businesses, environmental groups and even former US vice president Al Gore.

More on Net Zero

Labour accused the prime minister of “dancing to the tune” of net zero-sceptic Tories and said the plans would actually add more costs to households while damaging investor confidence.

Explaining the government’s decision to delay the ban on the sale of new petrol and diesel cars – currently due in 2030 – by five years, Mr Sunak said this would give businesses “more time to prepare”.

He also said people would still be allowed to buy secondhand diesel and petrol cars after that date and this would align the UK’s approach with countries across Europe, Canada and many US states.

In weakening the plan to phase out gas boilers from 2035, Mr Sunak said households would “never” be forced to “rip-out their existing boiler and replace it with a heat pump”.

This will only be required when people are due to change their boiler anyway and there will be an exception for households for whom that will be the hardest.

Mr Sunak also announced an increase to the boiler upgrade scheme, saying rather than banning boilers “before people can afford the alternative” the government is going to “support them to make the switch” to heat pumps.

He said: “The boiler upgrade scheme which gives people cash grants to upgrade their boiler will be increased by 50% to seven and a half thousand pounds.

“There are no strings attached. The money will never need to be repaid.”

Landlord efficiency targets scrapped

Mr Sunak has also scrapped plans to force landlords to upgrade the energy efficiency of their properties, saying some property owners would have been forced to “make expensive upgrades” within two years and that would inevitably impact renters.

“You could be looking at a bill of £8,000, and even if you’re only renting, you’re more than likely to see some of that passed on in higher rents,” he said.

“That’s just wrong, so those plans will be scrapped.”

Despite the “new approach”, the prime minister insisted the UK would meet its international obligations on climate change – such as those made under the Paris Climate Accords.

He went on to defend the UK’s record, arguing the country is “so far ahead” of other countries in the world when it comes to cutting greenhouse gas emissions.

PM wants to portray himself as a leader prepared to take unpopular decisions his predecessors weren’t


Amanda Akass is a politics and business correspondent

Amanda Akass

Political correspondent

@amandaakass

For all the rhetoric about democracy and real political change – today’s speech was fundamentally about the Prime Minister giving into the concerns of many in his party about the costs of the green policies set out by Boris Johnson’s government.

Labour see these announcements as projecting fundamental political weakness: 20 points behind in the polls and struggling to meet the majority of his five pledges, Rishi Sunak urgently needs to find a way to connect with voters struggling during the cost of living crisis. He’s keen to win over the right wing Tory backbenchers concerned about the electoral danger of expensive environmental policies like the ULEZ expansion which was widely seen to have cost Labour the Uxbridge by election.

It’s an impression underlined by the hurried way the announcement was made – less than 24 hours after these controversial change in tack was leaked to the media, prompting a huge backlash from business and many in his own party. Making such a key speech in the Downing Street media briefing room – rather than to Parliament, also looks chaotic.

It’s sent the Speaker into a fury, earning a humiliating rebuke. “Ministers are answerable to MPs – we do not have a presidential system here,” Sir Lindsey Hoyle thundered. For a man like Mr Sunak, who prides himself on being a sensible pragmatist – the complete opposite to the cavalier Boris Johnson – it’s surely a criticism that will sting, though it’s hardly unexpected.

The irony is that Rishi Sunak opened his speech by pledging to put the long term interests of the country before the short term political needs of the moment. Climate campaigners, for whom nothing could be more urgent, will surely scoff at this.

But in the framing of his speech – as the first of a series of long term policy decisions in a ‘new kind of politics’ – the Prime Minister and his team are keen to burnish his reputation as a pragmatic reformer, prepared to take the kind of unpopular decisions his predecessors weren’t. Certainly many in his party have been calling for a change in approach, a new bolder strategy to set out a greater distance with Labour – and it seems he has been listening.

The PM’s key arguments – that government shouldn’t impose unnecessary or heavy handed costs on hard working people, and relying on the market to drive change – are a return to classic Conservatism.

But his core argument that the need for action is less urgent than we have previously been led to believe, because of the UK’s success in meeting existing climate targets – is not one which will sit easily with green minded MPs.

And while he spent a key part of the speech concentrating on the importance of green technological innovation, and celebrating the power of the market in delivering progress – that will surely stick in the throat of companies who’ve spent billions getting ready to meet targets which have now been delayed. Many in his own party are concerned about the reputational damage to the UK as a centre of business investment.

He’s well aware that today’s message will be deeply unpopular with some – but promised to ‘meet any resistance’. Many Tory MPs will welcome that more bullish approach; but his promise to deliver ‘pragmatism and not ideology’ is pure Sunak.

The question now is in the hands of voters – do they buy into this argument that the country can reach Net Zero by 2050 without many of the policies designed to get there? Or in the midst of the cost of living crisis – will they be delighted to avoid the cost of paying for them?

‘Act of weakness’

Among the critics, Ed Miliband, Labour’s Shadow Energy Security and Net Zero Secretary, said: “Today is an act of weakness from a desperate, directionless prime minister, dancing to the tune of a small minority of his party. Liz Truss crashed the economy and Rishi Sunak is trashing our economic future.

“Having delivered the worst cost of living crisis in generations, the prime minister today loads more costs onto the British people.”

Lib Dem leader Ed Davey said: “This is a prime minister who simply doesn’t understand and cannot grasp for Britain the opportunities for jobs and our economy of driving forward with action on clean energy.”

There was also criticism from the car industry and energy industry.

Chis Norbury, the chief executive of the E.ON energy firm, said it was a “false argument” that green policies can only come at a cost, arguing they deliver affordable energy while boosting jobs.

He said companies wanting to invest in the UK need “long-term certainty” while communities now risk being condemned to “many more years of living in cold and draughty homes that are expensive to heat”.

Ford cars UK chairwoman Lisa Brankin said: “Our business needs three things from the UK Government: ambition, commitment and consistency. A relaxation of 2030 would undermine all three.”

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Rishi Sunak is asked if his net zero policy climbdowns are a result of him panicking about the next election.

Tory MPs split

The announcement comes after last night’s leak of the plans sparked a major Tory backlash and even a threat of a no confidence letter.

Mr Sunak was due to give the speech later this week but brought it forward following a hastily arranged cabinet meeting this morning.

Commons Speaker Sir Lindsay Hoyle reacted furiously to the announcement not being made to MPs, who are on recess for conferences, expressing his views “in the strongest terms” in a letter to Mr Sunak.

Tory MPs are split, with some seeing the row back on costly green policies as a vote winner and others fearing the impact it will have on business and the climate.

Senior figures who have backed the prime minister include his predecessor Liz Truss, who said: “I welcome the delay on banning the sale of new petrol and diesel cars as well as the delay on the ban on oil and gas boilers. This is particularly important for rural areas.”

Read more:
Braverman: ‘Bankrupting Britons won’t save planet’
Sunak’s messaging suggests net zero is negotiable
What could be scrapped from net zero pledges?

However Boris Johnson, who Ms Truss briefly took over from, said the row back would cause uncertainty for businesses, adding: “We cannot afford to falter now or in any way lose our ambition for this country.”

Mr Johnson’s ally and prominent Tory environmentalist Lord Zac Goldsmith went as far as to demand a general election over the “economically and ecologically illiterate decision”.

The UK’s commitment to reach net zero by 2050 was written into law in 2019.

Climate scientists say urgent cuts are needed to the world’s greenhouse gas emissions if we are to stop temperatures rising to a potentially catastrophic extent.

In the summer, scientists warned extreme heat events were rapidly on the rise due to climate change.

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One year of Starmer: Nine charts that tell us whether Labour’s first year has been a success or failure

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One year of Starmer: Nine charts that tell us whether Labour's first year has been a success or failure

It might feel like it’s been even longer for the prime minister at the moment, but it’s been a whole year since Sir Keir Starmer’s Labour Party won a historic landslide, emphatically defeating Rishi Sunak’s Conservatives and securing a 174-seat majority.

Over that time, Sir Keir and his party have regularly reset or restated their list of milestones, missions, targets and pledges – things they say they will achieve while in power (so long as they can get all their policies past their own MPs).

We’ve had a look at the ones they have repeated most consistently, and how they are going so far.

Overall, it amounts to what appears to be some success on economic metrics, but limited progress at best towards many of their key policy objectives.

From healthcare to housebuilding, from crime to clean power, and from small boats to squeezed budgets, here are nine charts that show the country’s performance before and after Labour came to power, and how close the government are to achieving their goals.

Keir Starmer leaves 10 Downing Street.
Pic Reuters
Image:
Sir Keir Starmer has been in office for a year. Pic Reuters

Cost of living

On paper, the target that Labour have set themselves on improving living standards is by quite a distance the easiest to achieve of anything they have spoken about.

They have not set a specific number to aim for, and every previous parliament on record has overseen an increase in real terms disposable income.

The closest it got to not happening was the last parliament, though. From December 2019 to June 2024, disposable income per quarter rose by just £24, thanks in part to the energy crisis that followed Russia’s invasion of Ukraine.

By way of comparison, there was a rise of almost £600 per quarter during the five years following Thatcher’s final election victory in 1987, and over £500 between Blair’s 1997 victory and his 2001 re-election.

After the first six months of the latest government, it had risen by £144, the fastest start of any government going back to at least 1954. As of March, it had fallen to £81, but that still leaves them second at this stage, behind only Thatcher’s third term.

VERDICT: Going well, but should have been more ambitious with their target

Get inflation back to 2%

So, we have got more money to play with. But it might not always feel like that, as average prices are still rising at a historically high rate.

Inflation fell consistently during the last year and a half of Rishi Sunak’s premiership, dropping from a peak of 11.1% in October 2022 to exactly 2% – the Bank of England target – in June 2024.

It continued to fall in Labour’s first couple of months, but has steadily climbed back up since then and reached 3.4% in May.

When we include housing costs as well, prices are up by 4% in the last year. Average wages are currently rising by just over 5%, so that explains the overall improvement in living standards that we mentioned earlier.

But there are signs that the labour market is beginning to slow following the introduction of higher national insurance rates for employers in April.

If inflation remains high and wages begin to stagnate, we will see a quick reversal to the good start the government have made on disposable income.

VERDICT: Something to keep an eye on – there could be a bigger price to pay in years to come

‘Smash the gangs’

One of Starmer’s most memorable promises during the election campaign was that he would “smash the gangs”, and drastically reduce the number of people crossing the Channel to illegally enter the country.

More than 40,000 people have arrived in the UK in small boats in the 12 months since Labour came to power, a rise of over 12,000 (40%) compared with the previous year.

Labour have said that better weather in the first half of this year has contributed to more favourable conditions for smugglers, but our research shows crossings have also risen on days when the weather is not so good.

VERDICT: As it stands, it looks like “the gangs” are smashing the government

Reduce NHS waits

One of Labour’s more ambitious targets, and one in which they will be relying on big improvements in years to come to achieve.

Starmer says that no more than 8% of people will wait longer than 18 weeks for NHS treatment by the time of the next election.

When they took over, it was more than five times higher than that. And it still is now, falling very slightly from 41.1% to 40.3% over the 10 months that we have data for.

So not much movement yet. Independent modelling by the Health Foundation suggests that reaching the target is “still feasible”, though they say it will demand “focus, resource, productivity improvements and a bit of luck”.

VERDICT: Early days, but current treatment isn’t curing the ailment fast enough

Halve violent crime

It’s a similar story with policing. Labour aim to achieve their goal of halving serious violent crime within 10 years by recruiting an extra 13,000 officers, PCSOs and special constables.

Recruitment is still very much ongoing, but workforce numbers have only been published up until the end of September, so we can’t tell what progress has been made on that as yet.

We do have numbers, however, on the number of violent crimes recorded by the police in the first six months of Labour’s premiership. There were a total of 1.1m, down by 14,665 on the same period last year, a decrease of just over 1%.

That’s not nearly enough to reach a halving within the decade, but Labour will hope that the reduction will accelerate once their new officers are in place.

VERDICT: Not time for flashing lights just yet, but progress is more “foot patrol” than “high-speed chase” so far

Build 1.5m new homes

One of Labour’s most ambitious policies was the pledge that they would build a total of 1.5m new homes in England during this parliament.

There has not yet been any new official data published on new houses since Labour came to power, but we can use alternative figures to give us a sense of how it’s going so far.

A new Energy Performance Certificate is granted each time a new home is built – so tends to closely match the official house-building figures – and we have data up to March for those.

Those numbers suggest that there have actually been fewer new properties added recently than in any year since 2015-16.

Labour still have four years to deliver on this pledge, but each year they are behind means they need to up the rate more in future years.

If the 200,000 new EPCs in the year to March 2025 matches the number of new homes they have delivered in their first year, Labour will need to add an average of 325,000 per year for the rest of their time in power to achieve their goal.

VERDICT: Struggling to lay solid foundations

Clean power by 2030

Another of the more ambitious pledges, Labour’s aim is for the UK to produce 95% of its energy from renewable sources by 2030.

They started strong. The ban on new onshore wind turbines was lifted within their first few days of government, and they delivered support for 131 new renewable energy projects in the most recent funding round in September.

But – understandably – it takes time for those new wind farms, solar farms and tidal plants to be built and start contributing to the grid.

In the year leading up to Starmer’s election as leader, 54% of the energy on the UK grid had been produced by renewable sources in the UK.

That has risen very slightly in the year since then, to 55%, with a rise in solar and biomass offsetting a slight fall in wind generation.

The start of this year has been unusually lacking in wind, and this analysis does not take variations in weather into account. The government target will adjust for that, but they are yet to define exactly how.

VERDICT: Not all up in smoke, but consistent effort is required before it’s all sunshine and windmills

Fastest economic growth in the G7

Labour’s plan to pay for the improvements they want to make in all the public services we have talked about above can be summarised in one word: “growth”.

The aim is for the UK’s GDP – the financial value of all the goods and services produced in the country – to grow faster than any other in the G7 group of advanced economies.

Since Labour have been in power, the economy has grown faster than European rivals Italy, France and Germany, as well as Japan, but has lagged behind the US and Canada.

The UK did grow fastest in the most recent quarter we have data for, however, from the start of the year to the end of March.

VERDICT: Good to be ahead of other similar European economies, but still a way to go to overtake the North Americans

No tax rises

Without economic growth, it will be difficult to keep to one of Chancellor Rachel Reeves’ biggest promises – that there will be no more tax rises or borrowing for the duration of her government’s term.

Paul Johnson, director of the Institute for Fiscal Studies, said last month that she is a “gnat’s whisker” away from being forced to do that at the autumn budget, looking at the state of the economy at the moment.

That whisker will have been shaved even closer by the cost implications of the government’s failure to get its full welfare reform bill through parliament earlier this week.

And income tax thresholds are currently frozen until April 2028, meaning there is already a “stealth” hike scheduled for all of us every year.

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One year of Keir: A review of Starmer’s first 12 months in office

But the news from the last financial year was slightly better than expected. Total tax receipts for the year ending March 2025 were 35% of GDP.

That’s lower than the previous four years, and what was projected after Jeremy Hunt’s final Conservative budget, but higher than any of the 50 years before that.

The Office for Budget Responsibility (OBR) still projects it to rise in future years though, to a higher level than the post-WWII peak of 37.2%.

The OBR – a non-departmental public body that provides independent analysis of the public finances – has also said in the past few days that it is re-examining its methodology, because it has been too optimistic with its forecasts in the past.

If the OBR’s review leads to a more negative view of where the economy is going, Rachel Reeves could be forced to break her promise to keep the budget deficit from spiralling out of control.

VERDICT: It’s going to be difficult for the Chancellor to keep to her promise

OVERALL VERDICT: Investment and attention towards things like violent crime, the NHS and clean energy are yet to start bearing fruit, with only minuscule shifts in the right direction for each, but the government is confident that what’s happened so far is part of its plans.

Labour always said that the house-building target would be achieved with a big surge towards the back end of their term, but they won’t be encouraged by the numbers actually dropping in their first few months.

Where they are failing most dramatically, however, appears to be in reducing the number of migrants making the dangerous Channel crossing on small boats.

The economic news, particularly that rise in disposable income, looks more healthy at the moment. But with inflation still high and growth lagging behind some of our G7 rivals, that could soon start to turn.


The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.

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