Politics

What is Labour’s green prosperity plan and why has the £28bn spending pledge been axed?

Published

1 year ago

February 9, 2024

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Labour is scaling back its green prosperity plan by ditching its £28bn spending pledge.

But what is the policy, and how has Sir Keir Starmer ended up U-turning on the central investment promise?

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‘First green chancellor’

In 2021, the Labour Party descended on Brighton in its droves for its first in-person conference since the COVID pandemic struck, and for Sir Keir’s first chance to deliver his big leader’s speech in front of a live audience, rather than over Zoom.

But one of the major policy announcements at the event came from his shadow chancellor, Rachel Reeves, who promised to be “Britain’s first green chancellor” with a green prosperity plan.

She pledged that if her party got into power, it would spend an extra £28bn, through government borrowing, on investment in climate-tackling technologies such as offshore wind farms and battery development, as well as more traditional measures like planting trees and building flood defences.

Ms Reeves said the annual spend would be made every year until 2030 and would create thousands of jobs, as well as encourage more investment from the private sector and help “protect our planet for future generations”.

The ambitious pledge was widely welcomed by green campaigners and even some business leaders, but was quickly seized on by the Conservative Party as Labour being irresponsible with the economy.

‘Foolish’

Fast forward to the summer of 2023, and Ms Reeves announced Labour would be watering down its £28bn pledge.

Rather than providing a guarantee of borrowing and spending the large sum from its first year in Downing Street, it would now become a target to work towards.

The shadow chancellor blamed the fallout from Liz Truss’s short tenure in Number 10 – and her disastrous mini-budget – which took its toll on the public finances.

She accused the Tories of “crashing the economy” as interest rates and inflation rocketed to historic highs, saying “economic stability, financial stability, always has to come first”.

But she denied it was an outright U-turn on the key policy, promising spending on green pledges would still go ahead.

“The truth is I didn’t foresee what the Conservatives would do to our economy – maybe that was foolish of me,” said Ms Reeves.

Another U-turn

As we approached 2024, the Conservatives seized on the policy and attacked Labour with it – saying it highlighted the party’s lack of fiscal responsibility and added it to a list of U-turns made by Sir Keir.

But a row also erupted within Labour itself, with some calling for the £28bn to be spent in full and others wanting the pledge to be dropped altogether as an election drew nearer.

As we entered the new year, those internal squabbles had made it on to the front pages, and shadow ministers were struggling on the airwaves to make clear whether the policy was still in place – or would remain so when voters headed to the polls.

Ms Reeves herself refused to commit to the spending target 10 times in an interview with Sky News’ political editor Beth Rigby last week.

Yet when shadow minister Sir Chris Bryant appeared on Sky News Breakfast days later, he insisted “we are doing it” and “it will be £28bn”.

Now, Sir Keir has confirmed the axing of the figure, telling reporters it was because the Tories had “done terrible damage to our economy” and were being “reckless” with plans to “max out on the government credit card” ahead of the next election.

The party now plans to spend £23.7bn on environmental schemes over the course of its first term in office – equivalent to just under £5bn a year.

But Labour insists its commitment to becoming a clean superpower by 2030 remains unchanged and the reduced funding will still meet existing promises made under the original green prosperity plan.

Politics

Another tantrum from the Labour backbenches is inevitable

Published

4 hours ago

July 6, 2025

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Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

In common with many parents across the country, here’s a conversation that I have with my young daughter on a semi-regular basis (bear with me, this will take on some political relevance eventually).

Me: “So it’s 15 minutes until your bedtime, you can either have a little bit of TV or do a jigsaw, not both.”

Daughter: “Ummmm, I want to watch TV.”

Me: “That’s fine, but it’s bed after that, you can’t do a jigsaw as well.”

Fast-forward 15 minutes.

Me: “Right, TV off now please, bedtime.”

(Pause)

Daughter: “I want to do a jigsaw.”

Now replace me with the government, the TV and jigsaw options with axing welfare cuts and scrapping the two-child cap, and my daughter with rebellious backbenchers.

Politics latest: Former Labour leader calls for wealth tax on assets above £10m

That is the tension currently present between Downing Street and Labour MPs. And my initial ultimatum is the messaging being pumped out from the government this weekend.

In essence: you’ve had your welfare U-turn, so there’s no money left for the two-child cap to go as well.

As an aside – and before my inbox fills with angry emails lambasting me for using such a crude metaphor for policies that fundamentally alter the lives of some of the most vulnerable in society – yes, I hear you, and that’s part of my point.

For many in Labour, this approach feels like the lives of their constituents are being used in a childish game of horse-trading.

So what can be done?

Well, the government could change the rules.

Altering the fiscal rules is – and will likely remain – an extremely unlikely solution. But as it happens, one of Labour’s proverbial grandparents has just popped round with a different suggestion.

A wealth tax, Lord Neil Kinnock says, is the necessary outcome of the economic restrictions the party has placed on itself.

Ever the Labour storyteller, Lord Kinnock believes this would allow the government to craft a more compelling narrative about whose side this administration is on.

That could be valuable, given one of the big gripes from many backbench critics is that they still don’t really understand what this prime minister stands for – and by extension, what all these “difficult decisions” are in aid of.

The downside is whether it will actually raise much money.

The super-rich may have lots of assets to take a slice from, but they also have expensive lawyers ready to find novel ways to keep their client’s cash away from the prying eyes of the state.

Or, of course, they could just leave – as many are doing already.

In the short term, the future is a bit easier to predict.

If Downing Street is indeed now saying there is no money to scrap the two-child cap (after heavy briefing in the opposite direction just weeks ago), an almighty tantrum from the backbenches is inevitable.

And as every parent knows, the more you give in, the harder it becomes to hold the line.

Politics

UK restores diplomatic ties with Syria

Published

10 hours ago

July 6, 2025

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The UK has re-established diplomatic ties with Syria, David Lammy has said, as he made the first visit to the country by a British minister for 14 years.

The foreign secretary visited Damascus and met with interim president Ahmed al Sharaa, also the leader of the rebel group Hayat Tahrir al-Sham (HTS), and foreign minister Asaad al Shaibani.

It marks the latest diplomatic move since Bashar al Assad’s regime was toppled by rebel groups led by HTS in December.

In a statement, Mr Lammy said a “stable Syria is in the UK’s interests” and added: “I’ve seen first-hand the remarkable progress Syrians have made in rebuilding their lives and their country.

“After over a decade of conflict, there is renewed hope for the Syrian people.

“The UK is re-establishing diplomatic relations because it is in our interests to support the new government to deliver their commitment to build a stable, more secure and prosperous future for all Syrians.”

The Foreign, Commonwealth and Development Office has also announced a £94.5m support package for urgent humanitarian aid and to support the country’s long-term recovery, after a number of British sanctions against the country were lifted in April.

While HTS is still classified as a proscribed terror group, Sir Keir Starmer said last year that it could be removed from the list.

The Syrian president’s office also said on Saturday that the president and Mr Lammy discussed co-operation, as well as the latest developments in the Middle East.

Since Assad fled Syria in December, a transitional government headed by Mr al Sharaa was announced in March and a number of western countries have restored ties.

In May, US President Donald Trump said the United States would lift long-standing sanctions on Syria and normalise relations during a speech at the US-Saudi investment conference.

He said he wanted to give the country “a chance at peace” and added: “There is a new government that will hopefully succeed.

“I say good luck, Syria. Show us something special.”

Politics

Secret Service seizes $400M in crypto, cold wallet among world’s largest

Published

12 hours ago

July 6, 2025

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Secret Service seizes 0M in crypto, cold wallet among world’s largest

Secret Service quietly amasses one of the world’s largest crypto cold wallets with $400 million seized, exposing scams through blockchain sleuthing and VPN missteps.