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A former chief economist at the Bank of England has expressed disappointment at Labour’s decision to axe its £28bn green investment pledge.

Andy Haldane, who is now the managing director of the Royal Society of Arts, told Sky’s Sophy Ridge that the original promise “led the world” in its ambition, and would have benefitted the country – both in achieving its net zero goals and stimulating growth.

But the decision by Sir Keir Starmer last week to bin the target showed how politicians are “scaling back our plans in the UK at the same time as other countries have stepped up their plans,” he said.

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The pledge to spend £28bn every year until 2030 on green investments, from new technologies to planting trees, was made by shadow chancellor Rachel Reeves during the Labour Party conference in 2021.

But she scaled it back to a target last summer, with Ms Reeves blaming high inflation and interest rates following former prime minister Liz Truss’s disastrous mini-budget.

Last week, Sir Keir confirmed Labour would scrap the headline figure entirely. He said: “Because of the damage the Tories have done, we can’t now do everything that we wanted to do” if he got the keys to Number 10.

However, he was criticised by some within his party – as well as opposition MPs – for U-turning on such a key policy.

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Labour ditches £28bn green pledge

Asked about Labour’s decision in an exclusive interview for the Politics Hub With Sophy Ridge – airing at 7pm tonight on Sky News – Mr Haldane said: “I think it’s a shame. I mean, I think back to when that green prosperity plan was first hatched. It was big, it was bold, ambitious. It led the world, actually, in terms of its scale.

“And we now have seen a number of other countries playing catch-up, putting forward their own plans.

“So I think the scaling back of our plans in the UK at the same time as other countries have stepped up their plans is unfortunate for two reasons.

“One, it slows our transition to net zero, which is really important. And two, we do need that investment. And the green prosperity plan was about that extra dose of investment to stimulate growth.

“So I rather lament the sort of paring back of those plans.”

Politics Hub with Sophy Ridge

Politics Hub with Sophy Ridge

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Mr Haldane appealed to whoever takes charge at the next election to show “a little more boldness about the economy and boldness around investment”.

He added: “I understand the fiscal constraints, but I also think the rules that we have boxed ourselves in on might not be as effective as they need to be to stimulate and support that investment.”

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The former economist said growth had to be the priority after the economy had “stood still” for two years.

“That has put huge pressure on households, huge pressure on public services, huge pressure on local governments,” he said.

“And the only way to break free from the constraints of that is by us growing our economy sustainably in a way that hasn’t happened for the past 24 months.”

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Trump says Musk ‘off the rails’ for forming political party to rival GOP

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Trump says Musk ‘off the rails’ for forming political party to rival GOP

Trump says Musk ‘off the rails’ for forming political party to rival GOP

US President Donald Trump has blasted Elon Musk’s plan to start a new political party that could splinter the Republican vote in the 2026 midterm elections.

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MP recalls childhood abuse as he calls for law change to make domestic abuse a specific criminal offence

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MP recalls childhood abuse as he calls for law change to make domestic abuse a specific criminal offence

An MP who decided until recently to “never speak” about the abuse he suffered as a child has shared his harrowing story so that “no kid has to go through” what he did.

Josh Babarinde describes being physically abused by his mother’s former partner from the age of four, and remembers crying himself to sleep under the covers “hearing shouts, hearing screams and things smash”.

He says he became hypervigilant growing up and felt safe at school but “like he was treading on eggshells” in his own home.

The Eastbourne MP, who is also the Liberal Democrats’ justice spokesperson, says his experience has driven his politics. He is calling on the government to stop abusers “slipping through the net” and being released from prison early.

Opening up about his story in his twenties was “difficult” but looking back, Mr Babarinde says, he is “so proud of the resilience of that kid”.

The MP recently found his childhood diary containing Star Wars drawings alongside an entry he wrote from the bathroom. The diary, he recalls, wrote: “I’m really going to try to go (to the toilet) but I can’t. Oh my goodness, I’m gonna be in so much trouble, I’m going to get smacked so hard.”

Then an entry five minutes later: “I still haven’t done anything, I’m going to be in so much trouble.”

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He says reading the entry reminded him of how “helpless” he felt.

“It was mortifying,” he says. “An abuser takes away your sense of self-worth.”

Josh Babarinde speaking to Sky's Ali Fortescue.
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Mr Babarinde says he wants the government to ‘properly recognise domestic abuse crimes in the law’

The 32-year-old is calling on the government to change the law to make domestic abuse a specific criminal offence. The change would mean, he argues, abusers can no longer effectively disguise their history under other offences like assault.

He says the Ministry of Justice’s early release scheme, which has seen thousands of prisoners released early to ease overcrowding, has failed to exclude domestic abusers despite government promises because there is no formal categorisation for offenders.

It is impossible, he argues, to know exactly how many domestic abusers are in prison currently so perpetrators are “slipping through the net” on early release.

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January: Rising violence against women and girls

Mr Babarinde says the uncertainty means victims and survivors are not able to prepare for their abuser’s release.

He said: “They might need to move house or move their kids to a new school, shop in different places. All of these kind of things are so important, and so that’s why that commitment the government made was so important.”

A spokesperson for the Ministry of Justice said: “Our thoughts are with all victims of domestic abuse – it takes immense courage to speak out.

“We are building a justice system that puts victims first – strengthening support, increasing transparency, and giving people the confidence to come forward and be heard.”

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Another tantrum from the Labour backbenches is inevitable

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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

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Rachel Reeves’s fiscal dilemma

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.

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Welfare U-turn ‘has come at cost’

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.

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Welfare: ‘Didn’t get process right’ – PM

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.

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Is Corbyn an existential risk to Labour?

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.

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