The Evolution and U-turn of Labour’s £28bn Green Investment Pledge

The Labour Party, under the leadership of Sir Keir Starmer, has undergone a significant shift in its green investment policy. A pledge that was first announced two-and-a-half years ago, promising £28bn a year in green investments, has now been abandoned. This article explores the background of the policy, the reasons behind its U-turn, and the implications for the Labour Party.

Sir Keir Starmer, who took over as Labour leader in April 2020, was facing a challenging period. The party had suffered a crushing defeat in the 2019 general election, and there was a need for a big, eye-catching idea to help define him as an opposition leader and begin the task of hauling Labour back to competitiveness. The Green Prosperity Plan, with its ambitious £28bn a year investment commitment, seemed like the perfect solution.

However, the policy soon became a source of confusion and controversy. By last summer, the number attached to the Green Prosperity Plan had been watered down, and senior figures, including Shadow Chancellor Rachel Reeves, were avoiding mentioning it in public. The party was in a public tangle and a private tussle over the number, with no clear answer on whether they were still committed to it.

The Labour Party’s messy handling of the green investment pledge was on full display when Shadow Business Secretary Jonathan Reynolds was asked about it on the Today Programme on BBC Radio 4. He neither confirmed nor denied that the number had been ditched, and Sir Keir Starmer and Rachel Reeves contradicted each other in public statements. The party was in a state of disarray, and it became clear that they would have to answer the question with a straight yes or no.

The decision to abandon the £28bn number was made behind closed doors, away from the cameras. The party concluded that the number, but not the policy itself, was an albatross around their neck. The Labour Party reckons that emphasising their commitment to economic credibility is more important, as many voters perceive economic credibility to be a Labour weakness.

However, this U-turn on the green investment policy will not go unchallenged. Sir Keir’s critics, including the Conservatives, will argue that he is forever changing his mind and doesn’t believe in anything. The Labour Party will now face the challenge of delivering the policy without the eye-catching number that initially captured public attention.

The abandonment of the £28bn green investment pledge is just one of the many questions the Labour Party will face as they work out how to put their ideas into action if they win the next general election. Behind the scenes, they are working on a plan for power, but the slow-motion U-turn on this policy will undoubtedly be a topic of debate and criticism.

In conclusion, the Labour Party’s green investment policy, which promised £28bn a year in green investments, has undergone a significant U-turn. The reasons behind this decision are complex, with the party concluding that the number, but not the policy itself, was an albatross around their neck. The implications for the Labour Party are significant, as they now face the challenge of delivering the policy without the eye-catching number that initially captured public attention. The party will need to address the criticisms of their opponents and prove their commitment to economic credibility while maintaining their commitment to green investments. Only time will tell if the Labour Party can successfully navigate these challenges and position themselves as a credible alternative to the current government.