The UK Labour Party is grappling with a £28 billion-shaped problem regarding its unfunded spending on green energy, which is already causing headaches. There are reports that the party is considering scaling back its £28 billion green investment fund, known as the Green Prosperity Plan, amid fears that the Tories will weaponise this flagship pledge and use it as a central attack during the upcoming general election. Labour leader Keir Starmer is facing the possibility of being labeled a 'flip-flop Keir' as he contemplates reducing the borrowing or scrapping the plan, which could result in political costs. The internal debate is focused on whether the funding for the green energy investments should come from spending cuts or taxes. Despite these challenges, Shadow Transport Secretary Lou Haigh has reiterated Labour's commitment to the plan, which is seen as crucial for delivering growth, attracting private investment, and achieving net zero. Critics within the party argue that ditching the plan could undermine Labour's policy credibility and warn that appeasement rarely works.
“We are absolutely committed to the green prosperity plan.” Shadow transport secretary @LouHaigh recommits to Labour’s £28 billion borrowing to invest in the green prosperity plan despite reports the party was scaling back on their green pledge. @CalumAM | #TimesRadio https://t.co/FfPUtml0ix
Problems with ditching the Green Prosperity Plan: i) without it, how would Labour deliver growth & attract private investment? ii) how would it deliver net zero? iii) does @Keir_Starmer want to embrace the "flip-flopper" label?! iv) appeasement rarely works. What to drop next? https://t.co/x4AOV6LRXe
Will 'flip-flop' Keir water down £28bn green plans? Labour leader considers scaling back policy amid fears it will be seized upon by Tories at the general election https://t.co/IPuXBHDNu8 https://t.co/3TeqZFbm7X
🚨 NEW: Keir Starmer is considering dropping his plans to borrow £28bn-a-year on green amid fears the Tories will use it as their central attack in a GE [@guardian]
Labour has realised that £28bn is a major problem for the party. But scaling back or scrapping the pledge will come with political costs - as I highlighted in my recent column https://t.co/qPeh6oYWZ7 https://t.co/bapv69GlRV
EXCL: Labour considering scaling back £28bn green investment fund amid fears Tories will weaponise flagship pledge during election campaign 👇🏼 https://t.co/JS54uMirvy
💰 Labour has a £28bn-shaped problem The party's unfunded spending on green energy is already causing headaches. It can't dodge the question much longer on whether it's coming from spending cuts or taxes. Latest @theipaper column on a big issue in 2024 https://t.co/qPeh6oYWZ7