'Cannot repeat the Tory mistakes of making unfunded commitments'

MP for Ellesmere Port

You may have heard talk in recent months about whether Labour will be spending £28 billion a year on fighting climate change. The issue has been allowed to dominate political discourse to the extent that the very reason why this issue is so important has been obscured.

This sum, first announced in 2021, is intended to boost the country’s efforts to reduce its carbon emissions. It is correct that sums of money earmarked for our green agenda have been revised, because of the parlous state of the nation’s finances courtesy of 14 years of Conservative government, but we as the official Opposition in Parliament are every much as committed as before to securing this country’s financial future by adopting a kick start growth agenda with the aim of delivering clean power by 2030. What we cannot do is repeat the Tory mistakes of making unfunded commitments which as we saw under the Leadership of Liz Truss, ultimately caused serious economic harm.

So, ahead of the next General Election we have reconfirmed our commitment to the policies announced through the Green Prosperity Plan to create jobs, cut bills and unlock investment. The Green Prosperity Plan will be funded by a windfall tax on the oil and gas giants and by borrowing to invest within Labour’s fiscal rules. The centrepiece of this ambitious package will be Great British Energy, a publicly-owned energy company to take back control of the energy system on behalf of the British people. The party has previously announced that Great British Energy will be headquartered in Scotland.

Great British Energy will be given an ambitious initial capitalisation of £8.3 billion in the next Parliament, which includes the £3.3bn already announced for the party’s Local Power Plan, to invest in clean, homegrown power generation that will be able to cut bills for families, create jobs across the country.

We will create a National Wealth Fund to invest in British industries which need decarbonising, of which there are of course many in this area. We are absolutely clear that decarbonisation of our heavy industry should not mean deindustrialisation and will give a significant boost to Britain's steel, automotive, energy and manufacturing industries. There will also be a British Jobs Bonus to secure private investment into Britain’s industrial heartlands, with up to £500m per year from 2026-27 as we build domestic industries and jobs, giving opportunities to plumbers, electricians, welders and workers in every single nation and region of the country.

There is a Warm Homes Plan to upgrade Britain’s homes and cut energy bills, investing a further £6.6bn to double the Government’s already committed £6.6bn. There are proposals on reforming the planning system and the grid with the aim of accelerating energy projects and industry connections.

A driving motivation for Great British Energy will be the need to emulate the success of other European countries and have our own domestic champion, building it in Britain. Great British Energy will be able to invest in and deliver projects alongside the private sector.

Once the furore over the figures dies down I believe that there is much in these plans that people will welcome and the prospect remains of this investment increasing as economic conditions allow.