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.
Politics live: Tough week for Sunak as by-elections loom
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.
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….
