01 February 2024 , 09:52
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Labour's business chief has failed to pledge the party will hit its commitment to spend £28billion on a flagship green energy plan.
Grilled on BBC Breakfast over whether the huge investment was still a pledge, Jonathan Reynolds prompted further uncertainty as Labour wobbles on the policy.
He said: "The overall amount of spending is determined by our fiscal rules and the health of the economy. And of course it takes into account what the Government is already spending. It's not a sum of money you put on top of what is already taking place."
The Shadow Business Secretary added: "I can't pledge we'll hit that particular level because the health of the economy is obviously one of the driving factors around that."
Challenged by the BBC presenter, he went on: "I think people recognise you have to take into account where the economy is at. We've obviously had a lot of changes of PMs since that announcement, the cost of borrowing is different, the spending plans of the Government are different."
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He said Labour would never repeat the reckless spending of ex-PM Liz Truss, adding: "If you're in Opposition you have to take that into account - it's a little bit frustrating at times but that is the reality."
Last year the Shadow Chancellor Rachel Reeves scaled back the 2021 commitment to spend a £28billion-a-year on investing on green energy projects. The plan, announced in 2021, was to be funded from borrowing, and spent on green projects like offshore wind farms and developing batteries for electric vehicles.
Instead, the party said the pledge might not be reached until the "second half of the first Parliament" if Labour wins the next general election. But Mr Reynold's comments on Thursday will fuel further speculation the party is considering watering down the policy further amid Tory attacks.
Mr Reynolds also defended Labour's decision not to reinstate the cap on bankers' bonuses. On Wednesday Ms Reeves,who has been on a charm offensive with business, said she had no intention of reinstating limits on payouts for fatcat bankers.
"The cap on bankers' bonuses was brought in in the aftermath of the global financial crisis and that was the right thing to do to rebuild the public finances," she told the BBC.
Pressed on the policy, Mr Reynolds said: "I was on Question Time the week the banker's bonus cap was removed. I did say it was a bit of a strange decision in terms of the timing of that because we had the height of the cost of living crisis at that time. But in terms of the actual policy look this was part of the response to the financial crisis and the aftermath."
He said it had never been a Labour pledge to bring back the bankers' bonus cap, adding: "We think there are more important reforms and priorities that are needed".