02 February 2024 , 08:45
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Shadow Chancellor Rachel Reeves has repeatedly avoided clarifying whether she will uphold her commitment to spend £28 billion a year on green investment.
Despite promising "iron discipline" regarding the fiscal rules for a potential Labour government, she declined to confirm if she was abandoning the level of investment. Jonathan Reynolds, the Shadow Business Secretary, admitted that achieving this goal would depend on the state of the economy.
Amid suggestions that the scale of spending was being cut, Labour has insisted it is not dropping the pledge. The party has become uncertain about the £28 billion a year in green projects it proposed in 2021 due to Tory criticism of borrowing plans.
Initially, Ms Reeves diluted the plan by stating it would be a target in the second half of a first parliament, should Labour win the general election. However, when asked repeatedly during a Sky News interview, the Shadow Chancellor refused to confirm if she still supports that plan.
She noted that the cost of Government borrowing has risen, adding: "The fiscal rules will come first and all of our policies will be subject to the iron discipline." She assured that "of course we will update people on our thinking on this", but remained cautious about setting a figure before the spring Budget.
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Mr Reynolds hinted at uncertainty about Labour's promises before their business conference with executives on Thursday. He told BBC Radio 4's Today programme: "That's our level of ambition but how quickly we get there, and if we can get there, has to have respect to, and heed to, the overall position of our economy."
He aded: "We haven't had the last budget before the election. I'm extremely confident in the overall pitch there's not one thing that needs to happen in the British economy to make everything fine, to see it grow faster."
He stressed that Labour is clear on wanting more public investmen. He continued: "We're very clear we want to see public investment rise". Last month, Labour dismissed claims they dropped a spending commitment by stating they are "committed" to increasing investment "subject to our fiscal rules".
Business Secretary Kemi Badenoch criticised Labour, saying: "With Labour's consistent track record of saying one thing but doing another, this is another Labour promise that isn't worth the paper it's written on." She praised the Conservatives' economic plan, claiming, "By sticking to our plan, Rishi Sunak and the Conservatives are strengthening the economy and the plan is working with inflation more than halved and taxes cut for businesses and families."
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