UKSIF Responds to Labour Party Announcement Scrapping £28bn in Green Spending
In response to the Labour party’s announcement that their green public spending pledge of £28bn has been scrapped, UKSIF has issued the following statement from Chief Executive, James Alexander:
“The UK has a golden opportunity to be a leader in the green transition and should be making ambitious strides towards sustainable leadership. Whoever forms the next government should seize that opportunity, and ensure resources are made available to avoid the UK losing out on green jobs of the future, but more importantly, ensuring we attract billions in private investment into the UK. In that context, today’s announcement on Labour’s plans for public investment is disappointing.
That said, the furore about Labour’s commitment on £28 billion of public investment has very quickly become a distraction when the real prize is to attract hundreds of billions in private capital. Public funding of course makes a difference, but policymakers must remain clear-eyed about the much greater quantity of private capital available to help the UK reach net-zero.
Addressing key economic bottlenecks, including speeding up grid connections, reforms to the planning system in the energy sector, and reinstating more ambitious targets for the phase-out of petrol and diesel vehicles, is what will really attract the private investment we need to decarbonise the economy. It’s also important to recognise that policy certainty is essential for investors and businesses. We urge all parties to advance wider proposals for a green industrial strategy and a comprehensive response to the US Inflation Reduction Act.”