Jonathan Reynolds admitted the investment may not take place until “later in the next parliament” as the pledge continues to come under scrutiny from within and outside the Labor Party.
Labor said it remained “committed” to the “level of ambition” outlined in its £28bn green investment pledge, amid uncertainty over whether it will be further watered down or scrapped.
Shadow business secretary Jonathan Reynolds said the party aims to deliver on its initial commitments in 2021, but acknowledged investment may not be delivered until “later in the next parliament”. Stated.
talk to trevor phillips sunday morningReynolds said how much the party spends will depend on the “health of the economy, which is clearly in difficult circumstances.”
He also said Labor had its own “fiscal rules” and would be subject to pledges, including the need to reduce debt by the end of parliament.
“So we are still committed to achieving that level of ambition, but it is clear that it is the fiscal rules that will determine whether we can do that, and that means we are still committed to achieving that level of ambition. It's not that you're limiting your ambitions; it's that you realize that without that discipline, you end up with disastrous results like we saw with Liz Truss, and more money. , but all you want to do is that interest, not the investment. ”
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The shadow enterprise secretary also said the funding would come from a combination of public and private investment, adding: “We hope to reach that target level by the second half of the next parliament.”
Under the Green Prosperity Plan, first announced by shadow chancellor Rachel Reeves, Labor has pledged to invest £28bn a year in environmental projects until 2030 once in power.
The pledge has emerged as a key dividing point with the Conservative Party following Rishi Sunak's decision. scale back some environmental policiesThe plan includes reaching net zero by 2050 and extending the ban on the sale of new gasoline and diesel cars from 2030 to 2035.
Mr. Reeves has already The original promise was watered down, He said last year that the £28bn figure was more of a target to work towards than a figure earmarked for a Labor government's first year of planning.
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But some in the Labor Party want Sir Keir Starmer to abandon his pledge altogether as a way to thwart a Conservative attack in an election that will be heavily influenced by the cost of living crisis.
Former shadow chancellor Ed Balls has predicted this weekend that the Labor leader will abandon his environmental pledges in a bid to end attacks on the Conservative Party, including Mr Sunak's claim that spending pledges amount to “tax robbery”. The party called for a “major change of direction”. of working people.
“They're not going to push back from the idea that it's a way to increase jobs. They're not going to push back from the idea that it can be used right now to strengthen the economy in the long term,” he said on the podcast Political Currency. I wouldn't do it,” he said.
“But I think they need to let go of this £28bn figure. They will have to say the £28bn figure is gone, it’s been thrown away. I am sure you will be able to comply.”
Labor last week insisted it would stick to the plan after The Sun reported it would be scrapped.
A spokesperson said at the time: 'We remain fully committed to Labour's Green Prosperity Plan to boost growth and create jobs, including plans to increase annual investment by up to £28bn later in Parliament, subject to fiscal rules. “There is,” he said.
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Exchequer Laura Trott said: 'Jonathan Reynolds has recommitted to Labour's '2030' promise, which is set to cost £28bn a year.
“However, I could not say how Labor would pay for this spending because Labor has no plans to pay for this spending.
“This will mean thousands of pounds in tax increases for working people, undoing the economic progress we have made and sending us back to square one.”
