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Labour announcement means neither party has plan for sufficient investment to drive growth and net zero, says IPPR

IPPR has reacted with disappointment to the scaling back of Labour’s ambition on its “Green prosperity plan”, saying the party’s recommitment to key policies is welcome but more investment will be needed.

Carys Roberts, IPPR’s executive director, said:

“The UK sorely needs investment to grow our economy and to shift it decisively towards net zero.

“While the key existing policies Labour has recommitted to in its green prosperity plan are an ambitious step forward, such significant scaling back on investment will undermine efforts to grow the economy and manage the transition to net zero fairly.

“This government has set the economy on the wrong trajectory, with sharp cuts to public investment to come after the election. Whoever wins the election will not be able to escape the need for an uplift in public investment to turn around our sluggish economy, achieve energy independence, rebalance our regions, and secure a fair transition to net zero.”

Dr George Dibb, IPPR associate director for economic policy said:

“IPPR has long advocated for a significant uplift in public investment in renewables, warmer homes, and a cleaner transport system, putting the UK on the road to energy independence, lower energy bills, and a more prosperous future. Yet both main political parties are now committed to cuts to public investment over the rest of the decade. This is despite the consensus that underinvestment is a key driver of the UK’s poor economic performance.

“Without greater investment we risk foregoing future growth and hurting, rather than improving, the UK’s fiscal sustainability. A well-targeted public investment programme, such as in green sectors and infrastructure, can crowd in business investment. Without such a programme, a return to higher economic growth is likely to remain a challenge.

“We’re pleased to see the Labour Party re-committing to putting the Green Prosperity Plan at the heart of its pre-election plans. Its 2030 clean energy target, its proposed National Wealth Fund and GB Energy, along with industrial strategy and plans to support specific sectors from warmer homes to steel, remain ambitious commitments, many of which IPPR have argued for. However, investment at scale is the best way to realise the full benefits of the future green economy.”

Available for interview:

  • Dr George Dibb, IPPR associate director who heads its work on the green economy
  • Harry Quilter-Pinner, IPPR director of policy and politics

CONTACT

NOTES TO EDITORS

  1. In 2021 IPPR’s cross-party Environmental Justice Commission calculated that the government needed to sharply step up public investment in a low carbon economy, raising it by £30 billion a year throughout the UK until at least 2030, if the UK is to meet its next zero target. The commission’s final report is at:
    https://www.ippr.org/articles/fairness-and-opportunity
  2. IPPR (the Institute for Public Policy Research) is an independent charity working towards a fairer, greener, and more prosperous society. We are researchers, communicators, and policy experts creating tangible progressive change, and turning bold ideas into common sense realities. Working across the UK, IPPR, IPPR North, and IPPR Scotland are deeply connected to the people of our nations and regions, and the issues our communities face. We have helped shape national conversations and progressive policy change for more than 30 years. From making the early case for the minimum wage and tackling regional inequality, to proposing a windfall tax on energy companies, IPPR’s research and policy work has put forward practical solutions for the crises facing society. www.ippr.org
Original article link: https://www.ippr.org/media-office/labour-announcement-means-neither-party-has-plan-for-sufficient-investment-to-drive-growth-and-net-zero-says-ippr

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