Labour sources have disputed a report the party is ditching its flagship pledge to borrow up to £28billion a year to invest in green industries if it wins the election.

The Sun reported the plan, first touted in 2021 but repeatedly watered down since, had been dropped altogether as it had become an albatross around the party’s neck.

The Tories have denounced the plan as profligate spending which would push up taxes.

The Sun reported Shadow Energy Secretary Ed Miliband had tried to keep the promise, but been overruled by Labour leader Sir Keir Starmer and others.

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The paper quoted a source saying: “We’re going to drop the figure altogether.

"We’ll keep the promise to turn Britain into a clean energy superpower, but the £28billion has just become an albatross around our neck.”

But the Mirror quoted a Labour source dismissing the Sun report as “complete nonsense”.

A Labour spokesman added: "We are committed to Labour's Green Prosperity Plan to drive growth and create jobs, including our plan to ramp up to £28bn of annual investment in the second half of the Parliament, subject to our fiscal rules."

The caveat about “fiscal rules” is key.

Labour originally promised in 2021 to invest £28bn every year until 2030 in green projects if it came to power.

But last year shadow chancellor Rachel Reeves said the figure would instead be a target to work towards in the second half of a first parliament.

Earlier this month Sir Keir suggested the £28bn figure was essentially aspirational, as it would be contingent on the state of the public finances, and could be less.

Insisting the investment would be “subject to our fiscal rules”, he said: “That means that if the money is from borrowing, which it will be, borrowing to invest, [and] the fiscal rules don’t allow it, then we will borrow less.” 

SNP Westminster leader Stephen Flynn said: “If true, then this is a weak and cowardly decision from a Labour leader with no clear vision as to what he wants to do with the power he so desperately seeks. 

"It's clear that only the SNP are willing to stand up for Scotland's interest, and harness the full potential of the green energy gold rush."