Sir Keir Starmer has denied scaling back Labour’s commitment to green investment, despite the party moving away from their promise to spend £28bn a year.
He insisted the money, to be raised through borrowing and first promised in 2021, was “desperately needed” but that everything his government did would need to be “subject to our fiscal rules.”
That means debt needs to be forecast to fall as a share of the size of the economy in five years.
READ MORE: Angela Rayner casts more doubt on Labour's £28bn green investment vow
Last week, sources told media that the £28bn promise was "definitely going as a figure."
Shadow Chancellor Rachel Reeves refused to commit to the pledge during an interview with Sky News, despite being asked ten times.
In an interview with Times Radio, Sir Keir said: “We’re going to need investment, that’s where the £28bn comes in. That investment that is desperately needed for that mission.
“You can only understand the investment argument by understanding that we want to have clean power by 2030 … We need to borrow to invest to do that.
“That’s a principle I believe in and I’m absolutely happy to go out and defend. And of course, what we’ve said as we’ve got closer to the operationalisation of this, is it has to be ramped up, the money has to be ramped up … and everything is subject to our fiscal rules.”
While the £28bn pledge has become an ambition, the party insists core elements of the Green Prosperity Plan, including the creation of GB Energy, a publicly owned clean energy company to be headquartered in Scotland, and a mass home insulation programme, will go ahead.
READ MORE: UNSPUN 🗳️If Labour ditch green fund, what will it offer Scotland?
The £28bn promise has repeatedly been targeted by the Tories who say the borrowing needed will mean more debt and higher taxes.
Following Sir Keir's interview, Chief Secretary to the Treasury Laura Trott said: "He cannot say how he would fund his £28 billion spending spree because he does not have a plan to pay for it and that means higher taxes for hardworking people and uncertainty for British business.”
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