A leading business figure has said that Labour’s proposed investment of £28bn a year in the low-carbon economy is an absolute minimum, adding that without green investment on that scale the UK will face steep decline as a result of crumbling infrastructure and stagnating industry.
Jürgen Maier, the former UK head of Siemens, the German industrial giant and major investor, said massive investment was needed to rebuild the UK economy and make it fit for the future, and that it should concentrate on low-carbon energy, transport and industry.
“These are the growth areas of the future,” he said. “The £28bn is not a cost, it’s an investment. If you make this investment, business will return to the UK.”
Maier is advising Labour on transport and infrastructure, and formerly gave advice to the Conservative government. He said the Tories had turned their back on business and industry, and urged Labour to stand firm on its £28bn commitment.
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“Do not let populism make you waver,” he told doubters within the party. “This is the right decision for the future of this country, for the future of the communities that rely on these industrial jobs. For them, Labour need to stick to this plan.”
The shadow cabinet and Labour’s top advisers are considering whether to alter or even abandon the longstanding pledge to increase public investment in the low-carbon economy to £28bn a year in the second half of the next parliament.
The Tory party has made the pledge its key attack line against Labour, claiming that the only way the party will be able to make such investments is by raising taxes. The chancellor, Jeremy Hunt, is expected to attempt to reinforce this by cutting some taxes in the budget in March, further reducing the fiscal headroom an incoming Labour government would have to increase spending, unless it rowed back on his cuts.
The Tories also argue that their plans, which include scaling up fossil fuels by issuing more oil and gas licences, are already attracting private sector investment. Private sector investment in the UK’s low-carbon economy since 2010 stands at £200bn, with £30bn of that coming since September, mainly in offshore wind. A government spokesperson said: “This shows huge confidence in the UK, and our plans will see a further £100bn [in private sector investment] by 2030, helping to support up to 480,000 jobs.”
Story was adapted from the Guardian.
