Reeves refuses to use £28bn figure as he defends Labour's green plan

Rachel Reeves was asked how she would deal with the “long-term impacts” of climate change. Photograph: Stefan Rousseau/PA

Rachel Reeves refused to use Labour's controversial £28 billion figure as she defended her party's flagship green investment plan on Monday.

In 2021, the shadow chancellor promised a Labor government will borrow £28 billion a year over five years to fund clean energy and infrastructure projects.

However, the pledge was watered down last June when Ms Reeves admitted it would only be delivered in the second half of Parliament.

Specific investments are now said to be governed by Labor Party budget rules, with senior party figures seem to contradict themselves regarding the scale of their ambitions.

Answering monthly phone calls to LBC radio, the shadow chancellor was challenged by a listener who noted that the promise had turned from a serious political commitment to «ambition».

Asked how she would deal with the “long-term impacts” of climate change, she said: “I completely agree with you that tackling the climate emergency is incredibly important, but so is ensuring the good jobs that come from investment in the industries of the future, and the lower costs that investment in domestically grown renewable energy will bring.

“That's why the Green Prosperity Plan is so important. But we also know from what the Conservatives have done over the last two years… everything we do will be subject to the financial rules that I have laid out, because when you play fast and loose with public finances, that's business as usual. workers who pay the price for it.”

Ms Reeves blamed Liz Truss, the former Conservative prime minister whose mini-budget spooked markets and led to a surge in mortgages, for her failure to commit to reaching the £28 billion figure.

«I didn't foresee Liz Link's mini-budget, which crashed the economy, threatened pensions and sent mortgage rates soaring,» she said. «It was a choice that the Conservatives made, but it meant the economic legacy of the next government would be terrible.»

Ms Reeves accused the Conservatives of a «scorched earth» strategy.

Asked about reports that she wants to cut taxes for wealthier voters, Ms. Reeves said: “I want taxes on working people to be lower across the income distribution.< /p>

“I'm not going to make any promises that I can't keep — financial responsibility comes first for me. But I think taxes have become too high over the last few years.”