Labour Clings On To Clean Power Pledge But Finally Kills £28bn Target

Labour has officially dropped the £28bn price tag for its Green Prosperity Plan after weeks of mixed messaging from party leadership over the cost, but has reaffirmed a commitment to set up a state owned energy company.

In an impromptu press conference on Thursday, Labour leader Keir Starmer and shadow chancellor Rachel Reeves sought to regain their grip on the narrative surrounding their flagship policy pledge after Tory attacks around the funding had led to confused messaging over an initially proposed cost of £28bn. In recent weeks some senior Labour figures continued to insist that the figure remained an "ambition" but that it could only be realised if they were able to borrow to invest "within Labour's fiscal rules". 

PoliticsHome understands that shadow energy secretary Ed Miliband, while not present for the press conference, was consulted about the change in direction. 

Labour leadership confirmed that the £28bn spending commitment for its Green Prosperity Plan was no longer formal policy arguing the pledge was no longer affordable as a result of the government "crashing the economy" and that they planned to "max out" the UK's credit card during their remaining time in office. 

But they insisted that this did not mean the party was in the long term rowing back on climate policy and retained the commitment to deliver green power by 2030. Starmer told journalists that "discussion with all sectors now is at a very deep level". 

Speaking to reporters, Starmer and Reeves announced that they would expand Labour's planned windfall tax on energy firms to fund the green investment plan. Under this updated policy, the levy on excess profits will be extended until the end of the next parliament, while the rate at it is applied