LABOUR’S controversial green plans could lead to tax rises or spending cuts, the Tories have warned.
Sir Keir Starmer’s opposition party repeatedly claimed their £28billion spending splurge will be paid for by borrowing.
PASir Keir Starmer’s expensive eco plans could lead to tax increases, the Treasury has warned[/caption]
AlamyShadow Science and Technology Secretary Peter Kyle admitted the cash for green jobs and industry would come from a ‘mix’ of borrowing and other revenue streams[/caption]
But Shadow Science and Technology Secretary Peter Kyle yesterday admitted the cash for green jobs and industry would come from a “mix” of borrowing and other revenue streams.
He told TalkTV: “We will have to see, as we get to the election, precisely what the mix will be between existing funding plans and what we will need to borrow.”
But the Tories reckoned that means Labour will need to hike taxes.
Chief Secretary to the Treasury Laura Trott said “the cat is out of the bag”.
She added: “Labour’s reckless borrowing plan will not only ratchet up debt and send mortgage rates sky high, but they have admitted it will lead to higher taxes.”
Earlier this year, Labour scaled back green borrowing plans and last week denied reports the entire policy was set to be dropped.
In July Sir Keir Starmer told LBC: “We will work up to the £28 billion by the middle of the incoming Labour government. So that’ll be year two or year three. So, the commitment is still here’
In October, Shadow Chancellor Rachel Reeves repeated the claim the cash would come from borrowing, saying “Well, the government are already borrowing for some of this investment, but we will take it up to the level that is needed to compete internationally.”
Labour sources said Mr Kyle was referring to reviewing existing spending plans on green investment.
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