Labour denies claim it is planning another windfall tax to pay for its £28billion green spending spree if it wins the next election

Labour today denied claims it is will introduce a new windfall tax to fund its green spending plans if it wins the next election. 

Reports suggested that the party was looking at another punitive strike on business as it seeks ways to fund its £28billion-per year plan to make Britain more green.

Sir Keir Starmer and shadow chancellor Rachel Reeves are facing questions over how they plan to fund the 2021 pledge, which would be used to bankroll green energy schemes and home improvements.

It has already been postponed from something that might happen immediately if the party takes power to a proposal for the tail end of a five-year term.

While controversial a windfall tax may be seen as a more popular option than a massive increase in public borrowing, which experts have warned could drive up inflation and interest rates.

Sir Keir Starmer and shadow chancellor Rachel Reeves are facing questions over how they plan to fund the 2021 pledge, which would be used to bankroll green energy schemes and home improvements.

Chief Secretary to the Treasury Laura Trott said: ‘Sir Keir Starmer is already secretly planning to pay for his unfunded promise to spend £28 billion every year with new tax rises every year – because that is the only way his sums add up.’

Chief Secretary to the Treasury Laura Trott said: ‘Sir Keir Starmer is already secretly planning to pay for his unfunded promise to spend £28 billion every year with new tax rises every year – because that is the only way his sums add up.

‘Keir Starmer claims he has changed the Labour Party, but the reality is it’s just the same old Labour putting up taxes with hardworking people paying the price.’

In 2021, Labour promised to invest £28billion a year until 2030 on green projects if it came to power.

However, in June shadow chancellor Rachel Reeves said the figure would instead be a target to work towards in the second half of a first Parliament under a Labour government.

Earlier this month Sir Keir said that the money ‘will be used to trigger that other investment from the private sector and we’ll ramp up – it’s not a question of the investment not starting until the middle of the next Parliament’.

‘It is, of course, subject to our fiscal rules. But I am confident that if we turbocharge the growth that we need, we’ll be able to achieve the investment we need within the fiscal rules.’

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