Rarely has a lacklustre policy been abandoned for a reason so bad that it threatens to inflict long-term damage on a society. Independently of whether the £28bn green investment programme was the right policy for the next Labour government to commit to, Rachel Reeves’s reasons for ditching it were an undeserved gift to the Tories and a partial vindication of their disgraceful flirtations with an austerian, anti-green political narrative.
Speaking on BBC Radio 4’s Today shortly after her U-turn on Labour’s headline £28bn green transition programme, the shadow chancellor explained her decision by claiming that, under Jeremy Hunt, the Treasury is “planning on maxing out the credit card”, adding for good effect that the Tories are “maxing out the headroom ahead of the next general election” thus limiting “what an incoming Labour government will be able to achieve”. By comparing the state’s coffers to an overladen credit card, Reeves endorsed an insidious fallacy.
