Osborne's anti-green crusade is self-defeating

The Chancellor appears intent on strangling one sector of the economy that is growing.

On the very same day it emerged that our economy has worsened and shrunk in the worst double-dip recession for fifty years, one sector of the British economy that is bucking the trend, providing new growth and jobs, is now under siege from the Chancellor.

According to the CBI this month, green business accounted for more than a third of all UK growth last year. In a keynote speech a couple of weeks ago CBI chief John Cridland said:

The choice between going green and going for growth is a false choice. Green and growth do go together...  The UK’s low-carbon and environmental goods and services market is worth more than £120bn a year. That’s equivalent to more than eight per cent of GDP… It’s made up of some 50,000 firms, between them employing 940,000 people - two-thirds outside London and the South East – across many different sectors.

You would think the Treasury would be delighted by this story of green jobs and British business success. Certainly William Hague recognised the political and economic attractiveness of this sector. A few months ago he wrote privately to the Prime Minister and his Cabinet colleagues, “The low carbon economy is at the leading edge of a structural shift now taking place globally … we need to stay abreast of this, given our need for an export-led recovery and for inward investment in modern infrastructure and advanced manufacturing.” Hague continued, “I believe we should reframe our response to climate change as an imperative for growth.”

But instead of heeding this advice and welcoming new clean tech investment in the UK, the FT’s Jim Pickard revealed on Monday how George Osborne has been secretly demanding Lib Dem Energy Secretary Ed Davey ditch renewable energy programmes as well as essential 2030 goals aimed at driving investment into advanced energy technologies and reducing carbon emissions from electricity generation. The leaked letter exposed how in an attempt to woo a narrow minority of frustrated Tea Party Tory backbenchers, the Chancellor has been seeking to pull the rug from under Britain’s clean energy industries for petty party politicking.  

The chairman of the energy and climate change select committee, Conservative Tim Yeo told the BBC: “The Treasury has clearly intervened in the draft (energy) bill in a way that will put up bills to consumers and put off investors by increasing their risks.” He added, “Under the guise of reducing bills for consumers, the chancellor will actually be increasing consumers' bills…I don't know if the back-benchers realise this but surely the Treasury does - yet it keeps pressing on with an action that's clearly political to assuage MPs who don't like turbines in the countryside.” It may also have a lot to do with his cosy relationship with the gas lobby.

The same Osborne who in opposition pledged, “I see in this green recovery not just the fight against climate change, but the fight for jobs, the fight for new industry,” has instead been fighting to abandon the framework his own advisers says is required to make carbon emission reductions set out in the Climate Change Act, and axe the schemes designed to boost the wind industry.

He’s turned the green economy and almost a million jobs into a political football, but the Chancellor’s anti-green crusade extends beyond interfering with just the energy brief. His efforts to appease his more swivel-eyed backbenchers means Osborne has even had his people briefing against the Transport Secretary Justine Greening for her principled refusal to U-turn on the expansion of Heathrow airport.

After the failed woodland sell off, the furore over planning reforms that looked like a developers’ charter, the plans to shoot badgers and capture buzzards, the Green Bank that isn’t actually a Bank at all, the taxpayer hand-outs to the oil and gas industry – and now most important of all, the Chancellor’s attacks on our national climate change commitments, David Cameron’s huskies are long slayed. But when will Nick Clegg and the Liberal Democrats stand up and say enough?

George Osborne has a "cosy relationship with the gas lobby". Photograph: Getty Images.

Joss Garman is associate fellow on climate change and energy at the Institute for Public Policy Research (IPPR).

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Geoffrey Howe dies, aged 88

Howe was Margaret Thatcher's longest serving Cabinet minister – and the man credited with precipitating her downfall.

The former Conservative chancellor Lord Howe, a key figure in the Thatcher government, has died of a suspected heart attack, his family has said. He was 88.

Geoffrey Howe was the longest-serving member of Margaret Thatcher's Cabinet, playing a key role in both her government and her downfall. Born in Port Talbot in 1926, he began his career as a lawyer, and was first elected to parliament in 1964, but lost his seat just 18 months later.

Returning as MP for Reigate in the Conservative election victory of 1970, he served in the government of Edward Heath, first as Solicitor General for England & Wales, then as a Minister of State for Trade. When Margaret Thatcher became opposition leader in 1975, she named Howe as her shadow chancellor.

He retained this brief when the party returned to government in 1979. In the controversial budget of 1981, he outlined a radical monetarist programme, abandoning then-mainstream economic thinking by attempting to rapidly tackle the deficit at a time of recession and unemployment. Following the 1983 election, he was appointed as foreign secretary, in which post he negotiated the return of Hong Kong to China.

In 1989, Thatcher demoted Howe to the position of leader of the house and deputy prime minister. And on 1 November 1990, following disagreements over Britain's relationship with Europe, he resigned from the Cabinet altogether. 

Twelve days later, in a powerful speech explaining his resignation, he attacked the prime minister's attitude to Brussels, and called on his former colleagues to "consider their own response to the tragic conflict of loyalties with which I have myself wrestled for perhaps too long".

Labour Chancellor Denis Healey once described an attack from Howe as "like being savaged by a dead sheep" - but his resignation speech is widely credited for triggering the process that led to Thatcher's downfall. Nine days later, her premiership was over.

Howe retired from the Commons in 1992, and was made a life peer as Baron Howe of Aberavon. He later said that his resignation speech "was not intended as a challenge, it was intended as a way of summarising the importance of Europe". 

Nonetheless, he added: "I am sure that, without [Thatcher's] resignation, we would not have won the 1992 election... If there had been a Labour government from 1992 onwards, New Labour would never have been born."

Jonn Elledge is the editor of the New Statesman's sister site CityMetric. He is on Twitter, far too much, as @JonnElledge.