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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PMQs review: Theresa May shows how her confidence has grown

After her Brexit speech, the PM declared of Jeremy Corbyn: "I've got a plan - he doesn't have a clue". 

The woman derided as “Theresa Maybe” believes she has neutralised that charge. Following her Brexit speech, Theresa May cut a far more confident figure at today's PMQs. Jeremy Corbyn inevitably devoted all six of his questions to Europe but failed to land a definitive blow.

He began by denouncing May for “sidelining parliament” at the very moment the UK was supposedly reclaiming sovereignty (though he yesterday praised her for guaranteeing MPs would get a vote). “It’s not so much the Iron Lady as the irony lady,” he quipped. But May, who has sometimes faltered against Corbyn, had a ready retort. The Labour leader, she noted, had denounced the government for planning to leave the single market while simultaneously seeking “access” to it. Yet “access”, she went on, was precisely what Corbyn had demanded (seemingly having confused it with full membership). "I've got a plan - he doesn't have a clue,” she declared.

When Corbyn recalled May’s economic warnings during the referendum (“Does she now disagree with herself?”), the PM was able to reply: “I said if we voted to leave the EU the sky would not fall in and look at what has happened to our economic situation since we voted to leave the EU”.

Corbyn’s subsequent question on whether May would pay for single market access was less wounding than it might have been because she has consistently refused to rule out budget contributions (though yesterday emphasised that the days of “vast” payments were over).

When the Labour leader ended by rightly hailing the contribution immigrants made to public services (“The real pressure on public services comes from a government that slashed billions”), May took full opportunity of the chance to have the last word, launching a full-frontal attack on his leadership and a defence of hers. “There is indeed a difference - when I look at the issue of Brexit or any other issues like the NHS or social care, I consider the issue, I set out my plan and I stick to it. It's called leadership, he should try it some time.”

For May, life will soon get harder. Once Article 50 is triggered, it is the EU 27, not the UK, that will take back control (the withdrawal agreement must be approved by at least 72 per cent of member states). With MPs now guaranteed a vote on the final outcome, parliament will also reassert itself. But for now, May can reflect with satisfaction on her strengthened position.

George Eaton is political editor of the New Statesman.