Don't turn off the future

The green economy in Britain is thriving - so why are politicians so reluctant to talk about it?

There is a sector where our economy is not dying, but flying. Somewhere that the UK continues to dominate the global stage, creating the deals, skills, services and products in an area the whole world is desperate to embrace. It will take until 2014 (at best) for our GDP to return to the pre-financial crisis level of 2007. In the same period, this sector will have grown by 40 per cent.

Unfortunately, this sector is the green economy. That means that, as far as some are concerned, it doesn’t count. Because green stuff isn’t meant to be about growth, only bills. In an oddly moralising way, many people seem to feel that something that does good can’t also bring economic benefits.

But it does. According to government data, last year we exported £121 million more green goods and services to Germany than we imported from them. £183 million more to India. £330 million more to China.

The Department for Business, Innovation and Skills tots up almost twice as many low carbon and environmental jobs - just under a million - than we have in motor trades. But, when a new car factory opens or closes it dominates the Today programme. If we’re talking about green and business in the same sentence, Nigel Lawson is released from his belfry to invade our morning bowl of cereal.

Part of the reason for this might be that the green economy doesn’t challenge existing sectors - it only strengthens them. While BIS takes a thorough and catalogued approach to their definition, the green sector is largely about changing current jobs, not replacing them.

So our green jobs can belong to people in the motor trade – such as those building hybrids in our factories. Our financial sector provides the financial and legal advice for a third of all the low carbon energy deals in the world. Green workers can be architects who design zero carbon buildings, or the manufacturers who have gone from making the iron bridges of the industrial revolution to the gears and turbine blades of the energy revolution.

When our nation decided to set out a regulatory framework supporting a low carbon agenda, we did so on the basis that those nations which moved first would receive the greatest benefit. Now we see that we have moved, and we have benefited. That’s why it’s frustrating to see that policy certainty threatened, just as the return is coming through.

This could be our way out of recession. According to the Treasury, in this financial year alone 88 per cent of our top 20 infrastructure projects are low carbon, and are worth £23 billion, compared to just £3.1 billion for high carbon projects. Some 63 per cent of this represents entirely private sector money. If you include what Treasury defines as public/private then the figure leaps to 94 per cent. By contrast, our high carbon spend for this year was 61 per cent dependant on the public purse.

The green economy is, as our recent analysis of this data called it, a UK success story. But there are worrying signals that the government may not want this success. It seems alarmingly focused on what we needed yesterday – a few more roads, a bundle of gas, perhaps squeeze in an extra airport. To this end, they are willing to sabotage something much more appealing to investors – the technologies of the future. The things that can attract far more investment because they haven’t already been developed. A letter was leaked earlier in the summer that made clear the Chancellor wants to ensure the energy of tomorrow is rejected for an expensive and outdated energy of the past. We can’t, as a nation, afford such a compromised infrastructure strategy - the equivalent of Disraeli ripping out train tracks because they threaten canals. We need to follow what we need, not what we needed, or we risk condemning this country to a policy that might run as follows – “Who needs the future when we have had the past?”

Alastair Harper is a senior policy adviser at Green Alliance, the environmental think-tank. He tweets: @HarperGA

Photo: Getty Images

Alastair Harper is Head of Politics for Green Alliance UK

Photo: Getty
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PMQs review: Jeremy Corbyn prompts Tory outrage as he blames Grenfell Tower fire on austerity

To Conservative cries of "shame on you!", the Labour leader warned that "we all pay a price in public safety" for spending cuts.

A fortnight after the Grenfell Tower fire erupted, the tragedy continues to cast a shadow over British politics. Rather than probing Theresa May on the DUP deal, Jeremy Corbyn asked a series of forensic questions on the incident, in which at least 79 people are confirmed to have died.

In the first PMQs of the new parliament, May revealed that the number of buildings that had failed fire safety tests had risen to 120 (a 100 per cent failure rate) and that the cladding used on Grenfell Tower was "non-compliant" with building regulations (Corbyn had asked whether it was "legal").

After several factual questions, the Labour leader rose to his political argument. To cries of "shame on you!" from Tory MPs, he warned that local authority cuts of 40 per cent meant "we all pay a price in public safety". Corbyn added: “What the tragedy of Grenfell Tower has exposed is the disastrous effects of austerity. The disregard for working-class communities, the terrible consequences of deregulation and cutting corners." Corbyn noted that 11,000 firefighters had been cut and that the public sector pay cap (which Labour has tabled a Queen's Speech amendment against) was hindering recruitment. "This disaster must be a wake-up call," he concluded.

But May, who fared better than many expected, had a ready retort. "The cladding of tower blocks did not start under this government, it did not start under the previous coalition governments, the cladding of tower blocks began under the Blair government," she said. “In 2005 it was a Labour government that introduced the regulatory reform fire safety order which changed the requirements to inspect a building on fire safety from the local fire authority to a 'responsible person'." In this regard, however, Corbyn's lack of frontbench experience is a virtue – no action by the last Labour government can be pinned on him. 

Whether or not the Conservatives accept the link between Grenfell and austerity, their reluctance to defend continued cuts shows an awareness of how politically vulnerable they have become (No10 has announced that the public sector pay cap is under review).

Though Tory MP Philip Davies accused May of having an "aversion" to policies "that might be popular with the public" (he demanded the abolition of the 0.7 per cent foreign aid target), there was little dissent from the backbenches – reflecting the new consensus that the Prime Minister is safe (in the absence of an attractive alternative).

And May, whose jokes sometimes fall painfully flat, was able to accuse Corbyn of saying "one thing to the many and another thing to the few" in reference to his alleged Trident comments to Glastonbury festival founder Michael Eavis. But the Labour leader, no longer looking fearfully over his shoulder, displayed his increased authority today. Though the Conservatives may jeer him, the lingering fear in Tory minds is that they and the country are on divergent paths. 

George Eaton is political editor of the New Statesman.

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