Seven months of savage cuts leave coalition’s green hue fading

With the final nails hammered into the coffin of the Green Investment Bank, it’s time for a look bac

14 May: "This will be the greenest government ever", pledges David Cameron, three days after the formation of the coalition government. He announces his commitment to the 10:10 campaign, saying that all government departments will cut their greenhouse-gas emissions by 10 per cent before the end of 2010.

29 June: The government's Green Investment Bank Commission predicts that £550bn of investment will be needed to meet Britain's renewable energy targets under the Climate Change Act, and recommends the establishment of a Green Investment Bank to meet the challenge by providing finance for clean-power stations, windfarms and smart grids. Experts agree on a fundamental principle: to be capable of kick-starting private-sector investment in potentially risky renewable projects, the GIB must have the ability to issue government-backed "green bonds" to raise money. This kicks off a feud between the bank's backers – led by Chris Huhne – and the Treasury, in which there could only ever be one winner.

16 July: The Department of Energy and Climate Change (DECC) announces a £34m cut to its low-carbon technology programme, including a £12m cut to the Carbon Trust, which provides funding to sustainable technology and businesses.

22 July: The Sustainable Development Commission is axed on the day of the first great quango cull. Environmentalists question the value of the move: the £3m per year it cost to run the SDC was a negligible saving, far outweighed by the estimated £70m the SDC saved the taxpayer annually by recommending green efficiency savings. Caroline Spelman, Secretary of State at the Department for Environment, Food and Rural Affairs (Defra), says the decision was an easy one: because she is "personally dedicated to driving the sustainability agenda across government", there is no longer any need for external agencies.

8 August: More good news! All new homes will run on green power by 2016. That, at least, is the improbable but cheery-sounding claim of the housing minister Grant Shapps. Developers that fail to meet the target must pay a levy to fund local renewable energy projects. As Shapps pointed out, being so very green, the coalition government hardly had a choice in the matter. "We are committed to being the greenest government ever," said Shapps, "and an essential part of that is to ensure that all homes in the future will be built without emitting any carbon."

20 September: Two election pledges are struck from the list of things that the coalition might bring itself to do something about. The government will not carry out its proposal to make it an offence to possess illegally felled timber or to bring it into the country; nor will it extend the subsidy for small-scale solar production under the Feed-In Tariff.

20 October (the Spending Review): This is the point where it really starts to look bad for the greenest government ever, as George Osborne's axe falls hard on environmental spending.

  • The review includes proposals to sell off national nature reserves, privatise parts of the Forestry Commission and sell off the Met Office (which has contributed as much as any organisation to the public understanding of climate change).
  • The review cuts Defra's budget by 30 per cent, compared to a government average of 19 per cent, equating to efficiency savings of £700m by end of the four-year review period. Chris Huhne's tiny DECC gets away with an 18 per cent cut.
  • The Environment Agency will shed 5,000-8,000 out of 30,000 jobs, while Natural England's budget is cut by 30 per cent – about 800 full-time jobs. Flood defence spending will be cut by 27 per cent (though citizens of the "big society" are pleased to learn that they will be allowed to pitch in themselves).
  • Confusion about the GIB: Clegg writes to his party members telling them that £2bn has been set aside, but Osborne says £1bn.

21 October: Huhne tells the Guardian that the government may sell off one-third of Urenco, a company that makes enriched uranium for nuclear power – and that the money raised may fund the GIB. £1bn probably isn't enough for a proper bank, but still – better than nothing.

25 October: Caroline Spelman announces that 150,000 hectares of forest may be sold off by the government.

18 November: Chris Huhne signals his frustration with the Treasury, which is continuing to oppose the Green Investment Bank, preferring to repackage some existing green pledges in a sparkly new fund. An anonymous member of the GIB commission says: "Frankly, if it doesn't [have the ability to raise money by issuing government-backed bonds] there's no point in it existing. If we were only ever going to do one thing, the green bond is the thing we need to do . . ."

18 November (continued): Later that day, Cameron puts these fears to rest in a rare speech on the environment. The GIB will be a proper bank, he promises. The Labour MP Joan Walley asks whether it would really be a bank with the ability to issue money, whether a dispute was likely between the Department for Business and the Treasury, and whether he would take a personal interest. Cameron replies: "Yes, yes and yes, to all of those questions."

25 November: Oops! Grant Shapps messed up back in August when he said that all homes must be zero-carbon by 2016. What he meant to say was, "Some homes, but not all, will probably be zero-carbon by 2016."

19 November: Chris Huhne's frustrations in pursuit of his bank spill over into an open attack on the Treasury. He compares its obdurate opposition to the bank with the mistakes that led to the Great Depression.

15 December: The Treasury gets its wish: there will be no GIB. Huhne acknowledges that the "bank" will in fact be merely a green fund, and is also forced humiliatingly into repudiating his principles, saying that sustainability must not take precedence over cutting the deficit. The £550bn Britain needs to meet its emissions targets will have to come from somewhere else.

The greenest government ever – the seven-month summary: Forests for sale, a slashed green-tech budget, no green bank, flood defence budget hammered, no independent sustainability watchdog. But, looking on the bright side, developers will be allowed to build energy-inefficient houses for a few more years at least, and you can still import illegally logged timber if you like.

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Young voters lost the referendum but they still deserve a future

It's time to stop sneering at "crap towns" and turn them into places young people want to stay. 

What a horror show. A land-slide 75 per cent of young people voted in favour of Europe. The greater numbers of the over 65s met that force with 61 per cent against. Possibly the greatest divide in our country turned out to be not gender, not race, not even party politics, but age. The old and the young faced off about how to run our country, and the young lost. 
 
What have we done to our future? Well, whatever happens now, leadership is required. We can’t afford to have the terms of the debate dictated by Brexiters who looked as shocked at the mess they have made as Stronger-Inners are distraught. We can’t afford to wallow either. Young people across this country today are feeling worried and let down – failed by all of us - because when their future was on the line, we were unable to secure it. We – those who believe we achieve more by our common endeavour - all feel that deep worry, and all share in that shame.

How we should all rue the choice not to allow 16 and 17 year olds to vote. And quickly re-ignite the campaign for votes at 16.

But young people don’t need our worry or our pity or our shame. They need a better chance and we need to give them one. I believe passionately that the future for this country was as a leader in Europe, but that does not mean we give up on our future now. For Labour, the challenge now is to work out how we can build a better future for all our people and communities. The sky has not fallen. The UK is still a rich country.

Beat recession with better housing

Let’s start with housing and development. It is no longer good enough to simply set targets with no possibility of meeting them. The housing crunch has killed off the chance of owning a home for many young people, and left thousands at the mercy of cripplingly expensive rent.  The housing market is broken and we need to build much faster in high growth areas like London and Manchester at the same time investing in restoring low quality housing in our northern towns, in Scotland, Wales and in Northern Ireland. 

In policy terms, we should be asking the Local Government Association, the Infrastructure Commission, and the construction industry itself, to collaborate on a counter-Brexit house building plan with a focus on areas where there is a clear market failure. We could get a champion of industry and construction such as my old Network Rail boss, Sir John Armitt, to be in charge, and lead a national mission to build and rebuild homes.

In the last parliament, Osborne first tried the "tighten our belts" approach to speeding up growth. He failed, and then tried plan B: investment for growth. Now we have the possibility of another recession on the cards and may well need to use investment to stop our economy grinding to a halt. Now - or possibly sooner - would be an excellent time for a national building project like this housing plan.

Stop sneering at "crap towns"

On economic development, it is clear that Labour needs a strategy for giving our northern towns an economic future and linking them up with the modern economy. When cities grow, and towns fall behind, those towns are a breeding ground for frustration. This is not just about cuts, it is about the uneven distribution of the benefits of globalisation. The Brexit vote was centred around areas that justifiably feel they have lost from the last decades. We need to make sure they win from the years ahead.

For far too long, there has been a sneering "crap towns" attitude. These places can offer good housing, community, and a decent life. But the problem there is work. In many of our towns, there is too little to do that can offer a young person a career tomorrow as well as a shift today.

Because, as it happens, the biggest driver of low pay tends to be skill level, not immigration. 

Teach the skills we need

Of course we should stop exploitation of migrant workers who undercut others. Let's tell firms that use exploitative agencies they can't work for the Government. But you can’t raise wages without changing the structure of the labour market. It’s not just about replacing one set of workers with another - you have to raise the level of wages that those workers can command. Because the truth about work in too many places is that most of the jobs available are either those with the low status of care work (though it may be highly-skilled work), or industries with a high volume of low-skilled work such as retail and hospitality. But from there, there’s nothing to move on to. The brain drain to cities has consequences.

Leaving Europe will shut off economic opportunity across the country to many young people.  Frankly, we owe it to them to work like demons to offer them something better closer to home.

We need a social partnership for skills and work. The Confederation of British Industry and the Trades Union Congress working together to deliver an urgent plan for training and career progression in the towns with stagnant labour markets and low skills. We need to find a way to stop the brain drain that sucks the talent out of the places that need it the most, using the experience of programmes like Teach First. When the best people feel they have no reason to return to where they grow up, it is both a sign of a deep problem and also demoralising evidence of decline for those left behind.

And our new metro-mayors must pay as much attention to the towns in their region as well as the city centre. No one left out, no one’s local shops lying empty whilst a city down the road flourishes. And no schools failing, either.

It is undeniable that people voted for change in the referendum. The problem is that the change they voted for will do little to solve the problems they face. Labour’s role is not just to point this out, but to offer a vision of real meaningful change. 

Not easy, perhaps. But one thing is for certain, mouthing platitudes about "hearing concerns"and offering only symbolic gestures has been tested to destruction. People deserve better and we need to offer it to them.

Alison McGovern is the Labour MP for Wirral South

Alison McGovern is Labour MP for Wirral South.