Labour's Shadow Business Secretary has said the party is “being straight with people” by announcing that it is scaling back its plans for investment in green energy projects.
Jonathan Reynolds told GB News: “Look, it's one of those mornings where we're going to come out and tell you candidly what we've had to change and part of that is a level of ambition which is still very strong but has had to be changed to reflect the change of economic circumstances.
“We're putting forward, confirming today a whole set of policies on industrial policy for good jobs for the future on GB energy, a new state-owned company to work with the private sector on some of these new technologies, on things like warm homes.
“But to be frank, from the original commitment, there's been some substantial changes. One of those is the cost of borrowing has changed a lot.”
In a discussion during Breakfast with Stephen Dixon and Anne Diamond, he added: “Interest rates were 0.1% when that commitment was made then, obviously they’re now over 5%.
“The government themselves have spent a lot of money that limits the options available to a future government and frankly, I think it is better to come out and say, we know things have changed.
“We've had to change some of those plans now, rather than trying to after an election, be straight with people.
“There's still a very ambitious agenda there but of course it's had to change, that change in economic conditions which ultimately underpins any decision any government can make.”
He added: “Look at Boris Johnson's 40 new hospitals. Do you want to be in a position where you promise something that can't be delivered, or do you want to say, look, things have had to change and be candid about that now?”
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