Don't Kill Bill
Full Member
- Joined
- May 14, 2006
- Messages
- 5,683
I'll repeat what I've said to others but you're taking a narrow view of the issue, the OBR is quite clear in it's reports that the cost of delaying net zero impacts future finances negatively and that undermines our ability to control debt. Why you lot keep ignoring this is beyond me.
Like everyone our R-G is bad right now such is the change in the global economy and interest rates. However the economic risks require mitigation and they don't disappear because of politically driven fiscal management. The IMF and OBR are predicting a better R-G and increased slack in economies, 28 billion a year is nothing in that context (see increased defence spending) and supports the growth part of the R-G measure.
We need to spend wisely if we're to limit (not stop) debt growth and that starts with measures that have the best long term outcomes for public finances.
In one sense it does not really matter if it is good idea or not. It does not matter if the return on investment is there. It does not matter if the human cost of not doing it is huge.
If you are borrowing the money to do it all that matters is if the people you are borrowing from will or will not lend you the money and how much they charge you for it. Not because that is right but because that is the very unfair way that the world works. Without that backing you can't get passed the first step.
I am concerned that the UK does not have the economic altitude to pull off a huge borrow to grow maneuver. The markets can do the math and see the problems just like I do. They don't have to invest in the UK and unless they are confident in the govt plans they will invest elsewhere. Coming into office with a long list of expensive commitments, knocks that confidence and that might be all it takes. Confidence in the Labour party was destroyed by Corbyn and will take time in office to build back.
(that is on those who voted him in as leader, not me who warned he couldn't win an election to save his life or keep the PLP together)
A future Labour govt will be under enormous pressure to borrow and spend. 28 billion per year isn't nothing and insulating homes might not be the best opportunity or place to spend that amount even for environmental impact. Grid storage to offset peak demand and utilize fully the intermittent renewable sources we already have for instance. might become a better way to spend the money if its available, as technologies are moving very quickly forward in that regard.
I have never voted Tory.
PS. to those who think we should borrow the money needed, put a number on it for me will you, not just the green deal but the total amount above current govt plans you would borrow to invest in the ideas you are putting forward.