London Daily

Focus on the big picture.
Saturday, Oct 24, 2026

The UK won’t meet its ambitious climate goals by making spending cuts

The UK won’t meet its ambitious climate goals by making spending cuts

Boris Johnson may talk a good game on the climate crisis, but ordinary people need financial support to make changes
There are many reasons why the government’s decision to cut the aid budget is dumb. High among them is the failure to see the link between poverty and climate change. If you want to convince people of the need to save the planet, it is a good idea to make sure first that they are not going hungry, have access to running water and can put their children through school.

The link between social justice and the green agenda applies domestically as well. Millions of people in Britain count the pennies each week because they are struggling to get by. Exhorting them to change their lifestyles or pay more to heat their homes is not enough. If the government is to meet its ambitious targets people who are less well-off are going to need plenty of help, but as things stand they are not getting it.

While the prime minister talks a good game on the climate crisis, the reality is that there is a tension between the colossal transformation being promised and the Treasury’s cheese-paring approach to public spending. Cuts to the aid budget and to universal credit are part of the same mindset; it is hard to see how either will assist in the transition to carbon net zero by 2050.

Boris Johnson encapsulated the government’s problem last week when he told MPs that households would find it hard to pay for air source heat pumps to replace gas boilers. “These things cost 10 grand a pop,” Johnson said. “This is a lot of money for ordinary people.”

It certainly is, and yet the prime minister also knows that securing the support of ordinary people is going to be vital if the government is to meet its ambitious climate goals. What’s more, the backdrop to November’s Cop26 summit – at which the UK is seeking tougher commitments from the global community – is of tighter budgets for those who are less well off. It is not just the £20 a week cut in universal credit. The rising cost of oil means fuel prices are up 20% on a year ago; jobs will be lost when wage subsidies are finally phased out in September. The TUC reported this week that more than a million children from key worker households are living in poverty.

Simultaneously, the government is looking to save money and speed up the green transition without prompting political pushback from those least able to meet the costs. This is impossible, which is why ministers are now playing for time and emphasising the role technological progress will play.

Yet delaying action is also problematic. The Office for Budget Responsibility (OBR), the government’s spending watchdog, said last week that putting off taking decisive steps until 2030 would lead to a bigger fall in output and higher levels of debt than would be the case with immediate action.

It is easy to see why ministers would prefer to put off difficult decisions until another day. The Conservative party’s newly won supporters in so-called red wall seats are precisely the group of voters most likely to be worried by rising energy bills and transport costs.

An alternative approach, outlined by the Institute for Public Policy Research (IPPR) this week, would be to marry the green agenda with a poverty-reduction agenda. The left of centre thinktank published a report by its environmental justice commission which suggested the public will hold a veto over the netzero process unless it is seen to be fair. Hilary Benn, one of the commission’s co-chairs, summed it up when he said: “People must be at the heart of the UK’s rapid transition to net zero, or else – to put it bluntly – it won’t succeed.” He’s right about that.

The IPPR has a long list of proposals for ensuring voter buy-in – free public transport, a fund to help consumers switch to green products, higher public investment, guaranteed retraining for low-carbon jobs – all of which will sound expensive to a Treasury that is keen to repair the hole in public finances punched by the pandemic. Rishi Sunak’s instinct will be to play hardball when the cost estimates come in for how much the state will need to pay to secure net zero.

In theory, greening the economy fits snugly with the government’s other agenda: levelling up. The OBR says if ministers act now, the investment needed to achieve net zero adds 21% of GDP – or £469bn – to the national debt by 2050. That sounds a lot, but it would be spread over 30 years and is less than the increase in the national debt caused by the pandemic. And, of course, far less costly than doing nothing.

Canada has shown what can be done with the tax system to make the net zero transition smoother and fairer. Justin Trudeau’s government introduced a revenue-neutral carbon tax in 2019, with money raised from polluters redistributed back to households to help them meet the cost of higher energy bills. Most households benefit.

It is now little more than three months until the Cop26 meeting, and despite what it says, the government’s net zero strategy does not pass muster. There has been much less urgency than in Germany, France or the US, and no real evidence of a strategy. Over the next eight years, Joe Biden is proposing to spend billions on making the switch to electric vehicles, ensuring infrastructure is more resilient to global heating, and on clean energy and new low-carbon technology. The US has a plan backed with serious money. Not just talk and cuts.
Newsletter

Related Articles

0:00
0:00
Close
Tour de France Organizers Confirm Historic Grand Depart Featuring Edinburgh and Yorkshire Stages
National Cyber Security Centre Issues Urgent Alerts Following Global Security Vulnerability in Core Programming Software
Independent Energy Analysts Warn Great Britain Faces Highest Winter Power Tariffs in Europe
Major British Defense Contractors Commit to Delivering Forty Thousand New Apprenticeships and Training Placements
New Bradford Railway Station Infrastructure Project Approved to Transform Regional Transit Connectivity Across Northern England
Welsh Infrastructure Stakeholders Press Government for Accelerated Local Sourcing in Military and Uniform Manufacturing
Scottish Council Governance Crisis Triggers High-Court Legal Challenge Over Leadership Ouster Bid
High Street Bakery Chain Greggs Announces Major Factory Closures and Seven Hundred Job Cuts
Automotive Manufacturer Jaguar Land Rover Advances Advanced Defense Technology Partnership with European Allies
Treasury and Bank of England Officials Signal Persistent Concern Over Inflation-Driven Interest Rate Path
International Monetary Fund Upgrades United Kingdom Growth Forecast While Issuing Inflation Warnings
National Health Service Leaders Warn of Severe Capacity Pressures as Early Winter Respiratory Infections Surge
Government Issues Emergency Resilience Guidance Advising All British Citizens to Stockpile Essential Supplies
United Kingdom Private Sector Growth Beats Expectations in October Driven by Resilient Services and Manufacturing
Barclays to Cut Five Thousand Jobs in Major Artificial Intelligence Adoption and Cost-Cutting Overhaul
Piper Tomahawk Aircraft Crash Near Drymen in Stirling Claims Two Lives as Investigators Deploy
North Sea Transition Authority Approves Jackdaw Gas Field Production After Ministerial Authorization
Government Injects One Hundred and Forty Million Pounds to Expand Urgent Care Ahead of Winter Crisis
Department of Health Warns Further Pay Rises Will Derail National Health Service Waiting List Targets
Major Environmental Emergency Declared in South Wales Following Aerospace Kerosene Spill
Tank Barrel Production Returns to Britain as Defence Contractors Accelerate Domestic Rearmament
Government Approves Controversial Jackdaw Gasfield Development in the North Sea
National Health Service Maternity Safety Review Condemned Over Flawed Artificial Intelligence Integration
Dozens of United Kingdom Government Services Taken Offline Amid Critical Software Vulnerability
Barclays Announces Five Thousand Job Cuts Citing Artificial Intelligence Productivity Gains
Treasury Relaxes Post-Financial Crisis Accountability Rules for City of London Executives
United Kingdom Government Issues Unprecedented Guidance Urging Citizens to Stockpile Essential Supplies
United Kingdom Consumer Inflation Accelerates to Eleven-Month High Driven by Transport Costs
United Kingdom Public Sector Net Debt Breaches Three Trillion Pounds Ahead of Autumn Budget
Department for Science, Innovation and Technology Commits Fifty Million Pounds to Establish Regional Artificial Intelligence Innovation Clusters
Ofgem Directs Major Energy Suppliers to Expand Vulnerable Household Support Funds Ahead of Winter Heating Season
Home Office and National Police Chiefs Council Unveil New Intelligence-Led Strategy to Tackle Organised Immigration Crime Networks
First Minister John Swinney Secures Scottish Parliament Approval for Comprehensive Climate and Green Energy Infrastructure Strategy
National Health Service England and Trades Union Congress Finalize Agreement on Emergency Winter Staffing and Pay Frameworks
HM Treasury and Department for Business and Trade Announce Multi-Billion-Pound Sovereign Investment Pact to Spur Regional Advanced Manufacturing
Bank of England Governor Andrew Bailey Signals Potential for Faster Interest Rate Cuts as Domestic Inflation Pressures Ease Below Forecasts
Parliamentary Inquiry Highlights Urgent Need to Address Housing Shortage as Scottish Completions Hit Eleven-Year Low
United Kingdom and Singapore Sign Comprehensive Financial Agreement to Deepen Digital and Sustainable Market Ties
Greggs Announces Plan to Close Four Manufacturing Facilities and Cut Seven Hundred and Forty Jobs
International Monetary Fund Raises United Kingdom Economic Growth Forecast While Warning of Inflationary Pressures
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs Onto Gas to Lower Household Bills
Housebuilding Across Scotland Plummets to Eleven-Year Low Despite Government Pledges to Tackle National Housing Emergency
Greggs Announces Factory Closures Across Northern England and Scotland Affecting Seven Hundred Forty Jobs
United Kingdom and Singapore Conclude Eleventh Financial Dialogue in Singapore to Deepen Cooperation on Digital Finance and Capital Markets
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs to Gas Bills and Tap Windfall Profits to Lower Consumer Prices
British Broadcasting Corporation Announces Major Cost-Cutting Overhaul to Close Linear Broadcast Services for Television Channels BBC Three and BBC Scotland Alongside Digital Radio Station BBC Radio Four Extra
London Capital Markets Face Renewed Scrutiny After High-Profile Offerings Underperform Post-Listing
Green Party Wins Historic First Westminster Parliamentary By-Election in Gorton and Denton
Environment Secretary Emma Reynolds Unveils Sweeping Regulatory Overhaul for English Water Industry
United Kingdom Health Security Agency Confirms Thirty-Four Cases in Kent Meningitis Outbreak
×