Labour's £28bn Green Plans Could Lead to Tax Rises or Spending Cuts, Tories Warn

Tories Warn of Potential Tax Increases or Spending Cuts

The Conservative Party has issued a warning that Labour's controversial £28 billion green plans could result in tax increases or spending cuts. Labour has repeatedly stated that the funding for their ambitious green agenda would come from borrowing. However, Shadow Science and Technology Secretary Peter Kyle recently admitted that the funding would come from a combination of borrowing and other revenue streams.

Tories Argue for Tax Hikes

The Tories argue that Labour's reliance on borrowing means that tax hikes will be necessary to cover the costs. Chief Secretary to the Treasury Laura Trott stated that Labour's borrowing plan would not only increase debt and mortgage rates but would also lead to higher taxes. The Tories claim that Labour's plans are not fiscally responsible.

Labour Denies Reports and Scales Back Plans

Labour has faced criticism and speculation regarding their green borrowing plans. However, they have denied reports that the entire policy would be dropped. Earlier this year, Labour scaled back their green borrowing plans. Shadow Chancellor Rachel Reeves has reiterated that the funding would come from borrowing, but Labour sources have clarified that they plan to review existing spending plans on green investment.