A failure to back green growth will see the UK falling behind in clean tech investment, hitting jobs and the economy, the Government has been warned.
After a Budget light on measures to tackle the climate and nature crises, environmental groups and think tanks criticised a lack of investment in clean growth, warning the UK would fall behind the US, Europe and other countries.
Alasdair Johnstone, from the Energy and Climate Intelligence Unit, said: “The net zero economy grew 9% last year, whilst the wider economy was stagnant.
“The Chancellor appears to have not got the memo. At a time when the US and EU are competing over investment in clean industries, there was little in here to attract investment in clean industries.”
Absence of ambitious industrial strategy
Beverley Cornaby, director of Cambridge University’s Institute for Sustainability Leadership’s Corporate Leaders Group, said: “We welcome that the Chancellor is committing £360 million to selected manufacturing and green initiatives.
“But the continued absence of an ambitious UK industrial strategy means we require the Government to set out spending plans across all sectors to unlock climate finance and inward investment.”
And she said that more needed to be done to support families struggling in the cost-of-living crisis, pointing to net zero solutions, such as energy efficiency measures, which could reduce the burden and are cheaper in the long term.
Ms Cornaby added: “This is a Budget focused on the next six months and an upcoming election, but we need to focus on the next six years and beyond to fundamentally transform the economy towards net zero.”
Aakash Naik, from Greenpeace, warned that refusing to invest properly in the green economy of the future was a “huge mistake”.
He called for a fairer tax system and borrowing to invest in “a safe future with a bold green industrial strategy for public transport, renewables and home insulation” which he said would boost jobs, help the cost of living and grow the economy.
Ed Matthew, from the climate policy think tank E3G, warned the Government had no credible plan for growth.
He said: “Uncertainty on how the UK will decarbonise industry, homes, power and transport has led to chronic underinvestment.
“This is compounded by a lack of green tax breaks, low levels of public investment and not having a long-term net zero investment plan.
“The UK is being outcompeted on clean tech investment by the US, Europe and China as a result.
“The UK economy is flat-lining and this Budget will fail to bring it back to life.”
