Starmer knows this will fuel the U-turn narrativepublished at 10:24 Greenwich Mean Time 8 February

10:24 GMT 8 February

Henry Zeffman
Chief political correspondent

One of the most interesting things about Labour’s decision to ditch the £28 billion commitment is that they are doing it in the knowledge that they will be accused of carrying out an enormous U-turn.

Plenty of politicians have changed their minds about things, but Sir Keir Starmer is already vulnerable to the charge that he has done so an awful lot.

Starmer has ditched several pledges made during his 2020 campaign to become Labour leader.

This one is different: he is ditching a pledge made in the autumn of 2021, about a year and a half into his leadership.

Labour will argue today that the changed economic situation since then - principally the increased cost of borrowing - has profoundly altered the context of such a large and specific spending commitment.

But Starmer’s team know it will fuel a narrative that already exists. Why ditch the policy then? Well, for many around Starmer this is a bigger political risk, which is of a narrative developing that Labour cannot be trusted with the public finances.

They believe they have made great strides on the issue under Starmer’s leadership and do not want to jeopardise that progress. The Conservatives are attacking Labour today for the U-turn, but the U-turn is taking place because Labour want it to be harder for the Conservatives to attack them on the economy.

In September 2021, shadow chancellor Rachel Reeves announced Labour's plan to spend £28bn a year towards the transition to a green economy, including renewable energy projects and home insulation.

Almost two years later, in June 2023, that pledge was watered down. The £28bn target was adjusted so that a Labour government would meet it about halfway through a first term in office - rather than in its first year.

Last month, party leader Sir Keir Starmer described the £28bn figure as "a confident ambition", which was subject to the party's fiscal rules.

But other senior figures have repeatedly refused to use the £28bn figure when pressed in interviews.

Sources insist that today's decision to drop the pledge doesn't mean the party's Green Prosperity Plan - which includes creating a publicly-owned green power company - will be ditched entirely.

But Labour will no longer commit to investing £28bn a year in green energy projects if it wins the next election.

Image source, AFP

Labour's expected decision to drop its £28bn green promise comes as global warming exceeds 1.5C across an entire year for the first time.

World leaders promised in 2015 to try to limit the long-term temperature rise to 1.5C – seen as crucial to help avoid the most damaging impacts.

This first year-long breach doesn't break that landmark Paris agreement, but it does bring the world closer to doing so in the long-term.

"This far exceeds anything that is acceptable," Prof Sir Bob Watson, a former chair of the UN's climate body, told the BBC Radio 4's Today Programme.

You can read more about the climate story here

Why Labour junked its £28bn green investment pledgepublished at 09:55 Greenwich Mean Time 8 February

09:55 GMT 8 February

Chris Mason
Political editor

It was first announced two-and-a-half years ago.

Sir Keir Starmer had had a bumpy few months, including the moment when his leadership was arguably in greatest jeopardy, after Labour lost a by-election in Hartlepool.

The party needed a big, eye-catching idea, as Sir Keir sought to define himself as an opposition leader and begin the colossal task of hauling Labour back to competitiveness after the crushing election defeat in 2019.

But by last summer, the policy had been watered down. By the autumn, senior figures, including the Shadow Chancellor Rachel Reeves, were swerving mentioning £28bn in public.

And now today the number is being lobbed in a skip.

• Read more from Chris Mason here

Image source, PA Media

We're expecting the official announcement of Labour's U-turn on its £28bn green investment pledge.

In recent weeks, some senior Labour figures have repeatedly refused to use the figure when pressed in interviews, while others, including party leader Sir Keir Starmer, continued to do so.

It's expected Labour will argue that they have to focus on being seen as responsible stewards of the economy, rather than committing to a spending pledge that opponents regard as reckless.

Nathan Williams
Live reporter

Hello and welcome to our live politics coverage. We're expecting to hear from Labour today that they are formally dropping a promise to spend £28bn a year on environmental projects.

There have been months of speculation about the future of the policy, which was first announced in 2021.

Prime Minister Rishi Sunak has repeatedly attacked Labour leader Sir Keir Starmer over the policy, suggesting it will lead to higher taxes.

Although we're expecting the policy to be ditched, Labour sources insist the party's Green Prosperity Plan - which includes creating a publicly-owned green power company - is not being dropped altogether.

So stick with us as we take you through today's developments.