Greens promise £40 billion to drive out fossil fuels

• Party will launch transformation plan to make the UK economy greener

• Renewable energy will be the bedrock of the next government

• Renationalisation of water and energy companies

• However, there is little clarity on if it will prioritise farming or solar

The Greens have earmarked £40 billion to transform the UK economy – credit greenparty.org.uk

The Green Party has promised to spend £40 billion to drive fossil fuels out of the UK and transform the economy, as it released its 2024 general election manifesto titled ‘Real Hope, Real Change’.

In a highly ambitious, big-spending manifesto, the Greens promised to make sure all homes are warmer and cheaper to live in, as well as make renewable energy the UK’s main power source ahead of the general election on July 4th.

It has made huge pledges to fundamentally upturn the economy and society and ensure the UK hits its target of net zero, with its ideas affecting transportation, biodiversity, and farming. But to pay for it, the Green Part has also promised significant tax increases. 

The Green Party’s promises, at a glance

• Invest £40 billion across the economy to drive out fossil fuels
• Spend £12.4 billion in skills and training across the green economy
• Improve the UK’s farming and biodiversity
• Invest 19 billion to support electrification of the railways
• Renationalise water companies to keep sewage out of water

‘Economic Green Transformation’

The Green Party’s most eye-catching policy is its £40 billion ‘Economic Green Transformation’, which it claims will make the UK economy green by the end of the next parliament. 

As part of its scheme, the Green Party will deliver an “unprecedented retrofit programme” to make homes warmer and cheaper to run, but the manifesto doesn’t include a clear timetable on this.

It would also look to renationalise the railways, water companies and the big 5 retail energy companies. 

In addition to its £40 billion pledge, the Green Party will spend £12.4 billion in skills and training, equipping workers to “play a full role in the green economy”. 

“Green MPs will fight for an economy that delivers security, wellbeing and a better quality of life for everyone, as well protecting our environment and enabling us to tackle the climate crisis with the ambition and speed it demands,” the party said.

“Privatisation has failed. Dividends are paid to shareholders while infrastructure is run into the ground. 

“The Green Party is committed to the public ownership of public services, so they are run to serve us all, rather than to increase the wealth of shareholders.”

Renewable energy

A huge part of the Green Party’s strategy is renewable energy, and it has promised to invest heavily in making the UK cleaner and improve its storage capacity. 

“The UK’s current climate targets do not reflect the urgency of the climate crisis”, the Green Party said. 

“We would push the Government to transition to a zero-carbon society as soon as possible, and more than a decade ahead of 2050.”

Its plans include delivering 80GW of offshore wind, 53GW of onshore wind, and 100GW of solar by 2035, as well as having 70% of the UK’s power.   

The Green Party also wants considerable investment in energy storage capacity to create a “more efficient electricity distribution” and for communities to “own their own energy sources” so that they can profit from selling excess energy to reduce bills. 

This emphasis on local communities is similar to the pledges from the Liberal Democrats, who have pledged to hand more power to local councils for more community-based net zero strategies.  

The Green Party also wants to get rid of nuclear energy, which it describes as “unsafe and much more expensive than renewables.” Aside from the key differences in spending and taxation, this sets the party up in stark contrast against the Conservatives, who have said they will scale up nuclear power with a new fleet of Small Modular Reactors. 

“This ambition will deliver a zero carbon electricity supply and security of supply over short and long periods of low generation, with sufficient electricity for all cars and vans to be electric, for all homes and buildings to stop using fossil fuels, and for most industry to transition to clean energy.”

Farming

The Green Party will also make farming and improving the food supply chain a significant part of its social, economic and environmental strategy.

It claimed the current food system is damaging the environment and public health as it accounts for a third of yearly carbon emissions, and that poor diets were costing the NHS £6.5 billion a year.

To that end, it will triple financial support for farmers to “support their transition to nature-friendly farming”, but they would link this support to reduced use of pesticides and agrochemicals. 

“Green MPs will work with farmers and other stakeholders to transform our food and farming system, so we are producing healthy, nutritious food at fair prices for consumers and with fair wages for growers,” it said.

“We will also aim to increase the amount of food grown and traded in the UK, and as locally as possible.”

Despite making it clear they wish to improve the food supply chain, the Green Party’s position on farming is arguably less detailed than the Liberal Democrats’ and the Conservatives’.

This is because the party has not set out exactly what available land will be used, and if they will prioritise the drive towards renewable energy – for which they need space for solar farms – or farming.

Solar power is the core of the Liberal Democrats’ sustainability strategy and they made it clear they will remove restrictions to support projects.

The Conservatives, on the other hand, have said they will prioritise farming and have put in place stringent regulations for new solar projects.

The Green Party is extremely ambitious in both areas, but should it be the next government, it will require more clarity on how it will deliver both. 

Spending 

To help pay for its plans, the Green Party will tax and borrow. 

It will introduce:

• A ‘carbon tax’ to “drive fossil fuels out” of the UK economy, which would be reinvested back into the energy transition. 
• A Wealth Tax of 1% annually on assets above £10 million and of 2% on assets above £1 billion – it claims only a “tiny minority” would pay this.
• A reform of Capital Gain Tax to align the rates paid by taxpayers on income and taxable gains – it claims this will affect less than 2% of all income taxpayers.
• An alignment on the tax rates on investment income with the tax and National Insurance Contribution rates on employment income. 
• A removal of the Upper Earnings Limit that restricts the amount of National Insurance paid by higher earners.