The energy union Prospect has called for a change in the UK Government‘s fiscal rules to support increased investment in energy infrastructure.
In a briefing shared with the Treasury, Prospect highlighted the need for investment to meet the UK’s climate goals by 2030.
The union suggests excluding public investment corporations, such as GB Energy, from the fiscal debt calculation.
This change could free up funds for public investments without impacting fiscal targets.
Prospect’s report, “Energising a Green Industrial Strategy,” argues that the Treasury should focus on long term benefits instead of short-term constraints.
The report proposes a new measure of public debt called “underlying public debt,” which would exclude public investment corporations.
Total public sector net debt would still be tracked, but this change would provide more flexibility for financing energy projects.
The proposed changes could lead to increased investment in GB Energy and the Nuclear Fuel Working Group (NWF), allowing the government to attract more capital without raising taxes.
Great British Nuclear could also invest in new nuclear initiatives, which have not seen much public funding in recent years.
These changes could also lead to increased public investment in various areas, such as housing and transportation.
Other organisations have also called for increased government spending on green initiatives, with estimates ranging from £15 billion to £30 billion needed each year to meet climate targets.
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