Cutting Green Taxes to Fund Growth — Has Labour Stolen Reform’s Playbook?

 

In recently announced government policy, the UK is set to slash the energy bills of over 7000 UK companies in a bid to try spark some life into the economic growth of UK businesses and cut operating costs. Electricity costs for eligable businesses would be cut by up to 25% in the proposed plans set to launch from 2027, but who will pay for it and how will it be funded?

The answer to that question is quite simple, it will be funded by reducing green levies on those select businesses and reducing carbon pricing. This seems to run contrary to the governments climate efforts and seems to appear they are just stealing Reform UKs ideas to slash the carbon taxes and climate charges. is this a admission that Reforms policies are infact cost effective after all and can provide inspiration on how to make up extra funding and investment? it appears so doesnt it?

This marks a departure from the climate-first rhetoric the government has long championed, and arguable mirrors the kind of economic realism Reform UK has advocated - slashing green costs to fuel business competativeness. This certainly seems to be Labour validation of Reforms policy.

But yet the plan also shows huge amounts of investment in other areas such as;

* £25.6bn finance capacity via British Business Bank to support SMEs and high-growth companies.

* £1.2bn annually for skills training (esp. tech, defence, digital).

* £22.6bn/year R&D spending by 2029-30 (AI, biotech, advanced manufacturing, etc.).

* Manufacturing: £4.3bn funding, expand vehicle production, push zero-emission flight.

* Clean Energy: £1bn for supply chains, via Great British Energy.

* Creative: £380m for games, TV, music, etc.

* Digital/AI: £2bn for AI, £187m to train 1M youth, big R&D push in cybersecurity, semiconductors, quantum.

The total cost of this idea is a whopping £149 billion, and that is without counting the 25% discounted electric for big businesses funded by cuts on carbon tax.

Kier starmer has said "This is a turning point — a long-term plan to build an economy that works for working people."

Again it opens up the question of who is funding this and where do they think they will get this money from? 

Many of this is already budgeted for such as the R&D, skills and British Business Bank. The plan is majority funded by private investment, you can thank capitalism for that as this plan relies on capitalist private funding mechanics of the capitalist system. There will be no tax rises at all required as its fully costed and funded by both the capitalist private investment system and in the cuts to carbon tax, such as Reform UK suggested doing.

its funny for a party that brands itself as more socialist, Labour seem to be adopting capitalism more than the Tories ever did. maybe its time for Labour voters to question what they know about socialism and reflect on whether they truly are socialist anymore?

For a party long associated with public ownership and state-led solutions, Labour is now banking on market forces, investor confidence, and supply-side incentives.

Labour might talk like socialists — but their actions look increasingly capitalist.

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