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LSE study shows benefits of green investment versus tax giveaways

Green

A paper published by the London School of Economics (LSE) found that green investment in energy infrastructure, transport, and the natural environment would rapidly boost the UK’s economy and re-invigorate innovation.

The authors of the paper, including LSE Senior Fellow Dimitri Zenghelis and Lord Nicolas Stern, Chair of Economics and Government at LSE, found that increasing green investment by over £20bn a year would pay off in productivity, efficiency savings, and strong carbon reductions.

Titled ‘Boosting Growth and Productivity in the UK Through Investments in the Sustainable Economy’, the paper comes at an important time; the Labour Party are reportedly abandoning their plans for £28bn-a-year green investment if they decide it is too risky during their election campaign. Whilst Labour Leader Keir Starmer has said he remains committed to the plan by the second half of his tenure in Parliament, it may prove to be a sticking point when compared to the tax cuts touted by Prime Minister Sunak and Chancellor Jeremy Hunt.

The paper, however, highlights the tax cuts as ill-conceived, arguing that they would lead to “a continuation of stagnant productivity and weak economic growth”.

Read the full story on the Guardian website.

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