Be bold, Chancellor. Our future depends on it

Never mind tax cuts and fiscal tweaks, the Spring Budget is a crucial opportunity for the Government to demonstrate leadership and commitment to a sustainable future, and to ensure that the UK has a fighting chance to both tackle the century’s biggest challenge and seize its greatest growth opportunity.

We are smashing record after record on global warming.

NASA recently confirmed that 2023 was the warmest year on record, and the start of this year has been no better. We have just had the hottest January on record. And this month, February 2024, is on course to break a number of temperature records as human-made global warming combines with the natural El Ni?o climate pattern.

It is becoming increasingly difficult to ignore the looming threat of climate change and the lack of action being taken to counter it.

The Conservative Party has drifted a long way from the commitment to tackling climate change shown by Alok Sharma at COP26 in 2021. But that may just be an exception for a party that shows time and again that it doesn’t really believe in leaving future generations a cleaner, greener and more sustainable planet.

Analysis has shown that David Cameron’s decision to ‘get rid of all the green crap’ in 2013 means that the UK’s domestic energy bills are about ￡2.5bn a year higher than they would have been if such green incentives had remained in place.

Rishi Sunak appears intent on following the same path. The UK’s climate watchdog has said that Sunak’s U-turns on key climate pledges will make it harder to reach Net Zero and keep energy bills higher for longer for millions of UK households. It has also harmed inward investment to the UK and sent the wrong message to businesses.

With the climate crisis looming, the Spring Budget is a crucial opportunity for the Conservative Party and for the UK to demonstrate leadership and commitment to a sustainable future, and to ensure that the UK has a fighting chance in the ‘growth opportunity of the 21st century ’.

As I have said before, the world is in a race for green technologies. Funding, infrastructure and talent in green technologies will be key to our national prosperity, and in ensuring our economy is fit for the future.

But Britain is dithering on the sidelines as China, the US and Europe are busy reaping the rewards. We should not be surprised when we realise, too late, we have not developed domestic capabilities in green technologies and then have to import skills and technologies from abroad.

This Spring Budget must be a turning point, showing Britain is serious about the green economy.? So what would an ideal budget look like?

The key to success lies in boosting investment. Public investment encourages private investment, which in turn helps to shape the whole economy.

The budget should focus green investment in areas such as energy infrastructure, transport, new technologies (such as AI), and the environment – as these will likely generate twice as much additional investment from the private sector. Such investment will pay off through increased productivity and economic growth.

We also know that Sunak’s U-turns have harmed inward investment, so a clear message in the budget to business that Britain is serious about the green transition will encourage investment in Britain.

The National Infrastructure Commission has made a similar finding: inadequate infrastructure investment, particularly in areas such as public transport and home heating and insulation, have held UK productivity back and are in urgent need of renewal.

The budget should prioritise schemes such as retrofitting homes with insulation, double glazing, and heat pumps. Focus on initiatives such as these will drastically cut emissions, reduce fuel poverty, and create jobs in the retrofitting sector.

The budget should also set out how the UK will invest in and support reskilling and retraining programs for workers in fossil fuel-dependent industries, ensuring they are not left behind as we move towards a green economy. Fossil fuels account for about 80% of the UK’s total energy supply , leaving an estimated 4 million workers that will need to be reskilled in the green energy transition.?

I know how important climate change is.

That is why I have established a research project, Caudwell Strong Britain , at the Council on Geostrategy .

This project is exploring the strengths and weaknesses of the UK’s science and technology ecosystem. It will help us understand how we can create a more competitive and resilient ecosystem and better facilitate a green transition.

This will help unleash Britain’s potential for enhanced prosperity and security, as well as leave behind a cleaner, greener and more sustainable planet.

The Spring Budget is about our future and the path we choose. It is time for the Conservative Party and for the UK to choose a path of ambition, responsibility, and long-term vision.

By making meaningful investments in green technologies, talent and infrastructure, the UK can not only help tackle climate change but also create a cleaner, healthier, and more prosperous future for Britain.

For more information, visit?www.geostrategy.org.uk/caudwell-strong-britain/ ?.