A Green New Deal Group briefing, The Green New Deal: Securing the Future, was sent to the Chancellor ahead of the March 2020 budget, with a letter signed by MPs from all the main opposition parties.
As the briefing, written by Green New Deal Group member Richard Murphy sets out, the Green New Deal Group have long argued that it is prudent for government to borrow (by issuing bonds) to invest in the transformation of our infrastructure and businesses while interest rates are low. The briefing shows how such government borrowing could be financed in a way that also creates a safe place for the nation’s pensions and savings, by making simple changes to existing tax incentives. Much of the £70bn saved annually in ISAs could then be invested in government-backed green bonds at an interest rate of 1.85% (the UK government’s current average cost of borrowing) and a quarter of the £100bn currently invested in pensions could be directed into Green New Deal investment.
Additional changes could ensure that businesses are fully involved in the Green New Deal by requiring all large businesses to prepare for how they and their supply and customer chains will achieve net zero, ideally by 2030.