A FORMER adviser to Tony Blair has described Labour’s plan to ditch their policy to spend £28 billion a year on its green investment plan as “the most stupid decision the party's made”.

An official announcement is set to be made on Thursday following months of reports that the plan will be scrapped.

The position has become increasingly muddled in recent weeks with a number of senior figures appearing to say the plan would not be scrapped despite the reports. 

During a recent trip to Scotland, Angela Rayner was asked if the plan was being ditched and she replied: “No. The green prosperity plan is crucial to our growing the economy. We want to be the fastest growing economy in the G7.”

Likewise, during his appearance on BBC Debate Night, Rutherglen and Hamilton West MP Michael Shanks was asked if the policy would be scrapped and replied: “We’ve said it’s an aspiration we’ll build to and absolutely that £20bn figure is important because what it’s about moving our economy forward into the economy of the future.”

READ MORE: BBC: Michael Shanks defends decision not to reinstate cap on bankers' bonuses

The plan to spend £28bn a year on green energy projects, such as offshore wind and electric vehicles, was first announced by Rachel Reeves in September 2021.

The pledge was first watered down last June, with the target adjusted so a Labour government would meet it about halfway through its first term rather than in its first year.

Speaking to Newsnight, former adviser to Tony Blair John McTernan said: “It’s probably the most stupid decision the Labour Party have made.”

Asked what Blair would have done, he said: “I don’t really care what Tony Blair would have done because Tony was the leader in the 20th century, Keir’s going to be prime minister in the second quarter of the 21st century.

“This is a decision we have to make now to decarbonise our economy and it’s one which stands for a purpose, a great purpose, a grand purpose.

“Great parties have great causes. If you don’t have a great cause, you want a change from this government sure, but change to what? What’s the change Labour now offers? It’s very disappointing?”

The National: SNP Westminster group leader Stephen Flynn speaking during Prime Minister's Questions

The SNP’s Westminster leader Stephen Flynn (above) posted the clip on his Twitter/X account and said: “Don’t think John approves.”

The ditching of the pledge comes as global warming has exceeded 1.5C across an entire year for the first time, according to the EU’s climate service.

World leaders had promised in 2015 to try to limit the long-term temperature rise to 1.5C, which is seen as crucial to help avoid the most damaging impacts.

In a post on Twitter/X, First Minister Humza Yousaf took aim at Starmer for ditching the policy.

He said: “On the day it’s confirmed global warming has, for the first time, exceeded 1.5C across an entire year, Starmer is ditching his pledge to invest £28bn a year in green energy.

The National:

“With our abundant renewable resources, Scotland will suffer because of another screeching Labour U-turn.”

Elsewhere, SNP MSP Jim Fairlie took aim at Shanks for seemingly saying the policy would still go ahead on Debate Night.

He said: “On @bbcdebatenight Michael Shanks claims they haven’t ditched it. The Tories are finished despite continuous Labour roll backs.

READ MORE: Scottish Government asks MSPs to back Scottish Budget amid cuts fears

“Labour don’t need Scotland to win Westminster, but Scotland absolutely needs @theSNP to win in WM, it’s the only route to independence.”

In an interview last month, the Labour leader described the £28bn figure as a “confident ambition”.