Labour urged to ‘come clean' over net zero cost as leaked documents suggest 10% GDP hit to economy

Labour has been urged to “come clean” over the cost of net zero after leaked documents suggested the target could lead to economic growth plummeting.

Business and Trade Department analysis, prepared in November 2023, suggested going green could impact both household and business consumption, as well as seeing higher costs.

According to The Sun, the leaked document states: “Estimates suggest that by 2030, 10 per cent of GDP - 1 per cent annually over ten years on average - will have been subtracted from consumption.”

The document was also reportedly said to have warned the level of investment required and needed for redistribution meant government debt was “likely to increase as a result of the transition”. The report adds that an “abrupt transition could act as a sudden shock, resulting in a sudden drop in value and presenting a risk to investors and shareholders”.

Andrew Bowie urged the UK Government to “come clean” over net zero

Now the shadow Scotland and acting shadow energy secretary Andrew Bowie has urged ministers to explain what the cost of the transition will be.

He told The Scotsman: “Earlier this week, Kemi Badenoch told the truth that net zero by 2050 is impossible without economically bankrupting ourselves or hiking up costs. Now even official government advice admits these policies will hit the poorest hardest, could cause a massive shock to the economy, destroy growth and cause trillions of pounds of perfectly good business assets to be written off.

“It is clearer than ever that Labour do not have a plausible plan for net zero or energy security. Labour must come clean about the true costs of net zero or it is businesses and hard-working people, particularly those in the energy industry in Scotland, who will pay the price."

Shadow business secretary Andrew Griffith said: “This official government advice admits these policies will hit the poorest hardest, could cause a massive shock to the economy, destroy growth and cause trillions of pounds of perfectly good business assets to be written off.”

A UK government spokesman said: “Net zero is the economic opportunity of the 21st century, and will deliver good jobs, economic growth and energy security as part of our Plan for Change.”