A final set of questions relates to whether, if we are going to spend £28 billion to improve economic growth, spending it on the green economy is the best way of doing so.
The changing global landscape should refocus our policy on the factors that are need to improve the investment outlook – such as sound macro polices and the level, predictability and simplicity of tax.
The shift to subsidies is more than the timely, targeted and temporary measures that we saw during the pandemic, and signifies a bigger change in global public policy.
The risks of an adverse market reaction were obvious in advance of Kwarteng’s statement, and a wise Chancellor would have taken heed of it. Unfortunately, the Permanent Secretary had been dismissed and he ploughed on apparently oblivious to the risks.
I believe so – but nonetheless, the balance of risks, driven by economic and political trends, has definitely shifted.