Labour would oversee British version of Inflation Reduction Act, Miliband to say

Ed Miliband will stress Britain’s “unique potential” to “compete and win” in the global transition to a green economy, pledging that Labour’s green prosperity plan would be a British version of US President Joe Biden’s landmark Inflation Reduction Act.

In a speech to business leaders and experts on Tuesday, the Shadow Climate Change and Net Zero Secretary is expected to declare that ministers need to “stop moaning” about Biden’s Act – which seeks to encourage investment in green technology in the US through $369bn of subsidies – and “start matching its ambition”.

Miliband will say: “What we have seen from the UK government is the actions of a group of people caught in the headlights. Kemi Badenoch dismisses the Inflation Reduction Act as “protectionist”. Our current Energy Secretary Grant Shapps calls it “dangerous”. The Chancellor dismisses it too.

“I profoundly disagree with this approach. As the US and Europe speed off into the distance in the global race for green industry, we are sitting back in the changing rooms moaning about the rules. Sore loser syndrome won’t win any jobs for Britain.”

He will add: “Of course, we must remain an open economy, welcoming foreign investment and goods. Not everything in the green economy could or should be produced here. But we are not neutral about where things are built. Joe Biden wants the future Made in America. We want the future Made in Britain.”

Biden has described the Act – which was signed into law in August last year – as the “biggest step forward on climate ever”. It was reported around the time of the bill’s passage that the legislation could reduce US emissions by about 40% by 2030, compared with 2005 levels.

Miliband will use his speech to set out how Labour plans to provide the partnership, investment and certainty that businesses need to invest in the UK and create jobs in green industries.

He will say: “Some people, not just in government, will say we cannot compete with [the] Inflation Reduction Act. How, they say, can we compete with the United States with its population five times ours and its huge financial firepower? And throw in the EU and China, and they say we need to get real.

“But such defeatism is not just pessimistic but plain wrong. It misunderstands the reality of the scale of the opportunity presented by the biggest transformation of the global economy in 300 years. And it deeply misunderstands our unique potential as a country to compete and win in this green revolution that has begun.”

Labour leader Keir Starmer pledged to make Britain a “clean energy superpower” as one of the five ‘missions’ he set out last month that will form the basis of Labour’s next election manifesto.

Miliband will use his speech to outline parts of Labour’s response to Biden’s Act, reiterating the party’s commitment to end the use of fossil fuels in the power system by 2030, establish a new national wealth fund to invest in partnership with the private sector and create GB Energy, a publicly-owned clean energy company.

The Labour frontbencher will tell attendees that the party would also act to “break down the barriers in planning and grid”, including through a “net-zero mandate” for every key regulator.

On the party’s commitment to establish GB Energy within the first year of a Labour government, Miliband will say: “This country needs change. GB Energy is a vital part of this change. Every real leader in zero-carbon power has a national champion: EDF in France, Statkfraft in Norway, Orsted in Denmark, Vattenfall in Sweden.

“It’s time we had ours. In years to come, it will seem absurd that Britain had no public clean energy champion to deliver jobs and wealth as so many of our competitors do. A Labour government will, and it will have a clear mission: to build clean energy and do it in Britain.”