{"id":26860,"date":"2014-11-29T08:33:14","date_gmt":"2014-11-29T08:33:14","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=26860"},"modified":"2014-11-29T08:33:14","modified_gmt":"2014-11-29T08:33:14","slug":"the-urgent-need-for-green-quantitative-easing","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2014\/11\/29\/the-urgent-need-for-green-quantitative-easing\/","title":{"rendered":"The urgent need for green quantitative easing"},"content":{"rendered":"

The following press release has been issued by Caroline Lucas MP and the\u00a0Green New Deal group this morning. There are more details on green quantitative easing \u00a0here<\/a>:<\/em><\/p>\n

When George Osborne stands up this Wednesday to deliver his Autumn Statement he will find himself between a rock and a hard place of his own making. The rock is the need to encourage a huge increase in economic activity through infrastructure investment, the hard place is the question of how to pay for it, given that his failed policies are increasing debt and threatening growth in the deficit.<\/p>\n

An alternative to this is today proposed by a group of environment NGOs, green businesses and those concerned about ethical finance. They have launched a call for the introduction of a new, revised programme of Quantitative Easing (QE), but this time one that would fund jobs, business and helps tackle climate change in every constituency in the UK.<\/p>\n

Their proposed \u2018Green Infrastructure QE\u2019[i]<\/a> would contribute to funding a carefully costed, nationwide programme to make the UK\u2019s 30 million buildings energy efficient, which would dramatically reduce energy bills and fuel poverty whilst cutting greenhouse gas emissions. The programme would also help solve the housing crisis by building highly insulated new homes, predominantly on brown field sites.<\/p>\n

The Green New Deal group, which is behind this initiative, believes that this programme would require finance of the order of \u00a350 billion a year. Caroline Lucas MP a member of the group said \u201cFor those who think an annual programme of \u00a350 billion is unaffordable, they should remember that between 2009 and 2012 the Bank of England e-printed \u00a3375 billion of quantitative easing, which is the equivalent of over \u00a36,000 for every man woman and child in the country. However, this huge sum mostly benefitted the banks and investors by inflating house prices, the stock market and commodities. It had very little impact in terms of generating real economic activity on the ground, whereas Green Infrastructure QE is designed to achieve exactly that\u201d.<\/p>\n

Such an approach is technically feasible since Mark Carney, the Governor of the Bank of England is on record as saying that if the government requested it, then the next round of QE could be used to buy assets other than government debt.[ii]<\/a><\/p>\n

Furthermore this debt, which would be owed by the government to the Bank of England, would not have to be repaid, as Adair Turner, the former Chairman of the Financial Services Authority has made clear.[iii]<\/a><\/p>\n

Neal Lawson, Chair of Compass \u201cestablishment orthodoxy on austerity is trumping economic necessity - with fears of a return to recession government can use green QE to boost the economy and create well paid jobs while protecting the environment. It\u2019s the political version of a \u2019no-brainer\u2019\u201d.<\/p>\n

Colin Hines, Convenor of the Green New Deal group said \u201cNot only would this programme provide a huge stimulus for local economies and increase the tax take because of the number of people it would get back into well-paid employment in the UK, it could also provide the impetus to unlock massive private co-funding from pension and insurance companies through to individual savers. The \u2018jobs in every constituency\u2019 inherent in Green Infrastructure QE means that it should become a political imperative for all parties in the run up to next May\u2019s election.\u201d<\/p>\n

For Further Details Contact:<\/strong><\/p>\n

Caroline Lucas\u2019 Press Officer, Jenny Williams 07590 050 565<\/p>\n

Neal Lawson, Chair, Compass 07976 292 522<\/p>\n

Colin Hines, Convenor Green New Deal group 07738 164 304<\/p>\n

[i]<\/a> The term \u2018Green Quantitative Easing\u2019 was first explicitly used in 2010 in http:\/\/www.financeforthefuture.com\/GreenQuEasing.pdf<\/a> This concept of directing quantitative easing to fund the greening of the UK\u2019s infrastructure was included in the Green New Deal Group\u2019s 2013 report \u2018A National Plan for the UK\u2019 http:\/\/www.greennewdealgroup.org\/wp-content\/uploads\/2013\/09\/Green-New-Deal-5th-Anniversary.pdf<\/a> and in the new economic foundation\u2019s 2013 report \u2018Strategic quantitative easing\u2019 http:\/\/b.3cdn.net\/nefoundation\/e79789e1e31f261e95_ypm6b49z7.pdf<\/a><\/p>\n

[ii]<\/a> \u2018Mark Carney boosts green investment hopes\u2019 Financial Times, March 18th<\/sup>, 2014<\/p>\n

http:\/\/www.ft.com\/cms\/s\/0\/812f3388-aeaf-11e3-8e41-00144feab7de.html#axzz30ATJUiZ2<\/a><\/p>\n

[iii]<\/a> http:\/\/www.ft.com\/cms\/s\/0\/8e3ec518-68cf-11e4-9eeb-00144feabdc0.html#ixzz3IjZNT6bq<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The following press release has been issued by Caroline Lucas MP and the\u00a0Green New Deal group this morning. There are more details on green quantitative
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