The government fightback against the next recession should include pumping as much as £50bn into green projects, in a move that would help reboot the economy and tackle the climate emergency, according to a left-leaning thinktank. Against a backdrop of concern among economists that Britain is ill-equipped to combat another downturn on the scale of the 2008 financial crisis, the New Economics Foundation thinktank said a green plan to beat a future slump was required. In the event of a recession, it said the government should spend at least 2% of gross domestic product (GDP), or around £30bn, to decarbonise the economy, by investing in renewable energy projects, planting trees, transport infrastructure, electric vehicles, and retrofitting homes with new insulation. For a larger economic shock, as much as 3% of GDP, or around £50bn, could be spent.
Guardian 13th Jan 2020 read more »