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London Mayor Sadiq Khan has called on Chancellor Rachel Reeves to prioritise genuine green investment in the upcoming Labour budget, warning that lack of confidence and clarity from the government could undermine public trust and hinder climate goals amid rising economic and environmental pressures.<\/p>\n<\/div>\n
London Mayor Sadiq Khan has publicly urged Chancellor Rachel Reeves to present a budget that genuinely prioritises green investment, criticising the Labour government for lacking confidence in its approach to the country\u2019s pressing challenges. Speaking ahead of the C40 World Mayors Summit in Rio de Janeiro\u2014which he is co-chairing alongside the mayor of Rio, Eduardo Paes\u2014Khan stressed the importance of authenticity in government climate policy and communication. He argued that renewed green investment not only aligns with the government\u2019s ambitious target of reducing greenhouse gas emissions by 81% by 2035 but also promises economic growth and good jobs. Khan warned that the Treasury, and the government more generally, risk undermining public trust by failing to clearly articulate their green agenda or fully support the energy secretary, Ed Miliband, who is the figurehead of the government\u2019s climate strategy.<\/p>\n
Khan emphasised that the public can discern inauthenticity, and that government ministers must convincingly explain the benefits of policies such as London\u2019s Ultra Low Emissions Zone (ULEZ). He highlighted the health benefits of tackling pollution, noting reduced premature deaths and improvements in respiratory conditions across the city. Drawing from his experience with the ULEZ, Khan insisted that effective communication can turn sceptics into supporters by clearly demonstrating the real-world impact of environmental policies.<\/p>\n
Although Labour\u2019s administration has been in power for just over a year, Khan expressed concern over a perceived lack of clarity and confidence within the government regarding their plans to address economic and environmental crises. He identified a fragmentation in the cabinet\u2019s messaging, suggesting that green investment must be a collective endeavour rather than the responsibility of Miliband alone. Highlighting the wider economic opportunities presented by the climate emergency, Khan argued that tackling environmental issues can stimulate growth and foster job creation, especially in green sectors.<\/p>\n
Khan advocates for expanding green skills training and job creation programs, pointing to London\u2019s existing initiatives such as schools, boot camps, and construction academies designed to equip workers with the capabilities needed for heat pump installation, electric bus manufacturing, and energy-efficient home retrofitting. He called for greater government investment to remove the current constraints on such programs and leverage them as a route out of welfare dependency.<\/p>\n
In this context, Rachel Reeves is expected to deliver a budget later this month that could signal Labour\u2019s commitment to the green transition. According to recent reports, the UK government plans to mobilise approximately \u00a370 billion of investment through a new National Wealth Fund designed to accelerate economic growth and finance the clean energy transition by attracting private sector capital. The fund combines \u00a322 billion from the UK Infrastructure Bank with an additional \u00a35.8 billion of taxpayer money, focusing on infrastructure and industrial development to underpin Labour\u2019s green ambitions.<\/p>\n
However, the scale of Labour\u2019s green investment target remains a subject of debate within the party. Khan has acknowledged that the goal to invest \u00a328 billion annually into green infrastructure may not be fully achievable until the end of Labour\u2019s first parliamentary term. Nonetheless, Shadow Foreign Secretary David Lammy reaffirmed the party\u2019s commitment to delivering a green prosperity plan aligned with those fiscal goals, albeit contingent on favourable economic conditions.<\/p>\n
At the local level, Khan continues to push forward green initiatives in London alongside his call for national leadership. London City Hall recently launched a \u00a312 million Green Roots Fund aimed at improving access to green and blue spaces\u2014such as parks, wetlands, and rivers\u2014especially in communities with historically limited green access, including Black, Asian, and minority ethnic groups. Additionally, the establishment of a Climate Finance Taskforce and a \u00a3500 million Green Finance Fund reflects concerted efforts to attract private sector investment to drive the capital\u2019s goal of reaching net zero by 2030. Further investments include a \u00a310 million fund dedicated to creating thousands of green jobs under the Green New Deal initiative, which targets urban greening and air pollution reduction.<\/p>\n
Khan\u2019s intervention comes during a pivotal moment as the UK prepares to participate in the COP30 climate summit in Brazil. He expressed hope that the government\u2019s public display of commitment, with Labour Party leader Keir Starmer and Miliband attending the event, will mark a decisive shift toward more assertive climate action. Khan did not shy away from criticising former US President Donald Trump\u2019s rejection of climate science, calling out his UN speech as \u201ca disgrace\u201d and underscoring the need for the UK and its allies to present a united and evidence-based front on climate policy.<\/p>\n
On the broader issue of UK-US relations, Khan acknowledged the complexities of diplomacy with the US under the current leadership, contrasting the approaches of Canada\u2019s Prime Minister Mark Carney and Starmer. He insisted that a \u2018best mate\u2019 relationship, such as that enjoyed by close allies, demands honesty and candour, implying that more directness is needed in dealing with issues such as climate change.<\/p>\n
As the upcoming budget approaches, Khan\u2019s emphatic call for authenticity and strong green investment encapsulates a wider challenge faced by the Labour government: aligning ambitious environmental targets with clear, confident leadership to mobilise both public support and private sector engagement.<\/p>\n