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| Version 2 | Version 3 |
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| General election 2019: How would the Greens fund their £1tn pledge? | General election 2019: How would the Greens fund their £1tn pledge? |
| (about 1 hour later) | |
| The Green Party has pledged to invest £100bn a year to fund its climate policy over the next decade, if it wins the election. | The Green Party has pledged to invest £100bn a year to fund its climate policy over the next decade, if it wins the election. |
| Where would the money come from and how would it be spent? | Where would the money come from and how would it be spent? |
| Borrowing | Borrowing |
| The Greens believe a large public investment, worth £1tn over 10 years, is essential to fight climate change and make Britain fossil fuel free by 2030. | The Greens believe a large public investment, worth £1tn over 10 years, is essential to fight climate change and make Britain fossil fuel free by 2030. |
| The party says the money would go on building 100,000 energy-efficient homes each year, revolutionising transport infrastructure and creating hundreds of thousands of low-carbon jobs. | The party says the money would go on building 100,000 energy-efficient homes each year, revolutionising transport infrastructure and creating hundreds of thousands of low-carbon jobs. |
| The bulk (£91.2bn a year) would come from borrowing, with the rest from tax changes. | The bulk (£91.2bn a year) would come from borrowing, with the rest from tax changes. |
| This would represent a huge hike on current borrowing levels. The independent Institute for Fiscal Studies (IFS), for example, says government borrowing could be about £55bn this year. | This would represent a huge hike on current borrowing levels. The independent Institute for Fiscal Studies (IFS), for example, says government borrowing could be about £55bn this year. |
| Borrowing happens when a country's tax revenues are not sufficient to fund its public spending commitments. When this happens, a government must borrow to make up the difference - this is known as a budget deficit. | Borrowing happens when a country's tax revenues are not sufficient to fund its public spending commitments. When this happens, a government must borrow to make up the difference - this is known as a budget deficit. |
| Governments borrow by selling their debt in the form of bonds to investors, and paying them interest. | Governments borrow by selling their debt in the form of bonds to investors, and paying them interest. |
| 'Historical lows' | 'Historical lows' |
| The Green Party justifies its pledge by saying that borrowing rates are at "unprecedented historical lows" and the money is needed to transform society. | The Green Party justifies its pledge by saying that borrowing rates are at "unprecedented historical lows" and the money is needed to transform society. |
| At the moment, an investor purchasing UK debt would only expect to receive a 0.75% annual return over 10 years. | At the moment, an investor purchasing UK debt would only expect to receive a 0.75% annual return over 10 years. |
| However, if a government planned to massively increase borrowing, there's a risk that investors could demand higher interest rates if they believed the UK could default on future repayments. | |
| The IFS calculates the Greens' proposal would take borrowing to £140bn. This would be more than 6% of national income and the highest level since 2012-2013, when borrowing rocketed following the global financial crisis. | The IFS calculates the Greens' proposal would take borrowing to £140bn. This would be more than 6% of national income and the highest level since 2012-2013, when borrowing rocketed following the global financial crisis. |
| The Green Party is in favour of remaining in the European Union, but running a budget deficit of 6% would be double the limit set out in the EU's growth and stability pact. | The Green Party is in favour of remaining in the European Union, but running a budget deficit of 6% would be double the limit set out in the EU's growth and stability pact. |
| Spending £100bn a year tackling climate change would be about the same amount of money the government currently spends on education. | Spending £100bn a year tackling climate change would be about the same amount of money the government currently spends on education. |
| As well as additional borrowing, the Greens say they will raise £9bn a year from tax changes - including a rise in corporation tax to 24%. | As well as additional borrowing, the Greens say they will raise £9bn a year from tax changes - including a rise in corporation tax to 24%. |
| This would put corporation tax back to the level it was in 2013. It would still be lower than pre-2008 levels, or elsewhere in the G7 (an organisation made up of the world's seven largest so-called advanced economies). | This would put corporation tax back to the level it was in 2013. It would still be lower than pre-2008 levels, or elsewhere in the G7 (an organisation made up of the world's seven largest so-called advanced economies). |
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