Members at Green Party conference in Brighton have backed a bold set of economic policies which would replace rigid fiscal rules with a system of fiscal referees and end the focus on growth-led policymaking – a clear contrast to the approach endorsed by chancellor John Healey at Labour conference. Greens say the framework centres on meeting people’s needs in an environmentally responsible way.
Drawing on the work of economists [1] the new framework proposes greater public control of banking and finance and more public investment to prioritise essential services, strengthen local communities and provide a boost to zero-carbon industries – a sector already growing three times faster than the rest of the economy.
There would be a move away from interest rates as the sole way to control inflation, and a return to the tap system of bond issuance. The framework also calls for a publicly owned retail bank, limits on the size of private banks and a network of local and regional community banks to fund small and medium businesses. Where banks fail, customers would be protected as their accounts would transfer to the public bank.
A Green Party Spokesperson said:
“Economic policy should serve people and planet, not arbitrary fiscal rules and targets. The speech by chancellor John Healey earlier this week may as well have been another speech by Rachel Reeves – the obsession with so-called fiscal discipline and business as usual continues under Labour.
“The success of our economy should be judged by whether it improves people’s lives without pushing beyond the limits of our planet. This is the focus of our bold new economic framework that conference has signed off today – a framework that puts people’s basic needs and the environment at the heart of economic policy.
“That means reforming our financial system so money flows into affordable homes, good jobs and the green transition. And it means moving beyond an obsession with GDP and interest rates to focus on what really matters: improving people’s lives.”
Notes
- This policy draws on proposals from the New Economics Foundation and others to show how we can direct public money toward projects that will ensure that people’s needs are provided for, while staying within planetary boundaries, and all while putting in additional guard rails to insulate those projects from bond markets and runaway private financing.
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