Solutions

Create devolved ‘just transition’ funds

Create devolved ‘just transition’ funds

Government should devolve a proportion of its Green New Deal budget to support local just transition plans.

Addressing the ecological emergency can also help address the inequality crisis. Making the Green New Deal fair and driving its benefits into the places that most need them must be an explicit, legislative aim of a Green New Deal. In particular, places should be empowered to find their own routes to transition.

As part of the process of managing industrial change fairly, national government should devolve a proportion of its Green New Deal budget to new combined authorities to support their just transition plans. Of the 2% of GDP for a Green New Deal that the government should commit in its first budget, one-quarter (which would be around £10 billion in 2019/​20 terms) should be devolved to regional authorities in the first year, rising to half in year three.

As well as supporting regional capital investment via just transition plans, these funds would include resources for the reskilling of workers and paid time off to retrain, for education and to take part in the just transition process. This idea is based on the German short-time work compensation schemes’ where employers are supported with public funds to avoid unnecessary redundancies by temporarily reducing working hours to meet reduced output requirements, with wages maintained.

Central government must also disaggregate the national carbon budget to regions, which in the first instance would afford more emissions space to places that are currently dependent on higher carbon emissions. All regions would be obliged to reduce emissions in accordance with the national trajectory, but would have autonomy over how they achieved this, within the wider aims of the Green New Deal.

Policy in practice

Projects that demonstrate the benefits or may be helped by polices like this.

  • Eckington Against Fracking
    Local residents battle multinational chemicals giant Ineos to prevent fracking.
  • YnNi Teg
    YnNi Teg develops and builds renewable energy generators in Wales, funded by community shares.
  • Kitty’s Launderette
    Not-for-profit launderette offers a cheap place to wash and dry clothes and a warm, welcoming space for the community.
  • Welcome to Our Woods
    Community organisation runs forests for the benefit of all.
  • Impact Hub
    Impact Hub is a community centre and co-working space which aims to build a more equal and just city.
  • Preston Community Wealth Building
    Preston, recently named the UK's "most improved city", has pioneered more democratic ways to build local wealth.
  • East End Trades Guild
    Alliance of 300 small businesses and independent traders takes on landlords and big business.
  • Guardians of the Arches
    Railway arch-based small businesses fight for affordable rents.
  • Grays Riverside
    Thurrock network is strengthening community ties and building local wealth.
  • People's Energy
    East Lothian company aims to take on the Big Six energy suppliers and give profits back to customers.