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.

  • East End Trades Guild
    Alliance of 300 small businesses and independent traders takes on landlords and big business.
  • Schools’ Energy Co-operative
    Schools’ Energy Co-operative has installed solar panels on schools across the country, working with a network of local groups.
  • Lilac – Low Impact Living Affordable Community
    Lilac is a environmentally-friendly housing co-op with an innovative funding model.
  • The Exchange
    This community arts centre has plans for workspaces, exhibition space and housing in neglected local buildings.
  • Preston Community Wealth Building
    Preston, recently named the UK's "most improved city", has pioneered more democratic ways to build local wealth.
  • Kitty’s Launderette
    Not-for-profit launderette offers a cheap place to wash and dry clothes and a warm, welcoming space for the community.
  • The Clipper
    Local residents bought an empty pub and turned it into the city’s first community-owned market.
  • YnNi Teg
    YnNi Teg develops and builds renewable energy generators in Wales, funded by community shares.
  • Arran COAST
    Community-led campaign saved seabed and marine life from devastation.
  • Harland and Wolff occupation
    Workers occupying threatened shipyard call for public ownership to create new jobs in renewable energy.