A handout photo released by the UK Parliament shows Britain's main opposition Labour Party leader Keir Starmer speaking during the weekly session of Prime Minister's Questions (PMQs) in the House of Commons, in central London on Feb 7, 2024. (PHOTO / UK PARLIAMENT VIA AFP)

LONDON - Britain's opposition Labour Party is expected to scale back its flagship pledge to spend 28 billion pounds ($35.34 billion) on building up green industries when it provides an update on the policy on Thursday.

Labour, which according to opinion polls is on course to win a national election this year, had vowed to invest heavily in green technologies and jobs to help snap Britain out of a prolonged period of economic stagnation.

But the governing Conservative Party has zeroed in on the policy over the last year, arguing it could lead to higher borrowing costs and tax rises for the public.

The Labour Party has already scaled back the 28 billion pounds spending pledge once, saying in June last year that it would be delivered more gradually than an original target of spending the sum every year, after interest rates rose

A Labour spokesperson said there would be an announcement on Thursday when asked about media reports that the policy would be ditched. The party is expected to provide an update on its overall Green Prosperity plan.

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The BBC said on Thursday that Labour would ditch the main spending target but would maintain some of the policies it was designed to fund, such as the creation of a publicly-owned green power company.

Labour, which lost power in 2010 in the aftermath of the 2008 financial crash, has sought to portray itself as the party of fiscal responsibility to try to rebuild confidence that it can be trusted to run the economy once again.

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It has already scaled back the 28 billion pounds spending pledge once, saying in June last year that it would be delivered more gradually than an original target of spending the sum every year, after interest rates rose.

The policy was first announced in 2021 and was designed to give companies faith that Britain was willing to invest in green projects such as offshore wind farms.