Labour refuses to recommit to 2028 deadline amid looming budget cuts.

Ed Miliband is poised to ditch targets for heat pumps amid budget cuts that threaten his net zero ambitions, industry sources have told The Telegraph. The Telegraph has the story.

The previous government declared that from 2028, 600,000 heat pumps would be installed every year in British homes as part of the drive towards net zero.

But official communications regarding the deadline have been dropped since Labour took power last year, and any mention of installation targets was absent from the party’s 2024 manifesto.

Labour has refused to recommit to the 2028 deadline, which was set by Boris Johnson’s government in 2021. The Chancellor, Rachel Reeves, is expected to announce the changes in her spending review on June 11.

It comes after The Telegraph revealed last week that cuts to the Department for Energy and Net Zero (Desnz) budget could force Mr Miliband to reduce funding for his flagship Boiler Upgrade Scheme, which provides up to £7,500 to homeowners looking to install a ground or air source heat pump.

Funding for the scheme is expected to expire in 2028, and the Government is yet to confirm whether it will be renewed.

“The conversations I have been involved in suggest they’re planning to get rid of the 2028 deadline, and it’s not in any of their PR,” one source told The Telegraph. “Because the budget is limited and this government isn’t the best with finances, the Warm Homes Plan will also get shrunk.”

The energy department, led by Mr Miliband, is said to be bracing for budget cuts as Ms Reeves frantically tries to fill an estimated £30bn black hole in Britain’s finances.

The overall annual growth in day-to-day spending has fallen to 1.2pc in real terms, meaning unprotected government departments are facing cuts.

Reductions to his department’s budget could force Mr Miliband to reduce funding for heat pump installations, while officials are also said to be looking for savings in Labour’s “warm homes” policies, which provide funding for home insulation.

Another industry source said: “I’ve not heard talk of the target for months. Setting an ambition is great, but setting absolute target numbers is always a problem.

“The aspiration was based on a number of policy initiatives, all of which have been delayed.”

This is likely to deepen a rift in the Cabinet between Mr Miliband and Ms Reeves, who in January urged Labour MPs not to tolerate “blockers who put their own interests above those of the country”.

Ministers are said to be prioritising Labour’s pledge of building 1.5 million homes, rather than installation targets for heat pumps.

Read the full story here.