Exclusive: Inside UK Greens' plan to overhaul Britain's economy

The New Arab has obtained a copy of the Green Party's economic plan for Britain, which proposes sweeping changes to the country's fiscal rules, banking system and approach to public spending.

The report, titled Fiscal Referees: A New Economic Framework for People and Planet, is due to be voted on as a motion at the party's upcoming conference. If approved, its proposals would be adopted as official party policy.

The Green Party of England and Wales will hold its autumn conference in Brighton from 2 to 4 October, where members can vote on party policy.

Here are some of the key proposals in the report.

A focus on 'responsible' economics

The Green Party has previously said it wants to build a more equitable and environmentally responsible economy. The report sets out in greater detail how it believes this could be achieved.

Under the proposals, a Green government would distinguish between economic activity it considers socially beneficial and activity deemed environmentally or socially damaging, while prioritising investment in sustainable and ethical production.

One example given is the renationalisation of the country's water companies. The report estimates this would cost around £50 billion.

Private water companies have faced growing public criticism over sewage discharges, rising bills and the payment of dividends to shareholders.

A YouGov poll found that 82% of Britons supported bringing water companies into public ownership, while water companies discharged sewage into rivers and seas for a combined 1.8 million hours in 2025.

In August, regulator Ofwat provisionally approved up to £3.4 billion in additional expenditure by water companies for infrastructure and other projects, with a final decision expected later this year.

England and Wales have a fully privatised water and sewerage system.

Under the economic framework proposed in the report, the Greens argue that the cost of nationalisation should be considered alongside its social and environmental outcomes rather than judged solely on its upfront price.

Renationalisation would involve acquiring existing infrastructure, including reservoirs and pipes. The report says such a move would also require an assessment of its wider economic effects, including its potential impact on exchange rates and demand for water.

The report is primarily focused on domestic finances and does not go into detail about international trade.

However, the Green Party has previously said it would scrutinise the ethical impact of international trade, including by banning arms sales to Israel.

A new banking system

The report also proposes an overhaul of the banking system, including the establishment of a publicly owned bank.

Under the plan, the public bank could absorb private banks if they fail rather than the government bailing them out, as happened during the 2008 financial crisis.

The bank would offer current accounts and payment services to all UK residents, while a Green government would also establish a network of local community banks to provide funding to small and medium-sized businesses.

The report describes cryptocurrencies as "volatile" and "speculative" and proposes stronger regulation of cryptoassets such as Bitcoin and Ethereum.

The approach contrasts with Reform UK, which has proposed cutting capital gains tax on cryptocurrency gains.

Reform's policies towards the sector have come under particular scrutiny after the party received two £36 million donations from cryptocurrency billionaires Ben Delo and Christopher Harborne, totalling £72 million.

Changes to fiscal accountability

Since 2010, the Office for Budget Responsibility (OBR) has provided independent analysis of the UK's public finances.

The Green Party report proposes replacing it with an Office for Fiscal Transparency (OFT), which would work alongside an advisory Fiscal Policy Committee (FPC).

While the OBR produces forecasts of the economy and public finances and assesses the government's performance against its fiscal targets, the proposed OFT would be given a broader remit.

It would assess government budgets using economic indicators such as unemployment and productivity alongside their ecological impact.

Under the proposals, major spending plans would also include assessments detailing the workers, land and energy required for a project and how those resources could be managed without creating excessive inflation or environmental harm.

Strategic taxation

The report also proposes a system of "strategic taxation", under which taxes would be used not only to raise revenue but also to influence demand, prices and the allocation of resources. One example given in the report is the taxation of private rental properties.

The aim would be to encourage private landlords to sell properties, which could then potentially be bought by councils and converted into social housing.

Higher taxes on landlords can be passed on to tenants through higher rents, although the extent to which this happens is disputed.

The report argues that moving more properties into the social housing sector could lower housing costs. Social housing is, on average, £828 a month cheaper than private renting in England.

However, the report does not address in detail the potential impact of higher landlord taxation on private rents for people unable to access social housing.

Preventing underspending

The Greens' economic plan also seeks to address what the party views as chronic underspending and underinvestment.

The report argues that decades of underinvestment have contributed to deteriorating infrastructure, housing shortages and Britain falling behind in the development of green industries.

It argues that underspending can be damaging in the same way as excessive spending and proposes requiring the Chancellor to justify significant underspending to Parliament, as well as overspending.

The change would represent a shift from the traditional emphasis on controlling government expenditure, with the Greens arguing that failing to invest enough can carry its own long-term economic, social and environmental costs.