'You have to prioritise the low-carbon route,' says Miliband in economy speech criticising government's environmental record

The Labour leadership has attacked the coalition for failing to provide adequate support and stability to green businesses, arguing that the green growth opportunity is being squandered due to government in-fighting.

In a wide-ranging speech to the Policy Network conference in London today, Ed Miliband slammed Chancellor George Osborne for failing to deliver a coherent industrial policy to promote fast-expanding low carbon businesses.

Arguing that the UK should embrace a more interventionist industrial policy similar to those adopted by many other countries, Miliband insisted "part of that industrial policy agenda is about recognising the importance of the green economy for the future - not posing the environment and the economy as alternatives as the current Chancellor does".

The speech built on Miliband's "producers v predators" speech to the Labour Party Conference last year, which he acknowledged had been "controversial", but insisted had been inspired by the move towards "more responsible capitalism [that] is actually being led by many business people".

He said Labour was embarking on a long-term push to promote a more sustainable and resilient form of capitalism, revealing the Party's review on how short-termism is impacting UK firms will address "all of the issues, from quarterly reporting to takeovers".

He also stepped up his recent attacks on the government for failing to offer a coherent long-term vision for the economic recovery, accusing it of tinkering with policies such as today's announcement to relax planning rules for conservatories, rather than delivering a clear industrial policy.

"A one-year holiday from the current rules on planning for a conservatory extension of up to eight metres into a garden does not represent an economic plan," he said.

In a question and answer session following the speech, Miliband stressed plans to stimulate the economy through infrastructure projects should focus on green development. "We've got to go down the low-carbon route, and you have to prioritise the low-carbon route," he said.

He was joined by Shadow Chancellor Ed Balls, who attacked Osborne for failing to support green growth and damaging low carbon businesses by constantly changing policies, citing the example of the government's mishandling of cuts to solar incentives last year.

The speeches will inevitably attract criticism over the lack of detail on how Labour proposes to stimulate green growth, but the comments represent the first significant attack from the Labour leadership on the government's environmental record, and suggest Miliband could use the controversial reshuffle and its promotion of ministers who are regarded as hostile to the environment as an opportunity to appeal to green-minded voters and businesses.

The move paves the way for a conference season when all three of the main parties are expected to try and highlight their differences on environmental and energy policy.

Shadow Energy and Climate Change Secretary Caroline Flint said there was now a clear dividing line between Labour and the Conservatives on environmental issues.

"Today's speech shows that Ed Miliband, Ed Balls and the entire Labour Shadow Cabinet are committed to an active industrial strategy for green growth," she said, adding the Party's on-going green policy review would further underline its support for low carbon industries.

The speech was broadly welcomed by green groups. Matthew Spencer of the Green Alliance think tank predicted the move would crank up pressure on David Cameron to deliver some explicit green growth measures. "We've now had clear statements of support for green growth from Miliband and Clegg," he told BusinessGreen. "Cameron now needs to reassure business and voters that his party are not drifting away from this consensus."

Similarly, Greenpeace's John Sauven urged the Chancellor to "stop holding back Britain's low-carbon businesses".

"Everybody from the CBI to the Labour leadership to green groups are now urging him to back these growing industries," he said. "This sector provided around a third of all growth in the economy over the past year, and Ed Miliband is right to highlight how it should be central to our economic recovery."

The speech came on the same day as Tory MP Laura Sandys, writing for BusinessGreen, also reiterated that modernisers within the Conservative Party remain committed to delivering on a green growth agenda.

"We need to re-engineer our economic model," she wrote. "With a 53 per cent increase in energy consumption forecast by 2035, those who are commercially savvy will recognise that in a resource poor future, we cannot be captured by a profligate economic model from the past.

"Over the last 30 years, businesses have had to manage energy costs that have risen by 120 per cent above inflation. Any country that is serious about future economic competitiveness will ensure that they limit their reliance on fluctuating, politicised energy imports."