Great British Energy 'to be based in Aberdeen'

BBC Scotland reported on Tuesday afternoon that the new publicly owned company, which will not provide energy to people’s homes, was to be based in the Scottish city.

Smaller satellite offices are expected to be set up in other locations across Scotland, with Glasgow and Edinburgh floated as potential sites.

Official confirmation that GB Energy is to be based in Aberdeen is expected to come from Prime Minister Keir Starmer in the next few weeks.

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Labour’s plan to base the company in the city in the north east has been taken as something of a given, although the party refused to give details during the General Election campaign.

Appearing at a Fringe event in Edinburgh in August, Energy Minister Michael Shanks – who has responsibility for GB Energy – hinted that he would be spending a lot more time in Aberdeen moving forward.

Michael Shanks said he would be in Aberdeen more often

Also in August, Shanks was in Aberdeen for a series of engagements with the energy sector, and UK Government roles in the city appeared on job adverts on LinkedIn.

A Department for Energy Security and Net Zero spokesperson said: "We do not comment on speculation. Decisions on Great British Energy's location will be announced in due course."

Kevin Stewart, the SNP MSP for Aberdeen Central, called for clarity from Labour.

“This new UK Government has already demonstrated a real ignorance when it comes to the energy industry here in Aberdeen and I hope that establishing GB Energy will be in tandem with a complete change in their approach and that leads to meaningful engagement with the industry and supply chain," he said.

Starmer mentioned GB Energy twice in a speech last week in which he warned his Labour government's first budget would be "painful".

The Prime Minister said: "Growth, and, frankly by that I do mean wealth creation, is the number one priority of this Labour government ... It’s why we’ve set up Great British Energy – to create good jobs and cut people’s bills."

He later added: "Great British Energy will be owned by the taxpayer, making money for the taxpayer, producing clean energy and creating good jobs."

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The statement suggested GB Energy would actually produce energy, an area of confusion given conflicting statements on the issue from top Labour figures.

Speaking in May, Starmer had said GB energy would not produce power, telling the BBC: "It’d be an investment vehicle, not an energy company."

Labour have earmarked some £8 billion over the course of the current Westminster parliament to fund GB Energy, a figure which experts have said it not enough.