Is Labour’s plan for a state-owned renewable energy giant, GB Energy, facing turbulence?
A promised £8.3 billion funding boost, once championed as a cornerstone of the country’s green future, is now uncertain as the Treasury reviews its multi-year spending strategy.
Launched in July with big promises of job creation, supply chain growth and giving the public a direct stake in the clean energy revolution, GB Energy has yet to define its role or how it will generate returns for taxpayers.
According to newspaper reports a Treasury spokesperson insists the government remains committed to GB Energy and the Warm Homes Plan but added that spending decisions will be clarified in the upcoming review.
With rising defence spending pressures and fiscal rules tightening, cuts could be on the table, GB Energy’s lack of clear strategy could make it an easy target.
So far, just £125 million has been released to establish headquarters in Aberdeen, Scotland.
Dan McGrail was recently named interim CEO, while chair Jürgen Maier has kept a low profile since his appointment in July, only breaking silence recently to say delivering 1,000 promised jobs for Aberdeen could take “up to 20 years.”
Meanwhile, Chancellor Rachel Reeves approved £3.4 billion for the Warm Homes Plan—reaffirming previous commitments—but any extra funding for energy efficiency upgrades remains off the table.
With public spending under pressure ahead of the spring economic update in March, GB Energy’s future funding seems unclear.
