Prime Minister's speech to Labour Party Conference places clean energy at heart of government's plans to build 'a Britain that belongs to you'
Keir Starmer has today confirmed the government's new publicly-owned GB Energy venture will be headquartered in Aberdeen, where it will look to draw on the experience and skills of the city's oil and gas industry.
Delivering his keynote address to the Labour Party Conference in Liverpool, Starmer said the new investment vehicle would now be tasked with driving forward "our mission on clean energy", which aims to deliver a clean power system by 2030.
The government had previously said the agency would be headquartered in Scotland, sparking an intense internal debate over whether it should draw on the energy and engineering skills base of Aberdeen or the financial sectors of Edinburgh or Glasgow.
However, Starmer said "the truth is, it could only really be based in one place in Scotland... the future of British energy will be powered, as it has been for decades, by the talent and skills of the working people in the Granite City, with GB Energy based in Aberdeen".
He said the move was an example of "a decisive mission-led government, moving our country forward, step by step, focused on a clear long-term plan".
The move is likely to be welcomed by trade unions that have been calling on the government to come forward with a more ambitious 'just transition' strategy to generate jobs and investment for workers in carbon intensive industries, such as the North Sea oil and gas sector, which are expected to decline as decarbonisation efforts gather pace.
However, some insiders had argued Edinburgh or Glasgow would be a more logical home for an institution that will be primarily focused on developing financial models and finalising deals that catalyse investment in new clean energy projects.
The government said Edinburgh and Glasgow would host two smaller sites for the new agency, as it looks to draw on skills and expertise across Scotland.
The company is expected to initially be located in government buildings across the three cities, while permanent bases are established. An interim chief executive is also set to be announced in the coming weeks, who will then take the lead on the formal launch of the new company alongside the start-up chair Juergen Maier, former CEO of Siemens UK.
Lang Banks, director at WWF Scotland, said "locating GB Energy's HQ in Aberdeen has the potential to ensure we successfully transition away from oil and gas in a way that is fair for workers, communities, and consumers".
But he also stressed that the creation of GB Energy was "a reminder of the urgent need to end our reliance on polluting fossil fuels by accelerating the roll-out of cleaner renewables".
The announcement featured in a speech in which Starmer repeatedly highlighted the centrality of Labour's clean energy mission to its wider economic plans to engineer "a national renewal", following 14 years of Conservative government that the Prime Minister argued had left Britain's confidence "brittle and fragile".
He showcased the changes Labour had delivered within weeks of taking office, including "planning reform, doctors back in surgery, new solar projects, new offshore wind projects, the onshore ban lifted, GB Energy launched".
And he reiterated his desire to reject the politics of "easy answers that may well move a crowd, but do not move a nation forward" and instead lead a "mission driven and serious" government.
As such, he argued Labour would set out how the policies needed to revive the economy required trade-offs.
"If we want cheaper electricity, we need new pylons overground otherwise the burden on taxpayers is too much," he said. "If we want home ownership to be a credible aspiration for our children, then every community has a duty to contribute to that purpose.
"If we want to tackle illegal migration seriously we can't pretend there's a magical process that allows you to return people here unlawfully without accepting that process will also grant some people asylum. If we want to be serious about levelling-up, then we must be proud to be the party of wealth creation. Unashamed to partner with the private sector. And perhaps most importantly of all, that just because we all want low taxes and good public services this does not mean that the iron law of properly funding policies can be ignored, because it can't. We have seen the damage that does and I will not let that happen again."
He also sought to reclaim the Conservative slogan of 'take back control', arguing the public wanted to see "a more decisive government" that intervenes in failing markets and tackles the climate crisis.
"[The Tories] are the party of the uncontrolled market," he said. "Now, don't get me wrong - markets are dynamic. Competition is a vital life force in our economy. This is a Labour Party proud to say that we work hand-in-hand with business. But markets don't give you control - that is almost literally their point.
"So if you want a country with more control. If you want the great forces that affect your community to be better managed. Whether that's migration, climate change, law and order, or security at work. Then that does need more decisive government, and that is a Labour government. Taking back control is a Labour argument."
Starmer's speech followed a series of speeches from senior Cabinet ministers that similarly underscored Labour's commitment to boosting green investment and accelerating the UKs net zero transition.
Yesterday, Shadow Energy Security and Net Zero Secretary Ed Miliband announced plans to introduce new energy efficiency standards for rented buildings and restore the UK's reputation for climate leadership on the world stage, while Environment Secretary Steve Reed announced new rules to help boost investment in water infrastructure.
Chancellor Rachel Reeves also hinted the Treasury could tweak its fiscal rules to allow for increased borrowing to invest in new strategic infrastructure.
The speeches were broadly welcomed by green groups, but they also urged Ministers to now move quickly to deliver on their ambitious clean energy and nature targets.
"The Prime Minister promised light at the end of the tunnel, but without immediate action on nature and climate, that light could turn out to be the onrushing train of environmental disaster," said David Walsh, head of public affairs at WWF.
"At this conference we have seen some green shoots, but national renewal must mean nature renewal. The government must take urgent action on the climate and nature crisis both here in the UK and around the world. From the upcoming budget, to the COP16 and COP29 biodiversity and climate summits this autumn, it is time for genuine leadership."
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