Prime Minister confirms GB Energy to be headquartered in Aberdeen

The Prime Minister has confirmed GB Energy will be headquartered in Aberdeen.

In his first speech to the Labour Party conference since entering Downing Street in July, the Prime Minister said the agency "could only ever be based in one place in Scotland".

Addressing delegates in Liverpool on Tuesday, he said: "We said, GB Energy, our publicly-owned national champion, the vehicle that will drive forward our mission on clean energy, we said it belonged in Scotland, and it does.

"But the truth is, it could only really ever be based in one place in Scotland.

"So today, I can confirm that 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."

Sir Keir and Labour had promised in the lead-up to the election that GB Energy would have its headquarters north of the border, sparking repeated questions over where it would be located.

Last month, the Department for Energy Security and Net Zero branded widespread reports of GB Energy being based in the Granite City as "speculation".

Within minutes, the Aberdeen and Grampian Chamber of Commerce, which had been campaigning for the agency to come to the region, hailed the "fantastic news" which it said will "secure the north-east's status as a global energy capital for many decades to come".

Its chief executive Russell Borthwick added: "With the people, skills, strategic infrastructure and future pipeline of projects already in place, the north-east of Scotland is ready to lead the way.

"However, we do not need to kill off one industry to grow another - in fact, the opposite is true, as one cannot exist without the other.

"We therefore urge the UK Government to use next month's Budget to restore confidence in the North Sea to protect the jobs, supply chain and energy production we need to ensure a just transition."

Offshore Energies UK (OEUK) - the leading trade body - said listening to industry’s experts and building partnerships will be key to determining GB Energy’s success.

David Whitehouse, CEO of OEUK, welcomed the announcement however highlighted concerns around the government's proposed tax changes and the impact it will have on those working in the sector.

He said: “Aberdeen is an energy powerhouse and home to brilliant British engineering. It must and should be part of the UK’s energy future. The people of this city are rightly proud of their energy heritage and it’s imperative GB Energy helps to safeguard their jobs and build on their world class expertise to benefit the whole UK.

“Where GB Energy is located is important but what really matters is what is does. Success will be built on partnerships with industry unlocking the private sector investment needed to achieve the homegrown energy transition and economic growth we all want. This means listening to expert people across our sector, backing our supply chains and safeguarding the jobs of thousands of skilled workers across the UK.

“But I remain concerned the new government’s tax changes will have profound consequences for this sector and its people. The new government committed to safeguarding jobs in its manifesto and must listen to those working in the sector. Today’s announcement is welcomed, but it will do little to alleviate the very real concerns of the impact the government’s tax proposals will have on thousands of jobs and billions of pounds in future economic value.

“I am asking the government to choose a homegrown energy transition that makes the most of our people and businesses. The alternative is importing ever more energy, skills and infrastructure and subtracting value from our economy.”

Hear the latest news on Cool FM on FM, DAB, smart speaker or the Rayo app. You can also follow us on X and TikTok, just search CoolFMNews