No announcement on GB Energy HQ in King’s Speech

The UK government has confirmed its plan to set up headquarters for a new energy company in Scotland – but it is yet to decide on a location.

It was announced in the King’s Speech that the Labour administration would create GB Energy to “own, manage and operate clean power projects” across the UK.

King Charles, announcing Prime Minister Sir Keir Starmer’s policy agenda, said the firm would be based in Scotland, which the government described as “a global leader in renewable energy”.

Chancellor of the Duchy of Lancaster Pat McFadden said further details about GB Energy would be confirmed in due course.

He said that while the government wanted to move quickly, it was yet to make a decision on the headquarters.

Prime Minister Sir Keir Starmer has pledged that the firm would drive the transition to clean energy bring a “huge number” of skilled jobs to Scotland.

In documents released alongside the King’s Speech, the government said GB Energy would be backed by £8.3bn of public money over the parliament, with significant private sector investment required to fund a decarbonised power system.

It said the firm would “facilitate, encourage and participate in the production, distribution, storage and supply of clean energy”.

GB Energy will not supply power to homes, but it is designed to help fund existing and new clean technologies and work with local communities to develop small and medium-sized renewable projects.

The King said the legislation would “help the country achieve energy independence and unlock investment in energy infrastructure”.

It was also confirmed Sir Keir’s intention to set up a Council of the Nations and Regions to “renew opportunities” for collaboration between the prime minister, heads of devolved governments and mayors.

Other announcements in the King’s Speech that could impact Scotland included workers rights reforms, border security changes, a gradual ban on smoking, limits on vape sales and advertising, support for sustainable aviation fuel production and an end to VAT exemptions for private schools.

Mr McFadden, the MP for Wolverhampton South East who formerly worked for ex-prime minister Tony Blair, told BBC Radio’s Good Morning Scotland that GB Energy was a “huge opportunity”.

“I think it’ll be great to have the headquarters of that in Scotland, exactly where, we’ll announce in due course,” he said.

In 2022, Labour said GB Energy would be a “publicly-owned clean energy generation company”, which would operate like Sweden’s Vattenfall or Denmark’s Orsted.

But in subsequent interviews, Sir Keir it would actually be “an investment vehicle” rather than an energy production firm.

Unions have called for more clarity about the plans.

Mr McFadden, who was Labour’s national campaign coordinator during the election, was also asked about his party’s policy on the North Sea oil and gas industry.