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Will Labour base GB Energy company in Aberdeen after taking power?

Pressure is building on the party to make an announcement after the UK Government scaled down plans to move energy jobs to the city.

Labour leader Sir Keir Starmer with Anas Sarwar. Image: Shutterstock.
Labour leader Sir Keir Starmer with Anas Sarwar. Image: Shutterstock.

One of Sir Keir Starmer’s biggest promises if Labour wins the next election is to create a new publicly-owned energy firm.

The big question that remains is whether the company – which is to be named GB Energy – would be headquartered in Aberdeen.

And pressure is growing after the UK Government U-turned on plans to move hundreds of civil servants jobs to the city.

Westminster admitted just 35 new energy security roles will be relocated to the north-east, much less than was originally promised.

What can we expect from GB Energy?

Labour says an energy firm in public hands will help households save money on bills at a time when costs remain high.

Sir Keir’s party says GB Energy could play a vital role in the shift away from oil and gas to renewables as well.

Offshore oil and gas production.
Labour vowed to increase the oil and gas windfall tax. Image: Shutterstock.

Labour reckons the company could improve energy security by making Britain less reliant on other countries.

And importantly for Aberdeen, the party says it will help to create “thousands of good local jobs”.

Will GB Energy be based in Aberdeen?

Sources who spoke to The Press and Journal are quietly confident GB Energy will be based in Aberdeen once it launches.

Some believe the Labour leader may hold off until after the next election before he makes any official announcement.

He has already confirmed the publicly-owned company will be based somewhere in Scotland, at the very least.

Leading Aberdeen businessman Iain Anderson.

Leading Aberdeen businessman Iain Anderson, who defected to Labour from the Tories, said it makes “absolute sense” to choose Aberdeen.

He told us: “It’s got the skills base. It’s got academia in spades that understands the energy transition.

“And it’s got a lot of the major investors in the area. Aberdeen should stand head and shoulders above most other places that it could be located in.”


Do you think Labour will deliver for Aberdeen? Let us know in our comments section below


Former SNP candidate Fergus Mutch, managing partner at advisory firm True North, agreed with that assessment.

He said: “It would be ridiculous if it wasn’t based in Aberdeen.”

He reckons Labour should make the final call in advance of the Westminster election.

Could it boost Labour’s credentials in the north-east?

It has been a bruising start to the year for Labour when it comes to the party’s reputation in Aberdeen and surrounding areas.

Sir Keir sparked anger in February when he announced plans to increase and extend the windfall tax on oil and gas firms.

That came as his party also cut a £28 billion green jobs pledge, leaving the north-east feeling empty-handed.

Former SNP media chief Fergus Mutch. Image: DC Thomson.

But Mr Mutch said basing GB Energy in Aberdeen would give Labour a chance to reverse current perceptions.

He told us: “If Labour is looking to take a stake in our net zero future, then it’s a no-brainer. There’s only one place for it.”

The former SNP media chief added: “Labour has work to do in terms of energy policy. A few more visits by their top team between now and the election would be no bad idea.”

Tauqeer Malik, who heads up Labour’s group in Aberdeen, said the local party was continuing to put forward a positive case for the city to the national leadership.

‘Not going to happen’

But not everyone is so optimistic.

Ex-Aberdeen Labour Councillor Barney Crockett quit the party in fury last June over Sir Keir’s strategy on energy policy.

To say his mood toward the party has not softened since then would be an understatement.

Former Labour Councillor Barney Crockett. Image: Kami Thomson/DC Thomson.

“You can be very confident that’s not going to happen,” he said, when asked whether GB Energy will be in Aberdeen.

He added: “I think it will be in west-central Scotland. It won’t be anywhere outside that Glasgow-Edinburgh nexus.

“I’m never very optimistic about these plans.”

Opportune moment

The UK Government’s announcement that fewer civil servant jobs than hoped will be relocated north came as a major disappointment.

The SNP branded it a “betrayal” to the region, and said the Tories had broken a major promise.

Businessman Mr Anderson said Aberdeen was being “shortchanged” following the U-turn.

But Mr Mutch reckons it could provide Labour with an opportunity to score a major win in the city.

He told us: “They could choose to honour that previous commitment.

“If they were smart about it, they could say they’re going to base these civil service jobs in Aberdeen. That would be a real vote of confidence.”

Scottish Labour was unable to give any further detail on where GB Energy would be based, but said Aberdeen was representing its case.

In November, former party leader Ed Miliband – who is currently shadow climate change minister – said the city had a “strong claim”.


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