Sir Keir Starmer expressed confidence that household bills would decrease under the government’s plan to launch the publicly owned energy firm, GB Energy. During an event in Runcorn, Cheshire, the prime minister praised the government’s partnership with the Crown Estate to implement new offshore wind farm projects, calling it a “game changer”.
In line with Labour’s manifesto, the party’s net zero energy plans are projected to reduce household bills by £300 per year – a figure that Sir Keir reaffirmed. When asked by Sky News’ science and technology editor Tom Clarke if he was confident that bills would decrease in the short term, considering the time required to develop offshore wind farms, the prime minister replied with a resounding “yes”.
He explained that the investment going into GB Energy was meant to stimulate private investment and that the partnership with the Crown Estate would instill confidence in investors regarding the government’s determination and speed in making decisions. However, the prime minister did not provide a specific timeline for when consumers can expect to see a decrease in their bills and acknowledged that establishing GB Energy would take time to develop.
He stated, “It will take time before we can reap the benefits of clean power, but that is why we are moving at a swift pace.” The prime minister emphasized that the transition to renewable energy would not only lower bills but also create new job opportunities for the next generation.
Addressing concerns of existing oil and gas workers who may fear losing their jobs in the shift to green energy, Sir Keir assured that both fuels would continue to play a role in the energy mix for years to come. However, he acknowledged that there will undoubtedly be a transition to renewable energy and emphasized the need for action rather than inaction or slow progress.
The government also announced a partnership with the Crown Estate on the same day they introduced legislation to establish Great British Energy, which will receive £8.3 billion of funding over the next parliament. The Crown Estate, a property company owned by the monarchy, has a portfolio worth £16 billion and controls most of Britain’s seabed up to 12 nautical miles from the land. The profits from this estate primarily come from leasing land to offshore wind providers, with the majority of the funds going back to the government and a small portion to the monarchy itself.
Under the legislation introduced on Thursday, the Crown Estate will also be granted borrowing powers to invest in more wind projects. Dan Labbad, the chief executive, stated that the Crown Estate’s purpose is to serve the national interest by stewarding natural resources to achieve a decarbonized, energy secure, and sustainable future. He believes that with the new powers and partnership with the government, they can drive greater investment into the country’s future while supporting nature recovery and job creation.
Other details about Great British Energy were also revealed on Thursday, with the government explaining that the company would lead energy projects through the development stages to expedite their progress before returning them to private firms while retaining a stake to generate returns for the public purse. However, the government has not ruled out the possibility of Great British Energy operating projects on its own in the future.
Greenpeace UK welcomed the announcement as a positive first step towards Labour’s commitment to implementing renewable energy across the country. However, shadow energy security secretary Claire Coutinho criticized Great British Energy, calling it a “gimmick” that would ultimately cost families instead of reducing bills. She also accused Labour of placing ideology above the national interest and asserted that the Conservatives would hold them accountable and prioritize cheap bills and secure energy.
