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More than 700 business leaders line up to demand Labour bases GB Energy in Aberdeen

Labour has promised to headquarter its public energy firm in Scotland - but is yet to stay where exactly it will be based.

Labour is facing demands to base GB Energy in Aberdeen. Image: PA.
Labour is facing demands to base GB Energy in Aberdeen. Image: PA.

More than 700 Aberdeen business leaders have lined up to demand Sir Keir Starmer’s Labour bases its planned GB Energy firm in the city.

The new UK Government has promised to create a publicly owned energy firm and has vowed that it will be headquartered in Scotland.

Labour claims the company will create thousands of new jobs and help support the transition away from fossil fuels to renewables.

But the prime minister has so far refused to name exactly where in Scotland GB Energy will be based.

Now business chiefs have upped the pressure on Sir Keir to base the firm in Aberdeen given the city is a central hub for the energy sector.

Energy industry doyen Sir Ian Wood.
Sir Ian Wood<br />Image: Darrell Benns/DC Thomson.

Big names get behind GB Energy Aberdeen base

A total of 750 local voices, including billionaire oil tycoon Sir Ian Wood, have backed the campaign being led by the Aberdeen and Grampian Chamber of Commerce.

Leading businessmen such as Martin Gilbert and Douglas Craig are also among the signatories to a letter which will be sent to the UK Government on Tuesday.

Russell Borthwick, the chamber’s chief executive, said: “Headquartering GB Energy in Aberdeen will send a clear message that the city region will remain a globally recognised energy hub and the engine room for a green transition.

“The business community of Aberdeen and Grampian is calling on Labour to recognise our strengths, to put their faith in us, and to locate Great British Energy in Aberdeen.”

Over 200 companies from across the hospitality, transport, and property sectors have signed the letter.

Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce.<br />Image: Kami Thomson/DC Thomson.

In his letter, Mr Borthwick argues GB Energy is best located in Aberdeen since the government will be able to draw on the expertise of industry leaders.

He says basing the company in the city will do more to help protect jobs which are at risk due to the shift away from depending on fossil fuels.

He points out Aberdeen and the north-east has contributed huge revenues to the UK economy due to oil and gas drilling.

Promise that GB Energy will be based in Scotland

Earlier this year, Labour sparked fury after announcing plans to extend and increase the windfall tax on firms operating in the North Sea.

Mr Borthwick writes: “The Labour Party has stated that you wish to fund GB Energy by levying taxes on this sector.

“We believe that there should be some benefit in return.”

Speaking on Friday, new Scottish Secretary Ian Murray would not be drawn on whether the firm’s headquarters will be located.

But perhaps worryingly for Aberdeen, he admitted there could be a highly competitive bidding process across the whole of Scotland.

Scottish Secretary Ian Murray. Image: Shutterstock.

He told us: “I’ve only been in this job a week, with all the bids that I’ve had there is probably going to have to be 72 GB Energies to satisfy the whole of Scotland.

“We made the commitment it would be based in Scotland.

“It will be headquartered here for a number of very good practical reasons but also because this is where the energy is being produced, and therefore it should be here.

“It will be announced soon. But I can guarantee a scoop, it will definitely be in Scotland.”

An Aberdeen GB energy base might not be so popular in Highlands

Business leaders in the Highlands have called for GB Energy to be headquartered in their patch.

The plea comes given the region’s own strong ties to the oil and gas industry.

Last year, a bid from Inverness and Cromarty Firth beat out Aberdeen to be the hub for one of Scotland’s two green freeports.

Labour energy chief Ed Miliband previously admitted Aberdeen had a “strong claim” for being the home of GB Energy.

The latest industry pressure comes just days after the new government’s plans for oil and gas drilling became the focus of controversy.

Mr Miliband maintained his party’s stance to oppose granting future licences to drilling projects in the North Sea.

Labour will allow existing oil and gas fields to operate until the end of their lifespan, while licences approved by Rishi Sunak last year will be honoured.

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