The UK government is looking to cut funding for GB Energy, a state-owned company established by Labour to promote renewable energy and lower household bills, during the upcoming spending review in June. This move could deal another blow to Ed Miliband, the energy secretary, who was already overruled by the government when Rachel Reeves, the Chancellor, supported the expansion of Heathrow’s third runway. GB Energy, a key component of Keir Starmer’s strategy to accelerate Britain’s clean energy transformation, initially received £100 million in October’s budget to cover its operations for the first two years. The government is conducting a “zero-based review” of all public expenditures, which has become more urgent following Starmer’s pledge to increase defense spending. Among the options being considered is diverting £3.3 billion, originally allocated for GB Energy, towards low-interest loans for projects such as solar panels and wind farms facilitated through local authorities. Despite the Labour party’s promise of £8.3 billion in funding for GB Energy in their general election manifesto, no guarantee of this support has been provided by either the Treasury or the Department for Energy Security and Net Zero. The government reaffirms its commitment to GB Energy, stating its importance to making Britain a clean energy superpower and ensuring affordable, cleaner running homes. However, GB Energy has admitted it may take up to 20 years to meet its pledge of employing 1,000 people, and its Chair, Jürgen Maier, has not set a timeline for lowering energy bills. The company is also facing difficulties in searching for a CEO for its Aberdeen headquarters. Dan McGrail, the CEO of RenewableUK, has been appointed as the interim CEO.

Source: https://www.theguardian.com/business/2025/mar/07/uk-treasury-plans-funding-cuts-at-gb-energy-in-blow-to-ed-miliband