With GB Energy’s £8.3bn of funding, Labour hopes to attract £60bn of investment.
Prime Minister Keir Starmer said that the plans were “turbocharging our country toward energy security”, and promised that it would lower energy bills.
However, the Conservatives have said GB Energy “will end up costing families, not cutting bills”.
“Labour have already been forced to admit that their flagship energy company won’t generate any energy, and now we know it’s a financial black hole – funnelling taxpayer’s money into reducing risk for multi-million-pound energy companies,” said shadow energy secretary Claire Coutinho.
The government wants GB Energy to speed up renewable energy projects by helping them develop, and invest in them alongside private investors.
It wants it to work with local energy projects and the nuclear industry.
Alongside a new law to create GB Energy, the government will also loosen regulation on the Crown Estate so it can invest and borrow more.
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