Bentley, Chinese demand, US tariffs, automotive industry, luxury cars, electric vehicles

The UK government has been urged to fulfil its commitment to the full £8.3 billion budget pledged to Great British Energy (GB Energy) amidst concerns about its ability to meet ambitious energy reform targets. A report from the Institute for Public Policy Research (IPPR), a prominent think tank, warns that reducing the company’s funding could leave voters and energy consumers disappointed in their expectations for reduced household bills and expanded renewable energy capacity.

GB Energy was established as a flagship initiative of the Labour Party, intended to transform the UK into a leader in clean energy whilst reducing household energy bills by £300 annually by the end of the decade. However, according to the IPPR, delivering on these promises will require the company to build a portfolio of renewable energy projects exceeding double the capacity of the world’s largest offshore windfarm. This level of impact, researchers state, is unlikely to materialise before 2030.

Ahead of GB Energy’s spending review in June, there are growing concerns that the Treasury may cut into the taxpayer funding originally allocated to the project. Simone Gasperin, one of the IPPR report’s lead authors, stressed the importance of adhering fully to the original £8.3 billion budget. Gasperin emphasised that GB Energy needed the resources to make bold investments in new, fully owned renewable energy projects, ensuring meaningful benefits for both domestic and industrial energy consumers.

The company has already begun early-stage operations, holding its inaugural board meeting in Aberdeen this week. Juergen Maier, a veteran of the energy industry and the chair of the board, noted that GB Energy’s leadership was actively engaging with industry stakeholders to identify investment opportunities. Maier said the team aimed to start delivering tangible results as soon as the organisation is fully operational by the end of this month.

IPPR also highlighted that even if GB Energy cannot deliver systemic impacts by 2030, it could make noticeable improvements in specific areas. Building renewable projects tailored to the needs of local communities or forming supply contracts directly with energy users could help alleviate energy costs for targeted groups.

While Labour leader Keir Starmer has reiterated his commitment to annual energy bill reductions and achieving a zero-carbon electricity system within the next decade, industry leaders have voiced scepticism. Energy UK, an industry body, has suggested that while the government’s vision has the potential to lower bills over the long term, this effect would not significantly benefit households by 2030. The Department for Energy Security and Net Zero remains optimistic, underscoring that Britain must invest in clean, homegrown energy to replace reliance on volatile fossil fuel markets and deliver stability to its electricity system.