GB Energy's £8.3bn plug pulled

THE Government is considering cutting funding for GB Energy in June’s spending review, which will come as a major blow to Secretary of State for Energy and Climate Change Ed Miliband.

- By Guy Taylor

State-owned GB Energy has been tasked with decarbonising the nation’s electricity grid by investing in and operating clean power projects.

The Government originally pledged £8.3billion over the course of the current Parliament. However, it was only given an initial £100million tranche in October’s Budget. But it has been reported that ministers are now considering whether they can afford to give GB Energy the entire £8.3billion.

The shock decision comes as Labour Prime Minister Sir Keir Starmer looks to prioritise defence spending amid shaky relations between Ukraine and the US.