Exclusive:GB Energy boost can turn Scottish Labour’s polling around, minister declares

Announcing a £5 million boost to Scotland from the new body, Michael Shanks claimed the funding was the first of many investments in the publicly-owned energy company, with ministers working “flat out” to deliver cheaper bills.

It comes as the UK government announced £200 million of investment that will see the clean energy company’s government-funded budget put rooftop solar on schools and NHS sites in efforts to save hundreds of millions of pounds on energy bills and free up money to reinvest in frontline services.

Speaking exclusively to The Scotsman, Mr Shanks was asked if these sorts of announcements could boost Scottish Labour, who are ten points behind the SNP, according to recent polling by Survation.

The Rutherglen MP said: “I think absolutely on the GB Energy question, on energy policy, we're working absolutely flat out to deliver cheaper bills. The truth is every time the SNP and the Tories criticise or pledge to bring down bills, you're left wondering what is your policy to bring down bills.

“We know that it's not going to happen overnight. We never said ‘elect a Labour government and tomorrow you'll have £300 off your bill’. We put in place a really clear, ambitious plan for what will get us off fossil fuels, that will bring down bills. The latest increase in the price cap was driven by the price of wholesale gas and the international markets. It proves more than anything else why dependence on fossil fuels is such a problem for household bills.”

Mr Shanks also questioned criticism of GB Energy, arguing its opponents were fighting against investment.

He said: “I have to say for a collection of MPs in the North East to stand up in the Commons and regularly berate GB Energy, a coalition of the Tories and the SNP opposing the very thing that’s delivering investment in the North East of Scotland, is a bizarre position for any party to be in.

“We'll deliver the jobs, and every single job that's created by the investment, by GB Energy, will be in spite of the SNP and the Conservatives, who haven't supported it throughout its passage.

“There's a wider question about the polling here. Yes, we have to demonstrate the UK government is delivering for the people of Scotland, ending austerity and putting £5 billion into Scotland's budget, it demonstrates that.

“But fundamentally when I knock those in my constituency, what people tell me about is waiting lists in the NHS, the state of schools, the state of education, more broadly, public services in Scotland that are creaking and the idea of a third decade of the SNP is not a popular one.

“It’s going to be a tough election, as we always thought it would be. But we'll be out with a positive message of how a Scottish Labour government can complete the job that a UK Labour government started last year.”

GB Energy has started advertising for a new chief executive to be based at its Aberdeen headquarters, with a salary offering of £350,000 a year.

Mr Shanks claimed it had been a “good week” for GB Energy as he stressed his party would be making clear to the public its benefits.

“These things are always frustrating because you want to set it up on day one and for it to start delivering on day one, but we obviously had to take a Bill through Parliament,” he said. “We always wish these things would be faster, but I think in seven months we've moved remarkably quickly to get it going.”