John Swinney accuses Labour of 'hoodwinking' Scots over GB Energy as boss makes 20-year admission

John Swiney has accused the UK government of “hoodwinking” the public over GB Energy’s ability to bring down bills, as the investment body’s boss admitted the ambition to create 1,000 jobs in Aberdeen could take 20 years.

Juergen Maier, the chairman of Labour's new state-owned energy firm, was also unable to say when it would help cut energy bills, as has been repeatedly promised.

"I know that you are asking me for a date as to when I can bring that, but GB Energy has only just been brought into creation and we will bring energy bills down," he told Sky News.

Aberdeen | Christopher Furlong/TSPL

Mr Swinney responded by going on the attack against the UK government, accusing Labour of “not delivering” for householders.

“I very much support the steps that have been taken by GB Energy, but I think the problem that we’ve got is that the Labour party, the Labour government, promised something that GB Energy is not able to deliver,” the First Minister said.

“They’ve been hoodwinking the public about this point. People were promised lower fuel bills because of GB Energy. The chairman of GB Energy told the media this morning that won’t be able to be realised for some considerable time to come.”

GB Energy was pitched as a key part of Labour’s clean energy strategy during the general election.

The public body will invest in onshore and offshore wind, as well as other schemes, to help speed up private investment in the sector. The energy firm has been promised £8.3 billion of public money over the next five years.

Last year, Mr Maier said it may eventually create 1,000 jobs or more at its Aberdeen headquarters. However, speaking to Sky News, he said this was a long-term aim that could take up to two decades to realise.

He said GB Energy would create 200-300 jobs in Aberdeen over the next five years, adding: "I said in the very long term, as we become a major energy champion, it may be many more than that."

Mr Maier added: "We grow these companies. Energy companies grow over ten, 20 years, and we're going to be around in 20 years as a British energy champion."

Asked if it could take 20 years to deliver 1,000 jobs, he said: "Absolutely. But the issue that you're completely missing here is the thousands of jobs that are being created in the supply chain."

SNP Westminster leader Stephen Flynn described it as “yet another broken promise from Keir Starmer”.

He said: “The Labour Party promised voters £300 off their energy bills, and 1,000 new jobs in Aberdeen. But instead energy bills have gone up by £150 and job losses are rising across the UK thanks to the National Insurance tax hike.

“The Prime Minister must come clean over why he is failing to deliver the promises he made at the election - and admit whether these pledges are being kicked into the long grass.

“Scotland can be a renewable energy powerhouse and reap the huge benefits of the green energy gold rush - but only if the UK government delivers the investment needed, which it is currently failing to do.”

Conservative MSP Douglas Lumsden said: “This jaw-dropping admission confirms that Labour’s flagship GB Energy project is nothing more than a gimmick. Sir Keir Starmer promised the north-east that this was the magic bullet to create jobs and cut energy bills, but those plans are spectacularly unravelling.

“The fact that it will take two decades for GB Energy to deliver 1,000 jobs in Aberdeen is a hammer blow for the region at a time when Labour and the SNP have already shamefully turned their backs on the oil and gas sector.”

Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, said the energy sector needed “more confidence that things are going to start moving more quickly”.

He added: "What we do have is not a great deal of progress. We've had a lot of positive meetings with GB Energy. I think we are really looking over the next six months for that to be delivered on."

Union leaders warned GB Energy needed to “pick up the pace”.

Unite's Scottish secretary Derek Thomson said: "If you look at how many jobs are going to go in the north-east, if GB Energy does not pick up the pace and start to move workers in there and start to create proper green jobs, then I'm afraid we could be looking at a desolation of the north-east."

Scottish Green MSP Maggie Chapman, who represents the north-east at Holyrood, said: “GB Energy looks like yet another Westminster white elephant that is designed by businessmen for businessmen. If it is not lowering bills or creating jobs, then what will it do?”