Labour pledges to create publicly owned energy company to ‘cut bills and create jobs’
Keir Starmer has announced that a Labour government will create Great British Energy – a new, publicly owned company that will generate renewable sources “to cut bills, create jobs and deliver energy independence”.
The role of GB Energy will be to provide additional capacity alongside the private sector, to establish the UK as a clean energy superpower and guarantee long term energy security, the Labour leader said.
Many European, Asian, and American countries have public generating companies, like EDF in France.
Keir Starmer delivers keynote speech – live updates
Delivering a keynote speech at the party conference in Liverpool, Sir Keir said the largest onshore wind farm in Wales is owned by Sweden, so “energy bills in Swansea are paying for schools and hospitals in Stockholm”.
He added: “The Chinese Communist Party has a stake in our nuclear industry. And five million people in Britain pay their bills to an energy company owned by France.
“Labour will set up Great British Energy within the first year of a Labour government.
“A new company that takes advantage of the opportunities in clean British power, because it’s right for jobs, because it’s right for growth, because it’s right for energy independence.”
A Labour party source told Sky News the hope is that GB Energy will “eventually be an EDF”.
The announcement builds on Labour’s commitment to make the UK a clean energy superpower by 2030 and create a National Wealth Fund to invest in British industry.
Sir Keir said Labour “will make sure that the public money we spend building-up British industry, spurs on private investment, stimulates growth… and the British people enjoy the returns”.
He added: “Labour won’t make the mistake the Tories made with North Sea oil and gas back in the 1980s, where they frittered away the wealth from our national resources.
“The road to net zero is no longer one of stern, austere, self-denial. It’s at the heart of modern, 21st century aspiration. Technology has turned everything on its head.
“Green and growth don’t just go together – they’re inseparable. The future wealth of this country is in our air, in our seas, and in our skies. Britain should harness that wealth and share it with all.
“British power to the British people.”
Keir Sstage after giving his keynote address during the Labour Party Conference at the ACC Liverpool. Picture date: Tuesday September 27, 2022.
Sir Keir Starmer kisses his wife Victoria after making his keynote address
Conservatives ‘have ripped out the foundations of Britain’
The Labour leader’s speech came after days of financial market uncertainty driven by Chancellor Kwasi Kwarteng’s mini-budget – something which he said the public should “not forgive and not forget”.
Sir Keir accused the Tories of chocking the aspirations of working people with their trickle-down economics approach, saying they crashed the pound and lost control of the economy “to give tax cuts to the rich”.
He said the Conservatives have harmed the UK over the last 12 years.
“They used to lecture us about fixing the roof when the sun was shining.
“But take a look around Britain, they haven’t just failed to fix the roof, they’ve ripped out the foundations, smashed through the windows and now they’ve blown the doors off for good measure,” he said.
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The Labour Leader said the Conservative Party had ‘failed to fix the roof’ of the economy
Sir Keir said the problems don’t stop with the economy, saying there is “raw sewage in our rivers” and “backlogs everywhere”.
He went onto paint a picture of what the UK would look like under a Labour government, saying the cost of living crisis will be over, “clouds of anxiety have lifted”, services are where they are needed and the economy is stable while the NHS is “back in good health”.
Referencing a woman he met in Grimsby, he said people in the UK are surviving, not living, but under a Labour government, they would be “thriving not surviving”.
‘Party of homeownership’
In another policy announcement, Sir Keir said Labour wants to increase home ownership and will set a target of 70%, offering a new mortgage guarantee for first-time buyers to help more people get onto the housing ladder.
He also promised to make Brexit “work” – saying that is something voters won’t get from the Tories or SNP.
His condemnation of the SNP was well-received by the audience.
Sir Keir Starmer pledged to create a publicly owned energy company and increase home ownership.
Sir Keir said Scotland’s success in the UK “is met with gritted teeth”.
“We can’t work with them, we won’t work with them, no deal under any circumstances,” he said.
He pledged to make a “fairer greener more dynamic Scotland” – in a “Labour Britain”.
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‘Party of the centre ground’
Sir Keir finished his speech by echoing former leader and prime minister Tony Blair.
He said Labour is “the party of the centre ground – once again the political wing of the British people”.
He said: “Britain will get its future back, a country where aspiration is rewarded, where working people succeed.
“A force for good in the world, a clean energy superpower, a fairer, greener, more dynamic nation.
“This is my commitment to you. The national mission of the next Labour government.”
Sir Keir won no fewer than 10 standing ovations during his confident and assured 50-minute speech.
Speaking afterwards, Labour’s deputy leader Angela Rayner told Sky News’ political editor Beth Rigby that the speech showed how passionate he is, after suggestions from some quarters that he is boring and perhaps lacking in personality.
Sir Keir ‘exactly what we need’
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“”These are really great ideas that are going to propel us into the world stage.”
The buoyant frontbencher was a supporter of former leader Jeremy Corbyn and is generally seen as more to the left of the party than Sir Keir – but she was insistent Labour is now the party of the centre ground and the party that can win an election.
“I think he’s exactly what we need in this country at the moment, someone who’s got very clear ideas, very good ethics,” she said.
And in a message to the Tory government, she added: “Do not completely trash our country before we take it over.”
Trade unions also praised the speech, with Frances O’Grady of the TUC calling it “inspirational” and UNSION saying a Labour government “can’t come soon enough”.
The speech was less well received by the SNP, who accused Labour of “turning into the Tories”.
And the Adam Smith Institute, a free market think tank said, it is not confident in Sir Keir’s plan for a national green energy company, saying previous attempts at state-owned energy “resulted in massive subsidies and taxpayer-funded bailout.”
The Conservatives also hit back at Sir Keir’s attack, saying there was nothing new in the speech “no matter how much he tries to emulate Tony Blair”.
“It is the Conservatives that are taking the bold action needed to get Britain moving and deliver more jobs and higher wages,” a spokesperson for the party said.
Two senior Labour MPs have suggested the prime minister may have to go within months if the government continues to perform poorly.
Sky News’ deputy political editor Sam Coates said his sources – a member of the government and a prominent politician – have “put Sir Keir Starmer on notice”.
Both warned that, if Labour performs badly in next May’s elections across Wales, Scotland and London, it could mark the end of his time in Downing Street.
Coates added: “The level of unhappiness and despair in parts of the Labour Party is so striking that right now, on the first anniversary, I am hearing from ministers in government that Starmer might have to go in months.”
Reform UK is surging in the polls in Wales, while Labour faces a threat from left-wing parties such as the Greens in London.
It comes as the prime minister made it clear that Rachel Reeves has his “complete support” as chancellor and remains integral to his project, Sky News’s political editor Beth Rigby understands.
She looked visibly upset during Prime Minister’s Questions, with a spokesperson claiming she had been affected by a “personal matter”.
A day earlier, Sir Keir’s controversial welfare bill was passed despite a sizeable rebellion from Labour MPs, with major U-turns meaning a new £5bn black hole has appeared in the country’s finances.
One senior figure told Rigby that the pair were as “as close politically” as any chancellor and prime minister have ever been.
“She is going absolutely nowhere,” they added.
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Welfare vote ‘a blow to the prime minister’
Ms Reeves’s tears sent markets spiralling, with the value of the pound and long-term government bonds falling sharply.
Later in the day Sir Keir, said Ms Reeves will be chancellor for a “very long time to come”.
The prime minister said it was “absolutely wrong” to suggest her tearful appearance in the Commons related to the welfare U-turn.
“It’s got nothing to do with politics, nothing to do with what’s happened this week. It was a personal matter for her,” he said while speaking to the BBC’s podcast Political Thinking with Nick Robinson.
“I’m not going to intrude on her privacy by talking to you about that. It is a personal matter.”
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Asked if she will remain in post, he said: “She will be chancellor by the time this is broadcast, she will be chancellor for a very long time to come, because this project that we’ve been working on to change the Labour party, to win the election, change the country, that is a project which the chancellor and I’ve been working on together.”
He said Ms Reeves has done a “fantastic job” and added: “She and I work together, we think together. In the past, there have been examples – I won’t give any specific – of chancellors and prime ministers who weren’t in lockstep. We’re in lockstep.”
Wes Streeting, the health secretary, also offered a strong defence for the prime minister and chancellor.
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Health Secretary: Reeves is ‘resilient’
He told Sky News this morning that Sir Keir has been “consistently underestimated” and was “of course” safe as prime minister.
And he said Ms Reeves was a “tough character” who was ” resilient” and “here to stay”.
Despite making “significant improvements”, Greater Manchester Police (GMP) has lost the “trust and confidence” of some victims of grooming gangs, according to a report by the police watchdog.
Michelle Skeer, His Majesty’s Inspector of Constabulary, said that since 2019, when GMP started to review its non-recent child sexual exploitation investigations, “the force has improved its understanding and approach to investigating allegations of child criminal and sexual exploitation”.
The document, published today, said police have live investigations into “multi-victim, multi-offender” child sexual exploitation inquiries, involving 714 victims and survivors, and 1,099 suspects.
Grooming gangs scandal timeline
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‘Our chance for justice’
But despite recording improvements, a report by His Majesty’s Inspectorate of Constabulary and Fire & Rescue Services (HMICFRS) also identified:
• Various training gaps within the investigation team
• Lack of consistency in evaluating case files between social care, health and police
• Failures to initially support victims meant they had “lost trust and confidence” in police
The report was commissioned by the Mayor of Greater Manchester Andy Burnham in 2024 to evaluate whether police, councils and health services can protect children from sexual exploitation in the future.
Its release comes days after Sir Keir Starmer announced he was launching a new national inquiry into grooming gangs after previously arguing one was not necessary,
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Starmer to launch new grooming gang inquiry
The findings were issued as the final part of the CSE (child sexual exploitation) Assurance Review process which started in 2017. The first three reports examined non-recent child sexual exploitation in Manchester, Oldham and Rochdale.
Mr Skeer said that the force has been trying to improve its service to those who have experienced sexual exploitation, but previous failings have badly affected trust in GMP.
He said: “For some, trust and confidence in the police had been lost, and the force would not be able to rectify their experiences.
“It is vital that improvements are led by victims’ experiences, and if they do come forward, they are supported, protected and taken seriously.”
A recent report by Baroness Casey found a significant over-representation of Asian men who are suspects in grooming gangs in Greater Manchester, adding though authorities are in “denial” more needs to be done to understand why this is the case.
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Teen caught in child sex exploitation
Inspectors also said there were “training gaps” in some investigation teams and issues with data sharing, with local councils sometimes not willing to provide detectives with information, leading to “significant delays in investigations” into grooming gangs.
It cites problems with intelligence provided by Manchester City Council, which took months to arrive and “was so heavily redacted that some pages contained only a few words”, the report said.
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GMP is the only force in the country to set up a dedicated team to investigate grooming gangs. Called the Child Sexual Exploitation Major Investigation Team (CSE MIT) it has about 100 staff and a ringfenced budget.
In October 2024, the force told inspectors there were 59 live multi-victim, multi-offender child sexual exploitation investigations, of which 13 were being managed by the CSE MIT.
The report adds: “The force fully accepts that it made mistakes in the past.
“It has taken positive and effective steps to learn from these mistakes and improve how it investigates recent and non-recent child sexual exploitation.”
Separately, the Baird Inquiry published in July 2024 found officers at GMP were abusing their power – making unlawful arrests, unlawful and demeaning strip searches, sometimes treating victims as perpetrators, and traumatising those who have suffered sexual abuse or domestic violence.
The health secretary has offered a strong defence of the prime minister and chancellor – ahead of Sir Keir Starmer setting out his 10-year vision for the NHS.
PM ‘might have to go in months’ – politics latest
Wes Streeting dismissed suggestions the prime minister could be forced out in months following the toughest week of his premiership yet, and described Rachel Reeves as “resilient” and would “bounce back” following her tearful appearance in the Commons on Wednesday.
Overnight, two senior sources – a member of the government and a prominent politician – told Sky News’ deputy political editor Sam Coates that they had “put Sir Keir Starmer on notice”.
The health secretary, who was speaking as Sir Keir prepares to set out his 10-year vision for the NHS, said the prime minister had been “consistently underestimated”.
Asked by Kamali Melbourne on Sky News Breakfast whether Sir Keir was “safe”, Mr Streeting said: “Of course.
“Keir Starmer has been consistently underestimated. I wonder when people will learn.
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Reeves has ‘complete support’
“They said he couldn’t win the Labour leadership, but he did. They said he couldn’t change the Labour Party, but he did.
“They said he couldn’t take the Labour Party from its worst defeat since the 1930s to election victory last year. And he did and now the cynics say he can’t change the country, but he will.”
As for Ms Reeves – whose tearful appearance in the Commons spooked markets after the prime minister initially failed to back her, Mr Streeting said the chancellor was a “tough character” who was “resilient and she will bounce back”.
The health secretary declined to expand on why Ms Reeves was in the chamber at all yesterday, repeating that it was a personal matter.
“Rachel Reeves as chancellor is here to stay,” he continued.
“We need her to get the economy from strength to strength, to make sure that family finances are in better health than we were when we came into office.”
Speculation about the futures of the two most senior members of the government threaten to overshadow the announcement today, which the government says is “one of the most seismic shifts” in the health service’s history.
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Why has Starmer axed NHS England?
Sir Keir will pledge three main facets of the plan: moving care into the community, digitising the NHS, and a focus on sickness prevention.
The prime minister will announce neighbourhood health services will be rolled out across England to improve access to the NHS and to shift care out of overstrained hospitals.
Sir Keir has already promised thousands more GPs will be trained, and to end the 8am “scramble” for an appointment.
He also previously said his government will bring the NHS into the digital age, with “groundbreaking” new tools to support GPs rolled out over the next two years – including AI to take notes, draft letters and enter data.
And he will promise new contracts that will encourage and allow GP practices to cover a wider geographical area, so small practices will get more support.
Unite, one of the UK’s largest healthcare unions, welcomed the plan cautiously but said staff need to be the focus to ensure people are better looked after.
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‘Reform or die’
Sir Keir said: “The NHS should be there for everyone, whenever they need it.
“But we inherited a health system in crisis, addicted to a sticking plaster approach, and unable to face up to the challenges we face now, let alone in the future.
“That ends now. Because it’s reform or die.”
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Neighbourhood health services
The newly announced neighbourhood health services will provide “pioneering teams” in local communities, so patients can more conveniently access a full range of healthcare services close to home.
Local areas will be encouraged to trial innovative schemes like community outreach door-to-door to detect early signs of illness and reduce pressure on GPs and A&E.
The aim is to eventually have new health centres open 12 hours a day, six days a week to offer GP services as well as diagnostics, post-operative care and rehab.
They will also offer services like debt advice, employment support, stop smoking help or weight management.
More NHS dentists
Dentists will also be part of the plan, with dental care professionals part of the neighbourhood teams.
Dental “therapists” will carry out check-ups, treatments and referrals, while dental nurses could give education and advice to parents or work with schools and community groups.
Newly qualified dentists will be required to practice in the NHS for a minimum period, which they have said will be three years.
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