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UK Treasury weighs cutting funding to GB Energy, FT reports
Published by Global Banking & Finance Review®
Posted on March 7, 2025
2 min readLast updated: January 25, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 7, 2025
2 min readLast updated: January 25, 2026
UK Treasury may cut funding for GB Energy, affecting renewable energy plans. The decision is part of a spending review aimed at decarbonising by 2030.
(Reuters) - Britain's Treasury department is weighing cutting funding plans for state-backed power company GB Energy in a spending review slated for June, the Financial Times reported on Friday.
Last year, the British government set up GB Energy, backed by 8.3 billion pounds ($10.73 billion), and envisaged it to be its primary tool to drive investment in renewable energy.
The company was expected to partner with the Crown Estate - which oversees the British monarch's public holdings - to bring 20-30 gigawatts of new offshore wind developments to the seabed lease stage by 2030.
The UK Treasury and Britain's energy department did not immediately respond to a Reuters request for comment. GB Energy couldn't be immediately reached out for a comment.
One of the options that the Treasury is weighing is cutting the 3.3 billion pounds previously earmarked to fund low-interest loans via local authorities for projects such as solar panels on roofs and shared-ownership wind projects, the newspaper said.
The reduction in funding comes at a time when Britain targets to largely decarbonise its power sector by 2030 by reducing its reliance on gas-fired power plants and rapidly increasing its renewable power capacity.
Britain's deputy finance minister Darren Jones said in January that the government would conduct the first zero-based review of spending in 17 years. Financial support will only be given to departments that have met the requirements set out in the zero-based government spending review.
(Reporting by Kanjyik Ghosh; Editing by Sonia Cheema)
The UK Treasury is weighing the option of cutting funding plans for GB Energy in an upcoming spending review.
Last year, the British government allocated 8.3 billion pounds ($10.73 billion) to GB Energy to drive investment in renewable energy.
One option being considered is cutting the 3.3 billion pounds earmarked for low-interest loans for projects like solar panels.
Britain aims to largely decarbonise its power sector by 2030, reducing reliance on gas-fired power plants and increasing renewable energy sources.
The UK government plans to conduct its first zero-based review of spending in 17 years, as stated by Deputy Finance Minister Darren Jones.
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