Sir Keir Starmer has denied Labour's plans for a transition away from oil and gas will lead to a huge number of job losses in the North East.

The Labour leader, who was at the Beacon Arts Centre in Greenock to unveil his six pledges for voters in Scotland, insisted fossil fuels would be “part of the mix for decades to come.”

While his government will not approve any more licenses, he said that they would not “turn off the taps."

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The transition would led by the creation of Great British Energy, which Labour describes as a “publicly owned energy company” to be headquartered north of the border.

The firm, which will be backed with £8.3bn of cash, aims to drive up the number of green projects, including wind and solar and carbon capture.

While more details emerged on Friday, there is still widespread uncertainty over what it is exactly that the firm will do.

In an interview with BBC Radio Scotland ahead of the event in Inverclyde, Sir Keir said it would “be an investment vehicle, so not an energy company.”

That led to claims of a u-turn by the SNP and the Scottish Greens. 

Labour later clarified to say that while it will not be an energy retail company, it will generate power in its own right, as well as owning, managing and operating clean power projects alongside private firms.

The party belives that for each pound of public cash, a further £3 in private-sector funding can be raised. 

However, there is a lack of confidence in the plans from the industry which could temper any investment.

A recent survey of firms by Aberdeen and Grampian Chamber of Commerce reveals that just 5% believe Labour has the best policies to deliver the energy transition.

They warned that with confidence plummeting the next government would have 100 days to save 100,000 jobs and £30 billion worth of investment.

Trade unions working in the sector have also expressed concerns. Unite has said there should be no ban on blocking new licenses for oil and gas exploration until there is a programme to offset the job losses.

In his speech, Sir Keir said: “We are not turning off the taps, oil and gas will be part of the mix for many years. We’re not revoking any licences, but a transition is coming.”

He added: “The worst thing we could do now is do what Rishi Sunak is doing and put our head in the sand, and pretend it’s not happening.

“And I’ll tell you for why, that’s what happened when coal was coming to an end and we are still paying the price in communities across the whole of Scotland and across the whole of the United Kingdom.

“I’m not prepared to let that ever happen under a future Labour government.”

He added: “On top of that, there will be new jobs, tens of thousands of new jobs, created by the transition to renewable energy, and by locating GB Energy in Scotland, it makes Scotland the centre of that.

“I’m very conscious that those jobs need to be in Scotland, in the sectors, using the skills that we already have.

“And that’s why this transition, unlike the transition from coal, will be one where we preserve and build and ensure the jobs are there, not just elsewhere in the United Kingdom but here in Scotland using the skills that we already have.”

The party unveiled the logo and website for GB Energy on Thursday. However, they are yet to say where the HQ will based other than somewhere in Scotland.

Asked by The Herald why he has not yet announced the location, Sir Keir said no decision had yet been taken.

“The energy sector is obviously very important to Scotland, centred in Aberdeen, so that makes a powerful case, but we haven’t decided.

“We will make a decision about it, but it will definitely, definitely be here in Scotland.

“That’s a down payment, I hope, on the way that we will work together in Scotland.

“I think one of the damaging things of the last few years has been the conflict between the Westminster government and the government here in Scotland fighting with each other, not being able to work with each other because both parties are putting their party first and not Scotland first.”

Asked about the GB Energy plans during a campaign event in Glasgow, John Swinney said he did not have “certainty over what this proposal involves.”

“Keir Starmer said on the radio it wasn’t actually going to be an energy company but it’s going to be an investment vehicle. Well, we have lots of them already.

“In my first week as First Minister we delivered investments in renewable energy in Scotland.

“So I’m all for energy investment but I do put out a cautionary word that a lot of what I hear of Labour’s energy plans will result in a significant loss of employment in the north east of Scotland in the oil and gas sector and I don’t want to be part of that.”

He said he feared it would lead to significant job losses.

"That would be a body blow to the Scottish economy," he added.

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David Whitehouse, from Offshore Energies, said it was welcome to hear Sir Keir recognise the need for oil and gas in the UK for many decades to come.

He said the UK would need both renewables and "our homegrown oil and gas sector" to become a "green energy superpower."

"You cannot protect jobs and communities, safeguard our energy security, create enduring economic value, and deliver on our climate goals without embracing our existing industrial strengths," he added.

“Great British Energy’s ambition cannot be delivered without the UK's oil and gas sector.”

Unite general secretary Sharon Graham: “Labour has come out today and promised tens of thousands of new jobs for North Sea workers.  To make this happen we will need a concrete plan and serious investment. 

“Unite has a plan to create 35,000 commensurate new energy transition jobs in Scotland by 2030. This will require investment of £6.6 billion over the next 6 years.

“That is the commitment we need to see if oil and gas workers are not going to be the coal miners of our generation. And until these new green, well paid, skilled jobs are in place there must be no ban on oil and gas licences."