The director of the British Chambers of Commerce (BCC), Shevaun Haviland, has urged Andy Burnham to be ready to exploit the UK's remaining North Sea oil and gas resources to avoid mass job losses in Scotland and the north-east. The decision on whether to allow extraction at the Jackdaw and Rosebank fields now appears likely to fall to a Burnham administration.
Haviland: Use Our Own Assets
Asked about the issue, Haviland said: “At the moment, instead of using those fields we are importing liquid gas, which is more expensive and less environmentally friendly. So yes, we believe we should use our own assets.” She spoke as the BCC, representing 50,000 businesses employing 7.5 million people, prepared for a high-profile conference in London on Thursday, where politicians including Labour chancellor Rachel Reeves and Green leader Zack Polanski will address the gathering.
Transition to Clean Energy Not Managed Well
Haviland, a former senior civil servant, said British businesses backed the transition to clean energy and were keen to exploit opportunities it presented. However, she said the switch to offshore wind was not creating enough jobs to absorb workers displaced as the North Sea wound down, and local suppliers were being shut out of new industries. “It’s just not being managed in the right way. We are absolutely behind the incredible leadership we’ve seen in offshore wind, where we’re a world leader. We are not investing enough in building a local supply chain to support that. A lot of it’s still coming from overseas. And because it hasn’t happened as fast as oil and gas are declining, we have a really worrying gap, and we are seeing the supply chain leave.” She added, “There’s some very big concerns from our chambers up in Aberdeen and the north-east that it will go the way of the coalmines, and you’ll have millions of people out of work.”
Cost-of-Doing-Business Crisis
With Burnham likely to become prime minister within weeks, Haviland called on him to take action on the “cost-of-doing-business crisis”. The BCC published research showing the cost of doing business has risen by 70% in a decade, including tax, regulation, the minimum wage, and trade frictions from Brexit. “Businesses don’t feel confident to invest, because business costs are so high, so they pull back from investment, and it’s a vicious cycle,” Haviland said. “Then you don’t get the growth. And you don’t get the tax income. So we want him to look at ways that he can begin to alleviate some of those cost pressures.” She specifically cited business rates and energy costs.
Reeves' Scheme Too Narrow
Reeves recently promised to backdate the Business Industrial Competitiveness scheme, which will cut bills for energy-intensive sectors. However, Haviland said its scope remained too narrow. “Already before the Iran crisis, 25% of our members were saying they were struggling to pay their energy bills,” she said. Asked about possible additional taxes on business, Haviland said that would be a mistake. “We would always come back to him to say, the way out of the fiscal issue that we’re in is economic growth. Taxing business further is a road to ruin. It’s a downward spiral.”
Brexit and EU Relations
Ten years on from the EU referendum, Haviland echoed recent comments from CBI director general Rain Newton-Smith that despite Brexit costs, businesses did not want to reopen the debate. “I think that sort of old language of customs union, single market, all of that, it’s just unhelpful. I think we just all moved on from there. What our members want is pragmatic, specific solutions to the issues,” she said. A planned EU-UK summit has been postponed pending Burnham’s arrival in No 10; Haviland said businesses would like to see negotiations completed on agrifood, a youth exchange programme, and alignment with the EU’s carbon border adjustment mechanism.
Burnham's Record and Pro-Business Stance
Asked about Burnham’s record, Haviland emphasised the role of private sector investment in Manchester’s transformation. “That has really been a great example of public and private investment – of the public sector laying the right environment for business to come in.” She added that when they last met, “he very specifically said to me: ‘You know, I’m pro-business’.”
Political Reactions
Shadow chancellor Mel Stride will use his BCC conference speech to warn Burnham to rule out raising business taxes immediately, or face “another summer of damaging speculation”. “There is a clear risk that investment and hiring decisions are put on hold once again as the budget approaches later this year,” he is expected to say. Lib Dem leader Ed Davey will argue that rejoining the single market and customs union would kickstart economic growth.
