Two of Scotland's most prominent business leaders have issued a direct plea to Chancellor Rachel Reeves, demanding she abolishes the windfall tax on energy profits and reverses the ban on new oil and gas licences.
A Joint Appeal from Industry Titans
Martin Gilbert, the former chief of Aberdeen Asset Management, and Sir Ian Wood, the former head of Wood Group, released a powerful joint statement on Friday 21 November 2025. Their intervention comes just days before the Chancellor is set to deliver her Budget, piling significant pressure on the government to change course.
The statement highlights the severe impact the current fiscal regime is having on the oil and gas sector, particularly in its heartland of Aberdeen and the north east of Scotland. They argue that the region's potential to become a global leader in offshore renewables is being critically undermined.
The Economic and Environmental Argument
The business chiefs contend that the windfall tax has backfired, causing a massive decline in Treasury revenues instead of raising the intended funds. They describe the government's position as economically and environmentally incoherent, especially since official projections acknowledge the UK will need oil and gas in its energy mix up to and beyond 2050.
They stated: "Given we are projected to need oil and gas in our energy mix up to and beyond 2050, a point recognised by the Government themselves, it is surely common sense to incentivise the production of our own domestic supply."
Their statement warns that companies and the skilled people they employ are leaving the region at an alarming rate due to the punitive fiscal and regulatory regime. This haemorrhage of investment is forcing the UK to rely more on costly, carbon-intensive imports from overseas.
Three Key Demands for the Chancellor
Gilbert and Sir Ian have called for three immediate actions from the Chancellor:
- Bring an end to the windfall tax in the next financial year.
- Approve shovel-ready projects on the UK Continental Shelf in the coming weeks, a clear reference to developments like Jackdaw and Rosebank.
- Reverse the ban on new oil and gas licensing immediately.
They argue these measures would inject much-needed economic growth and deliver the fair and just transition promised to the workers essential for the UK's future energy security.
In response, a Government spokesperson defended its approach, stating: "We are taking a responsible approach that recognises the long-term role of the sector while exploring what follows the end of the energy profits levy, so firms continue to invest and pay their fair share of tax." The spokesperson also pointed to investments in offshore wind and carbon capture as part of a fair and orderly transition for the North Sea.
