Chancellor Rachel Reeves has publicly rejected claims that UK Government policy is leading to the loss of 1,000 jobs every month in the North Sea oil and gas sector.
Disputed Figures and Sector Concerns
The stark figure of 1,000 job losses per month originated from analysis by offshore expert Professor Paul de Leeuw of Robert Gordon University. It has been cited by industry bodies, including Offshore Energies UK (OEUK), which have repeatedly warned that measures like the windfall tax on profits are stifling investment and threatening employment.
However, while visiting Grangemouth on Wednesday 17 December 2025, the Chancellor was direct in her rebuttal. Asked by journalists if she accepted the claims, Ms Reeves stated: "No I don't."
A Historical Perspective on Employment
Ms Reeves argued that job losses have been a feature of the sector for years, predating the previous Conservative government's introduction of the Energy Profits Levy. "What we’re trying to do as a Government is to bring new jobs into Scotland and also to support industries like we see here in Grangemouth by stepping in, not just carping from the sidelines," she added, following a funding announcement at the site.
Scottish Secretary Douglas Alexander, who accompanied the Chancellor, confirmed the disputed statistic was not a government production but from academic analysis. He contextualised the challenges, noting: "Rachel is absolutely right, 70,000 jobs – about a third of the jobs in the North Sea – were lost in the 10 years preceding the election of the Labour Government."
Managing Transition and Future Investment
Both ministers acknowledged the reality of operating in a mature and declining basin. Mr Alexander stressed the government's responsibility to manage this transition effectively, contrasting their approach with that of their predecessors. "We’re determined to put in place a plan that simply wasn’t there under our predecessors," he said.
Despite dismissing the specific monthly job loss figure, the Chancellor affirmed the critical role of oil and gas for the UK's energy security in the coming years. The government pointed to its active support for the sector's evolution, referencing recent investment in Aberdeen's energy transition zone and the new funding pledged for Grangemouth.
