Swinney Warns PM: Scotland's Energy Sector Faces 'Existential Threat'
Scotland's energy industry faces 'existential threat'

Scotland's First Minister has issued a stark warning to the Prime Minister, stating the nation's vital energy sector is confronting an 'existential threat' without immediate intervention from Westminster.

A Critical Meeting in Wales

John Swinney met with Prime Minister Sir Keir Starmer on Friday 5 December 2025 ahead of a British-Irish Council summit in Wales. The talks were dominated by the urgent economic situation in Scotland, following significant job loss announcements that have shaken the industry.

The First Minister argued that Scotland is often treated as an 'afterthought' by the UK Government, using the crisis to reiterate his case for independence. He stressed the 'urgent necessity' for Westminster to step in and provide concrete support to safeguard the country's industrial future.

Job Losses and Policy Pressure

The high-stakes discussion followed devastating news from two major energy sites. Last month, oil giant ExxonMobil revealed plans risking over 400 jobs at its ethylene plant in Mossmorran, Fife. A further 100 positions are set to be cut at Harbour Energy in Scotland's north-east.

Both companies have pointed a finger at UK Government policy as a contributing factor behind their decisions. Swinney directly linked these losses to the impact of the recent UK Budget on critical infrastructure, specifically naming the Grangemouth refinery, Mossmorran, and the Acorn carbon capture project.

Demands for a Just Transition and Trade Deal

In his meeting with the Prime Minister, Swinney laid out clear demands. His central plea was for the removal of the energy profits levy to help fund a fair shift from oil and gas to renewables. 'We have a moral obligation to deliver on our climate commitments but must ensure we do not leave communities behind,' he stated.

The First Minister also pressed for an update on UK-US trade negotiations, zeroing in on tariffs affecting Scotch whisky. He referenced his own discussions with President Trump, highlighting the 'symbiotic partnership' between the Scotch and US whisky industries. Swinney warned that without UK-secured trade exemptions, the cornerstone whisky sector would lack vital protection.

A Warning Against Repeating Past Mistakes

Mr Swinney's message to the Prime Minister was blunt. 'I was clear with the Prime Minister – act now or run the risk of delivering irreversible deindustrialisation and decline in Scotland’s economy,' he said following their meeting.

He drew a direct parallel with historical decline, stating: 'Scotland still suffers the scars of deindustrialisation from previous UK governments and unless there is action now from UK ministers, we run the risk of repeating the mistakes of the past.'

On a separate issue, the First Minister did welcome the UK Government's commitment to remove the two-child benefit cap, acknowledging it would assist the Scottish Government in its fight against child poverty.