A leading trade union has issued a stark warning to the Chancellor, urging her not to sacrifice the livelihoods of oil and gas workers in the upcoming Budget. GMB Scotland has called for a reduction in the windfall tax, arguing that the current policy is failing workers and damaging the UK's energy security.
A Plea to the Treasury
Louise Gilmour, the secretary of GMB Scotland, has written directly to Chancellor Rachel Reeves. In her letter, she demands an easing of the levy, which was initially imposed by the previous government and has been maintained since Labour took power last year. Ms Gilmour stated that every single day an oil and gas worker remains unemployed represents a clear failure of government policy.
The union leader highlighted the exodus of skilled workers from the industry, who are either leaving the sector entirely or seeking employment abroad. She pointed out a significant lack of new renewable energy jobs in the UK that are meant to replace these traditional roles. "Energy workers must be supported through the transition, not sacrificed to it," Ms Gilmour asserted.
Risks to Investment and a Managed Transition
The 38% charge on the profits of energy firms has been heavily criticised by industry figures and opposition politicians alike. They consistently warn that the tax is discouraging essential investment and putting thousands of jobs at risk.
Ms Gilmour argued for a more pragmatic approach to achieving net zero. She emphasised that the expertise and financial strength of the existing oil and gas sector are crucial for building the energy infrastructure of the future. Promised renewable jobs with comparable terms and conditions to those in oil and gas have yet to materialise, making a rushed transition self-harming.
"This will be impossible if ministers fail to protect our oil and gas sector while mapping a measured, planned and successful transition to net zero," she added.
Grangemouth and UK Energy Security
The union leader also criticised the closure of the Grangemouth oil refinery earlier this year, describing it as a "needless" act that dismantled a key pillar of the UK's energy security.
Ms Gilmour reinforced the ongoing necessity of oil and gas, stating, "For years to come, we will need oil and gas to heat our homes and power our industries. If we need it, and we have it, then we should produce it and allow workers to build families and communities on a successful and lucrative industry capable of underpinning energy supplies."
The UK Government has been approached for a comment on these demands ahead of the Budget announcement later this month.
