Presumptive prime minister Andy Burnham has been urged to end the windfall tax on oil and gas if he enters Downing Street. The energy profits levy has proven controversial, particularly in Scotland’s north east, after it was put in place to respond to outsized profits for energy giants during the cost-of-living crisis.
Job Losses and Political Opposition
Experts have suggested it could be costing as many as 1,000 jobs per month in the North Sea and it has been met with substantial political opposition. In a letter to the former Greater Manchester mayor, SNP Aberdeen Central MSP Jack Middleton said: “The supply chains and investment we need to deliver our renewables future is being destroyed before our very eyes thanks to the energy profits levy and licensing decisions taken by Westminster.”
MSP Calls for Clarity
Middleton added: “Put simply, our energy security, our economy and our net zero future hangs in the balance because of Westminster’s decision to rely on high-carbon imports as well as inflicting a punitive tax and licensing regime on Scotland’s energy. I am unaware of a single coherent argument in favour of the continuation of this destructive tax and I urge you to provide assurances to the people of Scotland of your position.”
Jackdaw Oil Field Consultation
The letter comes as a consultation opened on the controversial Jackdaw oil field off Aberdeen on Wednesday. On Tuesday, Mr Middleton announced he backs the development of Jackdaw and the equally controversial Rosebank field near Shetland, citing the impact on jobs in the region and energy security, while breaking with the policy of the Scottish Government over the need for “climate compatibility tests”. Mr Burnham has been contacted for comment.
