Scotland’s First Minister, John Swinney, has stated he is “very concerned” by reports suggesting that oil giant BP is considering withdrawing from the North Sea. According to Bloomberg, the company has initiated an internal review of its North Sea operations, although no definitive decision has been reached.
Swinney Points Finger at Windfall Tax
Speaking to the Press Association on Saturday during a campaign stop in Glasgow, Mr Swinney placed the blame squarely on the UK Government and its windfall tax on oil and gas. “I’ve seen the reports and I’d obviously be very concerned about that,” the First Minister said. “What will be driving this is the hostile taxation approach of the United Kingdom Government through the energy profits levy, and I’ve told the Prime Minister to his face that the energy profits levy is causing significant economic damage to Scotland and the North Sea oil and gas sector.”
He added: “It’s accelerating the decline of the sector and I made it clear to the Prime Minister he should remove that energy profits levy, and the speculation about BP I think should prompt early action from the UK Government.”
Starmer Distracted by Mandelson Scandal, Claims Swinney
Mr Swinney further alleged that Prime Minister Sir Keir Starmer is distracted by the controversy surrounding the hiring and firing of former US ambassador Lord Peter Mandelson. “But, as with so many questions of the challenges that we face, the Prime Minister is distracted by his own failures and can’t take the proper actions to protect jobs and employment within Scotland, and that’s an example of the weakness and the failure of a Labour Government,” he said.
Background: Ed Miliband's Deleted Post
The reports come after UK Energy Secretary Ed Miliband described BP’s profits—which tripled in the first quarter of this year—in a now-deleted social media post as “morally and economically wrong.” The UK Government has been contacted for comment but has not yet responded.
