Chancellor Rachel Reeves has defended the UK Government's investment in Scotland, claiming billions are being directed to grow the economy and create jobs. Her remarks come ahead of a visit to RAF Lossiemouth and the St Fergus gas plant, where she will highlight defence and energy spending.
Reeves stated that Labour is 'seizing the huge potential and opportunities that Scotland has to offer' in sectors like defence and clean energy. The UK Government points to plans to increase defence spending to 2.6% of GDP, which it says will add 26,100 jobs to the Scottish economy.
Scottish Secretary Ian Murray echoed the Chancellor's optimism, describing the investment as a 'defence dividend' that will create skilled jobs and address critical skills gaps. However, business groups have expressed concerns over the energy profits levy (EPL), urging the Chancellor to drop the so-called 'windfall tax' on oil and gas companies.
Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, warned that the EPL could accelerate the decline of the North Sea, leading to job losses and increased imports. He called for the removal of the levy to stimulate investment and unlock growth in the sector.
The UK Government has also committed £200 million to the Acorn carbon capture project in Aberdeenshire, which could create 15,000 jobs. However, a final investment decision is pending, and businesses are eager for approval to secure North Sea jobs and support the energy transition.
