Swinney Demands End to Windfall Tax on Oil and Gas as 'Utterly Essential'
Scottish First Minister John Swinney has reiterated his call for the UK Government to abolish the windfall tax on North Sea oil and gas, describing the move as "utterly essential". His comments come ahead of a crucial meeting between Chancellor Rachel Reeves and energy industry leaders.
Middle East Conflict Adds Urgency to Tax Debate
Mr Swinney emphasised that the ongoing conflict in the Middle East has created significant "uncertainty over energy supplies", which he now considers a material consideration for scrapping the levy. Originally introduced by the Conservative government following the war in Ukraine to recoup unexpected profits from soaring energy prices, the tax—officially known as the energy profits levy—has faced mounting criticism.
During a visit to Inverness, the First Minister expressed disappointment that the Chancellor did not axe the tax in Tuesday's spring statement. He urged Ms Reeves to use Wednesday's meeting with North Sea executives to announce an end to this tax on Scotland's energy.
Impact on Investment and Employment
Mr Swinney argued that the windfall tax is severely hampering investment in the North Sea oil and gas sector, leading to job losses at an accelerated pace. He stated, "I've been saying to the UK Government for some time that the energy profits levy should be removed because it is hampering investment in the North Sea oil and gas sector, which is resulting in a loss of employment at a much faster rate than we anticipated."
Holyrood's Finance Secretary, Shona Robison, echoed these sentiments, pressing the Chancellor to take immediate action. The First Minister concluded by asserting that there is no case for maintaining the levy and it should be removed promptly. The UK Government has been approached for comment on the matter.
