During Prime Minister’s Questions yesterday, Keir Starmer stood firm on Labour’s proposed windfall tax increase on the oil and gas industry, despite warnings of potential economic repercussions.
Scottish Conservative MP Harriet Cross urged Starmer to reconsider the tax hike, citing concerns about its negative impact on the North East’s energy sector.
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Offshore Energies UK (OEUK) warned that the tax increase could lead to a significant drop in industry investment, potentially costing the UK economy £13 billion between 2025 and 2029 and putting 35,000 jobs at risk.
Neo Energy, a major player in the North Sea oil and gas industry, has already slowed down investment due to the tax changes and Labour’s stance on a recent Supreme Court ruling.
In response to Cross’s question, Starmer defended the policy, emphasising the importance of transitioning to renewable energy to achieve “energy independence.”
Following PMQs, Harriet Cross MP said: “Keir Starmer’s out of touch answer is divorced from the reality of the impact his Labour government’s taxation plans will have on the oil and gas sector.
“He showed no remorse for the tens of thousands of workers whose jobs now hang in the balance following Labour’s reckless policy of ending our domestic oil and gas production.
“Labour’s deeply damaging supertax has rightly been labelled economic suicide and will decimate the sector, which forms the lifeblood of communities across the North East.
“Keir Starmer’s blatant desire to shut down the industry by raising the windfall tax, ending the investment allowance and opposing all new oil and gas licences will force us to import from overseas with a far higher carbon footprint.
“In the process, these companies, who are key in helping us move towards net zero, will walk away from Scotland and take their investments and jobs elsewhere.
“GB Energy is Labour’s attempt at a consolation prize and won’t dupe the people of the North East who know they have been betrayed.”
In his response at PMQs, Keir Starmer said: “We are committed to the transition that is necessary in relation to renewables, which will lead to cheaper energy, energy independence and the jobs of the future.
