Leaders of Scottish Businesses back end to Licensing for North Sea Oil and Gas

A new survey has revealed that a majority of UK business leaders, including those in Scotland, support Labour’s policy to end new oil and gas licensing in the North Sea, viewing it as a step toward economic growth and energy transition. The research, commissioned by Uplift and conducted by Public First, found that 70% of UK business leaders back the policy, with 77% agreeing that phasing out fossil fuels is in the public interest.The findings come as the UK government launches a consultation on implementing its licensing position over the coming months. Scottish business leaders were particularly supportive, with 65% in favour of ending new oil and gas licensing and 82% backing broader plans to phase out fossil fuels in energy generation.

Respondents identified reduced energy costs and a more reliable energy supply as key benefits of the transition to renewables. Over half (52%) of Scottish business leaders believe that renewable energy will create more jobs than those lost in oil and gas. However, concerns remain about the impact on regions like the north-east of Scotland, which have historically relied on the oil and gas industry.Tessa Khan, executive director at Uplift, welcomed the findings: “Ending new licensing is welcomed by businesses as a clear signal that the government is committed to the clean energy transition. Oil and gas companies are now increasingly out of step, with most North Sea operators showing a commercial disinterest in the shift to clean energy.”

Despite optimism about renewables, 86% of businesses said private companies need more clarity from the government on future energy sources. Miriam Brett, co-director at Future Economy Scotland, stressed the need for coordinated investment: “Scotland’s industrial transition is already underway; the challenge now is to ensure it delivers for energy workers, businesses, and impacted communities.”James Alexander, chief executive of the UK Sustainable Investment and Finance Association, added: “Business leaders in every region are backing renewable energy to deliver stable, cheaper bills and unlock economic growth. Government signals like refusing new oil and gas licences in the North Sea give clarity to investors and can help drive more private investment into our clean energy sectors.”

While only 19% of Scottish business leaders think the government is moving too fast on phasing out fossil fuels, nearly half (47%) believe progress is too slow. The survey highlights both optimism for renewable energy’s potential and the need for strategic planning to ensure a just transition for workers and communities reliant on traditional industries.As Scotland continues its leadership in renewable energy development, these findings underscore the importance of clear government policies and investment to secure long-term economic benefits while addressing environmental challenges.