First Minister John Swinney has repeated his demand that the UK Government scrap the Energy Profits Levy (EPL), after chairing talks with senior figures from Scotland’s offshore energy sector in Aberdeen.
The roundtable, hosted by Aberdeen & Grampian Chamber of Commerce (AGCC) on Monday evening, brought together operators, supply chain firms, renewable energy developers, academics, financiers and trade unions. Mr Swinney used the session to press Prime Minister Andy Burnham, who took office on 20 July, to replace the windfall tax with a fairer, long-term fiscal regime.
The meeting came days after BP announced on 31 July it would market its UK North Sea business for sale, ending 60 years of production and putting roughly 1,100 jobs in play, according to Reuters.
BP chief executive Meg O’Neill said the assets would be “better positioned as part of another company” as the group refocuses capital on higher-return projects.
The EPL, introduced in 2022 to capture windfall profits after Russia’s invasion of Ukraine sent energy prices soaring, currently stands at 38%, taking the combined tax rate on North Sea oil and gas profits to 78% once corporation tax and the supplementary charge are included. Offshore Energies UK has estimated the sector is losing around 1,000 jobs a month under the current regime.
Mr Swinney said: “It is crystal clear that the UK Government’s destructive tax regime is harming investment and jobs in Scotland – and the new Prime Minister must look at this issue as a matter of urgency. Scotland’s energy security and economic future depend on a fair transition, where North Sea oil and gas production is managed alongside the increasing renewables. That future is built on the world-class workers of the North-east, powering the energy future of Scotland.”
He added: “Speaking to industry leaders today, I promised that the Scottish Government will do everything within our powers to work together with business, trades unions and the UK Government. What we need, above all, is for the new Prime Minister to end the unfair EPL and put in place a sensible tax regime to protect the workers of Scotland and the North-east.”
Ryan Crighton, Policy Director at AGCC, who chaired the discussion, welcomed Mr Swinney’s stance but urged him to go further in backing the Jackdaw gas field and Rosebank oil field, both awaiting decisions this month.
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“BP’s decision to market its North Sea business featured prominently throughout the discussion and should serve as a wake-up call,” Mr Crighton said. “When one of the basin’s largest and longest-standing investors concludes that the UK is no longer the right place to deploy capital, it underlines the urgent need for governments to restore investor confidence through stable policy, competitive taxation and a predictable regulatory environment.”
He continued: “The message from around the table was unequivocal. We need a stable, internationally competitive fiscal regime, timely regulatory decisions and a clear long-term commitment to homegrown energy production.” AGCC has asked Mr Swinney to back Jackdaw and Rosebank explicitly, Mr Crighton said, arguing this would strengthen UK energy security and cut reliance on higher-emission imports.
The talks were also attended by Energy Minister Stephen Gethins and local MSPs Jackie Dunbar and Jack Middleton, alongside representatives from BP, Ocean Winds, Scottish Renewables and unions including GMB, Unite and RMT. Discussions also covered barriers to Scotland’s renewables ambitions, including transmission charging.
