An Aberdeen MSP has tabled a motion at Holyrood calling on the UK Labour Government to scrap what he describes as a damaging tax on Scotland’s energy sector.
Kevin Stewart has urged ministers to abandon the Energy Profits Levy, warning it is undermining jobs, investment, and confidence across the North East.
The motion follows new analysis from Aberdeen and Grampian Chamber of Commerce which shows business confidence in the North East has fallen to levels not seen since the height of the Covid pandemic.
The Chamber’s quarterly economic survey found the regional economy has sharply diverged from the rest of the UK, with almost half of firms forecasting falling profits.
That figure is around 20 percent higher than across the wider UK economy, highlighting the scale of the challenge facing businesses in the region.
Taxation was identified as the number one constraint to growth, with firms pointing to the continued application of the Energy Profits Levy as a major factor.
The survey also highlighted the pace of job losses in the energy sector, with around 1,000 roles being lost each month, adding to growing concerns about long term skills, supply chains, and energy security.
Speaking after lodging the motion, Kevin Stewart said the Labour Government’s approach was having serious consequences for Scotland’s energy heartland.
“Labour’s tax on Scotland’s energy is destroying jobs, squandering our renewables future and has put our energy security at risk, all the while energy bills are through the roof on the Labour Party’s watch.
“In energy rich Scotland, the simple fact is that under Keir Starmer energy bills are going up while energy jobs are going down, that is a complete injustice and it is a direct consequence of Westminster decision making.
“There is a reason the sector, academics, trade unions and charities are speaking with one voice on this issue, but it seems the Labour Party knows better, it’s time the UK Government took its head out of the sand.
“The so-called “party of working people” doesn’t seem to apply that slogan to Scotland where our industries are treated as an afterthought time and time again with job losses pilling high, it’s no wonder the Labour Government is drawing comparisons to Thatcher.
“Pig-headed policy from Westminster is a continual reminder of why we need a fresh start with independence to grow our economy and use Scotland energy resources to the benefit of the people of Scotland, only a vote for the SNP in May can secure that future.”
