Douglas Alexander has been accused of betraying Scottish energy workers after the UK Government chose to continue the Energy Profits Levy despite speculation it could be scrapped.
The criticism follows a week in which representatives from Scotland’s offshore energy industry were invited to Downing Street amid suggestions the Labour Government was considering ending the tax.
Instead, the levy remains in place, prompting accusations that Scottish jobs and investment are being sacrificed to support Westminster finances.
The Energy Profits Levy was originally introduced as a windfall tax on oil and gas producers operating in the North Sea.
Industry figures have warned that the continued tax burden risks discouraging investment and threatening employment across the offshore sector.
Critics argue the policy is already damaging confidence within the industry at a time when thousands of jobs depend on future North Sea investment.
Commenting on the situation, SNP MSP Kevin Stewart said the Labour Government had repeatedly promised change but failed to deliver.
“Time and time again we’ve been told Labour’s tax on Scotland’s energy would be ended, only for it to be kept or even increased, that is exactly what happened this week.
“1000 jobs are being lost a month in our energy sector and Douglas Alexander and the Labour Party are actively making a choice for that to continue.
“We’ve been here before with plenty of warm words, but actions that would only be applied to an industry based in Scotland, destruction of jobs, crippling of investment and short sighted political stunts.
“Of course further discussion on ending the Energy Profits Levy is something to be welcomed, but workers in Scotland will be forgiven for not giving it the slightest bit of credence given they have been led up the hill and marched back down again countless times before.
“Douglas Alexander gave a nod and a wink to the industry only to double down on the tax, he’s betrayed Scottish workers and Scottish industry to plug holes in the Westminster coffers.”
The Energy Profits Levy remains a controversial policy within the UK energy sector.
Supporters say it ensures energy companies contribute more during periods of high profits.
Critics warn it risks accelerating the decline of the North Sea industry and undermining investment in the very sector that still supports tens of thousands of Scottish jobs.
