Scotland’s energy sector is facing a pivotal moment, with fresh warnings that up to 800 skilled jobs could be lost every month if the UK Government fails to rethink its approach.
A new independent report has laid bare the stark reality for workers across the country, raising urgent questions about the Labour Government’s handling of the just transition to net zero.
The warning comes as 250 jobs were cut at Harbour Energy in Aberdeen.
The company made clear that Westminster’s current policies were to blame.
More than 2500 energy workers, business leaders and charities have now joined forces to demand urgent action from the UK Government.
In a powerful joint letter, they called for an overhaul of the punishing tax regime that is driving up bills and putting livelihoods at risk.
Before the last election, Labour insisted there would be no sudden cliff edge for Scotland’s energy workforce.
But the SNP and others warned that Sir Keir Starmer’s plans would put both jobs and vital net zero opportunities in jeopardy.
Those warnings are now being echoed across the sector.
Unite general secretary Sharon Graham, head of the UK’s largest offshore trade union, has said that tens of thousands of jobs could be lost in the years ahead unless the Government changes course.
The new report from Robert Gordon University spells out the scale of the challenge.
If Scotland cannot seize the full range of opportunities in offshore energy, the country’s offshore workforce could shrink dramatically.
Numbers could fall from around 75,000 this year to between 45,000 and 63,000 by the early 2030s.
The stakes are particularly high for Scotland.
Almost one in thirty people in the country is employed in or supports the offshore energy sector.
That compares to around one in 220 across the wider UK.
The potential impact on Scottish supply chains and communities is profound.
SNP Westminster Leader Stephen Flynn MP has urged the Labour Government to listen to expert advice before it is too late.
He said:
“The just transition is being put in jeopardy by a Prime Minister who sits silent as workers lose their jobs, energy security is put at risk and our economic growth is stifled.
“Experts are clear.
“If the UK Government does not change course, we will see job losses on a scale comparable to Grangemouth every fortnight.
“This is about protecting today’s workforce so they can drive forward the net zero industries of tomorrow.
“The opportunities in net zero are enormous but they will not be realised if Labour continues with its current fiscal regime.
“It is deterring investment, costing us talent and risking our world-class supply chains being lost to other countries.
“From the impact of the Energy Profits Levy to the failure to back the Acorn Project, we are facing a worst of all worlds scenario.
“That would be unforgivable.
“This report is a wake-up call.
“It also highlights the huge opportunity ahead for Scotland.
“Westminster must not stand in the way of that future.
“We need to secure economic growth and create lasting jobs in our energy sector for generations to come.”
