Seven thousand workers, business leaders and companies have signed a joint letter urging the UK Government to end what they describe as Labour’s tax on Scotland’s energy industry.
The letter calls on the Labour Government to fast track a new North Sea fiscal regime as job losses accelerate across the sector.
Industry body OEUK has reported up to 1,000 job losses a month.
The letter is backed by First Minister John Swinney.
It demands the introduction of a new Oil and Gas Price Mechanism which would only apply when prices are elevated, starting at an oil price of 90 dollars next year rising to 97 dollars by 2030.
The call follows comments by Keir Starmer in which he claimed the current levy is not automatic and only applies to excessive profits.
Industry leaders dispute this and point to a 78 percent headline tax rate.
They also cite Office for Budget Responsibility forecasts showing North Sea revenues falling by 93 percent between now and 2030 from £4.5 billion to £0.3 billion.
The decision to extend the Energy Profits Levy to 2030 is described in the letter as a threat to tens of thousands of jobs.
Graham Leadbitter MP, SNP Energy spokesperson, said:
“Thousands of jobs are being lost because of Labour’s tax on Scotland’s energy, it needs to go and it needs to go now.
“The Labour Government know the damage that’s being done and they have a new regime designed and ready to go yet Keir Starmer seems happy to sit on his hands while the clean energy transition is being lost and workers are being forced off a cliff edge.
“Last week the key partner in Acorn Carbon Capture withdrew from the project, yet we had a Labour Prime Minister rambling on about non existent profits while the job losses mount across Scotland’s energy sector.
“The fact is if offshore industry jobs were based on the River Thames, not the River Dee, we’d see heaven and earth moved to support the sector, that’s the sad reality of a Labour Government that treats Scotland’s industry as an afterthought time and time again.
“It’s no wonder more and more Scots are concluding we need a fresh start with independence.”
The letter marks a growing demand from industry for clarity over the future of the North Sea as the sector navigates shifting policy, falling revenues and increasing pressure around energy transition.
