Keir Starmer is facing renewed criticism over Labour’s tax on Scotland’s energy sector after an STV interview in which he appeared unable to explain how the Energy Profits Levy operates or why thousands of jobs are being lost across the North Sea industry.
The SNP said the interview exposed a worrying lack of understanding at the heart of government as Starmer insisted the levy was a tax on excessive profits that only applied once profits rose to a certain level, a claim that does not reflect the current regime.
The levy carries a headline rate of 78% with no kick in point and no mechanism tied to market conditions, a structure that industry leaders say has pushed investment to breaking point at a time when North Sea revenues are already collapsing.
Forecasts from the Office for Budget Responsibility show revenues falling by 93% between now and 2030, from £4.5 billion to £0.3 billion, with around one thousand jobs being lost every month as firms scale back or abandon operations.
The SNP highlighted the irony that the Labour Government has already identified a future framework that would introduce a genuine kick in point linked to the price of oil but has refused to implement it despite mounting pressure from businesses, workers and industry bodies.
Under Labour’s own definitions, the price of Brent crude is currently well below the windfall threshold of $95, a level not reached in three years, and yet the tax continues to apply at its full rate without adjustment for changing conditions.
More than 6000 companies, unions and industry figures have now called on the government to fast track the new regime to avert what they describe as tens of thousands of avoidable job losses during a critical period for the clean energy transition.
SNP Energy spokesperson Graham Leadbitter MP said the interview revealed the depth of the problem.
He said:
“The Labour Party’s pledge to cut bills has completely collapsed, they made this promise to get elected and they have broken it.
“Keir Starmer and Anas Sarwar were crystal clear that the Labour Party would reduce bills by £300, but instead they’ve soared by nearly £200 on their watch and the saving they offered at the budget has shown itself to be an utter swindle.
“For all the chatter and back slapping from Labour Party politicians after the budget, they’ve haven’t moved the dial on living standards and people will feel as hard pressed as ever.
“It is shameful that the Labour Party is asking bill payers in energy rich Scotland to pay through the nose for our own natural resources to heat our homes, all the while their tax on Scotland’s energy is destroying jobs.
“The injustice of energy bills going up while energy jobs go down won’t be lost on anyone.
“For millions of Scots this winter, heating bills will be through the roof while our energy sector pumps billions down south to fund a black hole in the Treasury, that is a complete injustice and is exactly why we need a fresh start with independence.”
