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Over 2,500 energy workers, business leaders, supply chain employees and community representatives have called for an immediate end to the punitive North Sea windfall tax to save jobs.
The signatories backed an open letter to Prime Minister Sir Keir Starmer which cited the “devastating blow” of Harbour Energy’s announcement that it intends to cut its workforce by 25% in response to the damage of the government’s Energy Profits Levy (EPL).
The letter points to a further 300 job losses in the supply chain over recent weeks, contributing towards 10,000 job losses overall since the EPL was introduced in 2022. It warns that Aberdeen’s energy skills base is at risk of being lost forever, putting the energy transition at risk.
The lion’s share of those signing are ordinary members of the supply chain workforce, concerned for their future, as well as individuals from other industries across the north of Scotland whose fortunes depend on the future success of a vibrant energy sector.
Over 70 signatories to the letter are concerned employees of Harbour Energy, alongside a number of unemployed North Sea workers whose jobs have already been cut because of a 78% tax rate on energy profits.
Over 300 business leaders have signed the letter on behalf of their respective organisations, including City heavyweight Martin Gilbert and energy industry veteran Sir Ian Wood.
More widely, the letter has received support from Aberdeen Cyrenians and Cash for Kids charities – organisations supporting vulnerable people and tackling child poverty in the north east of Scotland – besides a range of businesses from the retail, construction, agricultural, food and drink, manufacturing and professional services sectors.
The letter was promoted by Aberdeen and Grampian Chamber of Commerce (AGCC).
The letter in full:
Dear Prime Minister,
It is almost exactly a year since you publicly insisted that your party’s plans for the North Sea would not cost jobs.
On 7th May, the largest independent operator in the UK Continental Shelf, Harbour Energy, announced plans to cut its workforce by 25% with 250 roles in Aberdeen being placed at risk.
This is a devastating blow for the economy across the region, and the government should be concerned that with continued job losses in the North Sea the UK’s long-term energy security is threatened.
Harbour Energy has been clear that they have come to the decision as a direct result of the punitive Energy Profits Levy. For years oil and gas companies have argued that it
is haemorrhaging investment in the sector, a policy that OEUK analysis shows has, so far, cost 10,000 jobs since its inception, whilst in the same period the price of Brent Crude oil has nearly halved.
This, along with the fact that in the last 10 days a further 300 jobs have been lost across our region at subsea engineering supply chain firms, serves as an important reminder that our energy sector is highly integrated. In short, we are at grave risk of losing the world-class company and skills base that will be required to deliver offshore wind, green hydrogen and carbon capture projects at pace at such time they are available commercially at scale.
Regrettably, we find ourselves in the economically and environmentally incoherent position whereby government policy is bringing a premature end to the oil and gas sector whilst the UK simultaneously relies on increasing amounts of carbon heavy and costly imports from overseas to meet its energy needs.
The situation is absurd, and we urge you to act now before it’s too late. The Climate Change Committee highlights the UK needs up to 15bn barrels of oil and gas up until 2050 and our world-class oil and gas sector can meet almost half of this, unlocking £150 billion to the UK economy.
Please confirm an immediate end to the Windfall Tax and unlock the investment required to protect jobs, generate economic growth and greater energy and national security for the UK.
The alternative, added to by the regrettable demise of Grangemouth Refinery, is
deindustrialisation and mass unemployment, something any responsible government must avoid at all costs.
