Summits called

Oil and gas leaders hold talks on Labour energy plan

David Whitehouse
David Whitehouse: hammer blow

Offshore energy leaders will hold emergency summits with operator and supply chain members this week amid growing concern over Labour’s plan to hike the windfall tax on oil and gas production.

Two meetings will take place in OEUK’s London and Aberdeen offices and follow the Scottish Labour Party conference at the weekend when Sir Keir Starmer promised to invest in energy renewal but did not directly address the tax issue.

Trade group OEUK warned earlier this month that 42,000 jobs could be lost in the sector as a result of the proposals, while others predict the wider impact of Labour’s policies could cost 100,000 jobs.

Labour is also proposing to halt new applications for oil and gas exploration in the North Sea which the industry says is needed in order to invest in the transition to clean energy.

Worried energy producers say investment in the UK has come under consistent challenge in recent years. They say proposals to increase the windfall tax on profits and remove vital allowances would deliver a hammer blow to homegrown energy both now and in future.

Senior figures from OEUK member companies are expected to attend the emergency summits, with OEUK chief executive David Whitehouse convening talks with operators on Tuesday and supply chain companies on Thursday.

Speaking ahead of the meeting, Mr Whitehouse said: “We remain deeply concerned about what Labour’s proposals could do to our people. If we can’t get companies to invest here, there are no jobs. It’s that simple.

“I’m already hearing from our supply chain and from energy producers that these proposals would deliver a hammer blow to the energy we need today and to the homegrown transition to cleaner energies that everyone in the UK wants to see.

“These meetings will allow us to gather more evidence from employers to put to Labour leadership. As a sector which supports 200,000 jobs, contributes over £20 billion a year to the wider UK economy and has the skills and infrastructure to deliver a homegrown energy transition, we have so much to offer.”

Yousaf to say SNP can build Scotland’s energy future

Scotland’s First Minister Humza Yousaf will today claim that only the SNP has the credentials to build a green future for the country.

Speaking in Aberdeen alongside Westminster leader Stephen Flynn on the future of Scotland’s Energy Sector will say: “The usual Westminster political game playing is fatally undermining Scotland’s ambitions in what will be the defining economic opportunity of our time.

“Neither Labour or the Tories has the backbone – the political will, or the political mettle to back Scotland’s green future. The SNP does.

“In Scotland we have the will. We have the energy. All we lack is the power.

“Remote control of Scottish energy from Westminster has been a complete failure, in every sense of the word. A vote for the SNP, is a vote to control our energy future. For powers over energy to be in Scotland’s hands, not Westminster’s.

“With that power, we will do what Labour and the Tories have failed to do. Make Scotland’s energy work for Scotland, not for Westminster.”

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