Andy Burnham is facing an increasing energy crisis as the head of chemicals company Ineos shuts down some production and a new report warns of an escalation of job losses among North Sea workers.

Billionaire Sir Jim Ratcliffe’s industrial giant is pausing production at its three plants in Hull, blaming high UK gas prices.

He said gas prices in the UK are twelve times higher than in the US, and eight times more expensive than the coal-based processes used by Chinese competitors.

The move will affect up to 1,000 workers, although they will be kept on while Ineos tries to buy liquefied natural gas (LNG) directly from the US at lower prices.

Sir Jim last week said that he has lost confidence in the UK, describing the country as “on the slide”, which he blamed on high taxes and high immigration.

Meanwhile, the North Sea Transition Taskforce said oil and gas activity is declining faster than the growth in offshore wind, carbon capture, hydrogen and other emerging industries, leading to 25,000 job losses since the general election two years ago.

The taskforce, which is backed by the British Chambers of Commerce and Aberdeen & Grampian Chamber of Commerce, acknowledges progress over the past year, but warns the pace and scale of action is not yet sufficient to deliver a successful transition.

It calls for the UK government to bring forward the replacement for the energy profits levy – also known as the windfall tax – from 2030 to next year. The new mechanism would see the levy apply only during periods of high prices.

Experts say a radical shift is needed in energy policy and tax that would see the Jackdaw gas field approved, and probably the Rosebank oil field, to help unlock £50 billion of investment. This would open up other production and provide work through the supply chain, while helping to fund the transition to renewables.

It would also generate revenue for the Treasury and avoid the cost of importing high carbon alternative supplies.

Philip Rycroft, chair of the taskforce, said: “Last year, we warned that the window for delivering a successful transition in the North Sea was closing. That window remains open, but it has narrowed considerably.

“The fundamental problem is that the traditional energy economy is declining faster than the new one is being built. If we allow that gap to widen further, we will lose skilled people, businesses and infrastructure which cannot simply be recreated when new industries are ready to expand at scale.”

Shadow Scottish Secretary Harriet Cross urged Mr Burnham to “finally take notice of these repeated warnings, end Labour’s ban on new licences and scrap the energy profits levy”.

She added: “The warning from the North Sea Transition Taskforce could not be clearer to Andy Burnham — support the UK’s crucial oil and gas sector before it’s too late.”

SNP energy spokesperson Graham Leadbitter, said:  “The folly of relying on foreign imports has been made abundantly clear.

“The carbon cost is greater, the volatility is substantial and the cost to Scottish jobs runs into the thousands.

“We are ruining renewables investment while putting our energy security at risk – it is not sustainable.

A UK government spokesperson said: “Our North Sea future plan will build a prosperous and sustainable future for the North Sea.

“We are focused on driving growth in every postcode and delivering jobs for communities – with clean power expected to create 400,000 roles by 2030.”

The latest developments in the sector came as the Aberdeen head office of GB Energy was officially opened and it announced a partnership to support the training of the next generation of energy workers, backed by £750,000.

Dan McGrail, CEO of GB Energy, said: “We are working to build a lasting legacy in Aberdeen, creating jobs, backing young people into careers in renewable energy, and being an active member of the community here for years to come.”

The SNP continues to criticise Labour over a promise that GB Energy would create 1,000 jobs at its Aberdeen HQ.

This was first said by Juergen Maier, the chair, who later said he was speaking about the organisation creating thousands of jobs in the industry and that the HQ would be a lean organisation.