John Swinney opposes UK Government move to ban new oil and gas licences

The Scottish Government does not support the UK Government’s bid to end the granting of new oil and gas exploration licences, the first minister has said.

Speaking during FMQs, John Swinney said while his government supported elements of the Energy Independence Bill, it did not back measures on oil and gas.

He argued that decisions on the granting of licences must be made on a case-by-case basis, taking into account the fact the country would still be reliant on fossil fuels for some years to come.

The Energy Independence Bill was formally introduced by the UK Government on Wednesday.

Among its measures is a ban on new licences, as promised in Labour’s 2024 manifesto, though it would allow for additional production from areas “bordering or in close proximity to” existing fields.

Asked about the Scottish Government’s position on the legislation in the chamber, Swinney said: “The Energy Independence Bill that was introduced by the United Kingdom Government brings together a number of measures that the Scottish Government supports, but we do not support the provisions of that bill in relation to the position on the granting of new licences for the exploration of new oil and gas fields, for the simple reason… that any particular application needs to be considered in relation to their impact on our carbon reduction targets, given the fact that we’re going to be using oil and gas for some years to come.”

The matter was raised by Reform’s Malcolm Offord, who accused the SNP of having “given up on Scotland’s oil” and changing its position on the North Sea “almost on a daily basis”.

He welcomed the first minister’s response, which he described as “yet another U-turn” given the Scottish Government’s draft energy strategy included a presumption against new licences. The final strategy has not yet been published but it is not expected to include the same commitment.

Regarding the Energy Independence Bill, Offord said: “This is a seismic moment for the UK economy, it sounds a death knell for Aberdeen, and it means Scotland cannot reindustrialise and create wealth for all Scots.”

Scottish Tory leader Russell Findlay also raised oil and gas, once again criticising Swinney’s refusal to back approval for the Rosebank oil field.

He urged the first minister to “tell his MPs to vote against” the ban on new licences, arguing in favour of extracting “every valuable drop of North Sea oil and gas for Scottish jobs, lower bills and energy security”.

Swinney said the parliament was witnessing the “merger of the Conservative Party and Reform, because what Russell Findlay has just asked me is what Malcolm Offord has just asked me”.

He went on to call on the UK Government for more investment in renewables, saying developments were being “slowed up” by failures on grid connections.

He also said the Acorn carbon capture and storage project had been “plunged into uncertainty” following the UK’s Budget last week, went the future of a previously promised £200m investment was “made very, very uncertain”.

The Energy Independence Bill also includes measures to scrap standing charges on gas bills and reforms designed to improve the speed at which projects can be connected to the grid.

An energy wealth fund will also be established, with tax revenue from oil and gas to be reinvested in renewables.

UK energy secretary Miatta Fahnbulleh said: “Today is a first downpayment on fixing a broken system, protecting consumers from unfair costs and putting the public back in control.

“Through this bill, we will build a clean energy future which people feel in their pockets, households and communities, ensuring support reaches those who need it most.”