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by Kirsteen Paterson
19 February 2024
Oil and gas bosses announce crisis talks on Labour windfall tax plan

Image: Alamy

Oil and gas bosses announce crisis talks on Labour windfall tax plan

Oil and gas chiefs are to hold "crisis talks" on Labour's North Sea windfall tax plans, it has emerged.

Emergency summits between operator and supply chain members have been announced as First Minister Humza Yousaf prepares to make a speech on the future of Scotland's energy sector.

On Sunday, Labour leader Keir Starmer told the Scottish Labour Party conference that North Sea oil and gas production will continue "for decades to come".

The speech came after sector body OEUK warned Labour's proposed windfall tax on the industry could cost 42,000 jobs.

Labour, which has rolled back on a £28bn per year green investment vow, has said the levy on profits would raise £10.8bn in five years.

But OEUK said it has caused "deep concern" and emergency meetings will be held in Aberdeen and London this week.

David Whitehouse, chief executive of OEUK, 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 £20bn 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."

Meanwhile, Yousaf and SNP Westminster leader Stephen Flynn will deliver a speech on the energy sector in Aberdeen today. 

The first minister is expected to say that "remote control of Scottish energy from Westminster has been a complete failure" and leaders there are "fatally undermining Scotland's ambitions".

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