Labour told to axe windfall tax – Daily Business

Business leaders in the north of Scotland have called for the windfall tax on oil companies to be axed after a company said Labour’s fiscal policies were to blame for 250 job cuts.

Harbour Energy, the biggest operator in the North Sea, said it was reviewing its onshore operations.

Russell Borthwick, chief executive at Aberdeen & Grampian Chamber of Commerce, said: “Enough is enough. End the windfall tax now.”

The UK currently has a 78% tax on North Sea oil and gas, all while importing record levels of foreign energy – with higher emissions – tax free. 

“This is a devastating blow for the 250+ families directly affected – and I fear it is just the tip of the iceberg, unless the government changes course,” said Mr Borthwick.

“Labour’s long-term ambitions are laudable, but in the absence of a proper industrial strategy, we are left with policies which are destroying a world class British industry.”

Scott Barr, managing director of Harbour’s UK business, said: “Harbour is launching a review of its UK operations, which we expect to result in a reduction of around 250 onshore roles in our Aberdeen-based business unit.  

“The review is unfortunately necessary to align staffing levels with lower levels of investment, due mainly to the Government’s ongoing punitive fiscal position and a challenging regulatory environment.  

“We are also reviewing the resourcing required to support our Viking carbon capture and storage project, where progress beyond front-end engineering design and the recent securing of a Development Consent Order has been hindered by repeated delays to the Government’s Track 2 process.“ 

Harbour Energy recently announced losses after tax of $93m last year down from $45m profits in the previous year.

At Prime Minister’s Questions in the Commons, the SNP’s Westminster leader Stephen Flynn said: “Prior to the election the Prime Minister promised that energy bills would come down. They continue to rise.

“He promised that he would save the refinery at Grangemouth. It is shut.

“And of course he promised he would unleash a generation of secure energy jobs in my city of Aberdeen.

“Well today, Harbour Energy, the largest independent player in the North Sea, have announced that they’re about to shed their workforce by 25%.

“That’s 250 jobs in my constituency gone in the blink of his eye. And do you know who they blame Mr Speaker – they blame the policies of the Labour Party.

“So can I ask the Prime Minister, in fact can I invite the Prime Minister, to come to Aberdeen and explain to my constituents why he is willing to move heaven and earth to save jobs in Scunthorpe while destroying jobs in Scotland?”

Scottish Conservative shadow energy secretary Douglas Lumsden said the SNP was not entirely blameless and called on the party to bring forward its energy strategy.

“Confidence in the sector is at rock bottom, as Grangemouth stops refining and domestic oil and gas production craters.

“This is what happens when the SNP and Labour governments spend years demonising oil and gas. That, and the increased burden of Labour’s windfall tax and National Insurance hikes, has created a perfect storm.

“John Swinney must bring forward the SNP’s energy strategy, which is years overdue, before there is jobs catastrophe in the North Sea.

“Only the Scottish Conservatives are standing up for our oil and gas industry in the face of the open hostility of two out-of-touch left-wing governments.”