The body representing the offshore oil and gas industry intends to hold what it calls “emergency summits” this week in response to Labour’s plans for a windfall tax on profits.
Offshore Energy UK (OEUK) plans to hold “crisis talks” with operator and supply chain companies in Aberdeen and London.
Sir Keir Starmer promised a “proper” windfall tax earlier this month when he scaled back his party’s £28 billion-a-year green investment pledge.
A new energy profits levy for oil and pas production was introduced in 2022 after global energy prices shot up in the wake of Russia’s invasion of Ukraine.
Labour intends to extend the tax to 2029 if they reach government, with the energy profits levy rising to 78%, saying it would raise £10.8 billion over five years to help pay for their green spending plans.
Speaking ahead of the meetings, OEUK chief executive David Whitehouse firms “remain deeply concerned" about what Labour’s proposals could do to jobs.
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Oil and gas chiefs to hold 'crisis talks' over Labour's windfall tax plans
On Sunday, Scottish Labour leader Anas Sarwar was asked about concerns from businesses connected to the North Sea industry.
He said oil and gas companies “raking in billions of pounds in profit” should not pay less tax while noting the industry is important in building the transition to a green economy.
He told BBC Scotland’s Sunday Show: “I’ve been meeting many of these companies this week to have conversations with them.
“That’s why we’re really clear alongside a windfall tax, we will have GB Energy, a publicly owned energy generation company headquartered in Scotland, that will use the power of a UK Treasury to leverage in UK money, but also private sector money to manage that transition.”
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