Report warns Britain risks losing more North Sea workers

Its report, North Sea Transition Taskforce: One Year On, acknowledges progress since the UK Government's North Sea Future Plan was published, but says the pace and scale of action is not yet sufficient to deliver a successful transition.

It calls for the Energy Profits Levy to be scrapped and its planned replacement, the Oil and Gas Revenue Levy, brought forward to 2027-28 rather than 2030, arguing this could unlock up to £50 billion of additional private investment and more than £13 billion in tax revenues over the following decade.

The north-east of Scotland bears the brunt of the slowdown. Oil and gas currently supports 115,000 jobs directly and through its supply chain across the UK, but 25,000 have been lost since the last election.

Around one in four working people in Aberdeen and the surrounding area is employed in or supports the offshore energy industry, roughly 80% of which remains oil and gas.

Philip Rycroft, chair of the Taskforce, said the window to manage the transition well "remains open, but it has narrowed considerably."

He added: "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."

Shevaun Haviland, director general of the BCC, said businesses "invest on the basis of what happens, not what is promised," and called for "pace, certainty and delivery" from government, starting with the fiscal regime.

Russell Borthwick, chief executive of AGCC, said the loss of jobs and investment in the north-east was not an abstract debate.

"Jobs and investment are being lost right now. One in four working people in our region depends on the offshore energy industry and around 80% of that activity is still rooted in oil and gas. The renewable jobs we all want to see simply aren't arriving quickly enough or at sufficient scale to replace what is being lost.

"We have always championed the transition, but it has to be a transition in reality rather than just in name. That means protecting the skills, businesses and supply chains we already have while creating the conditions for new industries to grow."

The report also includes polling showing 79% of UK respondents believe Britain urgently needs to invest in producing its own energy rather than relying on imports, and argues the public occupies "the pragmatic middle ground" on North Sea policy, in contrast to what it calls the polarised positions of politicians and commentators.

The Taskforce is calling on the UK Government to provide a new fiscal regime, worker security measures combining reskilling with time-limited income protection, clearer regulation through the North Sea Transition Authority, enhanced gas storage, and tougher enforcement on flaring and venting.

It also wants the Scottish Government to finalise its long-delayed Energy Strategy and Just Transition Plan, and to integrate the north-east's economic and skills strategies into a single pathway.

Graham Leadbitter, the SNP's Westminster energy spokesperson, said the report exposed "the folly of relying on foreign imports."

"The carbon cost is greater, the volatility is substantial and the cost to Scottish jobs runs into the thousands," he said. "We are ruining renewables investment while putting our energy security at risk — it is not sustainable."

He linked the job losses to the cost of living, claiming energy bills are "set to be £1,000 higher than the Labour Party promised while 25,000 North Sea jobs have been lost since 2024 — that's the price of Westminster control of our resources."

"Through a fresh start with independence we will use our energy resources to benefit the people of Scotland and create a wealthier nation, with full membership of the EU," he added.

Conservative shadow energy minister and North East MP Harriet Cross urged the Prime Minister to "finally take notice of these repeated warnings, end Labour's ban on new licences and scrap the energy profits levy".

She said: "The warning from the North Sea Transition Taskforce could not be clearer — support the UK's crucial oil and gas sector before it's too late.

"How many more warnings and how much more evidence does the government need to finally understand the extent of the irreparable damage it is inflicting on the oil and gas industry and its workforce?

"Both Labour and the SNP's hostility towards the sector is resulting in oil and gas activity declining at a faster rate than any other energy industry."

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 report comes as Great British Energy formally opens its Aberdeen headquarters, unveiling a £750,000 partnership to train the next generation of energy workers in the north-east, including young people and those not in education, employment or training.

The publicly-owned company, based at Marischal Square, said five per cent of its own workforce would be in entry-level and early-career roles. Chief executive Dan McGrail said the firm was "backing young people into careers in renewable energy, and being an active member of the community here for years to come."

Energy Secretary Miatta Fahnbulleh said the launch was "an important step-up in support and training" for energy jobs opening up across Scotland, while Scottish Secretary Douglas Alexander called it "great news for Aberdeen, great news for Scotland, and great news for the United Kingdom."