FM attacks windfall tax as Harbour Energy sheds 250 jobs

The Herald Scotland

08-05-2025

Scott Barr, managing director of the firm's UK operations, attributed the latest losses to the 'government's ongoing punitive fiscal position and a challenging regulatory environment'.
The company also raised concerns about UK Government support for its Viking carbon capture and storage (CCS) project in the Humber.
In a statement, the company — which is also a financial backer of the CCS Acorn project at St Fergus, near Peterhead — said: 'Harbour remains among the largest producers in the UK North Sea and, while our dedicated and highly skilled people will continue to produce vital energy safely and responsibly, we must take these difficult steps in response to the challenges presented by the current external environment.'
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During First Minister's Questions, Mr Swinney was challenged by Scottish Conservative MSP Douglas Lumsden, who asked whether he would apologise to 'the 250 workers who are set to lose their livelihoods as his government turns its back on the north-east of Scotland'.
Mr Lumsden said: 'We have a Labour government at Westminster determined to destroy the north-east and the oil and gas industry.
'But we also have an SNP government asleep at the wheel with no energy strategy, a presumption against new oil and gas, and who are selling out communities all over the north-east.'
Mr Swinney said the Scottish Government had 'made clear our concern' about the extension and scale of the windfall tax, and pointed out the levy had been introduced by the former Conservative government.
He said: 'The energy profits levy was a product of the last Conservative government. It does not matter how much I get barracked in this Parliament — I will point out the hard realities and implications of the Conservative Party's decisions in the UK Government.'
The energy profits levy — widely referred to as the windfall tax — was introduced in 2022 by then Prime Minister Boris Johnson. Initially set at 35%, it was raised to 38% in last year's budget by Chancellor Rachel Reeves.
The headline rate of tax on upstream oil and gas activities is now 78% — among the highest in the world.
The tax is due to remain in place until 2030 unless oil and gas prices fall below a set threshold for six consecutive months.
Mr Swinney urged the UK Government to 'engage with the industry and address the fiscal realities and implications of the UK Government's position', and to 'commit swiftly to the Acorn carbon capture and storage project'.
The Acorn project is intended to capture greenhouse gas emissions and transport them for permanent storage in geological formations beneath the North Sea.
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Mr Swinney said the project 'would help us enormously', and accused the Conservatives of 'never lifting a finger to make that happen — not one finger'.
He added: 'I hope the Labour Party will not do the same.'
Meanwhile, Deputy First Minister Kate Forbes met with Harbour Energy bosses on Thursday.
According to the Press and Journal, an industry-wide ask was made during the meeting for Ms Forbes and other senior politicians to continue raising the impact of the levy on North Sea firms.