Aberdeen energy workers at risk of losing jobs demand end of windfall tax
More than 2,500 people – including dozens of energy workers who face losing their jobs at Harbour Energy – are demanding an end to the windfall tax in oil and gas profits.
In an open letter to Prime Minister Sir Keir Starmer they highlight the 'devastating blow' of the firm's announcement that it intends to cut 250 jobs in Aberdeen.
The oil and gas producer, which is the largest in the UK, blamed the decision on the damage caused by the UK Government's Energy Profits Levy.
More than 70 signatories work at Harbour Energy, alongside a number of unemployed North Sea workers whose jobs have already been cut.
Around 300 business leaders have signed the letter, including businessman Martin Gilbert and energy industry veteran Sir Ian Wood.
It warns of the potential for 'deindustrialisation and mass unemployment'.
The letter points to a further 300 job losses in the supply chain over recent weeks, contributing towards 10,000 job losses overall since the tax was introduced by the Conservatives in 2022.
It was raised and extended to 2030 by Labour Chancellor Rachel Reeves last year.
It states: 'In short, we are at grave risk of losing the world-class company and
skills base that will be required to deliver offshore wind, green hydrogen and carbon capture projects at pace at such time they are available commercially at scale.'
The letter claims incoherent government policy will end oil and gas early and make the UK rely on imports.
'The situation is absurd, and we urge you to act now before it's too late,' it adds.
The letter received support from Aberdeen Cyrenians and Cash for Kids charities – organisations supporting vulnerable people and tackling poverty in the north-east.
In her budget last year, Ms Reeves, announced the tax on profits would increase from 35% to 38% and extended it by a year to March 2030.
This brings the headline rate of tax paid by operators to 78%.
The UK Government described Harbour Energy's decision as a 'commercial' one and vowed to support workers and communities.
A spokesman said: 'The government has reformed the Energy Profits Levy to support investment and give industry certainty and stability.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mirror
29 minutes ago
- Daily Mirror
Huge row as Tories demand watchdog probes Reform over data grab
The Tories have called on the Information Commissioner's Office (ICO) to look into a 'cyber-security disaster waiting to happen' affecting Reform-controlled councils Nigel Farage's Reform must be probed over a "cyber-security disaster waiting to happen", the Tories have demanded. The Conservatives have called on the information watchdog to launch an investigation into their right-wing rivals, who have asked for a mountain of data from councils it controls. This includes information on whistleblowers and the names and addresses of people who receive meals on wheels. The Tories also accuse Mr Farage's underlings of risking the amount of cash foster carers receive becoming public. In a letter to the Information Commissioner's Office (ICO), shadow communities secretary Kevin Hollinrake lashed out at "unauthorised data transfers". He warned taxpayers could be landed with massive bills if Reform is fined for breaking the law. It comes after Mr Farage's party said it would use a "unit of software engineers, data analysts and forensic auditors" to trawl council finances to find waste. Mr Hollinrake wrote: "I believe that the scale of such unauthorised data transfers across local government is a cyber-security disaster waiting to happen. READ MORE: Rachel Reeves pumps cash into NHS with 4million more tests and procedures to cut waits "There is a strong public interest in the Information Commissioner taking pro-active steps to investigate and, if necessary, issue enforcement notices against the public authorities and Reform UK Ltd. "I also suspect that council staff would welcome the support of the Information Commissioner, given the clear threats to sack them if they sound the alarm on breaches of the law. It is also not in the financial interests of local taxpayers for their council to be exposed to the liability of fines for breaching the law." The Tories went on to claim there is a "lack of legal basis" for Reform's data requests. Reform has launched its own Department of Government Efficiency (Doge) modelled on the chaotic department Elon Musk headed in the US. In a letter to Kent County Council signed by Mr Farage, Reform's head of Doge Zia Yusuf and its new council leader Linden Kemkaran, the party said its team of analysts was "bound by data protection obligations and professional standards". It also warned: "Should you resist this request, we are ready to pass a council motion to compel the same and will consider any obstruction to be gross misconduct. We trust this will not be required." Reform won control of 10 councils in the May elections, which also include County Durham, Derbyshire, Doncaster, Lancashire, Lincolnshire, North Northamptonshire, Nottinghamshire, Staffordshire, and West Northamptonshire. The party also won the inaugural regional mayoral contests in Greater Lincolnshire, and Hull and East Yorkshire, and has minority control of several councils. Reform's head of Doge Mr Yusuf claimed the Conservatives "were desperate to cover up the corruption and waste of their now deposed local government regimes". He added: "It will not work. "Just as they plundered hundreds of millions from the British taxpayers during Covid, they have done the same at councils. Reform councillors were voted in to expose it, and with the help of Reform's Doge team, they will do just that."
South Wales Guardian
44 minutes ago
- South Wales Guardian
Government ‘putting its money where its mouth is' with £200m for Acorn scheme
Ministers confirmed they are meeting in full the request for development funding for the Acorn project in Aberdeenshire – the first time a government has provided funding of this scale for such a project to proceed. The scheme, which proposes storing emissions from across Scotland under the North Sea, had previously been overlooked for support despite repeated calls from the Scottish Government and others for it to be backed. With the UK Government also pledging to support the Viking carbon capture and storage (CCS) project in the Humber, Mr Miliband insisted the two schemes will 'support industrial renewal' with 'thousands of highly skilled jobs'. According to the sector, Acorn could support about 15,000 jobs at its peak, with up to 20,000 jobs at the Viking project. As it develops, it is planned the Acorn site will link up with the former oil refinery at Grangemouth via more than 200 miles of pipelines. An existing 175 miles of gas pipes will be repurposed for this, with 35 miles of new pipeline also being built, allowing CO2 from the Grangemouth site to be transported to Acorn's storage facilities under the North Sea. The move is seen by many as being key in securing a future for the facility, where some 400 workers were recently made redundant. Speaking as he visited the site near Peterhead, Aberdeenshire, Mr Miliband said: 'This Government is putting its money where its mouth is and backing the trailblazing Acorn and Viking CCS projects. 'This will support industrial renewal in Scotland and the Humber with thousands of highly-skilled jobs at good wages to build Britain's clean energy future. 'Carbon capture will make working people in Britain's hard-working communities better off, breathing new life into their towns and cities and reindustrialising the country through our Plan for Change.' Mr Miliband visited the site the day after Rachel Reeves promised funding for Acorn in her spending review – although the Chancellor did not put a figure on how much support would be given in her statement to MPs. Tim Stedman, chief executive of Storegga, the lead developer of Acorn, said: 'We warmly welcome the UK Government's support for the Acorn project and the commitment to development funding that will enable the critical work needed to reach final investment decision.' He added the 'milestone' is 'key not only for Acorn but for establishing Scotland's essential CCS infrastructure needed to grow and scale the UK's wider carbon capture and storage industry'. Mr Stedman continued: 'We look forward to working with Government in the months ahead to understand the details of today's commitment, and to ensure the policy, regulatory and funding frameworks are in place to build and grow a world-leading UK CCS sector.' Graeme Davies, executive vice-president at Harbour Energy, which is leading the Viking project, said the commitment in the spending review 'sends a strong signal' that the project is 'an infrastructure-led economic growth priority' for the Parliament. He added: 'We will work with Government on the critical steps needed to progress Viking CCS towards a final investment decision.'
The Independent
an hour ago
- The Independent
UK ‘ready to go' on implementing US trade deal, says Business Secretary
The UK is 'ready to go' on implementing its trade deal with the US, the Business Secretary has said. The deal, announced last month by Sir Keir Starmer and Donald Trump, will see British tariffs on steel and automotive exports to the US slashed in exchange for greater access to the UK for some American goods. But the deal has still not been implemented, with both Washington and London yet to take the necessary steps to reduce tariffs. Speaking at a lunch for Westminster journalists on Thursday, Business Secretary Jonathan Reynolds said the UK was ready to implement the deal, suggesting the White House was responsible for the hold-up. He said: 'We are ready to go on our side. 'In terms of the steps I need to take, I will inform the House with a written ministerial statement and lay the statutory instruments for the reciprocal part of that deal, which is obviously about beef and ethanol for us on this side. 'So we're ready to go, and as soon as the president and the White House on their side are able to, we will implement that part of the deal.' The Business Secretary added he was 'very hopeful' that the agreement would come into effect 'very soon', but acknowledged negotiations had not 'always been easy'. Mr Reynolds's comments follow his meeting with US commerce secretary Howard Lutnick on Tuesday to discuss implementing the deal. The meeting, which the Prime Minister also dropped in on, was the latest in a series of engagements aimed at securing a reduction in the tariffs Mr Trump imposed on the UK and the rest of the world on April 2. Along with 10% tariffs on all British goods, the president imposed 25% levies on cars and steel. He later increased the tariff on steel to 50%, but gave the UK a reprieve, keeping Britain's rate at 25% until at least July 9. Under the broad terms of last month's agreement, the US will implement quotas that will effectively eliminate the tariff on British steel and reduce the tariff on UK vehicles to 10%.
