Aberdeen energy workers at risk of losing jobs demand end of windfall tax

Press and Journal

21-05-2025

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.'