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Press and Journal
08-05-2025
- Business
- Press and Journal
Kate Forbes holds talks with Harbour Energy bosses over Aberdeen job cuts
Deputy First Minister Kate Forbes today met with Harbour Energy bosses after the firm announced 250 job cuts in Aberdeen — blaming the UK Government's windfall tax. The economy secretary held online talks with the company on Thursday, around 24 hours after the jobs blow was announced to staff. Speaking at Holyrood on Thursday, First Minister John Swinney said he was 'deeply concerned' by the news as he criticised Labour's Energy Profits Levy. It is understood an industry-wide ask was made during the meeting for Ms Forbes and other senior politicians to continue to raise the impact of the levy on North Sea firms. She blasted the UK Government's 'ill-judged' decision which she warns has led to a 'cliff edge of job losses in Aberdeen'. The move will see a quarter of Harbour Energy's Granite City onshore workforce axed and follows 350 job losses in 2023. The firm said the decision comes mainly due to the UK government's 'ongoing punitive fiscal position and a challenging regulatory environment'. It also highlighted ongoing uncertainty around UK government support for its Viking carbon capture and storage (CCS) project in the Humber. The company is also an investor in the CCS Acorn project at St Fergus, near Peterhead, which is also still awaiting track-2 funding. In November's budget, Chancellor Rachel Reeves announced the windfall tax on North Sea producers would increase from 35% to 38% and be extended by a year to March 2030. Speaking during First Minister's Questions on Thursday, Mr Swinney said his thoughts were with employees facing an 'extraordinarily anxious time'. But he entered into a heated exchange with North East Tory MSP Douglas Lumsden who accused the SNP government of 'turning its back on the north-east'. 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 are selling out communities all over the north-east.' Mr Swinney said the Scottish Government has 'made clear our concern' about the extension and the scale of the windfall tax. He pointed out the levy was introduced by the former Conservative government. The first minister added: 'One of the things I think would help with this enormously in this whole area of policy is for the current UK government to do something the last Conservative government didn't do and that's to commit urgently, swiftly to the Acorn CCS project. 'That would help us enormously but the Conservatives have never lifted a finger to make that happen. I hope Labour Party will not do the same.' A UK government spokesman said on Thursday: 'Our thoughts are with any workers affected by this commercial decision, and we will do everything in our power to support workers and communities. 'The government has reformed the Energy Profits Levy to support investment and give industry certainty and stability.'
The Herald Scotland
08-05-2025
- Business
- The Herald Scotland
FM attacks windfall tax as Harbour Energy sheds 250 jobs
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.' READ MORE 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. READ MORE 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.
