Latest news with #RussellBorthwick
The Herald Scotland
17-07-2025
- Business
- The Herald Scotland
Scottish region tops the UK in job loss expectations
The latest North-east Quarterly Economic Survey conducted by the British Chambers of Commerce (BCC) found that 24% of firms surveyed expect to reduce their workforce in the coming three months. Among those who expect to do so, two-thirds do not work directly in the energy industry. Read more: A third of those surveyed in the north-east expect their turnover to decline, compared to 20% across the rest of the UK - again, the worst figures recorded since the pandemic. 'These figures show the economic consequences of poor policy decisions being made in Westminster," said Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce. 'Our members are not calling for special treatment – they are simply asking for fairness and a stable environment in which to plan, invest and grow. The UK economy cannot afford to turn its back on the North Sea – nor on the thousands of businesses in this region that depend on it.' Nearly four in ten firms (38%) reported falling sales in the last quarter, while forward orders dropped to levels not seen since early 2021. Read more: Business confidence also fell with only 30% of respondents expecting turnover to improve in the year ahead, while 49% anticipate a fall in profitability. This contrasts sharply with UK-wide averages of 49% and 28% respectively. Taxation was cited as the most significant barrier to growth by 73% of those surveyed in the north-east, compared to the UK average of 56%. The findings have prompted the chamber to renew its call for the Energy Profits Levy to be removed "as soon as possible to prevent further damage". Findlay Anderson of legal firm Gilson Gray, partner in the chamber's quarterly survey, described the situation as one of "deepening economic malaise" exacerbated by "short-term policymaking". 'Businesses are delaying investment decisions not because of a lack of ambition, but because the conditions for growth simply don't exist right now," Mr Anderson said. 'What we're seeing is a loss of confidence – not just in the energy sector, but across the supply chain and wider economy. 'The Energy Profits Levy, coupled with increased employment costs and policy volatility, is creating an environment where firms feel unable to plan ahead. Unless we see a shift in direction soon, the risk is long-term damage to the competitiveness of this region.'
The National
28-05-2025
- Business
- The National
UK losing skills to deliver net zero as energy workers head to Dubai
A growing share of the UK's energy sector jobs, investment and innovation are shifting abroad, a new report has found. The 41st Energy Transition Survey has revealed that of more than 100 companies, two-thirds expect to increase their headcount overseas in the next five years, undermining Britain's ability to deliver net zero. Companies expect the majority of their work will be overseas by 2030, with the tipping point coming in about 2027-28, according to the report, published by Aberdeen and Grampian Chamber of Commerce (AGCC). As fossil fuel production is wound down, Aberdeen has in recent years been hoping the North Sea oil and gas industry's engineering expertise can be repurposed to make it a centre for green energy. But according to the report almost half said staff were already leaving the UK to work in other energy regions, caused by weak domestic confidence, uncompetitive policy and a lack of viable projects. Dubai has emerged as one of the top destinations for UK expats, making it one of the world's fastest growing wealth hubs. A representative for AGCC said of the energy jobs leaving the UK that 'anecdotally, we hear a lot are heading to Dubai'. Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, said the findings of the survey are 'a wake-up call for policymakers' in the UK. 'We are training a world-class workforce and building the technology to lead the energy transition, but that talent and investment is increasingly being deployed overseas. 'You cannot deliver net zero by exporting your industrial base. If we continue to erode competitiveness through incoherent energy policy and excessive taxation, we risk offshoring the entire supply chain that is essential to the UK's future energy system.' The survey was produced in association with financial analysts Johnston Carmichael and clean energy company D2Zero. Mark Stewart, head of energy, infrastructure and sustainability at Johnston Carmichael, said: 'Uncertainty and inconsistency in UK energy policy are now bigger threats to investment than commodity prices or global market trends. 'We are seeing a growing trend of skills, capital and capability moving overseas, particularly in areas like offshore wind, carbon capture and decarbonisation technologies.' A UK Government representative said it 'recognises that oil and gas production in the North Sea will be with us for decades to come and is committed to managing the energy transition in a way that supports jobs in both existing and future industries'.
Epoch Times
27-05-2025
- Business
- Epoch Times
UK Losing ‘Mission Critical' Net Zero Supply Chain as Projects, Talent Move Overseas: Report
The UK is losing 'mission critical' supply chain capacity needed to deliver net zero, the Aberdeen and Grampian Chamber of Commerce (AGCC) has warned, highlighting an 'alarming exodus' of workers and projects relocating abroad. In its 41st Energy Transition survey, The survey found that two-thirds of these firms expect to increase their overseas staffing in the next five years. Many also expect that most of their work will be based abroad by 2030, with this shift possibility beginning as early as 2027–28. According to the survey, almost half (46 percent) say that staff are already leaving to find work in international regions, triggered by a lack of viable energy projects in the UK, as well as weak domestic confidence. Only 5 percent said that they were losing workers to the renewables industry, which authors said reflected a lack of projects. The report, published in association with renewables energy group D2Zero and business advisers Johnston Carmichael, said: 'Despite the UK's stated ambition to lead the energy transition, the report shows that activity across renewables, electrification and decarbonisation technologies remains flat. 'Companies warn that the current trajectory could permanently undermine the UK's ability to deliver net zero using domestic supply chains.' Related Stories 5/23/2025 3/25/2025 The survey's findings come as others, including SNP MP Kirsty Blackman, have No Net Zero Without Industrial Base Russell Borthwick, chief executive of the AGCC, called the survey a 'wake-up call for policymakers.' He said: 'You cannot deliver net zero by exporting your industrial base. If we continue to erode competitiveness through incoherent energy policy and excessive taxation, we risk offshoring the entire supply chain that is essential to the UK's future energy system.' Mark Stewart, head of energy, infrastructure, and sustainability at Johnston Carmichael, said the report reflects what many of their clients are saying. Firms have told Johnston Carmichael that inconsistent and uncertain energy policies now pose a greater threat to investment than global market trends or commodity prices. He added his company has also noted a growing trend of capital and skilled workers moving overseas, particularly in areas like offshore wind, carbon capture, and other decarbonisation technologies. 'The energy transition isn't failing because of a lack of ambition—it's failing because of a lack of execution. Businesses are ready to invest, innovate, and diversify, but they need stable, predictable conditions to do so. Right now, the economics simply don't stack up for many green projects,' Stewart said. Next Generation of Energy Jobs The warnings from business leaders come after Blackman told fellow MPs in April that the rate of job creation in the renewables market is failing to keep pace with the decline of the oil and gas industry. As a result, experienced North Sea workers may seek opportunities abroad. The SNP MP cautioned that this could lead to a critical skills shortage, which could impact the government's plans to expand the UK's renewable energy sector. The BP ETAP (Eastern Trough Area Project) oil platform in the North Sea, 100 miles east of Aberdeen, Scotland, on Feb. 24, 2014. Andy Buchanan/AFP/Getty Images In response to the AGCC's report, a British government spokesperson told The Epoch Times: 'The government recognises that oil and gas production in the North Sea will be with us for decades to come and is committed to managing the energy transition in a way that supports jobs in both existing and future industries. 'We have taken rapid steps to deliver the next generation of good jobs for North Sea workers in a fair and orderly transition as part of our Plan for Change—including the biggest investment in offshore wind and two first-of-a-kind carbon capture and storage clusters.' The spokesperson added that this comes alongside the formation of Great British Energy, which has previously announced a £300 million investment in British supply chains. 'Just Transition' for Workers Last week, a report by the Just Transition Commission The Scottish Government told The Epoch Times that workers 'are at the heart of Scotland's just transition to net zero,' and it was working with the energy sector to plan for a multi-skilled workforce which can adapt to different roles as the sector evolves. 'We will continue to work together with organisations and workers across the region to ensure people and the communities they live in continue to thrive,' the Scottish Government said.
Scotsman
27-05-2025
- Business
- Scotsman
How SNP and Labour are blowing a historic opportunity to save North Sea energy industry
Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Another day, another warning to politicians about their failure to ensure that Scotland's declining oil and gas industry is replaced by a world-leading renewable energy sector. This latest wake-up call comes from a survey of more than 100 companies operating on the UK Continental Shelf. Nearly half reported staff were already leaving the UK to work elsewhere, in part because of low confidence in the domestic industry and a lack of viable projects. Advertisement Hide Ad Advertisement Hide Ad Firms told the 41st Energy Transition Survey, published by Aberdeen and Grampian Chamber of Commerce, that they expected the majority of their work would be overseas by 2030 and Russell Borthwick, the chamber's chief executive, spelt out what this would mean in no uncertain terms. 'We are training a world-class workforce and building the technology to lead the energy transition – but that talent and investment is increasingly being deployed overseas,' he said. 'You cannot deliver net zero by exporting your industrial base. If we continue to erode competitiveness through incoherent energy policy and excessive taxation, we risk offshoring the entire supply chain that is essential to the UK's future energy system.' Expertise in marine engineering built up in the North Sea oil and gas industry could help create a world-leading marine renewables industry (Picture: Andy Buchanan) | AFP via Getty Images 'Uncertainty and inconsistency' One key finding was that 90 per cent of firms believed the absence of a Scottish Government energy strategy was damaging investor confidence. And Mark Stewart, of accountancy and business advice firm Johnston Carmichael, said the survey reinforced messages from their clients 'that uncertainty and inconsistency in UK energy policy are now bigger threats to investment than commodity prices or global market trends'. Advertisement Hide Ad Advertisement Hide Ad Clearly governments cannot do everything. They need cooperation from the private sector if a managed transition – let alone a 'just' one – from fossil fuels to renewable is to be achieved. However, having an energy strategy in the first place and ensuring that policies are clear and consistent should be the very least we can expect from ministers.
Scotsman
27-05-2025
- Business
- Scotsman
How SNP and Labour are blowing a historic opportunity to save North Sea energy industry
Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Another day, another warning to politicians about their failure to ensure that Scotland's declining oil and gas industry is replaced by a world-leading renewable energy sector. This latest wake-up call comes from a survey of more than 100 companies operating on the UK Continental Shelf. Nearly half reported staff were already leaving the UK to work elsewhere, in part because of low confidence in the domestic industry and a lack of viable projects. Advertisement Hide Ad Advertisement Hide Ad Firms told the 41st Energy Transition Survey, published by Aberdeen and Grampian Chamber of Commerce, that they expected the majority of their work would be overseas by 2030 and Russell Borthwick, the chamber's chief executive, spelt out what this would mean in no uncertain terms. 'We are training a world-class workforce and building the technology to lead the energy transition – but that talent and investment is increasingly being deployed overseas,' he said. 'You cannot deliver net zero by exporting your industrial base. If we continue to erode competitiveness through incoherent energy policy and excessive taxation, we risk offshoring the entire supply chain that is essential to the UK's future energy system.' Expertise in marine engineering built up in the North Sea oil and gas industry could help create a world-leading marine renewables industry (Picture: Andy Buchanan) | AFP via Getty Images 'Uncertainty and inconsistency' One key finding was that 90 per cent of firms believed the absence of a Scottish Government energy strategy was damaging investor confidence. And Mark Stewart, of accountancy and business advice firm Johnston Carmichael, said the survey reinforced messages from their clients 'that uncertainty and inconsistency in UK energy policy are now bigger threats to investment than commodity prices or global market trends'. Advertisement Hide Ad Advertisement Hide Ad Clearly governments cannot do everything. They need cooperation from the private sector if a managed transition – let alone a 'just' one – from fossil fuels to renewable is to be achieved. However, having an energy strategy in the first place and ensuring that policies are clear and consistent should be the very least we can expect from ministers.
