The BCC has reacted to the Government’s recently released North Sea Future Plan. It commented after accompanying Aberdeen and Grampian Chamber of Commerce to HM Treasury to hand in a letter signed by 7,000 businesses and workers calling for the windfall tax to be axed.  

Ben Martin, Policy Manager at the BCC, said: 

“This Plan rightly recognises the importance of delivering a long-term energy transition in the North Sea, and the critical role of businesses and workers in the sector.  

“But it fails to address the elephant in the room, that investment and jobs are draining out of the North Sea at an alarming rate because of the crippling tax regime being imposed on the industry. 

“Unless the recently announced Oil & Gas Price Mechanism is introduced at the earliest opportunity, all other efforts from the North Sea Future Plan will be significantly limited in their impact. This would be a travesty as many of the other proposals in the report have merit. 

“Indeed, the Government’s plan incorporates many of the recommendations from the independent North Sea Transition Taskforce, which the BCC convened. 

“These include ensuring that existing fields are used in full, recognising the continued need for oil and gas, supporting North Sea workers through reduced training burdens and minimising qualification barriers.  

“The announcement of a North Sea Future Board can also bring together Government and key stakeholders to work together to review progress towards the energy transition. Businesses must be part of this vital conversation, and the BCC and its network of Chambers stand ready to work with the Government to deliver a successful energy transition.  

“Taken together, these measures could have the potential to offer certainty and confidence to a sector which has faced tens of thousands of job losses in recent years.  

“But there is a real fear that it will all come to nothing if the current windfall tax remains in place. Firms are clear that they cannot continue to be taxed at this rate for the next four-and-a-half years. 

“A successful energy transition is possible, but only with the right fiscal regime to provide the long-term certainty needed to drive the clean energy transition.” 

Russell Borthwick, Chief Executive of Aberdeen and Grampian Chamber of Commerce, who handed in the letter, added:  

“The North Sea is being taxed into decline, and it is workers and energy communities who are bearing the brunt. We now need swift, decisive action to prevent further major job losses and the deindustrialisation of Scotland’s critical energy infrastructure. 

“Even the UK Government accepts it is taxing windfalls that do not exist. There is simply no credible justification for persisting with the current regime.”