AN SNP MP has raised fresh concerns about energy production following the release of new figures showing an increased reliance on foreign imports.
Aberdeen and Grampian Chamber of Commerce reported a 4% increase in reliance on foreign imports of oil and gas while domestic energy production from all sources fell by 8.3%.
It comes in the same week that Chancellor Rachel Reeves (below) announced an extension of the Energy Profits Levy for another two years until the end of March 2030 while also increasing the headline tax rate for the sector from 75% to 78%.
The levy is the tax on the extraordinary profits of oil and gas companies operating in the UK and we previously told how an MSP said the increase could have a “hugely detrimental” effect on the oil and gas industry.
Aberdeen Central MSP Kevin Stewart invited the Chancellor to Aberdeen to “reflect” on her decision.
Meanwhile, SNP MP for Aberdeenshire North and Moray East Seamus Logan said “we told you so” in response to the latest figures.
“While there are always seasonal variations, the trend here is clear and it’s not good news – major energy companies are now selling assets while reducing their investment exposure and jobs may be at risk,” Logan said.
“Last week I urged the Minister for Energy to review the Labour Government’s strategy so that we don’t create a highly unfriendly fiscal environment, but this news today will only raise further concerns that Labour has taken the wrong approach despite repeated warnings from industry experts.
“Labour promised there would be no cliff edge for the north east workforce, but if you don’t have investment then you don’t have jobs and nowhere will that be felt more than in our corner of the world.
“By starving our energy sector of investment, you risk tens of thousands of jobs, but you also risk our just transition and our net-zero ambitions – it’s that simple and Labour must walk this one back as soon as possible.”
