Commons Sense

House of Commons · Adjournment Debate

Energy Profits Levy North-east Scotland 2025-10-14

14 October 2025 · 7 other contributors

Opened by Harriet Cross Con Gordon and Buchan

EconomyEnergy

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Harriet Cross raised concerns about energy profits levy north-east scotland 2025-10-14 in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • Concerns raised about the Energy Profits Levy leading to significant job losses in north-east Scotland's energy sector.
  • Offshore Energies UK projects up to 42,000 jobs at risk by 2030 due to the Energy Profits Levy.
  • The Exchequer Secretary acknowledges the UK oil and gas industry's contribution of over 400 billion in production taxes since the late 1960s.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Harriet Cross Con Gordon and Buchan

I secured this debate because what is happening in north-east Scotland simply cannot go on. Hundreds, if not thousands, of jobs are being lost regularly across our region from the world-class energy sector that we are proud of, largely due to the Energy Profits Levy (EPL). These are highly skilled workers who are invaluable to the UK but also people with mortgages and families facing uncertainty every month. Offshore Energies UK warns that almost 1,000 direct and indirect jobs will be lost monthly. OEUK projects up to 42,000 jobs at risk by 2030 due to the EPL. In 2025, oil prices dropped significantly compared to 2022 levels, yet the levy remained punitive. The Chancellor increased the EPL from 35% to 38%, extending it until March 2030 and abolishing investment allowances. Capital investment forecasts fell by 84%, and £26 billion of economic value will be lost under Labour's EPL extension.

Other contributors (7)
  • Jim Shannon DUP Strangford

    I spoke to the hon. Lady beforehand to ensure that I was here to support her in what she is trying to achieve in north-east Scotland. Investment in tidal energy has not produced sustainable results, and the levy on energy profits has achieved an undesirable result of seeing investment move abroad.

  • Torcuil Crichton Lab Na h-Eileanan an Iar

    I pay tribute to the hon. Lady for securing the debate and share her passion for her constituents' work in the North sea, acknowledging that offshore jobs are dangerous and must be balanced with a managed transition from fossil fuels to renewables.

  • Andrew Bowie Con West Aberdeenshire and Kincardine

    This issue is also felt keenly in the neighbouring constituency of West Aberdeenshire and Kincardine. Skilled workers are being lost to the United Arab Emirates, Riyadh, Australia, Mexico and Canada due to punitive measures by this Government.

  • Graham Leadbitter SNP Moray West, Nairn and Strathspey

    The loss of skills impacts investor confidence in the North sea, directly linked to renewables. The Government needs to give an end date for this temporary measure as soon as possible.

  • John Cooper Con Dumfries and Galloway

    New techniques such as horizontal drilling are delivering huge benefits for the Norwegian economy, while we deny ourselves those opportunities due to punitive measures from the UK Government.

  • Scott Arthur Lab Edinburgh South West

    The Member noted that Scotland’s Deputy First Minister had expressed a desire to replace the EPL but did not specify what would take its place. He also raised concerns about the Opposition's decision to potentially scrap the Climate Change Act, which could unsettle the industry.

  • John Cooper

    The Member argued that there is a need for balance in transitioning workers from oil and gas to renewables and expressed concern that current policies are not providing immediate job opportunities for those impacted by EPL phase-out.

Government Response

Government Minister

The Exchequer Secretary acknowledges the significant role of the UK oil and gas industry in contributing over £400 billion in production taxes since the late 1960s, supporting thousands of jobs. The current tax regime aims to support investment while ensuring a fair return on national assets. The Energy Profits Levy (EPL) was introduced amid record-high prices following recovery from the pandemic and Russia’s invasion of Ukraine. While pursuing net zero targets, domestic oil and gas production continues to play a vital role in energy security for decades to come. The industry is expected to contribute about £16 billion in tax receipts between this financial year and 2029-30. The EPL has raised over £11 billion since its introduction, supporting public services and lower energy bills for families across the UK. Despite concerns, capital expenditure in the sector rose from around £4 billion to £6 billion last year. Pragmatic reforms were introduced at the autumn Budget 2024 to help support competitiveness. The EPL will end no later than March 31, 2030. A consultation on future fiscal regime has been published and closed earlier this year, with a response expected shortly. The Minister assured the House that the Government’s intention is not to wait until the EPL is about to cease before bringing in new legislation, and committed to bring forward necessary legislation as quickly as possible to ensure a smooth transition. He highlighted significant investments in offshore wind and carbon capture and storage clusters, noting that Great British Energy will create thousands of jobs across the country and invest up to £1 billion in clean energy supply chains. The Minister emphasised the importance of finding the right balance between phasing out oil and gas production and ramping up clean energy infrastructure. He also addressed concerns about the impact of domestic oil and gas extraction on international market prices, stating that it does not significantly affect UK energy bills or pump prices. In conclusion, he reiterated the Government’s commitment to providing a balanced, responsible, and predictable regime for the UK oil and gas industry while driving growth, supporting workers and communities, protecting energy security, and ensuring a prosperous future as the nation transitions towards net zero.

▸ Assessment & feedback
Summary accuracy