Commons Sense

House of Commons · Ministers' Questions

Energy Profits Levy: Gas Sector

Wednesday 25 February 2026 · 5 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • Gregory Stafford questioned the impact of the energy profits levy on the oil and gas sector in Scotland.
  • The Chancellor confirmed at the Budget that measures are in place to manage the transition in the oil and gas sector.
  • Richard Baker inquired about the potential for renewables and defence contracts in Methil yard, which the Secretary of State supported.

Topics (select to filter)

Questions & Answers

Q1 Gregory Stafford Con Farnham and Bordon
Scotland Energy
Context

Discussions about the potential economic impact of the energy profits levy on the Scottish oil and gas industry, which has seen significant job losses.

Question

What discussions he has had with Cabinet colleagues on the potential impact of the energy profits levy on the oil and gas sector in Scotland. Oil and gas will play a vital role for decades but there is an urgent need to manage transition properly.

Answer from Douglas Alexander

First, I respectfully remind that it was the Conservatives who brought in the energy profits levy in 2022. Oil and gas will be a central part of the UK's energy mix for decades to come but there is also recognition of a transition needing management. The Chancellor confirmed at the Budget we are ending EPL on 31 March 2030.

Partly answered

Not addressed: Did not provide specifics on addressing current issues or commitments beyond confirming an end date for the levy in 2030.

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Q2 Gregory Stafford Con Farnham and Bordon
Economy Employment Energy
Context

Thousand jobs lost monthly due to the government's decision regarding EPL. Energy costs are rising for constituents despite imports increasing at higher prices.

Question

A thousand jobs a month are being lost as direct result of Government's decision while importing more at high cost with emissions. Bills up for my constituents. Why not rectify and sort out problem?

Answer from Douglas Alexander

Trend in North sea production did not emerge yesterday; mature basin with 75% reduction in production between 1999-2024. UK net importer since 2003, lost more than 70,000 jobs from the basin under Conservatives.

Not addressed: Shifted focus to historical context rather than addressing current job losses or high bills.

How: Historical Blame

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Q3 Richard Baker Lab Glenrothes and Mid Fife
Scotland Energy Business & Trade
Context

Renewable energy opportunities for Scottish businesses, specifically mentioning the Methil yard.

Question

Oil and gas will play a vital role for decades but opportunities exist in renewables. Methil yard ideally placed to deliver infrastructure as well as defence contracts like Programme Euston. Agree?

Answer from Douglas Alexander

Hon. Friend is entirely right; visited Navantia yard in Methil just a couple of weeks ago. Since Labour Government stepped in, Navantia announced £12 million investment in the site.

Answered
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Q4 Andrew Bowie Con West Aberdeenshire and Kincardine
Energy Business & Trade
Context

Danish Minister supports domestic energy production over foreign imports, supporting local economy and industry.

Question

Which does Secretary of State agree with—Danish Energy Minister, GB Energy, Scottish Renewables, trade unions or his own colleague?

Answer from Douglas Alexander

Introduced EPL was Conservative Government. Clear that EPL will come to an end in 2030. Oil and gas sold into global markets, lost third of North sea workforce under previous government.

Not addressed: Shifted focus to historical context and blame rather than addressing the current opinion.

How: Historical Blame

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Q5 Andrew Bowie Con West Aberdeenshire and Kincardine
Economy Scotland Business & Trade
Context

Supporting domestic industry yields more jobs, income tax revenue, company taxes, and GDP compared to imports.

Question

Who supports Scottish oil and gas industry better than imports? Everyone else understands. Will Secretary State explain to everyone what the Government is playing at?

Answer from Douglas Alexander

Aching gap between what Member says and Conservatives did. Under their rule, lost third of North sea workforce; failed to come up with a plan.

Not addressed: Shifted focus to historical context rather than addressing current policies or support for the industry.

How: Historical Blame

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