Energy Profits Levy: North-east Scotland

Jim Shannon Excerpts

Tuesday 14th October 2025 Commons Chamber

[Harriet Cross (Gordon and Buchan) (Con)]

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 on a regular basis across our region from the world-class energy sector that we are so proud of, not least because of the energy profits levy. These are geologists, engineers, technicians and project managers—highly skilled workers who are nothing but of value to the UK—but they are also people with mortgages, people with families and people who have given decades to an industry that this Government are now destroying through deliberately punitive policies.

Offshore Energies UK warns that, largely because of the EPL and other Government policies on the North sea, almost 1,000 direct and indirect jobs will be lost every month. That is 1,000 livelihoods, 1,000 mortgages and 1,000 families facing uncertainty every single month. OEUK also projects that 42,000 jobs are at risk between now and 2030. Energy workers in north-east Scotland feel like they are on borrowed time. No one really celebrates when they manage to survive a round of job cuts, because they know it is likely just to be short-term relief, with more cuts coming soon.

The energy profits levy was introduced in 2022, at a time when oil and gas prices were spiking after Russia invaded Ukraine. At that time, Brent crude peaked at over $130 a barrel and averaged $99 a barrel in 2022. Similarly, in 2022, gas peaked at 640p a therm and averaged 165p a therm that year. Let us compare that with this year. In August 2025, Brent averaged $71 a barrel and gas 81p a therm. That is a 28% and a 51% drop on the 2022 averages, and oil this week is at a six-month low. The energy profits levy has ceased to be a windfall tax. The windfall has gone, and the prices have returned to normal levels. The Competition and Markets Authority found that in 2025, oil markets are now relatively stable, and exceptional circumstances seem to have receded.

[Jim Shannon (Strangford) (DUP)]

Will the hon. Lady give way?

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Mr Shannon on the north-east of Scotland.

[Jim Shannon]

Madam Deputy Speaker, 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. It is very important that we add our support to her.

Does the hon. Lady agree that while investment in tidal energy has not produced the desired result of sustainable, reliable energy, the levy on energy profits has achieved a result that is absolutely undesirable and is seeing investment in our countries being moved to the USA and other regions with a more favourable approach? Does she also agree that the economic black hole cannot be filled by more levies but must be filled by investment in our businesses and creating future job security? I commend her.