Exclusive: John Swinney calls time on ‘laughable’ windfall tax in last-minute budget plea for north-east jobs.

According to the first minister, the North Sea is declining more quickly as a result of the profit levy.

In order to save jobs in Aberdeen and the northeast, John Swinney is directly pleading with the Chancellor to remove the energy windfall tax from the budget tomorrow.

“There was a time when the oil and gas giants were making windfall profits – but those days ended years ago,” he says, criticising Labour government policy.

It is simply absurd to think that there is any North Sea windfall to tax. “Instead, the windfall tax is only causing employment losses and accelerating the North Sea’s decline.”

One day before Rachel Reeves informs Westminster of her tax and spending plans, the conflict is intensifying.

Leaders in the oil, gas, and renewable energy sectors have banded together to demand changes to the windfall tax, pushing the issue to the top of the agenda.

‘Risk’ to thousands of jobs

The Energy Profits Levy is a tax that critics claim puts 1,000 direct and indirect employment at risk each month.

This month, the P&J released an open letter to Prime Minister Sir Keir Starmer expressing their grave concern over widespread job losses should the energy sector continue to be targeted.

And analysis seems to support such concerns.

Since the 2015 oil shock, the Scottish economy’s GDP has increased by 7%. Experts at the Fraser of Allander Institute claim that there has been a 21% decrease in the northeast.

According to Mr. Swinney’s article in The P&J today, the SNP Government has been presenting the argument both in private and in public for months.

But in recent years, the SNP has also faced criticism for being overly ambiguous in its support for petrol and oil.

‘Decline in oil and gas’

Mr Swinney wants to take advantage of the “second energy lottery” with a twin track push for renewables.

“Instead of matching the pace of change, instead of the parallel track, the UK Government has chosen to accelerate the decline in oil and gas,” he says.

“The windfall tax was introduced by the Tories and continued beyond all justification by Labour.”

He cites the shock closure plan at Mossmorran in Fife as another evidence of a “gap” between businesses.

He claims that the deficit has grown so large that it will require UK government intervention, potentially during the budget on Wednesday afternoon, to close it.

In a political attack, Mr Swinney said that the Chancellor had gotten addicted to fiscal regulations imposed by former Conservative leaders such as Liz Truss and Boris Johnson. And he fears Ms Reeves will preserve the tax.

Energy Profits Levy ‘should be scrapped’

“The EPL should be scrapped and a proportionate tax regime established,” he argues.

“The accelerated decline in the North Sea must be stopped.” The UK Treasury does not comment on budget decisions in advance, but it has previously announced large-scale investment in the region, including GB Energy’s base in Aberdeen.

Scottish Labour deputy leader Jackie Baillie told Holyrood that the SNP had stood alongside the Tories for years, presiding over deterioration.

She told The P&J: “John Swinney and the SNP should be embarrassed for raising taxes on working people while demanding tax breaks for multinational corporations.”

“For years, the SNP and Tories have stood by and watched Scotland’s oil and gas industry decline with no plan for the future, but Labour will support the industry and its workers while transforming Scotland into a clean energy superpower.” “The financial irresponsibility of the SNP government would make Liz Truss blush.

“Mortgages have fallen by an average of £1,500 because of the economic stability ushered in by Labour, but John Swinney would happily gamble with the livelihoods of working people.”

Read more about the budget and the future of North Sea jobs.

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