Offshore renewables organisations and wider energy industry groups have jointly called on the government to urgently scrap the Windfall Tax imposed on North Sea producers, warning that inaction could trigger economic decline and significant job losses across the UK’s energy sector.
Scottish Renewables, which represents over 350 green energy companies, has partnered with Offshore Energies UK (OEUK) to formally request Chancellor Rachel Reeves and Energy Secretary Ed Miliband to end the Energy Profits Levy by 2026. In a letter to ministers, David Whitehouse, Chief Executive of OEUK, and Claire Mack OBE, Chief Executive of Scottish Renewables, write:
“Our energy future stands at a critical juncture.”
“Unless we slow the pace of decline in North Sea oil and gas while simultaneously accelerating the scale and speed of renewable energy deployment, we face a widening gap in jobs, investment and capability that will weaken our economy.”
The letter draws on findings from the Scottish Affairs Committee to stress the risk of Grangemouth-scale job losses if early intervention is not delivered.
Three Demands for the UK Budget
The group’s joint appeal outlines three urgent steps:
- Replace the Energy Profits Levy with a fair successor regime from 2026
- Increase government investment in offshore wind via Allocation Round 7 (AR7)
- Protect and redeploy highly skilled energy workers across the UK
With the Treasury considering reforms to oil and gas licensing and the fiscal regime, ministers have asked industry to detail investment commitments should the levy be removed. Companies say this could unlock up to £40 billion in investment over 90 key energy projects.
Echoing their earlier warning, the joint letter reiterates:
“We face a widening gap in jobs, investment and capability that will weaken our economy.”
The energy sector’s leaders now await a decisive response, insisting Westminster’s next move is vital for supporting both offshore renewables and the UK’s broader energy future.
