Scotland to reveal North Sea oil and gas pledge as windfall tax concerns grow

Scotland to reveal North Sea oil and gas pledge as windfall tax concerns grow

The new Labour Government has sought to calm nerves within the UK’s North Sea oil and gas sector as the country’s transition to clean energy gathers pace. 

The UK Government is set to reassure the North Sea oil and gas sector that the transition to clean energy will be well-considered.

Labour plans to ease by ensuring that the shift away from fossil fuels will be managed responsibly, following industry apprehension about the speed of the transition, according to several UK media reports on Tuesday.  

Prime Minister Keir Starmer has pledged to cease issuing new North Sea oil and gas licences to uphold global climate commitments, as well as proposing increased windfall taxes for the sector.

The party stated that it would raise the windfall tax on profits from North Sea oil and gas to 78% and eliminate the “unjustifiably generous investment allowances” companies currently use to reduce their tax burden.

In contrast, the Conservative Party had planned to issue new exploration licences annually, while Labour promised to discontinue this practice. This move could reduce employment in the North Sea and...

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