Today’s report from the House of Commons Scottish Affairs Committee is a wake-up call: the UK cannot afford to accelerate the decline of North Sea oil and gas while clean energy jobs and projects are not yet being delivered at the scale required. The evidence is clear—there is a growing consensus across industry, business groups, and supply chain companies that urgent reform to the Energy Profits Levy is needed to protect jobs, communities, and the UK’s energy future.
Our sector already has a clear plan for jobs and the supply chain. Over 100 UK energy supply chain companies, the British Chambers of Commerce, Prosper, and many more have joined OEUK in calling for immediate reform of the Energy Profits Levy (EPL). The current tax framework is deterring investment, threatening jobs, and undermining the very capabilities needed to deliver the UK’s energy transition and meet the country’s energy needs.
We must not pit clean jobs against oil and gas jobs. The real story is that the UK can—and must—have both: making the most of skilled jobs in oil and gas while accelerating new opportunities in wind, carbon capture and storage (CCS), and hydrogen. Projects are what fill order books and stimulate jobs; a managed transition is the only way to deliver for workers, communities, and the economy.
Key facts:
- The UK’s offshore energy sector supports 200,000 jobs and adds £137 billion in value to the economy by 2050, with benefits reaching every region.
- Without action, the sector will continue to lose 1,000 direct and indirect jobs each month between now and 2030, with losses concentrated in industrial hubs from Aberdeen to Shetland, Grangemouth to Teesside, and beyond.
- The EPL is failing workers, failing investment, and failing public services. Since its introduction, expected revenues have been downgraded from £42 billion to less than £17 billion, with further decline forecast.
- The UK now imports over 40% of its energy, with higher emissions, fewer jobs, and no UK tax benefit.
There is another path – one that supports jobs, value, and climate ambition:
- Replace the temporary EPL with a permanent, profits-based mechanism in 2026, not 2030, to restore investor confidence and unlock £40 billion in new capital investment.
- Deliver committed funding for CCS, hydrogen, and offshore wind, and address transmission charges to enable delivery of clean energy projects at scale.
- Anchor and grow the UK’s world-class supply chain, committing to at least 50% local content and supporting communities across the country.
- Safeguard 160,000 jobs in oil and gas by 2030, with an additional 23,000 direct and indirect roles, while building the workforce for the future.
We urge the UK Government to act now:
- Reform the EPL and provide a stable, competitive fiscal regime.
- Deploy the previously announced funding for CCS, hydrogen, and renewables.
- Ensure a pragmatic approach to North Sea licensing and regulatory certainty for ongoing and future projects – including supporting projects like Rosebank and Jackdaw.
- Learn from Grangemouth and work with industry to deliver a homegrown energy future – what happens to North Sea energy doesn’t begin and end in Aberdeen. It ripples through our industrial spine, across sectors and into Grangemouth, Humberside, Teesside, Tyneside, East Anglia and the Northwest. It undermines the homegrown manufacture of things like fuels, chemicals and pharmaceuticals as well as our energy future.
Katy Heidenreich, OEUK’s Supply Chain & People Director, said:
“Today’s report is a stark reminder that the UK’s energy future must be managed carefully, and the Scottish Affairs Committee adds to a growing chorus of voices calling for the Energy Profits Levy to be reformed at the upcoming budget. We already have a clear plan for jobs and our supply chain – one that makes the most of our world-class oil and gas expertise while accelerating new opportunities in wind, carbon capture, and hydrogen. The real story is not that clean energy jobs aren’t replacing oil and gas jobs, but that we have a path to deliver both, if government policy supports it.
There is growing support for urgent reform – over 100 supply chain companies, business groups like the British Chambers of Commerce, and industry leaders are all calling for change. The current tax and regulatory environment is putting jobs, investment, and our supply chain at risk, just when we need them most to deliver a homegrown energy future.
We urge government to act now: reform the Energy Profits Levy, provide a stable investment environment, and back the projects that will fill order books and create jobs across the UK. With the right policies, we can protect communities, retain skills, and ensure the UK leads the world in both energy security and climate ambition.”
Our message to policymakers is simple: The UK’s energy future will only succeed if it is managed, pragmatic, and rooted in the reality of what sustains jobs and communities today. We stand ready to work with government, business, and industry leaders to deliver a homegrown energy future – one that sustains jobs, strengthens energy security, and delivers a homegrown energy future for the country.”
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