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Scotland’s energy industry has united to demand Chancellor Rachel Reeves brings forward tax reforms and invest funding into offshore wind. The unprecedented coalition between Scottish Renewables and Offshore Energies UK (OEUK) comes amid fears the actions of the UK Labour government has resulted in a “widening gap in jobs, investment and capability that will weaken our economy”. Business leaders in Scotland’s North Sea energy sector have penned a letter to the Chancellor ahead of her autumn Budget later this month - demanding her reforms of the energy profits levy are brought forward to next year, alongside investment for offshore wind and a pledge to protect and redeploy the UK’s highly skilled energy workforce. The move comes as Ms Reeves comes under intense pressure to bring forward her proposed reforms of the energy profits levy from 2030 to next year amid warnings thousands of jobs and crucial renewables investment are being put on the line. READ MORE: MPs deliver 'grim' verdict on Labour's oil and gas strategy amid 'heaving job losses' warning As well as calls for bringing forward tax reforms, the joint letter has appealed to the Chancellor to bring forward more ambitious funding from Westminster for offshore wind through the upcoming auction round of developments. Pointing to a stark report, published last week by the House of Commons Scottish Affairs Committee, the appeal has also called for early intervention to prevent Grangemouth-scale job losses in the energy transition. Fears have been raised over a gap of jobs being lost in the oil and gas sector not being met by ramping up employment in renewables at the same pace, particularly in manufacturing. The letter to Ms Reeves and UK Energy Secretary Ed Miliband, signed by David Whitehouse, chief executive of OEUK and Claire Mack, chief executive of Scottish Renewables, warns that “our energy future stands at a critical juncture”. It adds: “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.” READ MORE: Rachel Reeves told to fast-track windfall tax reforms or risk losing £40bn North Sea investment Ms Mack said: “The skills, infrastructure and experience built by Scotland’s oil and gas sector are vital assets that must be safeguarded and redeployed as we accelerate the transition to clean energy. “While oil and gas is financed differently to offshore wind, both sectors are now facing serious investment headwinds at precisely the moment when we need to carefully manage Scotland’s energy transition.” She added: “We have offshore wind projects ready to inject the fresh activity needed to strengthen our supply chain and skills base. These projects will underpin our energy security for decades to come, providing a platform for cost reduction. “It is critical that the UK government’s upcoming auction rounds enable Scotland’s offshore wind pipeline to move into construction so that their full value can be realised for consumers and communities.” Scottish politics has never been more important - get The Steamie newsletter today A UK government spokesperson said: "We are taking a responsible approach that recognises the long-term role of the sector while exploring what follows the end of the Energy Profits Levy, so firms continue to invest and pay their fair share of tax. “The oil and gas sector will be with us for decades to come, as we deliver a fair and orderly transition in the North Sea to drive growth and secure tens of thousands of skilled jobs, with the biggest ever investment in offshore wind and first of a kind carbon capture and storage clusters.”
