Responding to the UK Government 2025 Budget Statement, Russell Borthwick, Chief Executive at Aberdeen & Grampian Chamber of Commerce, said:
“The UK Government has accepted, through their announcement on tiebacks, that their policy towards a sustainable future for the North Sea is completely and utterly flawed, risks terminal damage to the UK’s energy security and is proving economically ruinous.
“But limited flexibility on licensing is immaterial if those companies producing the energy we need are taxed at a crippling rate of 78% until 2030. They cannot invest or survive while the EPL remains in place.
“The industry put forward a case for a reformed EPL that would have delivered more than 100 projects, £50billion of investment and protected around 160,000 jobs. Crucially, it would have also delivered an addition £10billion in tax revenues over the next decade.
“Without so much as a mention in the Chancellor’s statement today, the UK Government has instead opted for a cliff-edge end to North Sea production and to tax the industry to death inside five years. Jobs will be lost in their thousands as a direct result of this government’s failure to act.
“As the voice of business in the North-east of Scotland, we will refocus our efforts on ensuring that this jobs and economy-wrecking tax is brought to an end as soon as possible. Aberdeen is not going down without a fight.”