Tory leader Kemi Badenoch is poised to advocate for the end of the windfall tax on oil and gas firms and the ban on new licences in a major speech today.
Initially established by the prior Conservative administration, but extended upon Labour's ascent to power, the Energy Profits Levy (EPL) was intended to finance initiatives aimed at reducing household expenses.
However, the policy has had a catastrophic impact on the industry, which has lost 10,000 jobs since the EPL was introduced.
Addressing the Scottish Conservative conference in Edinburgh today, Ms Badenoch is anticipated to champion the oil and gas sector, accusing the UK Government of "killing" it.
She is expected to assert that "renewing our party and our country means standing up for our oil and gas industry".
She will add: “When the oil and gas windfall tax, the energy profits levy, was brought in, the oil price was near a historic high, at the exact time as energy bills for the British people were sky-rocketing.
“But there is no longer a windfall to tax. It has long gone. And the longer this regressive tax on one of our most successful industries remains, the more damaging it becomes.
“Labour have extended and increased this tax. They are killing this industry.”
If the measure remains in place to 2030, as intended, Mrs Badenoch will say “there will be no industry left to tax”.
She will add: “So, today, I say enough. Labour must remove the Energy Profits Levy. Labour must speed up the process of replacing it with a system that rewards success and incentivises investment.
“Because we shouldn’t have this energy profits levy at all. We must scrap the ban on new licences. We must overturn the ban on supporting oil and gas technology exports. And we must champion our own industry.
“We must let this great British, great Scottish industry thrive, grow and create jobs – ensuring our energy security for generations to come, driving growth and making this country richer in the process.”
Scottish Labour deputy leader Jackie Baillie said: “While the Tories and SNP let energy workers down by failing to plan for the future, Scottish Labour is committed to taking action towards reaching net zero, creating jobs and cutting energy bills."