We need your support at a crucial moment for our region, our workforce and our energy future.
Following the decision to retain the Energy Profits Levy (EPL) until 2030, Aberdeen & Grampian Chamber of Commerce is coordinating a public letter to the Chancellor, Rachel Reeves, urging the UK Government to bring forward the introduction of the new Oil & Gas Price Mechanism (OGPM) to 2026.
This is the single most important action the government can take right now to protect jobs, unlock £50billion of investment, and ensure a managed and just transition for the North Sea.
The letter (below) spells out the case directly, backed by facts, figures and the experience of our world-class workforce and supply chain. But for it to have maximum impact, we need as many voices as possible behind it.
SIGN THE LETTER
What the letter says
Dear Chancellor,
Economic forecasts from the Office for Budget Responsibility, published alongside your Budget, highlight that UK Government revenues from the North Sea will fall by 93% between now and 2030, from £4.5billion to £0.3billion.
The OBR makes clear that a decline in domestic oil and gas production, driven by the continued application of the Energy Profits Levy (EPL), is to blame. That same decline in production is increasing reliance on imported energy, which cost the UK more than £60billion last year.
By producing more, and importing less, public finances would be significantly improved and the world-class workforce and supply chain we require to deliver a managed and just transition, repeatedly promised by your government, would be protected.
The government now faces a clear choice: keep the EPL in place to 2030 and precipitate thousands of further and avoidable North Sea job losses, or work with industry to safeguard employment and unlock investment by bringing forward the new Oil & Gas Price Mechanism (OGPM) to 2026.
HM Treasury stipulates a windfall only occurs at around $95 Brent – a price not seen in three years, since October 2022 – meaning the Energy Profits Levy is, by the government’s own determination, unwarranted.
By accelerating the implementation of the new OGPM, you would protect jobs, stimulate investment and deliver much needed energy and job security.
We the undersigned urge you to move to this proposed successor regime without delay.
How to add your signature
You can sign the letter as an individual or on behalf of your organisation.
To sign the letter, click here.
Please add your name today, and share this with your networks.
Your support will demonstrate the collective strength of our region, the sector and ensure government understands the consequences of inaction.