Forbes calls for windfall tax to be replaced at the coming Budget

Scotland’s Deputy First Minister has urged the Chancellor to scrap and replace the windfall tax on oil and gas at the next Budget.

Rachel Reeves will lay out the UK Government’s tax and spending plans next month, but the energy profits levy – which levels a tax on the profits of oil and gas firms – is due to continue to 2030.

But speaking at the SNP conference for the final time as an MSP, Kate Forbes urged the Chancellor to end the levy – which was increased last year to 38% – early.

“Labour have followed the decades old pattern of exploiting Scotland’s energy revenues by extending and increase the Tory energy profits levy, making hundreds of workers redundant and creating an unjust transition,” she said.

“In a classic move by this Labour Government, they accept the 78% tax rate is costing jobs, but they won’t do anything about it for five years.

“So, we call on the Chancellor today, don’t wait, replace this destructive fiscal regime at the next Budget with a fair one that protects workers and enables the energy transition.”

Ms Forbes heavily touted Scotland’s renewable energy potential in her speech, but reiterated her Government’s opposition to nuclear power.

Scottish ministers have ruled out new nuclear energy plans in the country, holding an effective veto due to holding the powers over planning.

“We are leading the world in the innovation, technology and commercialisation of renewable energy,” she said.

“That’s why it is so bewildering that the UK Government would rather focus on the distraction of new nuclear, rather than Scotland’s renewables potential.

“It will take longer, it will be more expensive, it will increase bills and it will leave our communities to deal with dangerous nuclear waste.

“So conference, let us be clear with the Labour Government today – Scotland will not be the UK’s nuclear playground.”

Ms Forbes announced earlier this year she would be stepping down as an MSP at the next election, citing pressure on her family life.

She concluded her speech by thanking SNP activists, adding that it has been an “enormous privilege” to represent her Skye, Lochaber and Badenoch seat.

“The landscapes are breathtaking and the people are resilient,” she said.

“It has been my privilege, a privilege beyond, to serve these communities on behalf of the SNP.

“I’m deeply proud to have been part of the SNP Government as finance secretary and Deputy First Minister, securing many of the economic building blocks to smooth our transition to an independent nation.”