Reeves urged to cut windfall tax and not ‘sacrifice’ oil and gas workers

A trade union has urged the Chancellor not to “sacrifice” oil and gas workers and ease the windfall tax at the Budget this month.

Louise Gilmour, GMB Scotland secretary, has written to Rachel Reeves to urge her to cut the levy – which was placed on the industry by the last government and extended since Labour took office last year – saying that every day an oil and gas worker is out of a job is a “Government failure”.

Many in the industry and opposition politicians have warned that the 38% charge on the profits of firms were risking investment and jobs.

“While oil and gas workers are forced to leave the industry or follow work abroad, there is little sign of the renewables jobs meant to replace them, not in the UK at least,” she said.

“Every day an oil and gas worker spends out of work is a Government failure and there is both an economic and a moral case for action.

“Energy workers must be supported through the transition, not sacrificed to it.”

She added: “Of course, we must encourage and adopt new renewable sources of energy but our transition need not be so rushed and self-harming.

“Promised UK jobs with terms and conditions even close to matching those in oil and gas have yet to be created and any hope of a successful transition rests on their experience and expertise and the financial strength of their companies helping build the energy infrastructure of tomorrow.

“This will be impossible if ministers fail to protect our oil and gas sector while mapping a measured, planned and successful transition to net zero.”

Ms Gilmour also hit out at the shuttering of the Grangemouth oil refinery earlier this year, describing it as both “needless” and the dismantling of a “bulwark of UK energy security”.

“For years to come, we will need oil and gas to heat our homes and power our industries,” the union leader said.

“If we need it, and we have it, then we should produce it and allow workers to build families and communities on a successful and lucrative industry capable of underpinning energy supplies.”

The UK Government has been contacted for comment.