THE UK Government has been blamed after Harbour Energy revealed plans to axe around 250 jobs in Scotland.
The oil and gas firm said the cuts – about a quarter of its workforce in Aberdeen – come as part of a review of its UK operations.
The job losses are on top of 350 roles that were cut by the firm in 2023.
In an emergency press conference on Friday, the Aberdeen and Grampian Chamber of Commerce called for urgent government action, including an emergency summit of the Prime Minister and First Minister in an effort to prevent further job losses and accelerate green energy job creation.
The organisation also called for the energy windfall tax to be removed before the start of the next financial year and for the UK Government to back the Acorn carbon capture project.
Russell Borthwick, head of the Aberdeen and Grampian Chambers of Commerce, said: “We are witnessing the start of deindustrialisation in the UK’s energy capital. This is not what the public voted for, and this is reflected in our polling published today.
“The Energy Profits Levy is starving the sector of investment and damaging the very supply chain we need to deliver net zero. The country didn’t vote for lost jobs, rising imports and higher emissions.”
The polling from Survation found that 68% of UK voters want to meet oil and gas demand from domestic production, rather than relying on imports. It also found that 27% believe the windfall tax has helped reduce household bills, with 62% calling it ineffective.
Borthwick added: “Since the windfall tax was first imposed in May 2022, the price of Brent Crude oil has nearly halved. Meanwhile, the levy has been increased by successive governments.
“As the industry faces this punishing tax rate, coupled with uncertainty on environmental assessments and a closed door on exploration, these findings show the UK has become a difficult place to do business.
“It leaves the country reliant on imported oil and gas, and has cost jobs from the energy supply chain which is vital for delivering projects in offshore wind, hydrogen, and carbon capture - all essential for net zero.
“The shift to renewables at scale is the goal, particularly offshore wind, but volatile transmission charges and the risk of zonal pricing are undermining investment plans. Policy should instead seek to put the energy transition back on the front foot.”
Trade unions are also blaming Labour for the job losses, saying the "hostile regulatory environment" created by the ban on new drilling licences is leading to oil and gas operators accelerating decisions "that are destructive to job security and UK energy security".
Unite general secretary Sharon Graham said: “The announcement by Harbour Energy that further jobs will be lost in Aberdeen is devastating news for the oil and gas sector. It’s crystal clear that UK Government policy is driving oil and gas companies out of the North Sea. It is directly leading to thousands of jobs being axed and to decommissioning plans being accelerated years ahead of schedule.”
"Unite fears that the scale of the job losses in the years to come will run in to the tens of thousands unless the UK government changes direction and produces a concrete plan with real jobs for the transition of North Sea workers.”
She added: "Governments need realise that for any just transition to work it needs to be a managed transition that puts the workers at its the centre. The current political ideology of prematurely ending the oil and gas industry without any thought to the impact it has on workers is unforgivable.”
