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‘Bullish’ Alister Jack claims Tory government’s windfall tax plans won’t cost a single job in north-east

Asked by the P&J if he felt sheepish to meet face to face with those in the industry after the decision, Mr Jack said: "No, not remotely."

Scottish Secretary Alister Jack touring around Aberdeen's South Harbour. Image: Darrell Benns/DC Thomson.
Scottish Secretary Alister Jack touring around Aberdeen's South Harbour. Image: Darrell Benns/DC Thomson.

Scottish Secretary Alister Jack has given his full-throated support to controversial Tory government plans to extend the windfall tax an extra year – and claims it won’t cost “a single job” in the north-east.

The senior Tory visited Aberdeen on Thursday where he toured the South Harbour and met oil and gas leaders, as well as those from the renewables sector.

It was his first visit to the region since Chancellor Jeremy Hunt confirmed he will extend the levy on oil and gas giants by a year to 2029, raising £1.5 billion.

The move split the party north and south of the border with Scottish Tory leader Douglas Ross condemning the move. 

Trade body Offshore Energies (OEUK) described the extension as a “disappointing blow”. 

‘Feeling very bullish’

Asked by the P&J if he felt sheepish to meet face to face with those in the industry after the decision, Mr Jack said: “No – not remotely.

“I’m feeling very bullish.”

He claimed strong support for the oil and gas industry and said the government issued more licences.

“And we’ve passed legislation to say we will review that on an annual basis,” he added.

“The energy profits levy – I don’t believe that it’s going to cost a single job.

Scottish Secretary Alister Jack speaking to the P&J in Aberdeen. Image: Darrell Benns/DC Thomson

“These companies have been making huge excess profits due to Putin’s illegal war in Ukraine, spiking energy costs.

“And we think it’s right to take some of that money back and recycle it to help households with their energy bills.”

Windfall tax row

The windfall tax was introduced as a response to soaring profits in May 2022.

Supporters say it is vital to help increase spending on public services and take pressure off struggling households.

But those in the industry say oil and gas prices have fallen back in line with where they were before the invasion of Ukraine and should be scrapped.

David Whitehouse, chief executive officer of OEUK, previously said the fiscal changes are making it “impossible to plan investment for the energy transition”.

Alister Jack being shown around Port of Aberdeen’s South Harbour in Aberdeen. Image: Darrell Benns/DC Thomson.

Mr Ross said Mr Hunt made the “wrong decision” to extend the levy and had “fought against it as hard as I could”.

But the Scottish Secretary said he believes the party can come back together despite fundamental splits on the controversial policy.

He said: “I understand why the oil and gas companies don’t like to pay more profits.

“But there are an awful lot of people in the north-east who have to get through a very cold winter who I think it’s right the government is helping them with their energy bills.”

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