Energy Profits Levy (Discussions)

General Question Time – in the Scottish Parliament at on 6 November 2025.

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Photo of Kevin Stewart Kevin Stewart Scottish National Party

To ask the Scottish Government what discussions it has had with the United Kingdom Government about the impact of its energy profits levy on business confidence, investment and jobs in Scotland. (S6O-05106)

Photo of Gillian Martin Gillian Martin Scottish National Party

I have had multiple discussions with my UK Government counterparts on that issue, and I have also written directly to the Minister on it.

As introduced by the Conservative Government, the energy profits levy was always supposed to be a temporary measure, and we must see the earliest possible end date for it, or a complete reform of it, as it is now affecting investment and jobs in the north-east, including in the low-carbon energy sector and the energy supply chain.

The fiscal regime for offshore oil and gas is reserved to the UK Government, but I will continue to raise those concerns with the UK Government and call upon it to bring forward at the budget a stable and long-term fiscal regime to replace the EPL and deliver business and investor certainty for the North Sea.

Photo of Kevin Stewart Kevin Stewart Scottish National Party

Data from the UK Offshore Energies Association and Scottish Renewables shows that £40 billion of investment could be unlocked if the energy profits levy were to be replaced. That would deliver £137 billion of gross value added to the UK economy and safeguard 160,000 jobs, building on the 47,000 jobs and £15.5 billion of output that are already supported by Scotland’s renewable energy industry and the supply chain. What is the Scottish Government continuing to do to persuade the UK Government to abolish the energy profits levy in its forthcoming budget and replace it with a successor regime that focuses on protecting and growing energy jobs?

Photo of Gillian Martin Gillian Martin Scottish National Party

The data that Kevin Stewart has cited is from a range of industry bodies, and it emphasises what I said in response to his first question. Alongside other parts of the UK economy, the offshore energy sector must be treated fairly to unlock investment and ensure that workers are at the heart of a just transition by protecting their jobs for as long as possible. That is why we will continue to call on the UK Government to bring forward at the budget a stable and long-term fiscal regime that will replace the EPL and deliver much-needed business and investor certainty for the North Sea.

Photo of Douglas Lumsden Douglas Lumsden Conservative

The EPL is destroying the oil and gas industry, but so is the Scottish National Party’s presumption against oil and gas, which the former First Minister Nicola Sturgeon was celebrating again last night. Does the Cabinet secretary not recognise that, while the SNP has a presumption against oil and gas, and while it will not support Rosebank or Cambo, she has a brass neck to come here and pretend to support the industry?

Photo of Gillian Martin Gillian Martin Scottish National Party

Our view is that climate compatibility assessments and checkpoints should inform any decision that the UK Government makes on new licences, and that domestic energy security must also be a consideration.

I would ask Douglas Lumsden whether he agrees with his former leader, Theresa May, that the UK should be net zero by 2050, but we all know the answer to that.

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Minister

Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.