Scottish business champion labels new energy tax plan ‘utter madness’

Ryan Crighton is a former Aberdeen and Grampian Chamber of Commerce policy director who now has an ownership stake in the True North Advisors business, which has as its chairman Martin Gilbert, co-founder of Aberdeen Asset Management.

Mr Crighton has spearheaded business and community initiatives in Europe’s oil and gas capital for many years.

One of the biggest North Sea players is reportedly exiting resources (Image: Getty Images) He argues against policy he believes could push the UK towards greater reliance on imports.

“For 18 months, there have been warnings that the UK Government’s corrosive narrative and fiscal regime would kill off North Sea investment,” he said. “Warning after warning after warning has fallen on deaf ears.”

He also said: “I’ve been told by multiple sources that ministers think the industry is bluffing. They are not.”

His comments came as news agency Reuters reported that one of the UK’s biggest oil and gas producers plans to offload a vast expanse of North Sea resources.

This has prompted concerns among business champions including Mr Crighton, who also said: “According to Reuters, Harbour Energy has launched a sale process for its stakes in the Armada, Everest, Lomond, Catcher and Tolmount fields as it seeks to reduce its exposure in the North Sea.

“If confirmed, they will be the first of many to vote with their feet.

“Over the next week, the Chancellor must decide whether she wants an energy transition which protects jobs, a unique supply chain and energy security, or one which sacrifices our world-class workforce on the mistaken belief that this will advance the cause of net zero.

“It will, of course, do no such thing.

“Billions of barrels of UK oil and gas reserves will simply remain in the ground to be replaced by more carbon-intensive foreign imports. Utter madness.”

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The detail was set out by Scott Wright, deputy business editor, who wrote: “After taking power in July, the Labour Government pledged to increase the rate of the levy to 38 per cent from 35 per cent from November, lifting the headline rate of tax on upstream oil and gas activities to 78 per cent. It also plans to extend the period over which the levy applies to March 31, 2030, and remove some of the investment allowances originally brought in alongside the tax.”

Relationship ‘deteriorating’

Also this week, a think tank said a new study reveals that two-thirds of Scottish firms believe the SNP administration does not understand the business environment in Scotland.

More than 350 firms took part (Image: Getty Images) The results suggest that the Scottish Government’s New Deal for Business initiative has done little to turn the tide with the business community, with signs the relationship “has either stagnated or deteriorated further”.

The study shows nine per cent of Scottish firms agree that the Scottish Government understands the business environment in Scotland, compared to 64 per cent of businesses that disagree.

The findings are from a survey of over 350 firms by the Fraser of Allander Institute at the University of Strathclyde.

The Scottish Government said it will “keep working with business to improve productivity, bring investment and create high quality jobs”.