Harbour Energy has actually exposed strategies to axe around 250 tasks in Scotland as the company laid the blame on “punitive” federal government steps.
The oil and gas company stated the cuts– about a quarter of its labor force in Aberdeen– come as part of an evaluation of its UK operations.
The task losses are on top of 350 functions that were cut by the company in 2023.
Scott Barr, handling director of Harbour Energy’s UK company, stated: “Harbour is releasing an evaluation of its UK operations, which we anticipate to lead to a decrease of around 250 onshore functions in our Aberdeen-based company system.
” The evaluation is sadly required to line up staffing levels with lower levels of financial investment, due generally to the Federal government’s continuous punitive financial position and a difficult regulative environment.”
The Aberdeen and Grampian Chamber of Commerce (AGCC) branded the most recent cuts a “terrible blow” for affected employees and their households, and contacted the Federal government to “end the windfall tax now”.
Harbour Energy has actually been freely opposed to the windfall tax, or the Energy Profits Levy, which was generated by the previous Conservative federal government and after that extended after Labour pertained to power in 2015.
The business’s current monetary outcomes revealed it made pre-tax revenues of 1.2 billion United States dollars (₤ 898 million) in 2024, however this was annihilated by what it declares was an 108% efficient tax rate, leaving it with post-tax losses of 93 million United States dollars (₤ 69.6 million).
Stephen Flynn, Scottish National Celebration (SNP) Westminster Leader and MP for Aberdeen South, raised the task cuts in Prime Minister’s Questions and implicated Sir Keir Starmer of “damaging tasks in Scotland”.
He stated: “That’s 250 tasks in my constituency entered the blink of his eye.
” And do you understand who they blame Mr Speaker– they blame the policies of the Labour Celebration.”
The Prime Minister reacted, stating “no one wishes to see task losses”, however stated the SNP “will raise anything to sidetrack” from its “dreadful record”.
On the Harbour Energy cuts, Russell Borthwick, president at the Aberdeen and Grampian Chamber of Commerce, stated: “This is a destructive blow for the 250 plus households straight impacted– and I fear it is simply the pointer of the iceberg, unless the Federal government modifications course.
” Labour’s long-lasting aspirations are admirable, however in the lack of an appropriate commercial method, we are entrusted policies which are damaging a first-rate British market.
” The UK presently has a debilitating 78% tax on North Sea oil and gas, all while importing record levels of foreign energy– with greater emissions– tax totally free.”
He included: “Enough suffices. End the windfall tax now.”
The Chancellor stated her “ideas” were with the employees affected however she safeguarded the UK Federal government’s Energy Profits Levy.
Rachel Reeves stated: “First off, my ideas are with those individuals who are stressed over their tasks at Harbour Energy. That was an industrial choice by the company.
” The Energy Profits Levy is being utilized to appropriately money civil services, whether that’s our schools or our medical facilities.”
Ms Reeves stated oil and gas would have an “crucial function” in the UK economy “for many years to come”.
She included: “It’s an industrial choice by one business … however there are lots of other business that aren’t laying off employees.
It is essential that, with energy business making record revenues after Russia’s intrusion of Ukraine, that we ask those business to pay their reasonable share of tax, specifically when normal working individuals saw their energy expenses skyrocket.