Ahead of the governing Labour Party’s Conference in Liverpool, Offshore Energies UK urged the Prime Minister to seize the opportunity to safeguard jobs, economic value and net zero targets with pragmatic reform of energy policy in the national interest.
The call comes alongside OEUK’s warning over the rapid loss of industrial capability in the UK. Oil and gas production has dropped in the UK by 40% in the last five years and is on course to halve again by 2030. The implications are significant not only for those working in the oil and gas sector but wider fuel, chemical and pharmaceutical sectors.
In a letter to Sir Keir Starmer MP, OEUK, representing more than 450 companies nationwide, sets out how the UK can boost responsible homegrown energy production, strengthen energy security and accelerate the build out of renewables. Reform of the Energy Profits Levy (EPL), a pragmatic approach to oil and gas licensing, and backing for interlinked renewable projects and supply chains can renew confidence across the energy mix.
David Whitehouse, Chief Executive of OEUK, says:
'We need pragmatic action before it’s too late. We’re seeing jobs and money leave the UK at unacceptable levels. Now there’s an opportunity to take the lead, secure jobs and build a resilient and affordable energy future. We ask the Prime Minister to see it, understand it, and most importantly seize it for Britain.
'We urge the government to implement a competitive tax regime in 2026 and take a pragmatic approach to the future of our homegrown oil and gas industry. In return, this integrated sector will unlock investment to drive growth and add £136billion of economic value, deliver additional tax receipts to Treasury, and support the UK supply chain to take advantage of the opportunities ahead.
'What happens to North Sea energy doesn’t begin and end in Aberdeen. It ripples through our industrial spine, across sectors and into Grangemouth, Humberside, Teesside, Tyneside, East Anglia and the North West. It undermines the homegrown manufacture of things like fuels, chemicals and pharmaceuticals as well as our energy future. We must back UK industries.'
As Labour MPs across the nation head to Liverpool, OEUK is calling for two key reforms:
- Replacing the Energy Profits Levy with a permanent profits-based tax system that gives investors certainty while protecting taxpayers when prices spike.
- Modernising licensing rules to provide predictable access to new resources, ensuring infrastructure is fully utilised rather than decommissioned prematurely.
Last year, the sector contributed £22 billion to the UK economy and paid £4.2 billion in taxes, underpinning skilled jobs across every part of the UK. OEUK argues that building on this foundation will strengthen the economy while reducing reliance on imported fuels, which are more carbon-intensive and do not protect jobs or bring in much-needed tax revenues to the Treasury.
At the Labour Party Conference on Monday 29 September, OEUK will host a panel entitled Secure, Skilled, Sustainable: How a successful energy and industrial transition is underpinned by people and communities, chaired by chair of the Energy Security and Net Zero Committee Bill Esterson MP.
On the evening of Tuesday 30 October evening OEUK will host a drinks reception with Minister Michael Shanks MP and Kim McGuinness, the North East Mayor.
OEUK is campaigning for a homegrown energy future that makes the most of the UK’s skilled people and resources. Find out more here www.oeuk.org.uk/manifesto
Source: OEUK
