Energy industry leaders have warned that extending or increasing the existing windfall tax on North Sea oil and gas companies could accelerate job losses and prompt significant investment to move abroad. The Aberdeen and Grampian Chamber of Commerce, representing major operators including BP and Shell, has called on Chancellor John Healey to provide clarity amid reports that he is considering raising the levy beyond its current framework.

The windfall tax, introduced in 2022 in response to surging energy prices following Russia’s invasion of Ukraine, currently subjects UK oil and gas profits to an effective tax rate of 78 percent. Industry representatives argue that this high rate is deterring investment and causing project delays. Russell Borthwick, chief executive of the Aberdeen and Grampian Chamber of Commerce, cautioned that increasing the tax would inflict “lasting damage to an industry which Britain cannot afford to lose.”

Borthwick emphasized the link between tax policy and investment, noting that the sector has already experienced declines: “Investment has fallen, projects have stalled, and thousands of highly skilled jobs have already been lost.” He urged for what he described as an “early policy reset” to unlock potential investment estimated at £50 billion, stressing that taxing revenues from non-existent production and jobs is counterproductive.

A Treasury spokesperson declined to comment directly on the tax proposals ahead of the official budget announcement but noted that the Office for Budget Responsibility would release updated forecasts alongside the October Budget.

The debate over the windfall tax comes amid broader discussions about balancing government revenue needs with maintaining the competitiveness of the UK’s oil and gas sector, which continues to play a critical role in the country’s energy supply and economic activity.

Separately, in a different context unrelated to energy policy, Debbie Adlam, mother of PC Harper, expressed gratitude that her son’s killers would not be released early but indicated frustration, stating that the situation has essentially returned “to where we were to start with.”