Days after the Chancellor failed to mention the oil and gas sector in her Budget, the largest independent operator in the North Sea has announced it will axe about 100 offshore jobs.
Harbour Energy has now cut about half its workforce – about 600 posts – since the introduction of the Energy Profits Levy, or windfall tax which has deterred investment in the sector.
The company said it was taking the decision to “remain competitive” amid a challenging time for the industry and the UK Government’s retention of the “punitive” levy.
Industry sources lined up last week to criticised the Chancellor for not only saying nothing about the levy but for failing to mention the sector at all.
This was despite sustained campaigning from the region which is seeing 1,000 jobs a month being lost. Added concern is that jobs in renewables are not being created fast enough to soak up those being shed by oil companies.
The announcement will add to pressure on Prime Minister Sir Keir Starmer who will deliver a speech today defending the Budget and focus on growth. He is certain to face more questions about the Budget and the Chancellor’s apparent disregard of official forecasts.
Harbour’s UK business unit managing director Scott Barr said: “The UK oil and gas sector faces sustained pressure from lower commodity prices and an uncompetitive tax regime, worsened by the government’s decision to retain the Energy Profits Levy in the recent Budget,”
“The offshore reorganisation is a necessary step to align our operating model with reduced activity and production levels in the UK, accelerated by the retention of the [levy], while maintaining our commitment to safety and regulatory standards.
“Harbour’s UK Business Unit will continue to struggle to compete for capital within our global portfolio while the [levy] remains. The future structure of our offshore workforce must adapt to reflect these realities.”
Mr Barr added: “While we must deliver this essential change, we recognise the next few months will be difficult for colleagues. We will work closely with those most affected and provide support throughout the process.”
Harbour anticipates that the roles will be cut following a consultation period, which will begin on Monday December 1, 2025 and is expected to conclude before March 2026.
Scottish Conservative shadow energy secretary Douglas Lumsden MSP said: “This is yet another hammer blow for workers at Harbour Energy – with redundancy notices landing on doorsteps just before Christmas.
“This is the inevitable result of the hostility of Scotland’s two left-wing governments to our vital oil and gas industry.
“At her budget last week, Rachel Reeves had the chance to throw the sector a lifeline. Instead, she doubled down on the damaging Energy Profits Levy to fund a Labour benefits splurge.
“Harbour Energy cite the windfall tax in their decision – and the Chancellor’s deaf ear to the sector means these redundancies will sadly, and needlessly, be the first of many.
“The SNP can’t escape blame here either. They have helped to create the hostile environment for oil and gas companies by opposing Jackdaw and Rosebank and maintaining their shameful presumption against new oil and gas sector.
“Our oil and gas sector is on its knees, yet Labour and the SNP, rather than helping, are quickening its demise.”
#Harbour #axes #jobs #days #Budget #snub #Daily #Business