The UK Government has been told it "could have gone further" with its plans for the windfall tax on North Sea oil and gas profits, despite reaffirming the levy will end by 2030. The criticism comes from Patricia Ferguson, chair of the Scottish Affairs Committee in Westminster.
Government Sets "Clear Path" for Levy End
In an official response to a report from MPs, ministers have set a definitive timeline for the energy profits levy (EPL) to conclude. They stated the tax, currently set at 38%, will end by March 2030 "at the latest". The government argued that revenue from the levy supports the transition to cleaner energy and helps fund public services.
However, this stance follows industry warnings that the fiscal uncertainty has contributed to job losses. A committee report in October 2025 highlighted that a "lack of clarity" on the tax regime post-2030 was creating significant uncertainty for the sector.
Fears Over Jobs and Energy Security
While welcoming the government's commitment to a reformed tax mechanism after 2030, Patricia Ferguson issued a stark warning. She argued that keeping the current levy for another four years "risks accelerating the industry’s decline and job losses".
"It’s well known that the UK will need oil and gas in its energy mix for decades to come as we transition to net zero," Ferguson stated. Her committee's report had urged the government to avoid accelerating the decline of North Sea production until clean energy jobs are created at a matching scale.
The Clean Energy Jobs Challenge
A central point of contention is the pace of job creation in the renewable sector. Ferguson noted it was "encouraging" to see government plans for secure clean energy jobs but stressed that "the proof, of course, will be in the delivery".
"We’ve yet to see concrete evidence of delivery and implementation of these initiatives," she added, vowing that MPs would "continue to monitor the UK Government’s progress closely".
The government, in its response, pointed to its clean energy jobs plan published in October 2025 as a "major step forward". It claims its "clean energy superpower mission" could see sector jobs nearly double from around 440,000 in 2023 to about 860,000 by 2030.
Despite these ambitions, the Scottish Affairs Committee maintains that without faster action, the windfall tax timeline could harm workers and the nation's energy security during a critical period of change.
