Moray MP Douglas Ross says the moves by the UK Government to introduce a ‘price floor’ on the windfall tax paid by oil and gas companies is a “sensible” and “proportionate” measure to support the industry.
The Treasury confirmed this morning (Friday) that the tax will still remain in place until March 2028, but that the tax paid by companies will fall if average oil and gas prices fall to or below prices that have been set.
The levels have been set at $71.40 a barrel of oil and £0.54 per therm for gas. Brent crude oil was trading at around $75 per barrel at the time of the announcement, with gas at £0.62.
Douglas says it will give companies the confidence and security to invest in jobs in the North East and safeguard energy security, which he says is “absolutely crucial” for the future of Moray’s economy.
He says the actions to support thousands of skilled jobs in the North and East by the UK Government are in sharp contrast to Labour and the SNP who are “recklessly” abandoning these workers and communities.
Douglas says those parties would happily throw these workers “under the bus” by stopping all future oil and gas projects, which he says would be “devastating” for Moray.
He added that while recognising that the industry must continue to play a key role in achieving ambitious net zero targets, the policies of Labour and the SNP are “economically illiterate” and would lead to an “over reliance” on costly foreign imports to meet the countries energy needs.
Moray MP Douglas Ross said: “This move to introduce a floor price in relation to the windfall tax on oil and gas companies is a sensible and proportionate move by the UK Government to support the industry.
"I have personally lobbied the Chancellor and other Ministers and I am pleased they have listened and acted.
“It will give companies the confidence and security to invest in jobs and safeguard energy security.
"That is absolutely crucial for the future of the local economy in Moray.
“The support from the UK Government is in sharp contrast to the plans for the future of the industry that have emerged from Labour and the SNP. They are prepared to recklessly abandon our communities in Moray and the North East by stopping all future oil and gas projects.
“Labour and SNP would happily throw these workers under a bus which would be devastating for the constituents I represent.
“While our oil and gas industry must continue to play a key role in achieving ambitious net zero targets, the plans from Labour and the SNP are economically illiterate.
“Moray’s energy would end up having to be met by more costly foreign imports, which would drive up bills and have an even great carbon footprint. That is the last thing people need right now so I’m pleased the UK Government have once again shown that they will stand up for the industry.”