4th Mar 2026 13:59
(Alliance News) - Rachel Reeves will reaffirm her commitment to "end" the windfall tax on North Sea oil and gas as she meets energy bosses.
The UK chancellor is set to discuss the gas and oil prices sent soaring by the Middle East war in talks with firms including BP PLC, TotalEnergies SE and Serica Energy PLC.
Reeves came under pressure ahead of the Downing Street talks from Scottish First Minister John Swinney to axe the charge, which is officially known as the energy profits levy.
Introduced by the Tory government in the wake of the war in Ukraine – which sparked a sharp rise in energy prices – the charge was brought in to claw back some of these unexpected profits for the Treasury.
The prime minister's spokesman told reporters: "The chancellor will convene a meeting with industry leaders from oil and gas firms today… including BP, TotalEnergies and Serica.
"And they'll discuss the ongoing volatility in the oil and gas prices due to the conflict in the Middle East.
"The chancellor will make clear that she remains committed to end the energy profits levy and replace it with a more permanent and predictable regime.
"She'll be reaffirming her commitment to support jobs and investment in the industry and look at ways to protect everyday people from the downstream impact of these costs."
Earlier, Swinney again insisted it was "utterly essential" that the UK government scrapped the windfall tax, which he said was impacting upon investment in the North Sea and costing jobs.
He said the current "uncertainty over energy supplies" as a result of the conflict in the Middle East was now a "material consideration" for the scrapping of the charge – which is officially known as the energy profits levy.
Speaking during a visit to Inverness, Swinney said he had hoped the chancellor would use Tuesday's spring statement to axe it.
When that did not happen, Holyrood's Finance Secretary Shona Robison said Reeves must use Wednesday's meeting with North Sea industry leaders to "announce an end to this tax on Scotland's energy".
Swinney meanwhile insisted: "Now that we have the conflict in the Middle East I think it is utterly essential that the energy profits levy is removed.
"I had hoped it would be removed yesterday in the spring statement. It hasn't been but the chancellor is meeting the industry today.
"And I hope that results in the removal of the energy profits levy."
Swinney, speaking to the Press Association, added: "I've been saying to the UK government for some time that the energy profits levy should be removed because it is hampering investment in the North Sea oil and gas sector, which is resulting in a loss of employment at a much faster rate than we anticipated."
With the conflict in the Middle East leading to "uncertainty over energy supplies in the period to come" the First Minister said that was now a "material consideration in whether the energy profits levy should be maintained".
He insisted however: "I don't think there is a case for it and it should be removed."
By Sophie Wingate, Katrine Bussey and Nick Forbes, Press Association
Press Association: Finance
source: PA
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