Hundreds of North Sea jobs are at risk following a Scots oil and gas company's decision to 'diversify internationally.'
Harbour Energy, based in Edinburgh, informed staff on Wednesday, January 18, that they are cutting jobs after a review of its UK business in response to the UK Government's windfall tax, reports Aberdeen Live.
The Energy Profits Levy, introduced by Rishi Sunak when he was chancellor and extended by current incumbent Jeremy Hunt, as oil companies continued to post huge profits despite soaring costs for punters.
The tax rate on oil companies like Harbour Energy was increased from 40 per cent to 75 per cent after months of gas and oil prices rising.
Harbour Energy say they have paid $350 million (£284 million) as a result of the levy since May.
Harbour Energy have not said exactly how many jobs will be lost, but industry sources told The Telegraph that they believe the amount will be "in the hundreds".
Harbour Chief Executive Linda Cook said: "We remain committed to playing an important role in the continued supply of reliable and responsible domestic oil and gas in the UK.
"However, while oil and gas prices have reverted to more normal levels, we still face a tax rate of 75% in the UK due to the recent tax changes, making investment in the country less competitive. As a result, the EPL necessitated a review of our future activity levels in the UK and reinforced our ambition to grow and diversify internationally."
Mike Tholen, sustainability director at Offshore Energies UK, the trade group, said the government needed to "rebuild confidence" among industry.
He said: "These tax increases, and the threat of more to come, have made the UK a much riskier place to invest and so makes it far more likely that investors will look overseas instead."
Russell Borthwick, Chief Executive at Aberdeen and Grampian Chamber of Commerce, said: "This is what happens when politicians put populism before pragmatism.
"The Chamber has been warning since last Spring that a windfall tax on the UK energy sector would lead to disinvestment and job losses. Increasingly this is coming home to roost.
"Less than a year ago, it would have been unconceivable to think that Harbour Energy had chosen not to bid in the latest licencing round and are consulting with staff about 'significant' redundancies. But today, this is the situation.
"The blame for these job losses lies firmly at the door of Rishi Sunak (architect of EPL) and Jeremy Hunt (who removed the price floor). They ignored industry warnings. Now people in our region are paying with their livelihoods and the prospect of domestic energy security and the UK becoming a leading player in renewable energy is disappearing over the horizon. Others are in the game.
"The Treasury is now banking £2.1billion per month in tax revenues from companies operating in the North Sea, yet oil prices have pretty much returned to where they were before the Ukraine conflict.
"And it's not only traditional oil and gas operators that are being impacted. The Chief Executive of SSE was recently that they 'may have to give up' on some green energy projects as a direct result of windfall tax. Wow.
"This cannot be allowed to continue and we urge the Prime Minister and his Chancellor to visit Aberdeen as a matter of urgency to hear from businesses about the impact their energy and taxation policies are having on the ground and the changes in approach that are urgently required."
A Treasury spokesman said: "The Energy Profits Levy strikes a balance between funding cost of living support while encouraging investment in order to bolster the UK's energy security.
"We have been clear that we want to encourage reinvestment of the sector's profits to support the economy, jobs, and our energy security, which is why the more investment a firm makes into the UK, the less tax they will pay."
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