Calls to end windfall tax intensify as BP seeks sale of North Sea operations
Scottish First Minister urges scrap of levy to protect jobs
Last updated 31st Jul 2026
BP's announcement that it is looking to sell its North Sea operations has intensified calls for an end to the windfall tax on oil and gas companies.
The energy firm stated on Friday its UK operations would be “better positioned as part of another company,” sparking concerns about job security and the economic impact on Scotland.
Scottish Government Responds
Scotland's First Minister, John Swinney, described the announcement as marking a period of "real uncertainty" for workers.
In a social media post, Swinney urged new Prime Minister Andy Burnham to abolish the Energy Profits Levy, saying it was damaging Scotland, particularly the north-east region.
“The Scottish Government will work closely with BP, trade unions and partners to understand the impact of the sale process and support workers,” Swinney said.
“Within our limited powers, we will do everything we can to protect Scottish jobs and ensure our offshore energy industry can thrive.”
Prime Minister's Stance on North Sea Strategy
In response, Prime Minister Andy Burnham emphasised a pragmatic approach to North Sea drilling, aiming to balance resource utilisation with broader energy strategy decisions.
“There are a set of issues relating to the North Sea that I’m looking at,” Burnham said, acknowledging the challenges posed by policy and taxation.
Industry Leaders Voice Concerns
Russell Borthwick, Chief Executive of Aberdeen & Grampian Chamber of Commerce, sees BP’s decision as a defining moment for Burnham’s leadership.
“This decision is another stark reminder that confidence in the UK Continental Shelf has been badly shaken after years of policy uncertainty, punitive taxation and mixed messages about the future of the industry,” Borthwick said.
He advocated for replacing the Energy Profits Levy with a long-term regime ensuring investment confidence and regulatory approval pace.
Strategic Importance of the North Sea
He emphasised the strategic importance of the North Sea for the UK's energy security, job market, and public finances, and warned of potential loss of investment if stability isn't provided.
“Industry is not asking for special treatment,” Borthwick added. “It is asking for certainty, stability and a policy framework that recognises the continued importance of domestic oil and gas while we build the energy system of the future.”
The sale by BP highlights broader challenges and opportunities for both the UK Government and the offshore energy sector, as they strive to find a balanced approach that meets economic and environmental requirements.