Workers express feelings of abandonment as government policies lead to significant job cuts.
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In a troubling development for the UK energy sector, Harbour Energy has announced the loss of 250 jobs, bringing the total redundancies to 600 over the past two years. This decision has been attributed to the government’s controversial windfall tax on profits, raising serious concerns among workers and industry leaders alike.
Workers feel abandoned by government policies
Kerry Smyth, a technical support manager at Harbour Energy, expressed the emotional toll these job losses have taken on employees. “It has been a really hard week for workers,” she stated, emphasizing the need for the UK Government to acknowledge the repercussions of its policies on the industry.
Smyth highlighted that these job losses represent not just numbers, but real lives affected—”600 livelihoods, mortgages, and families. We want to see the government actually care about that.”
Impact of the Energy Profits Levy
The Energy Profits Levy, which imposes a staggering 78% tax on profits from oil and gas production in UK waters, has been singled out as a primary factor in Harbour Energy’s decision to cut jobs. Smyth noted that many projects no longer meet economic viability metrics, leading to difficult decisions regarding production cessation. “The government needs to act now before we lose the skill set we need to deliver the energy transition,” she warned, underscoring the importance of retaining skilled engineers who are crucial for future energy initiatives.
Broader implications for the Aberdeen community
At an emergency press conference organized by the Aberdeen & Grampian Chamber of Commerce, concerns were raised about the broader social implications of these job losses. Donna Hutchison, chief executive of Aberdeen Cyrenians, warned that the cuts could exacerbate issues such as child poverty and domestic violence. “This is not just numbers on a spreadsheet; it really is having an impact every day on the citizens of Aberdeen,” she stated, calling for urgent government intervention.
Calls for policy reform and support for clean energy initiatives
The Chamber is advocating for the removal of the Energy Profits Levy and increased funding for projects like the Acorn Carbon Capture initiative. Chief executive Russell Borthwick criticized the government for failing to protect jobs during the transition to net zero, stating, “This is not a region that needs bailouts; just a tweak in some sensible regulatory and tax policy now will safeguard jobs and create new opportunities.”
Public sentiment on energy policy
Recent polling indicates that a significant majority of UK voters support utilizing domestic oil and gas resources to meet energy demands, with only a small fraction believing that the windfall tax has effectively reduced energy bills. Climate tech investor Steve Gray emphasized the need for a serious policy reset, arguing that the current tax structure is detrimental to the UK’s energy landscape.
As the situation unfolds, the future of the energy sector hangs in the balance, with workers and industry leaders alike calling for immediate action from the government to prevent further job losses and ensure a sustainable energy transition.
