Chief executive Russell Borthwick and policy director Ryan Crighton warned officials that the windfall tax is stifling investment, jeopardising jobs, and undermining the UK’s energy transition. They presented evidence highlighting the severe impact on Aberdeen and the North-east, framing it as an issue of critical national importance.

Introduced in 2022 as a temporary measure to target extraordinary profits, the levy has since been increased and extended to 2030. The Chamber argues that with energy prices having stabilised, the tax is now eroding investor confidence and driving capital to rival overseas regions. This has been recently demonstrated by Ineos’s decision to invest £3 billion in the US, citing the UK’s fiscal regime.

This “leakage” of investment and skilled workers, the chamber warns, will diminish the UK’s capacity to deliver new energy projects, ironically slowing progress towards net zero ambitions.

“This tax is not just hitting oil and gas operators – it’s rippling right through the North-east economy,” said Mr Borthwick. “Every pound of lost investment means fewer contracts for local suppliers, less work for our ports, fabricators, hauliers and hospitality businesses, and fewer opportunities for people to build long-term careers here.”

He added that the policy forces the UK to import more fossil fuels, which supports no UK jobs, generates no UK tax revenue, and carries a much higher carbon footprint.

The chamber has urged the government to scrap the levy from the 2026-27 tax year, warning that a failure to provide a clear end date will continue to risk thousands of jobs. Industry body OEUK estimates that up to 1,000 jobs could be lost each month until 2030 if the EPL remains in place.