New HMRC data shows that total revenues from oil and gas fell to £4.5 billion in 2024-25, down from £6.1bn the year before – a drop of £1.6bn, or 27%.

Receipts from the EPL, introduced in 2022 to raise additional revenue, and extended by Labour, fell by £700 million (20%) over the same period.

The figures come against a backdrop of deepening concern for the basin. Industry body Offshore Energies UK (OEUK) has warned that the sector will haemorrhage almost 1,000 jobs every month, a figure backed-up in a shareholder briefing by leading operator EnQuest yesterday.

The North Sea Transition Authority has also just slashed its production forecast to 2050 by almost one billion barrels of oil equivalent — a downgrade which OEUK calculates equates to a £50.6bn hit to the UK economy.

Russell Borthwick, Chief Executive of Aberdeen & Grampian Chamber of Commerce, said “enough is enough”.

He said: “These numbers show the Energy Profits Levy is failing on its own terms. Instead of raising more money, it is accelerating decline in a vital UK industry and costing the Treasury billions in lost revenue.

“Government policy – not geology – is pushing this national asset into terminal decline – with a thousand livelihoods being lost every month and a £50bn economic hit already locked in. Unless the government moves quickly to remove this windfall tax, the damage will become irreversible.

“Baby steps in the right direction on tiebacks, however welcome, won’t stem the horrifying pace of decline unless coupled with removal of punitive taxes on the industry.

“This is about far more than one region. A weakened North Sea means greater reliance on imports, less energy security, fewer tax revenues, and a harder path to net zero. The case for removing the EPL is now indisputable.”

The HMRC release also highlighted the long-term cost to the taxpayer of decommissioning ageing North Sea assets.

The North Sea Transition Authority estimates total decommissioning costs at £41bn, with HMRC forecasting £11.7bn in tax repayments and lost revenue as a direct result.

Mr Borthwick added: “Not only is the tax take falling, the government is also bringing forward a huge decommissioning bill.

“The UK is on course to pay a high price for short-term political decisions unless there is an urgent reset of policy. The Chancellor must act in the Budget, as this cannot be allowed to continue – too much is at stake.”