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Badenoch Declares North Sea 'Emergency,' Presses Labour to Lift Licence Ban and Scrap Windfall Tax

Labour faces mounting industry pressure over North Sea policy during Starmer’s COP30 trip.

Overview

  • Launching a joint drive with the Scottish Conservatives, Kemi Badenoch urged the government to end the moratorium on new North Sea licences and abolish the 38% Energy Profits Levy in the 26 November Budget.
  • Labour reiterated its opposition to new oil and gas fields and condemned the Tory plan, while environmental groups attacked the call as a return to a "drill baby drill" approach.
  • Offshore Energies UK and Scottish Renewables wrote to Chancellor Rachel Reeves and Energy Secretary Ed Miliband calling for the levy to be urgently replaced to support investment.
  • Harbour Energy announced a further 250 job cuts, taking its reductions to about 600 since the levy’s introduction, intensifying pressure on ministers over the sector’s outlook.
  • Labour’s manifesto pledge not to grant new licences remains in place, though separate reporting suggests Miliband may be considering adjustments to the drilling ban.