Summary
Harbour Energy, the largest operator in the North Sea oil and gas sector, is set to reduce its workforce by 250 jobs, primarily in its Aberdeen office. This decision stems from an unfavourable fiscal environment, as stated by the company’s managing director, Scott Barr. The move highlights the impact of the government’s energy profit levy and a challenging regulatory landscape affecting investment levels. The Aberdeen & Grampian Chamber of Commerce has described this cut as a “devastating blow” to the local economy.
Key Points
- Harbour Energy will cut 250 jobs due to a ‘punitive’ fiscal regime adversely affecting its operations.
- The company cites lower investment levels as a primary reason for the workforce reduction.
- The energy profit levy, introduced in 2022, significantly raised corporate tax rates to a marginal rate of 78%.
- Harbour is involved in carbon capture projects, which are also facing challenges due to rising costs and delays.
- The chief executive of the Aberdeen & Grampian Chamber of Commerce warns of potential further job losses unless government policies change.
Why should I read this?
If you want to understand how fiscal policies are shaking up major industries in the UK, this article’s a must-read! It dives into the real repercussions of government decisions on employment in key sectors like oil and gas. Plus, Harbour Energy’s situation may set a precedent that impacts more businesses down the line. We’ve done the legwork for you, so take a peek!