Anas Sarwar has defended Labour’s controversial North Sea windfall tax by insisting huge profits are being reaped by energy giants.
In his keynote speech to Scottish Labour conference, the party leader came out swinging in defence of the strategy less than 24 hours after Aberdeen business chiefs wrote to Sir Keir Starmer demanding a U-turn.
Mr Sarwar also used his hour-long speech in Glasgow to take aim at the SNP, who strongly criticised Labour’s proposals to increase taxes on the oil and gas sector.
Sir Keir recently announced he intends to up the windfall levy on fossil fuels firms from 75% to 78%, extending it until at least 2029.
That move came not long after Labour also abandoned a pledge to spend £28 billion each year on new green energy projects.
More than 700 voices across the north-east, including tycoon Sir Ian Wood, wrote to Sir Keir in “anger and frustration” this week.
But speaking to Labour members at conference, Mr Sarwar pointed out British Gas has seen a huge increase in its profits.
He told the audience: “The energy giants recorded profits of £33 billion last year. That’s why Labour will introduce a windfall tax to tackle the cost-of-living crisis.”
SNP Westminster leader Stephen Flynn claimed earlier this week that Labour’s proposals would “destroy livelihoods” in the north-east by damaging the economy.
That’s despite his party strongly backing the introduction of the windfall tax and opposing new drilling projects in the North Sea, such as Cambo.
Sarwar attacks SNP
Mr Sarwar said: “Just yesterday, the same day that the energy giant announced a ten-fold increase in their profits, the SNP now oppose Labour’s plans for a windfall tax.
“The SNP now believe if you earn £28,500 you should pay more tax. But if you’re an energy giant earning billions in profit, you should pay less tax.
“They can no longer pretend they’re on the side of working people in Scotland.”
But in a bid to soothe the fears of industry leaders, Mr Sarwar insisted oil and gas will continue to play a key role in producing Scotland’s energy for decades to come.
He used his conference speech to argue a government led by Sir Keir will bring down energy bills, upgrade infrastructure, and create more jobs.
‘No vision’
SNP MSP Rona Mackay said: “Yet again Anas Sarwar has stood up and delivered no vision, no plan and no policies to the people of Scotland.
“Instead we were treated to more slogans, more catchphrases and nothing of substance.
“The only thing for certain was that Anas Sarwar doubled down on the fact that his party will decimate our energy industry and leave thousands of workers behind.”
The Scottish Tories claimed Mr Sarwar’s pitch on improving the economy was undermined by his party’s stance toward oil and gas.
Tory MSP Craig Hoy said: “Keir Starmer’s economically illiterate policy – the same as the SNP’s – has prompted a huge and justified backlash from business groups.”
