Humza Yousaf to insist SNP will oppose Labour’s oil windfall tax

SNP leader Humza Yousaf is set to insist his party will strongly oppose Labour’s controversial plans to increase the windfall tax on oil and gas firms.

During a visit to Aberdeen today, the first minister is expected to warn workers in the north-east will “pay the price” of Sir Keir Starmer’s energy strategy.

The Labour leader received a major backlash after announcing he wanted to raise the levy on fossil fuels firms from 75% of excess profits to 78%, also extending it to 2029.

But in his speech at the Scottish Labour conference in Glasgow, he insisted that drilling in the North Sea would “continue for decades” in a bid to calm industry fears.

Labour leader Sir Keir Starmer during his speech at the Scottish Labour conference in Glasgow.

Senior SNP figures have previously been strongly supportive of windfall taxes, and have criticised proposals for new oil fields being approved by the Tories.

However, Mr Yousaf and his party’s Westminster leader Stephen Flynn have come out strongly against Labour’s latest energy policies.

In a speech at HM Theatre in Aberdeen, first minister is expected to say: “You cannot deliver a just transition from oil and gas – for the people and businesses that rely on it – if you squeeze the life out of the sector overnight

“The SNP will oppose Labour’s aggressive tax plans for the sector.

“A policy designed solely to plug the massive financial hole in plans to build new nuclear power plants in England.

“Once again the workers of the north-east are being asked to pay the price because of Westminster’s economic and energy mismanagement.

“As ever, when Westminster parties need to find cash – they look to Scotland.”

Sir Keir’s divisive windfall tax proposals came shortly after Labour abandoned a separate pledge to invest £28 billion per year on green energy projects.

Scottish Labour leader Anas Sarwar during his conference speech. Image: PA.

The Labour leader insists an increased levy on multinational companies reaping in huge profits can bring in an extra £10 billion to the treasury.

Scottish party chief Anas Sarwar justified the policy by pointing to those huge gains being made by energy giants during the cost-of-living crisis.

But analysis warned it could cost the economy up to £20 billion by deterring investment.

‘Work will continue for decades’

During his speech in Glasgow, Sir Keir said: “I went to Aberdeen recently. Met the workers who maintain the pipelines. 100 miles long – stretching all the way back to the oil and gas fields.

“They’re proud of what has been built in the cold waters of the North Sea.

“So I’ve said before – and I say again – that work will continue for decades to come.

“But they also told me about the legacy they can build for Scotland’s future. The pride they have in a new opportunity.”