Humza Yousaf has said he will “stand up for the north east” of Scotland against Labour’s plans for a windfall tax on oil and gas company profits.
But Scottish Labour leader Anas Sarwar hit back, saying the SNP is “on the side of energy giants making billions” rather than working people.
The two leaders had a fierce exchange at First Minister’s Questions on Thursday, after Mr Yousaf attacked Labour’s plans during a visit to Aberdeen earlier in the week.
Raising the issue during First Minister’s Questions, Mr Sarwar said high energy prices had led to companies like BP, Total and Shell posting profits of more than £10 billion each.
He asked: “Why does the First Minister think these companies can’t afford to pay more tax?”
The First Minister made reference to a front page of The Press & Journal newspaper, which lampooned Mr Sarwar and other Labour figures as “The Traitors” from the BBC TV series.
Mr Yousaf said there is “palpable anger” from the North Sea industry at Labour’s windfall tax plans, with industry figures saying 100,000 jobs could be at risk.
He said: “We absolutely believe in a windfall tax on energy companies.
“What we don’t believe in is Anas Sarwar’s and Labour’s aggressive plans to raid the north east so they can build new nuclear power plants in England.
“We won’t allow it, we won’t stand for it. We’ll stand up for the north east, Anas Sarwar can’t even stand up to Keir Starmer.”
Mr Sarwar said industry has often exaggerated the impact on jobs of his party’s policies.
He said: “I can’t wait to present the choice to the Scottish people at the next general election.
The SNP believes that working people should pay more while energy giants making billions pay less. pic.twitter.com/CMwdnmgOmb
— Scottish Labour (@ScottishLabour) February 22, 2024
“Because firmly the SNP, on the side of energy giants making billions, and Labour trying to bring down people’s bills and on the side of working people.”
Mr Yousaf said his Labour opponent had “flip-flopped” on issues like the two-child benefit cap, saying he would be glad to go “head to head” with Mr Sarwar in Aberdeen during the general election campaign.
Labour leader Sir Keir Starmer promised a “proper” windfall tax earlier this month when he scaled back his party’s £28 billion-a-year green investment pledge.
An energy profits levy for oil and gas production was introduced in 2022 after global energy prices shot up in the wake of Russia’s invasion of Ukraine.
Labour intends to extend the tax to 2029 if it enters government, with the energy profits levy rising to 78%, saying it will raise £10.8 billion over five years to help pay for green spending plans.
Later, Scottish Conservative North East Scotland MSP Douglas Lumsden took aim at the First Minister over the Scottish Government’s presumption against new oil and gas licences.
He said: “The First Minister makes one trip up to Aberdeen and then masquerades as the saviour of the oil and gas industry.
“He must think the people of the north east are buttoned up the back.
“He’s against (proposed oil field) Cambo, he’s against Rosebank, and his Government still has a presumption against any new oil and gas licences.”