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| Oil and gas firm Harbour Energy plans to cut 250 jobs in Aberdeen | Oil and gas firm Harbour Energy plans to cut 250 jobs in Aberdeen |
| (32 minutes later) | |
| Harbour Energy said it was having to take "difficult steps" | Harbour Energy said it was having to take "difficult steps" |
| The UK's largest oil and gas producer has said it expects to cut a further 250 jobs in Aberdeen. | |
| Harbour Energy said it had launched a review of its UK operations and had to take "difficult steps", blaming regulation and "punitive" government measures. | Harbour Energy said it had launched a review of its UK operations and had to take "difficult steps", blaming regulation and "punitive" government measures. |
| The UK government said its thoughts were with any workers affected by the "commercial decision". | The UK government said its thoughts were with any workers affected by the "commercial decision". |
| Aberdeen and Grampian Chamber of Commerce (AGCC) described the news as a "devastating blow". | Aberdeen and Grampian Chamber of Commerce (AGCC) described the news as a "devastating blow". |
| Harbour Energy had previously announced the loss of 350 UK onshore jobs in 2023. | Harbour Energy had previously announced the loss of 350 UK onshore jobs in 2023. |
| Harbour Energy has been a vocal critic of the Energy Profits Levy, known as the windfall tax, introduced by the Conservative UK government in 2022 and extended after Labour came to power last year. | Harbour Energy has been a vocal critic of the Energy Profits Levy, known as the windfall tax, introduced by the Conservative UK government in 2022 and extended after Labour came to power last year. |
| The UK government said at the time it was strengthening the tax to ensure North Sea oil and gas producers contribute their fair share towards the energy transition. | The UK government said at the time it was strengthening the tax to ensure North Sea oil and gas producers contribute their fair share towards the energy transition. |
| It has also pointed to its decision to headquarter Great British Energy in Aberdeen and establish a national wealth fund to help unlock investment in renewables. | It has also pointed to its decision to headquarter Great British Energy in Aberdeen and establish a national wealth fund to help unlock investment in renewables. |
| But Harbour Energy has claimed it faces excessive taxation which has wiped out profits and undermined investment in its North Sea operations. | But Harbour Energy has claimed it faces excessive taxation which has wiped out profits and undermined investment in its North Sea operations. |
| Scott Barr, managing director of the firm's UK business, said a review was expected to result in 250 job losses in Aberdeen - about a quarter of its workforce in the city - in addition to the 350 job cuts previously announced. | |
| He said: "The review is unfortunately necessary to align staffing levels with lower levels of investment, due mainly to the government's ongoing punitive fiscal position and a challenging regulatory environment." | He said: "The review is unfortunately necessary to align staffing levels with lower levels of investment, due mainly to the government's ongoing punitive fiscal position and a challenging regulatory environment." |
| Harbour Energy has a base in Kingswells, Aberdeen | Harbour Energy has a base in Kingswells, Aberdeen |
| The issue was raised at Prime Minister's Questions, with SNP Westminster leader Stephen Flynn accusing Sir Keir Starmer of "destroying jobs in Scotland". | The issue was raised at Prime Minister's Questions, with SNP Westminster leader Stephen Flynn accusing Sir Keir Starmer of "destroying jobs in Scotland". |
| He said: "That's 250 jobs in my constituency gone in the blink of an eye and do you know who they blame, Mr Speaker? They blame the policies of the Labour Party." | |
| The prime minister said "nobody wants to see job losses", but accused the SNP of trying to "distract from their disastrous record" after nearly two decades in government. | The prime minister said "nobody wants to see job losses", but accused the SNP of trying to "distract from their disastrous record" after nearly two decades in government. |
| The Conservative leader Kemi Badenoch also raised the Harbour Energy job losses. | |
| The prime minister accused her of being a "climate defeatist". | |
| 'Tip of iceberg' | |
| A UK government spokesperson said: "Our thoughts are with any workers affected by this commercial decision, and we will do everything in our power to support workers and communities. | A UK government spokesperson said: "Our thoughts are with any workers affected by this commercial decision, and we will do everything in our power to support workers and communities. |
| "The government has reformed the Energy Profits Levy to support investment and give industry certainty and stability." | "The government has reformed the Energy Profits Levy to support investment and give industry certainty and stability." |
| Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, said: "This is a devastating blow for the 250-plus families directly affected - and I fear it is just the tip of the iceberg." | Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, said: "This is a devastating blow for the 250-plus families directly affected - and I fear it is just the tip of the iceberg." |
| In March, the UK government launched a consultation on plans to replace the windfall tax on the profits of energy companies when it comes to an end in 2030. |