Scottish Conservatives leader Douglas Ross has lobbied the Chancellor to drop plans to extend the windfall tax in the upcoming Spring Budget.
Media reports suggest Jeremy Hunt is planning to extend the windfall tax on North Sea oil and gas firms by a year until 2029.
The Moray MP told a BBC Scotland podcast that he warned Mr Hunt against making the move, saying the decision would not provide the certainty energy companies need to invest.
“What we need for oil and gas companies is certainty going forward,” Mr Ross said.
“A further extension doesn’t provide that certainty.
“So I’ve made the case very strongly to the Chancellor that, if he chooses to go ahead with this, then we’ve got to see what other measures are in place to provide that certainty and security to the oil and gas companies.”
© BloombergBusiness leaders in Aberdeen have strongly campaigned against an extension to the Energy Profits Levy (EPL) since rumours regarding the proposal emerged last week.
Appearing at the Scottish Conservatives conference in Aberdeen last Friday, Prime Minister Rishi Sunak refused to comment on the budget rumours.
Windfall tax concerns
According to a report in The Telegraph, Tory leaders in Westminster feared Mr Ross would resign in protest over the decision after a heated discussion with Mr Sunak on Monday evening.
Tory whip Simon Hart and Scottish Secretary Alistair Jack reportedly held a discussion with Mr Ross later on Tuesday to “talk him down” amid fears he would quit.
Mr Ross told the BBC he accepted Mr Hunt faced the task of delivering “an extremely difficult budget”.
“I understand the challenges that he is facing, but I’m not going to shy away from publicly saying I think an extension to the windfall tax would be wrong,” Mr Ross said.
“I’ve said it privately to the Chancellor, to the Prime Minister, to senior ministers and I’m saying it publicly.”
Mr Ross said he would continue lobbying against a windfall tax extension up until the moment the Spring Budget is delivered.
“If that (an an extension of the levy) happens, I think it will be the wrong decision by the chancellor and I have further meetings to continue to make that case,” he said.
“I’ll continue to do that until just before half past 12 tomorrow when the chancellor stands up to give the statement.”
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