Select committee: Scottish Affairs Committee
Recommendation 1
4th Report - The future of Scotland’s oil and gas industry
Published 24 Oct 2025
Addressed to Scotland Office
Scottish Affairs Committee GB Energy and the net zero transition All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
We are concerned that clean energy jobs are not being created at the pace or scale required to match the heavy job losses arising from the decline of the North Sea oil and gas sector. The scale-up of clean energy is progressing more slowly than the decline of the oil and gas sector. The Government should avoid accelerating the decline of North Sea oil and gas production through its policy environment while this remains the case. (Conclusion, Paragraph 52) The Government should urgently address this gap with increased Government investment proportionate to the scale of the challenge. The Government must set out clearly how its investments and policy environment will create the jobs and revenue necessary to replace the jobs being rapidly lost in North Sea oil and gas. (Recommendation, Paragraph 52)
From: Scottish Affairs Committee, 4th Report - The future of Scotland’s oil and gas industry (HC 459), 24 October 2025
Government response
The government responded to the whole report on 16 January 2026 (deadline 24 December 2025).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government welcomes the report and says it "partially agrees" with several recommendations, pointing to its North Sea Future Plan and 2025 Budget as setting out many of the issues the Committee raised.
- On licensing, it states that issuing new exploration and production licences "would not help our energy security", and instead introduces Transitional Energy Certificates for some production adjacent to already licensed fields, with no exploration permitted.
- On tax, it "partially agrees" with the call to bring the successor regime in sooner: the Energy Profits Levy is to end by March 2030 at the latest, or earlier if the price floor is triggered, and a new Oil and Gas Price Mechanism will replace it.
- It "agrees" with the recommendation on a communications campaign, saying an industry-led campaign on clean energy job opportunities is "launching next year".
- On the Oil and Gas Transition Training Fund, it says it will extend the fund from 2026-7 to 2028-9 with up to £18 million jointly funded with the Scottish Government, but has "considerable fiscal sustainability concerns" about a hypothecated fund from oil and gas tax revenues.