Select committee: Scottish Affairs Committee
Recommendation 18
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)
In its response to this report, the Government should outline what has been learned from this case and what can be done to ensure that comparable industrial transitions will be better managed in future. Having consulted trade unions and communities during its consultation on Building the North Sea’s Energy Future, we recommend that the Government set out principles in its consultation response which outline the conditions and actions that constitute a just transition for workers and communities and draw on best-practice examples. These principles can act as a guide and create an expectation for transitioning high-carbon companies to produce an exit plan that benefits workers and communities. We recommend principles that emphasise the importance of early government intervention in industrial transition, proactive engagement with workers and communities, and which aim to maximise good, long-term and well-paid jobs. (Recommendation, Paragraph 125)
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.