Latest news with #Aberdeen&GrampianChamberofCommerce
The Herald Scotland
17-07-2025
- Business
- The Herald Scotland
Scottish region tops the UK in job loss expectations
The latest North-east Quarterly Economic Survey conducted by the British Chambers of Commerce (BCC) found that 24% of firms surveyed expect to reduce their workforce in the coming three months. Among those who expect to do so, two-thirds do not work directly in the energy industry. Read more: A third of those surveyed in the north-east expect their turnover to decline, compared to 20% across the rest of the UK - again, the worst figures recorded since the pandemic. 'These figures show the economic consequences of poor policy decisions being made in Westminster," said Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce. 'Our members are not calling for special treatment – they are simply asking for fairness and a stable environment in which to plan, invest and grow. The UK economy cannot afford to turn its back on the North Sea – nor on the thousands of businesses in this region that depend on it.' Nearly four in ten firms (38%) reported falling sales in the last quarter, while forward orders dropped to levels not seen since early 2021. Read more: Business confidence also fell with only 30% of respondents expecting turnover to improve in the year ahead, while 49% anticipate a fall in profitability. This contrasts sharply with UK-wide averages of 49% and 28% respectively. Taxation was cited as the most significant barrier to growth by 73% of those surveyed in the north-east, compared to the UK average of 56%. The findings have prompted the chamber to renew its call for the Energy Profits Levy to be removed "as soon as possible to prevent further damage". Findlay Anderson of legal firm Gilson Gray, partner in the chamber's quarterly survey, described the situation as one of "deepening economic malaise" exacerbated by "short-term policymaking". 'Businesses are delaying investment decisions not because of a lack of ambition, but because the conditions for growth simply don't exist right now," Mr Anderson said. 'What we're seeing is a loss of confidence – not just in the energy sector, but across the supply chain and wider economy. 'The Energy Profits Levy, coupled with increased employment costs and policy volatility, is creating an environment where firms feel unable to plan ahead. Unless we see a shift in direction soon, the risk is long-term damage to the competitiveness of this region.'
The National
09-05-2025
- Business
- The National
UK Government ‘to blame' for Scottish North Sea firm job cuts
The oil and gas firm said the cuts – about a quarter of its workforce in Aberdeen – come as part of a review of its UK operations. The job losses are on top of 350 roles that were cut by the firm in 2023. In an emergency press conference today (Friday), the Aberdeen & Grampian Chamber of Commerce called for urgent government action, including an emergency summit of the Prime Minister and First Minister in an effort to prevent further job losses and accelerate green energy job creation. READ MORE: The story of Donald Trump's visit to the Scottish Parliament The organisation also called for the windfall tax (Energy Profits Levy) to be removed before the start of the next financial year and for the UK Government to back the Acorn carbon capture project. Russell Borthwick, Chief Executive at AGCC, said: 'We are witnessing the start of deindustrialisation in the UK's energy capital. This is not what the public voted for, and this is reflected in our polling published today. 'The Energy Profits Levy is starving the sector of investment and damaging the very supply chain we need to deliver net zero. The country didn't vote for lost jobs, rising imports and higher emissions.' The polling from Survation found that 68% of UK voters want to meet oil and gas demand from domestic production, rather than relying on imports. It also found that 27% believe the windfall tax has helped reduce household bills, with 62% calling it ineffective. Borthwick added: 'Since the windfall tax was first imposed in May 2022, the price of Brent Crude oil has nearly halved. Meanwhile, the levy has been increased by successive governments. 'As the industry faces this punishing tax rate, coupled with uncertainty on environmental assessments and a closed-door on exploration, these findings show the UK has become a difficult place to do business. 'It leaves the country reliant on imported oil and gas, and has cost jobs from the energy supply chain which is vital for delivering projects in offshore wind, hydrogen, and carbon capture - all essential for net zero. 'The shift to renewables at scale is the goal, particularly offshore wind, but volatile transmission charges and the risk of zonal pricing are undermining investment plans. Policy should instead seek to put the energy transition back on the front foot.' Trade unions are also blaming Labour for the job losses, saying the "hostile regulatory environment" created by the ban on new drilling licences is leading to oil and gas operators accelerating decisions "that are destructive to job security and UK energy security". Unite General Secretary Sharon Graham said: 'The announcement by Harbour Energy that further jobs will be lost in Aberdeen is devastating news for the oil and gas sector. It's crystal clear that UK government policy is driving oil and gas companies out of the North Sea. It is directly leading to thousands of jobs being axed and to decommissioning plans being accelerated years ahead of schedule.' "Unite fears that the scale of the job losses in the years to come will run in to the tens of thousands unless the UK government changes direction and produces a concrete plan with real jobs for the transition of North Sea workers.' She added: "Governments need realise that for any just transition to work it needs to be a managed transition that puts the workers at its the centre. The current political ideology of prematurely ending the oil and gas industry without any thought to the impact it has on workers is unforgivable.'
