4th Report - The future of Scotland’s oil and gas industry
Select Committee
Scottish Affairs Committee
HC 459
24 October 2025
Government Response (AI assessment · 20 of 20 classified)
Accepted
8
Government response
6th Special Report - The future of Scotland’s oil and gas industry: Government Response · published 16 Jan 2026
Recommendations & Conclusions
3 results
2
Conclusion
Acknowledged
Mismanged energy transition risks severe harm to UK economy, jobs, and Scottish communities.
Conclusion
Such an approach is the minimum necessary for a smooth transition of workers, and to avoid the risk of harming UK tax revenues, economic activity, and employment in many Scottish communities, where the effects of the transition will be disproportionately …
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Government Response Summary
The government states its commitment to achieving a fair and inclusive transition, outlining various existing strategies, plans, and investments like the Clean Power Action Plan, Clean Energy Industries Sector Plan, and UK Export Finance support. These initiatives aim to ensure a smooth transition for workers and regional economies.
Scotland Office
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6
Conclusion
Acknowledged
Unclear and disproportionate Energy Profits Levy accelerates North Sea decline, risking job losses.
Conclusion
We welcome the Government’s acknowledgement that it now needs to take action on the oil and gas industry’s fiscal environment. However, a lack of clarity on the fiscal regime beyond 2030 has created uncertainty for industry in the North Sea. …
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Government Response Summary
The government acknowledges the committee's concerns about fiscal uncertainty, outlining its plan to end the Energy Profits Levy by March 2030 or earlier via a price floor, and to replace it with a new Oil and Gas Price Mechanism for long-term stability.
Scotland Office
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13
Conclusion
Acknowledged
Retaining oil and gas worker skills is vital for Scotland's energy transition.
Conclusion
It is vital that the skills of workers who have made Scotland’s oil and gas industry successful are not lost. We welcome the efforts of both governments to support the development of clean energy jobs and the transfer of skills …
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Government Response Summary
The government acknowledges the importance of the Oil and Gas Transition Training Fund, announcing its extension and expansion with up to £18 million in joint UK and Scottish government funding from 2026-29. They also detail the new North Sea Jobs Service to provide comprehensive career transition support.
Scotland Office
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