Renewable energy developers in Scotland have joined forces with the wider energy industry to call on the Treasury to scrap the Windfall Tax on North Sea producers. 

In an unprecedented move, Scottish Renewables, representing more than 350 green energy companies, has partnered with Offshore Energies UK (OEUK) to urge Chancellor Rachel Reeves and Energy Secretary Ed Miliband to end the Energy Profits Levy in 2026.

The joint appeal, outlined in a letter sent to ministers last month and reported today in POLITICO, warns that without coordinated action, the UK risks economic decline. 

The organisations, who jointly represent the majority of energy producers in the UK, have called for the urgent replacement of the Energy Profits Levy, more ambition in government funding for offshore wind through AR7 and – citing a recent report by the Scottish Affairs Committee – early intervention to prevent Grangemouth-scale job losses in the energy transition. 

Writing to Chancellor Rachel Reeves and Energy Secretary to Ed Miliband, the Chief Executives of both organisations, David Whitehouse of OEUK and Claire Mack OBE of Scottish Renewables, said: “Our energy future stands at a critical juncture. 

"Unless we slow the pace of decline in North Sea oil and gas while simultaneously accelerating the scale and speed of renewable energy deployment, we face a widening gap in jobs, investment and capability that will weaken our economy.” 

The letter calls on the UK government to take three decisive steps in the forthcoming budget: 

1. Replace the Energy Profits Levy (EPL) with a successor regime in 2026
2. Deliver bold investment for offshore wind through Allocation Round 7 (AR7)
3. Protect and redeploy the UK’s highly skilled energy workforce 

The intervention increases pressure on the Treasury, which is already weighing potential reforms to the tax as part of two ongoing government consultations — one on oil and gas licensing, and another on the fiscal regime. 

Ministers have reportedly asked industry to outline investment commitments if the levy were eased, with companies suggesting as much as £40billion could be unlocked across 90 projects.