Alan Stewart, Aberdeen-based partner at MHA, an accountancy and business advisory firm:

“With the confirmation that the Energy Profits Levy will continue until 2030 and then will be replaced by a permanent windfall tax mechanism, the long-term uncertainty facing the sector remains unchanged. 

"A 78% tax rate continues to cast a long shadow over activity, pausing projects, slowing commitments and weakening confidence throughout the UK’s wider energy ecosystem. The announcement of allowing tiebacks to existing infrastructure in the North Sea will not outweigh the impact of the Levy and does little to address the hesitation already evident across investment decisions. Job losses, which are estimated to be at a level of 1,000 a month, will likely continue causing major issues for the economy in the North East of Scotland.

“As things stand, the industry is facing continued difficulties in supporting  a balanced energy mix or deliver a fair and orderly transition and for giving businesses the confidence to invest in both current production and future technologies.

"The effects extend well beyond operators, local businesses, supply chains and regional economies across the UK and the UK now faces a continued period of caution at a time when the demands on energy security and long-term planning have rarely been greater.”