Scotland’s energy industry is facing an “existential threat”, the First Minister has claimed as he called for UK Government support.
John Swinney and Prime Minister Sir Keir Starmer met ahead of a summit of the British-Irish Council in Wales.
The meeting came after job losses announced last month at an ethylene plant in Mossmorran, Fife, owned by oil giant ExxonMobil risking more than 400 jobs and a further 100 set to be cut at Harbour Energy in Scotland’s north-east.
Both owners have cited UK Government policy as one of the reasons behind the decisions.
Ahead of the meeting, the First Minister said Scotland is an “afterthought” to Westminster, pushing for independence and stressing the “urgent necessity” for the UK Government to step in.
Following the meeting, Mr Swinney said: “I was clear with the Prime Minister – act now or run the risk of delivering irreversible deindustrialisation and decline in Scotland’s economy.
“The energy industry is facing an existential threat unless it gets the support it needs from the UK Government – including removing the energy profits levy – to help ensure there is a just transition from oil and gas to renewables that protects skills and delivers a pipeline of future investment.
“We have a moral obligation to deliver on our climate commitments but must ensure we do not leave communities behind.
“Scotland still suffers the scars of deindustrialisation from previous UK governments and unless there is action now from UK ministers, we run the risk of repeating the mistakes of the past.”
During the meeting, he raised the impact of the UK Budget on key economic infrastructure including Grangemouth, Mossmorran and Acorn, and asked for an update on UK-US trade talks.
Mr Swinney said: “I also pressed the Prime Minister for an update on the UK-US trade negotiations – specifically whisky – and reinforced my determination to ensure there is mutually-beneficial deal for Scotland.
“This follows my earlier discussions with President Trump about the tariffs impacting Scotch whisky and the symbiotic partnership which exists between the Scotch and US whisky industries.
“Scotland’s whisky industry is a cornerstone of our economy and without those trade exemptions – which are for the UK Government to secure – the industry will not have the protection and support it needs. It is in the economic interest of both Scotland and the US to reduce tariffs for Scotch whisky.
“Scotland’s economy is at its best when we focus on securing investment in the jobs and industries of tomorrow. That ambition is matched by our commitment to ensuring we do not repeat the mistakes of the past – a commitment I pressed the Prime Minister to follow.”
The First Minister also welcomed the UK Government’s commitment to remove the two-child cap and said the change in policy would help the Scottish Government further deliver on action to tackle child poverty.
