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Labour's North Sea block could cost £1,100 per year for every Scot

A redundant oil platform moored in the Firth of Forth near Kirkcaldy, Fife - JANE BARLOW/PA
A redundant oil platform moored in the Firth of Forth near Kirkcaldy, Fife - JANE BARLOW/PA

Labour’s plan to block all new North Sea oil and gas fields would cost the Scottish economy the equivalent of around £1,100 per person every year, it has been alleged as a trade union backlash intensified.

The Tories highlighted official estimates that Scotland would be £6 billion poorer per year by 2030 if fossil fuel production was rapidly wound down thanks to the loss of thousands of high-salary jobs.

They warned the move would “devastate” North East Scotland in particular, the hub of the UK’s oil and gas industry, “and hammer every Scot to the tune of £1,100”.

The figures emerged as Unite, Labour’s biggest donor, said the policy risked a “repeat of the devastation” caused by the closure of coal mines in the 1980s.

Sharon Graham, the union’s general secretary, accused Sir Keir Starmer of “grabbing the headlines” rather than “developing a serious plan for renewable energy”.

She hit out after it was reported that Sir Keir will unveil a new energy policy next month pledging that he will block new oil and gas developments if he wins power in next year’s general election.

Policy blindsided Scottish Labour

It is understood the policy blindsided Scottish Labour, with senior figures deeply unhappy about the announcement and fearful it could undermine the party’s attempts to stage a political comeback north of the Border.

Party insiders blamed Ed Miliband, the shadow climate change and net zero secretary, for failing to take into account the impact on jobs and presenting the Tories with a politically-open goal.

The Conservatives highlighted an expert analysis commissioned by the Scottish Government, and published earlier this year, which examined the economic impact of accelerating the shift from oil and gas (O&G) to renewables.

It said the average wage for “direct jobs” in North Sea oil and gas is £88,000, while those working in the supply chain earn an average £51,000. However, the average Scottish salary is only £29,000.

‘Workers should not pay the price for the transition to renewable energy’

Speeding up the transition away from fossil fuels could cost the Scottish economy £6 billion annually by 2030 and £7 billion by 2050, it said, “primarily due to the value of the jobs in the new low carbon sectors being lower than those in the existing O&G sector”.

Liam Kerr, the Scottish Tories’ shadow energy secretary, described the policy as “economically illiterate, short-sighted and a betrayal of the North East”.

He said: “Labour’s policy means, of course, we’d need to import oil and gas from overseas to meet our energy needs, which would increase our carbon footprint, as well as throwing tens of thousands of skilled workers under the bus.”

Ms Graham said: “Labour must now be very clear that they will not let workers pay the price for the transition to renewable energy.”

Scottish Labour was approached for comment.