Business leaders are pressing incoming Prime Minister Andy Burnham to approve extraction from the Jackdaw and Rosebank oil and gas fields in the North Sea, according to comments from Shevaun Haviland, director of the British Chambers of Commerce. Haviland argued that utilizing these domestic resources would be preferable to importing liquefied gas, which she characterized as both more expensive and less environmentally friendly. The decision on these projects is expected to rest with the Burnham administration.
Haviland expressed concern that the transition away from North Sea oil and gas is not being managed effectively, despite broad business support for the shift toward clean energy. While she acknowledged the success of offshore wind development in the UK, she contended that job creation in renewable energy sectors is not occurring quickly enough to absorb workers displaced by declining fossil fuel operations. She noted that local supply chains are not being adequately developed to support new industries, with many products still sourced from overseas. Chambers of commerce in Aberdeen and the northeast have raised alarms about potential mass unemployment similar to the decline of coal mining.
Beyond energy policy, Haviland called on Burnham to address what she termed a “cost-of-doing-business crisis.” The BCC has documented a 70 percent increase in business costs over the past decade, factoring in taxes, regulations, wage requirements, and trade friction resulting from Brexit. She argued that high business costs are deterring investment and creating an economically damaging cycle that reduces tax revenue. She specifically highlighted business rates and energy costs as areas requiring attention, noting that roughly one quarter of BCC members reported struggling with energy bills.
Haviland cautioned against further taxation of businesses as a means to address fiscal challenges, characterizing such measures as counterproductive. She stated that economic growth represents the appropriate path forward. Regarding Brexit-related trade negotiations, Haviland aligned with positions from other business groups in indicating that while companies have adapted to current arrangements, they seek practical solutions to specific issues rather than broader policy reversals.
The BCC conference will convene later this week with politicians from multiple parties participating, including Labour’s Rachel Reeves and Green Party leader Zack Polanski. Opposition leaders are expected to make their own appeals regarding fiscal and trade policy.
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