The director of the British Chambers of Commerce has called on Andy Burnham to authorize continued extraction from North Sea oil and gas fields, arguing that doing so would help protect employment in Scotland and the northeast. The decision regarding the Jackdaw and Rosebank fields is expected to be made by the incoming Burnham administration. Business leaders contend that relying on imported liquefied natural gas instead of domestic resources is more costly and environmentally problematic than utilizing existing UK assets.
The business group, representing 50,000 enterprises and 7.5 million workers, acknowledged broad support among its members for transitioning toward clean energy sources. However, officials expressed concern that the shift to offshore wind development is not generating sufficient jobs to absorb workers displaced by the North Sea’s decline. They indicated that local supply chains are being bypassed in favor of overseas suppliers, and the transition is not occurring quickly enough to prevent significant employment gaps. Business chambers in Aberdeen and the northeast have raised concerns about potential outcomes similar to previous coal industry closures.
The BCC also urged Burnham to address what it describes as a “cost-of-doing-business crisis.” Research from the organization indicates that business costs have increased by 70 percent over the past decade, encompassing taxes, regulations, wage requirements, and trade complications resulting from Brexit. Officials stressed that high operational costs are discouraging business investment and creating a self-reinforcing cycle that harms economic growth and tax revenues. While Labour has committed to reforming business rates and expanding its Industrial Competitiveness scheme to lower energy costs for certain sectors, the BCC contends these measures remain insufficient in scope.
Regarding potential new business taxation, the BCC cautioned that additional levies would be counterproductive. Leadership emphasized that economic growth provides the sustainable path to resolving fiscal challenges. The organization also addressed Brexit-related matters, indicating that despite the economic costs associated with the decision, members do not support reopening discussions about reversing it or rejoining EU structures. Instead, business representatives called for pragmatic negotiations on specific issues, including agricultural trade agreements, youth mobility programs, and alignment with EU environmental policies that could affect UK competitiveness.
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