First Minister Humza Yousaf has accused Labour of planning to “raid the north east” after Anas Sarwar accused the SNP of siding with oil and gas giants.
The Scottish Labour leader attacked Mr Yousaf after the SNP leader said he would oppose Sir Keir Starmer’s proposal for an increased windfall tax on oil and gas companies in a speech earlier this week.
Speaking at First Minister’s Questions, Mr Yousaf criticised Labour’s policy, claiming it could put up to 100,000 oil and gas jobs at risks – repeating a concern made by the industry body, Offshore Energy UK (OEUK).
Raising the policy at First Minister’s Questions, Mr Sarwar told MSPs that the SNP is “on the side of energy giants making billions” rather than working people.
Read more: Oil bosses held crunch talks with Yousaf after 'negative comments'
The Scottish Labour leader said high energy prices had led to companies like BP, Total and Shell posting profits of more than £10 billion each.
He asked: “Why does the First Minister think these companies can’t afford to pay more tax?”
The First Minister made reference to a front page of The Press & Journal newspaper, which lampooned Mr Sarwar and other Labour figures as “The Traitors” from the BBC TV series.
Later, a spokesperson for the First Minister said that Mr Sarwar was not a “traitor” when asked about Mr Yousaf repeating the comment.
Mr Yousaf said there is “palpable anger” from the North Sea industry at Labour’s windfall tax plans, with industry figures saying 100,000 jobs could be at risk.
Read more: Humza Yousaf: Hypocrisy claims as he woos oil sector
He said: “We absolutely believe in a windfall tax on energy companies.
“What we don’t believe in is Anas Sarwar’s and Labour’s aggressive plans to raid the north east so they can build new nuclear power plants in England.
“We won’t allow it, we won’t stand for it. We’ll stand up for the north east, Anas Sarwar can’t even stand up to Keir Starmer.”
Mr Sarwar said industry has often exaggerated the impact on jobs of his party’s policies.
He said: “I can’t wait to present the choice to the Scottish people at the next general election.
“Because firmly the SNP, on the side of energy giants making billions, and Labour trying to bring down people’s bills and on the side of working people.”
Read more: SGN chief calls for alignment to make Scotland 'battery of Europe'
Mr Yousaf said his Labour opponent had “flip-flopped” on issues like the two-child benefit cap, saying he would be glad to go “head to head” with Mr Sarwar in Aberdeen during the general election campaign.
Labour leader Sir Keir Starmer promised a “proper” windfall tax earlier this month when he scaled back his party’s £28 billion-a-year green investment pledge.
An energy profits levy for oil and gas production was introduced in 2022 after global energy prices shot up in the wake of Russia’s invasion of Ukraine.
Labour intends to extend the tax to 2029 if it enters government, with the energy profits levy rising to 78%, saying it will raise £10.8 billion over five years to help pay for green spending plans.
Mr Yousaf, who delivered a speech in Aberdeen on Monday on the oil and gas industry, appears to be shifting his position towards business concerns in the north east as the general election rhetoric ramps up.
Earlier this week, The Herald revealed that Mr Yousaf held talks with OEUK bosses at Bute House after comments he made in opposition to the Rosebank oil field development had a “negative impact” on the energy sector and workforce.
Scottish Conservative North East Scotland MSP Douglas Lumsden took aim at the First Minister over the Scottish Government’s presumption against new oil and gas licences.
He said: “The First Minister makes one trip up to Aberdeen and then masquerades as the saviour of the oil and gas industry.
“He must think the people of the north east are buttoned up the back.
“He’s against (proposed oil field) Cambo, he’s against Rosebank, and his Government still has a presumption against any new oil and gas licences.”
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