Rishi Sunak’s keynote speech to the Scottish Conservative Conference in Aberdeen looks set to be overshadowed by claims his Chancellor could try to raise enough cash for personal tax cuts by extending the windfall levy on oil and gas firms.

The suggestion was branded "ludicrous" by the Aberdeen and Grampian Chamber of Commerce. 

If the UK Government does push ahead it could lead to accusations of hypocrisy, with the Tories having spent weeks attacking Labour for looking at similar changes to the extra charge on profits.  

According to Bloomberg, extending the energy profits levy is on a list of possible measures being reviewed by Jeremy Hunt ahead of next week’s Budget.

Though the news site says it is low down on the list, with changes to non-dom status more likely.

Recent forecasts from the Office for Budget Responsibility (OBR) have reportedly given the Chancellor less fiscal headroom than he hoped for.

He received the most recent forecast this week and will get another today.

Maintaining the energy levy for an extra year could increase the tax take, which could give him the space to push ahead with a cut and give him some red meat to throw disgruntled backbench Tory MPs desperate to see off defeat at the general election.

Read more from Andrew Learmonth:

In comments released ahead of his speech in Aberdeen, Mr Sunak insisted his government remained “steadfast in its support of the 200,000 high quality UK jobs that depend on our North Sea oil, gas and energy sector.”

He added: "I will continue to back the industry so we can build a brighter, greener future for Scotland.

"We have a plan to transition to net zero and my government will always take the right long-term decisions to ensure that we do so in a pragmatic and proportionate way, that doesn't burden hardworking Scottish families.

"Proving once again, only the Conservatives can be trusted to protect Scottish jobs and livelihoods.”

Mr Sunak first announced the windfall tax - set at 65% - back in May 2022 when he was chancellor. He always insisted it would be temporary and was due to end next year.

However, after Liz Truss’s mini-budget crashed the economy, Mr Hunt increased the rate to 75% and extended it for a further two years to 31 March 2028.

Earlier this month, Labour said they would raise the rate to 78% and keep it in place until 2029.

That led to them being branded “traitors” by the Aberdeen and Grampian chamber of Commerce. Forecasts suggested doing so could see anywhere between 20,000 and 100,000 jobs lost.

Responding to the news of the possible Tory extension to the levy, Ryan Crighton, the chamber’s policy director, said it would be “Ludicrous if true.”

He added: “Windfalls have gone, so should the windfall tax. Energy policy in this country really is in a dreadful state.”

Speaking ahead of the Prime Minister’s visit to the North East, Labour’s Shadow Scottish Secretary, Ian Murray said: “As Rishi Sunak makes a desperate trip north to rally the fragments of the Scottish Tory party, it is clear that the people of Scotland are ready to boot the Tories out of power for good.

“This chaotic and damaging government offers the people of Scotland nothing but more economic turmoil, incompetence and dangerous political brinkmanship.”

Maggie Chapman, the Green list MSP for the North East of Scotland, said the Tory conference would be “an exercise in denial and a celebration of policies that have plunged so many people and families into poverty.”

“If they have any contrition or dignity then they must open with a full and frank apology for the human cost and the pain they have inflicted,” she added.

Meanwhile, a new poll shows the Tories on their lowest vote share since Liz Truss’s brief premiership.

The poll by Survation for communications agency Quantum Communications puts support for the SNP in Westminster voting intention at 38%, while Labour are on 33% and the Tories on 15%.

Co-CEO of Quantum Communications Alan Roden, who is a former communications director with Scottish Labour, said: “This year’s general election is not a foregone conclusion, but it appears to be a two-horse race when it comes to winning most seats.”

He said Labour’s lead in parts of the central belt was “significant” which suggested there would not be a uniform swing across Scotland.

“Keir Starmer’s huge UK poll lead will also inevitably narrow as the election nears, so Scotland could prove to be a decisive battleground,” he added.