Yousaf criticises windfall tax plan set out by ‘wolf in red rosette’ Labour

Scotland’s First Minister has branded Labour a “wolf” in a red rosette as he rejected the party’s plans to increase the windfall tax.

Humza Yousaf delivered a speech at the HM Theatre in Aberdeen on Monday where he said there was “extreme anger” from locals in the north-east of Scotland at opposition party plans for the oil and gas sector.

Sir Keir Starmer announced he wanted to raise the windfall tax on fossil fuel firms from 75% of excess profits to 78% while also extending it to 2029.

Mr Yousaf’s anger at the proposals come on the back of Sir Keir’s speech to the Scottish Labour conference in Glasgow on Sunday where he pledged work in the North Sea oil and gas sector would continue “for decades to come” in an attempt to calm criticism from the industry.

In his speech, Mr Yousaf said his party would oppose “Labour’s aggressive tax plans for the sector”, describing them as a bid to plug a financial black hole caused by the party’s intention to build new nuclear plants.

Mr Yousaf added: “Now, don’t get me wrong. We support a windfall tax in order to protect people during a cost-of-living crisis but Labour’s plans to increase this to pay for new nuclear power plants in England is plain wrong and will cost tens of thousands, if not more, jobs in the north-east.”

He also took aim at Sir Keir, accusing the UK Labour leader of “doubling down on austerity” with his plans, should the party win the upcoming general election.

Mr Yousaf later told journalists he favoured maintaining the windfall tax at the current 75% level.

Mr Yousaf said: “Labour’s fiscal rules are nothing more than a defence against Tory attacks. But in effect they bind Labour to Tory austerity.

“Westminster is so broken, so skewed to the right, that even Labour know they can’t win unless they promise to be just as right wing as the Conservatives.

“The wolf hasn’t even bothered to put on the sheep’s clothing. It’s just a stuck on a red rosette.”

The First Minister told industry leaders that Labour’s plans would “raid the north-east energy industry”, to a loss of some 100,000 jobs.

He said the tax proposals came on the back of Labour announcing it would no longer invest £28 billion a year on green policies, instead committing to other policies like wind farms and the clean energy firm GB Energy.

Mr Yousaf said: “Let’s be abundantly clear. The SNP believes in a just transition.

“There is no justice in a transition that throws north-east workers on the scrapheap.

“The SNP will not let the north-east go the way that coal and mining towns went under (Margaret) Thatcher – that is exactly what Labour is threatening to do.”

Labour’s shadow Scottish secretary Ian Murray said: “Humza Yousaf’s latest position on Labour’s plans is completely incoherent and out of touch.

“Last year energy giants recorded profits of £33 billion while a third of households in Scotland were living in fuel poverty – but after a dizzying series of u-turns, it seems the SNP has decided to side with the energy giants.

“It beggars belief that Humza Yousaf thinks that a person earning more than £28,500 deserves to pay more tax, but energy giants earning billions in profits from soaring bills should pay less.

“Labour’s plans will tackle the cost-of-living crisis and drive down bills for good by delivering cheaper, cleaner energy and retrofitting homes, as well as establishing a publicly-owned GB Energy company, creating 50,000 new clean power jobs in Scotland, and delivering clean energy by 2030.

“The oil and gas sector will continue to play a key role in our energy system for decades to come and Labour’s plans will ensure the jobs and opportunities of the future come to the north-east.”

Scottish Tory leader Douglas Ross said: “Humza Yousaf is displaying breathtaking hypocrisy masquerading as a friend of Scotland’s oil and gas industry when he and the SNP have abandoned it at every opportunity.”

He cited the party’s opposition to new oil and gas licences, and their refusal to back the Rosebank development.

Mr Ross also said Labour’s plans would be “catastrophic” for the region, adding: “You can barely put a cigarette paper between Labour and the SNP on this.”