Key facts
- The British Chambers of Commerce (BCC) advocates for exploiting remaining North Sea oil and gas resources to prevent job losses.
- BCC Director Shevaun Haviland stated that importing liquid gas is more expensive and less environmentally friendly than domestic extraction.
- Haviland expressed concern that the shift to offshore wind is not creating enough jobs to offset North Sea declines.
- The BCC called for action on the "cost of doing business crisis," which has seen costs rise by 70% in a decade.
- The organization opposes further business taxation, favoring economic growth to address fiscal challenges.
Shevaun Haviland, director of the British Chambers of Commerce (BCC), has urged Andy Burnham to exploit the UK’s remaining North Sea oil and gas resources to avoid significant job losses in Scotland and the north-east. Haviland argued that importing liquid gas is more expensive and less environmentally friendly than utilizing domestic assets like the Jackdaw and Rosebank fields.
Haviland, speaking ahead of a BCC conference, stated that while businesses support the transition to clean energy, the shift to offshore wind is not generating enough jobs to compensate for those lost as the North Sea sector winds down. She expressed concern that local suppliers are being lost and that the UK is not investing enough in building a local supply chain for new industries, leading to a "worrying gap" and fears of a decline similar to the coal mines.
The BCC also called on Burnham to address the "cost of doing business crisis," noting a 70% increase in business costs over the past decade due to taxes, regulation, minimum wage, and Brexit-related trade frictions. Haviland warned that high business costs deter investment, creating a vicious cycle that hinders growth and tax income. She specifically cited business rates and energy costs as areas needing attention.
Regarding potential new taxes, Haviland stated that taxing businesses further would be a "road to ruin" and advocated for economic growth as the solution to fiscal issues. She also indicated that businesses are not interested in reopening discussions about reversing Brexit or rejoining a customs union, preferring pragmatic solutions. Haviland highlighted the need for completing negotiations on issues like an agrifood deal and alignment with the EU's carbon border adjustment mechanism. She praised Burnham's record in Manchester for fostering public and private investment.