A government minister has criticised one of the main announcements in Jeremy Hunt’s Budget.
In a highly unusual move, Andrew Bowie said the chancellor’s decision to extend the windfall tax on the profits of North Sea oil and gas firms was “deeply disappointing”.
HuffPost UK revealed how the chancellor is facing a major rebellion from Scottish Tory MPs over the move.
They say extending the so-called “energy profits levy” (EPL) will put jobs in the north east of Scotland at risk.
Douglas Ross, leader of the Scottish Conservatives, said: “We will always stand up for the livelihoods of the almost 100,000 Scottish workers who depend on our oil and gas industry.
“Unlike Labour and the SNP who would stop any new developments, we will not support any action that would put those jobs at risk.
“As such, while I support many of the Budget measures, as Scottish Conservative Leader I will not vote for this extension when it is brought before Parliament.”
Bowie, the minister for nuclear and renewables, is MP for West Aberdeenshire and Kincardine, where he has a majority of just 843.
Following the Budget, he posted on X: “I agree with Douglas. There is much in this budget to welcome. Much that is good for Scotland and our United Kingdom. And only the Conservatives have a plan. However, the extension of the EPL is deeply disappointing. I will be working with him to resolve this.”
Bowie, who is also a former Tory vice-chairman, is said to be on “resignation watch” by the party whips.
Any minister failing to vote for a government policy in the Commons would be expected to resign or face the sack.
One senior Tory source told HuffPost UK: “Andrew is in a really difficult position on this because it’s right on his doorstep. They’ve put him in an impossible situation.”
The windfall tax was first introduced in May 2022 after a spike in energy prices following Russia’s invasion of Ukraine.
Hunt increased the tax in November 2022 from 25% rate to 35%, and also extended it until 2028 while expanding it to electricity generators with a levy of 45%.