In 2025, the UK imported more than 40% of its energy, yet the UK’s offshore sector remains a large strategic asset. The more imported energy, the higher our emissions, as well as fewer UK jobs and less taxes paid so should the Chancellor boost the sector in the upcoming budget?
That is exactly what OEUK is urging Labour to do, to provide long-term investment certainty for offshore wind through continued Contracts for Difference delivery and transmission charging reform.
They say the sector can unlock an additional £50 billion of capital investment, with £32 billion coming within the next decade. This could add £70 billion in value to the UK economy from domestic oil and gas production alone, deliver an additional £14.9 billion in production and payroll taxes over the next decade and unlock a further 1.3 billion barrels of oil and gas production by 2035.
Their recommendation to the government before its Autumn Budget is to back homegrown energy production – they say that continued delays are accelerating the decline of the North Sea, weakening Britain’s industrial base and increasing reliance on imported energy.
Their independent analysis revealed that offshore oil and gas and offshore wind contributed £36.2 billion in gross value added to the UK economy in 2024 and supported 241,000 jobs across the country.
OEUK Chief Executive David Whitehouse said: “With the right Budget choices, this sector can unlock billions of pounds of private investment, support jobs in every constituency across the whole of the UK, strengthen energy security and deliver more tax revenue for the Exchequer.
“This is not a choice between today’s energy security and tomorrow’s clean energy system. The same world-class supply chain that supports domestic oil and gas is essential to offshore wind, carbon storage and hydrogen. If we weaken that foundation now, we weaken the UK’s ability to build the low-carbon industries of the future.”
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