Karen Adam MSP: UK Budget “Chaotic” and a Blow to North East Industries

Karen Adam MSP has criticised the UK Government’s latest Budget, describing it as “chaotic” and “deeply disconnected” from the needs of people and industries across Banffshire and Buchan Coast.

The UK Chancellor confirmed that the Energy Profits Levy will remain in place, despite widespread warnings that the measure is accelerating the loss of jobs and investment in the North East. Industry figures show that around 1,000 jobs a month are being lost across the region as the levy pushes projects into delay or cancellation.

The Office for Budget Responsibility’s own analysis indicates that the levy is contributing to a premature decline in the sector,  long before renewable industries are able to provide equivalent opportunities.

Karen Adam MSP said:

“People across Banffshire and Buchan Coast needed stability, clarity, and meaningful support today, and instead we were handed a Budget shaped by leaks, confusion, and last-minute scrambling. It was chaotic from start to finish.

“The decision to keep the Energy Profits Levy in place is devastating for the North East. We are losing a thousand jobs a month. These are not abstract figures, they are our families, friends and neighbours.”

“The OBR’s own figures show the levy is pushing the sector into decline long before renewables can take up the slack. No responsible government should ignore that.

“From energy to whisky, fishing to farming, it’s clear that the UK Government does not understand the economic realities of the North East or the importance of our industries. Communities like mine deserve far better than being treated as an afterthought.”

“What we needed was serious action on energy bills, investment in jobs and public services, and a long-term plan for Scotland’s energy sector. Instead, we were given a Budget that simply doesn’t meet the moment and leave many in the North East in a sense of despair.”

Shona Robison MSP, Scotland’s Finance Secretary, also raised concerns that the Budget will not “move the dial” for households facing rising costs, and that the limited increase in Scotland’s funding fails to offset new burdens imposed by UK policy decisions.

The Budget also introduced changes to electric vehicle taxation, which are expected to hit rural communities particularly hard, and made only partial adjustments to welfare policies long criticised by anti-poverty campaigners.

Adam added:

“This Budget once again shows why decisions about Scotland’s economy, and the livelihoods of people in the North East, should not be left to a system that has repeatedly failed to prioritise us. Our communities deserve to be heard, respected, and protected.”