President-Elect Donald Trump has criticized the UK government’s decision to raise the windfall tax on North Sea oil and gas profits, claiming it was a “very big mistake.” The comments, made on his Truth Social platform, came after a US energy firm, Apache, announced its plans to halt operations in the North Sea due to the increased levy. Trump urged the UK to “open up the North Sea” and to “get rid of windmills,” referring to the country’s growing reliance on offshore wind farms as part of its renewable energy strategy. His remarks were covered by The UK Times.
The windfall tax, first introduced in 2022 by then-Prime Minister Boris Johnson and Chancellor Rishi Sunak, was a response to the rising profits of energy companies after the Russian invasion of Ukraine caused a surge in energy prices. In October 2024, the government increased the levy from 35 percent to 38 percent, pushing the total tax rate on North Sea oil and gas profits to 78 percent. The move has drawn criticism from various industry players, including Apache, which operates the Forties oil field, the second-largest in the North Sea. Apache stated that the tax’s financial impact, combined with stricter regulations on emissions from North Sea facilities, has made continuing oil production in the region “uneconomic.”
As a result, Apache plans to cease all production in its UK operations by December 2029, opting instead to focus on the “responsible decommissioning” of its assets. Offshore Energies UK, the industry body representing energy firms, has warned that the increased windfall tax could lead to significant economic losses, projecting a £13 billion hit to the UK economy from 2025 to 2029 and the potential loss of 35,000 jobs in the sector. Additionally, the dismantling of North Sea infrastructure could cost the UK an estimated £24.6 billion through 2033.
The UK government has sought to balance its energy strategy with environmental concerns. In December 2024, UK regulators approved a permit for a carbon capture project led by BP and Equinor, which will store carbon dioxide deep beneath the seabed off the coast of Yorkshire. Energy Secretary Ed Miliband called the project a “new era for clean energy in Britain,” reflecting the government’s broader push toward reducing reliance on fossil fuels. This development highlights the ongoing tension between the UK’s transition to cleaner energy and its ongoing reliance on North Sea oil and gas resources.
Trump’s comments also highlight the ongoing political rift between him and the UK’s Labour government. His presidency was marked by tensions with UK leaders, including sharp criticisms from figures like Foreign Secretary David Lammy, who once described Trump as a “woman-hating, neo-Nazi-sympathizing sociopath.” London Mayor Sadiq Khan, who recently received a knighthood in the New Year honours list, has also been vocal in his criticism of Trump, calling him racist and homophobic.
However, relations between Trump and UK Labour leader Keir Starmer appear to have warmed in recent months. After a meeting in New York in September 2024, Trump praised Starmer for his leadership and popular appeal, with Starmer becoming one of the first world leaders to congratulate Trump on his victory following his election win. The two men discussed their shared admiration for Scotland and the British royal family, signaling a potential thaw in what has been a historically tense relationship between Trump and the Labour Party.
