Aberdeen Faces Decline as Labour’s Net Zero Policies Hit Oil Industry

Aberdeen, once a thriving hub for the oil industry, is experiencing a significant economic downturn as Labour’s stringent net zero environmental policies take effect. The city’s vibrant past, marked by high property values and low unemployment, is now overshadowed by business closures and a sharp decline in local fortunes.

For decades, Aberdeen enjoyed a reputation as a “boomtown,” home to the highest concentration of millionaires in the United Kingdom. The city flourished thanks to the North Sea oil boom, attracting numerous high-paying jobs and fostering a bustling service industry. However, the landscape has changed dramatically in recent years as new drilling permissions have been curtailed, with Energy Secretary Ed Miliband announcing a ban on new fossil fuel production licences in 2024.

Impact of Policy Changes on Local Economy

Recent projections indicate that around 180 of the UK’s 280 current oil and gas fields may close over the next five years. This shift could threaten as many as 200,000 jobs within the sector. The consequences for Aberdeen are already evident, with property prices plummeting to levels not seen since 2007 and prominent retailers like John Lewis, Debenhams, and Marks and Spencer shuttering their doors.

Local residents have noted the stark changes in their communities. Once-bustling streets are now lined with boarded-up shops, and many families are relying on food banks for support. Unemployment in Aberdeen stands at 4.3 percent, higher than the Scottish average, and over 21 percent of working-age individuals have become economically inactive, totaling approximately 39,500 people.

At the Lord Byron pub, former oil industry workers lament the decline. Mac, a retired pump engineer, reflected on his 40 years in the North Sea, stating, “The oil industry in Scotland has all gone to sh*** – and that happened a long time ago.” His sentiment resonates with many as they recall the prosperity of the 1980s, a stark contrast to the current economic climate.

Calls for Change and Future Prospects

The Conservative Party has criticized Labour’s approach, with leader Kemi Badenoch warning that the future of 200,000 jobs in the oil sector hangs in the balance. In a recent speech in Aberdeen, she emphasized the importance of utilizing the North Sea’s remaining resources, stating, “Labour sees the North Sea as a relic of the past; we see it as a cornerstone of Britain’s future.” Badenoch argues for a policy shift that prioritizes energy independence and job security for local communities.

Despite these calls for action, the path forward appears challenging. The closure of the Beach Leisure Centre in 2023 and the diminishing presence of major retailers have contributed to a growing perception of Aberdeen as one of the UK’s most economically depressed cities. A recent report highlighted that the average house price in Aberdeen has fallen to £142,000, significantly down from its peak of £212,000 in 2014.

Local residents express nostalgia for Aberdeen’s prosperous past, with many advocating for a return to oil drilling as a means of economic recovery. Retired oil worker Clifford Holland stated, “Green energy is okay, but there’s still room for drilling for oil.” His wife, Maureen Holland, echoed the sentiment, noting how the vibrancy of the city has diminished over the years.

As Aberdeen grapples with the fallout from reduced oil industry activity, the community’s resilience will be tested. The call for a balanced approach to energy policy is becoming increasingly urgent, as local businesses and families face an uncertain future in a city that once thrived on the wealth generated by the North Sea.