Spring statement: Chancellor under pressure to axe energy profits levy and boost Holyrood funding

Scottish Labour leader Anas Sarwar is also facing calls to “grow a backbone” and call on Ms Reeves to end the temporary tax on energy giants.

The North Sea oil and gas industry has repeatedly called for the energy profits levy to be reformed immediately instead of 2030, when UK ministers have proposed to overhaul the arrangements.

Scottish Conservative leader Russel Findlay, has penned a letter to Mr Sarwar, calling on him to stand up for Scottish jobs and convince the Labour chancellor to remove the energy profits levy, a measure introduced by the previous Tory government at Westminster.

READ MORE: Oil and gas windfall tax 'didn't feature' at first North Sea board meeting

Mr Findlay has argued that the windfall tax is harming oil and gas infrastructure, and putting thousands of jobs at risk.

He said: “Labour and the SNP are responsible for the annihilation of Scotland’s oil and gas industry, with 1,000 joins being lost every month.

“Both these left-wing parties oppose the critical development of Rosebank, Cambo and Jackdaw because they’re in the grip of an unrealistic net zero obsession.

“Anas Sarwar must use whatever modest influence he has left within the Labour Party to urge Rachel Reeves to ditch the energy profits levy.

READ MORE: Climate advisers lash out at Reform and Tories' 'slogan-based' net zero opposition ahead of election

“When Sarwar called on Keir Starmer to quit, he claimed his first loyalty was to Scotland. If that’s true, he must grow a backbone and stand up for Scotland’s oil and gas workers.”

In response, Scottish Labour deputy leader Jackie Baillie, said: "It is laughable that the Scottish Tories think they are in any position to lecture people about the economy after they utterly wrecked it during 14 years in office.

"Scottish Labour stands firmly on the side of working people, and we are committed to growth, boosting jobs, and protecting workers' rights.

"Russell Findlay and the Scottish Tories are a sinking ship who are becoming increasingly irrelevant.

"The only party that can remove the failing SNP from office is Scottish Labour, and in May, the people of Scotland will have a straight choice to make between Anas Sarwar and John Swinney. Everything else is just noise."

READ MORE: SNP's flagship ScotWind projects being investigated by Scotland's spending watchdog

In a letter to the Chancellor, Scotland’s finance secretary, has warned that the energy profits levy is “damaging Scotland’s economy” and “placing a just energy transition at risk”.

Ms Robison added: “The consequences of your decision to retain the EPL at the last autumn budget are already being felt for business confidence, jobs and investment across Scotland’s energy sector.”

She added that axing the tax “would send a strong and positive signal across the energy industry, as well as to communities and workforces here in Scotland”.

Scottish politics has never been more important - get The Steamie newsletter today

Ms Robison said: “These fiscal changes must also form part of any wider plan for a just transition from oil and gas to renewables, one which protects jobs and skills and delivers a pipeline of future investment.”

The SNP minister added that “public services across the UK continue to face challenges”.

She argued that tomorrow’s spring statement “provides an opportunity to announce increased investment in these vital services, which will in turn deliver increased funding for the devolved governments and the services we deliver”.

Ms Robison said: “As we approach the next financial year, it is important that the Scottish government has clarity on the levels of funding available.

“I would therefore welcome confirmation of what level of Barnett consequentials will flow from your recent announcement on changes to business rates reliefs in England as part of your statement.”