The UK Government has confirmed the levy on oil megaprofits will end in 2030.

Labour ministers have vowed to scrap the windfall tax on oil firms as they pledged to “unleash the North Sea’s clean energy future”.

The UK Government has confirmed the levy on oil megaprofits will end in 2030, claiming it will give the sector “long-term certainty”. It comes as fossil fuel giants continue to post multi-billion pound profits as gas prices soar and Scots continue to struggle with energy bills.

In a new consultation on North Sea policies that UK ministers say will protect jobs and supply chains, the government vowed to help the sector shift to become a clean energy “world-leader” in technologies like offshore wind, hydrogen and carbon capture. Separately, the Treasury said it would scrap the energy profits levy – a windfall tax brought in at the height of the cost of living crisis when gas prices rocketed – and consult on a “new regime” for the 2030s that would factor in future oil and gas shocks.

The UK Government also pledged to keep its policy against allowing any new oil and gas licences but said it would assist the industry in managing existing fields. Scottish Secretary Ian Murray said: “Scotland is at the heart of the UK Government’s clean energy future.

“We know the existing oil and gas fields in the North Sea will be with us for decades and a crucial part of our energy mix. Through our Plan for Change we are working to ensure our vital energy sector continues to deliver economic growth and skilled jobs in local communities both in the north east of Scotland and across the country for generations to come.”

Energy Secretary Ed Miliband said the North Sea would continue to help “power our country and our world”. He added: “This consultation is about a dialogue with North Sea communities – businesses, trade unions, workers, environmental groups and communities – to develop a plan that enables us to take advantage of the tremendous opportunities of the years ahead.”

Dhara Vyas, boss of trade body Energy UK, said: “The government has a sent a strong signal about the UK’s clean energy future, and the role the North Sea will continue to play in fostering clean technologies such as offshore wind, hydrogen, and carbon capture and storage.”

Heather Plumpton, head of research at Green Alliance, said: “There can be no safe future whilst we continue to extract oil and gas, so it’s good to see the UK government stepping up and leading with today’s new vision for the North Sea. Confirming the end of new licensing is the responsible approach for a mature basin, clearing the way for the region to transform into a centre for low-carbon technology and clean power.”