Douglas Ross has said he had “strong, robust discussions” with Chancellor Jeremy Hunt over the latter’s decision to extend the windfall tax on oil and gas firms, as the Scottish Tories leader denied threatening to quit over the row.

He said the move, which was outlined in the Budget, was the “wrong choice” and he had made this clear to Mr Hunt. The Chancellor previously said increasing the lifetime of the energy profits levy by a further 12 months until 2029 was the “right thing for all the country”.

However, it caused huge embarrassment for the Scottish Conservatives, who have vocally opposed Labour’s plan to extend and increase the windfall tax. They have repeatedly insisted they are the only party standing up for the north-east and the North Sea energy industry.

Following the Budget, Mr Ross, the MP for Moray, said he was “deeply disappointed” by the windfall tax extension. He received support from Andrew Bowie, a junior energy minister and the MP for West Aberdeenshire and Kincardine. If Mr Bowie votes against the measure, he would have to resign as a minister.

Mr Ross is standing down at the general election to focus on Holyrood, but his party hopes to hold on to its seats in the north-east, partly by championing the oil and gas sector.

Speaking to journalists in Holyrood, Mr Ross said: "I was very clear to the Chancellor of the Exchequer, to the Prime Minister, to senior members of the Government, that it was the wrong choice to extend the windfall tax on oil and gas companies. I made that clear throughout the last week. I put that case across as robustly as I could.

"I have been clear to every single one of you that I still believe the Chancellor is wrong, and that’s why I have made the firm commitment and the guarantee that I will oppose the Bill that will be required in Westminster to introduce that extension because I do not support it in any way.”

He added: “I reiterate that the Chancellor has got that wrong. I made that point to him personally, and I said in no uncertain terms I wouldn’t go out and try and either shy away from making comment on it or suddenly come round and support him. He has made the wrong choice here.”

Asked if he threatened to quit, Mr Ross said: “No, no. We had strong, robust discussions, but ultimately the best way I can stop this happening is being in the House of Commons and opposing the legislation that the Government will need to bring forward.”

He said the Chancellor had been grappling with difficult decisions and there was “a balance to be struck”. The Scottish Tory leader also praised the decision to cut National Insurance rates by 2p as part of the Budget.

Elsewhere, he tried to dismiss suggestions the windfall tax extension would damage his party’s general election campaign in Scotland. “I think the most important thing is providing that security and certainty for the oil and gas sector, and that’s why I went in to fight as hard as I possibly could on this issue,” he said.

Asked if it damaged the Tories’ chances in the north-east, Mr Ross said: “I think most people will be looking at what the other parties are suggesting, and it’s incredible the confusing message we’re getting from Humza Yousaf himself and the SNP.

"In one breath he’s saying he supports the windfall tax and then he’s saying he doesn’t support elements of it. Of course, he brought the Green Party into Government, who are very anti-oil and gas, and the SNP want to stop further exploration for oil and gas in the North Sea.

"So I am still very firmly behind, and the Conservatives are, ensuring that we can meet our current demand from the North Sea rather than importing it at a greater cost with a higher carbon footprint, which is the policy of Labour and the SNP.”

The energy profits levy charges oil and gas companies an extra 35 per cent tax on the money they make in the UK, with its extension expected to raise another £1.5 billion for the Treasury.

Douglas Ross says he had ‘robust’ exchange with Jeremy Hunt over windfall tax

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