SIR Keir Starmer must cut Net Zero levies on industry or risk killing off manufacturing jobs for good, Labour MPs have warned.

They say oil and gas producers in particular are at risk of shutting up shop and being moved abroad because of the barmy rules.

The report is a major challenge to the PM’s hugely controversial Net Zero policies.

British factories are slapped with massive charges for every tonne of carbon they produce.

But other big countries – including China and the US – have far lower levies or none at all.

In a new hard-hitting report, the Commission for Carbon Competitiveness calls for these levies to be urgently eased to save jobs.

Labour MP Henry Tufnell, chairman of the commission, said: “We cannot afford to sleepwalk into a future where the UK achieves its climate goals through deindustrialisation, putting vital jobs at risk.

“Britain needs to be able to compete with the big industrial powers, like China and the United States. 

“To do that we need a level playing field. That is what this report is calling for.”

They want UK companies to get free credits to produce carbon under the UK’s Emissions Trading Scheme, and ignore the threat of legal action by the World Trade Organisation.

Red Wall Labour MP for Grimsby Melanie Onn also backed the report.

It comes after the OBR warned that the government’s policy of hitting Net Zero by 2050 will cost an eye-watering £803 billion over the next 25 years.