Offshore Energies UK reacts to windfall tax increase announced after the Chancellor’s fiscal statement
The Government has confirmed further details on the windfall tax levy today in the House of Commons.
This announcement made in a late-afternoon policy paper issued without warning after the Chancellor’s fiscal statement, has raised the Energy Profit Levy, taking the headline tax rate for the sector to 78%, further extended the levy to 31 March 2030, removed the EPL’s investment allowance. It also signalled further reductions in capital allowances.
The decarbonisation allowance and the levy’s price floor – the Energy Security Investment Mechanism – will remain in place.
Commenting, David Whitehouse Offshore Energies UK chief executive said:
“This is not partnership working between government and industry. These announcements have been made without meaningful engagement with this sector.
“We recognise the Government has significant spending challenges to manage but today’s announcement will only serve to rock confidence further.
“The offshore energy sector supports over 200,000 jobs. These are real people, working in our energy industry today. Today’s announcement jeopardises jobs in communities across the UK. This is something the Prime Minister committed in his manifesto not to do.
“Announcements like this without engagement is no way to treat these hard-working people.
“We have tonight spoken to the Treasury Minister and expect further and urgent engagement with the sector.”
Published: 30-07-2024
