The CEO of a North Sea gas company has said his team was “days away” from issuing key contracts when Labour’s promise of a “proper windfall tax” sparked job cuts.
There has been significant attention paid over the past few months to oil and gas taxation in the UK, following Labour’s announcement regarding its intentions for oil and gas taxation, should it form the next UK government.
The UK Budget should be assessed in relation to its macroeconomic (aggregate) effects and in relation to its impact on individual elements (i.e. microeconomic effects).
Earlier this month, Labour announced its revised green investment plan. While the wider media focus has been on the reduction of the previous £28bn annual target, the announcement also contained potentially significant proposals regarding the taxation of UK upstream oil and gas.
A few weeks ago, Holyrood Sources – a podcast producer – held a live meeting in Aberdeen with three politicians and some 300 people from the energy sector.
It was all a bit odd at the Scottish Labour conference last month. A few days earlier, the oil and gas industry was shrieking outrage at Labour for proposing a windfall tax on gargantuan profits.
By David Whitehouse, chief executive Offshore Energies UK
Offshore Energies UK has this month launched its manifesto for the general election with a list of essential proposals for the incoming government as we ramp up the homegrown energy transition and the drive for net zero.
The prime minister was asked to rule out concerns the Chancellor is teeing up a longer tax levy – despite Tories slamming Labour for suggesting a higher rate.
Chancellor of the Exchequer Jeremy Hunt is weighing proposals to extend the UK’s windfall tax on the profits of oil and gas companies as one of several revenue-raising options under consideration to help finance personal tax cuts at his budget next week.
New analysis by Wood Mackenzie has forecast the financial impact of Labour's windfall tax proposals, warning that key CCS and wind projects could grind to a halt.