Jeremy Hunt poised to ease windfall tax in boost for North Sea.8 Jun 2023 22:28
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Jeremy Hunt is preparing to soften the Government's windfall tax on oil and gas companies after warnings of a jobs bloodbath in the North Sea.
The Chancellor could announce changes to the so-called energy profits levy as soon as Friday, The Telegraph understands, following intense lobbying by the industry.
Changes are expected in an effort to boost investment in the North Sea, with many operators either cutting or reassessing their commitments in the wake of the tax.
Easing the tax burden would also draw a clear line between the Government and the Labour Party, which has adopted a hardline approach to the oil and gas industry in recent weeks.
Sources close to discussions confirmed that one option
Treasury officials have examined is a "floor" for the tax, which would mean it no longer applies if oil and gas prices drop below certain levels.
Gareth Davies, a junior minister, is expected to travel up to Scotland to meet with major companies including BP, Shell, Equinor and Total on Friday afternoon and an announcement may coincide with his visit.
It is seen as an opportunity to put "clear blue water" between the Conservatives and Labour ahead of the next general election, one industry insider said. Sir Keir Starmer has taken fire from his party's union backers for his "reckless" plans to ban new oil and gas development completely.
Rishi Sunak joined criticism of Labour's "bizarre" policy on Wednesday, warning that it put "ideology ahead of jobs, ahead of investment, and ahead of our energy security" and would leave Britain more reliant on imports.
However, oil and gas bosses have warned that the Government's windfall tax is also hugely damaging, with companies already blaming it for job cuts and cancelled investments.
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