Treasury written question – answered on 28th November 2022.
To ask the Chancellor of the Exchequer, for what reason he decided not to introduce a higher windfall tax levy on oil and gas companies as part of the Autumn Statement 2022.
At Autumn Statement, the Chancellor announced that the rate of the Energy Profits Levy will increase by ten percentage points, taking it from 25% to 35%, effective from 1 January 2023. This is on top of the 40% tax rate under the permanent regime bringing the combined headline tax rate for the sector to 75%. In addition, the levy has been extended until 31 March 2028.
The government has always sought to balance delivering a fair return for the UK from the use of its resources while providing the right conditions to attract investment in the North Sea that is key to support domestic jobs and the nation’s energy security.
The Office for Budget Responsibility’s most recent published forecast, provided for Autumn Statement 2022, estimates revenues from the levy are expected to be £41.6 billion between 2022-23 and 2027-28.
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