Should the Budget scrap the windfall tax on North Sea oil and gas to boost UK production?
The Energy Profits Levy, a 38% windfall tax on North Sea oil and gas profits, is in force until 31 March 2030. It sits on top of 30% corporation tax and a 10% supplementary charge, giving a 78% headline rate. It can end sooner if oil and gas prices stay below set thresholds, but prices rose after the 2026 Middle East conflict. The government plans to replace it with a permanent 35% price-triggered tax. Industry groups and the SNP want it scrapped early, while campaigners warn of lost revenue.
8 Opinions
North Sea production has lower costs & lower emissions & comes to the UK through existing pipes. The gas doesn’t have to be frozen and sent by ship. A global shift to electric is happening, but we will need oil & gas for decades, we should use our own & follow Norway which issued 57 new licences this year. There is oil & gas there, we still need it, there remain jobs and wealth. If only the Govt would stop mucking about.
Energy security is a strategic imperative for the country - we should be encouraging, and not milking, development of those resources. Only caveat is that we want UK firms in the business
If they scrap the tax on production, they'll need to recoup it from somewhere else. The profits that oil & gas companies make are huge compared to my wage.
Trickledown taxation means that we ultimately pay for it.
Sad thing is it's not a renewable source. Don't scrap the windfall tax, instead, make sure Scotland gets a fairer share
The levy should be put into a sovereign wealth fund, not just treated like general revenues. We only get this gas once so let's make sure we can benefit for generations.
78%! I had no idea.
A balanced between excessive profits from inflated prices due to the Middle East and investment needs to be struck, the current headline rate of 78% is too high for investors, so a reduction is needed