Firms across the UK’s oil and gas supply chain have raised concerns about the government’s plans to increase windfall taxes and remove investment incentives.
In an open letter to HM Treasury, 42 companies warned that these plans could threaten £200 billion of investment in domestic energy, including renewables.
The signatories include companies in manufacturing, engineering and technology.
The Treasury responded by saying that its industrial strategy aims to create thousands of jobs in future industries.
The government’s current proposal would raise windfall taxes on oil and gas profits from 75% to 78%, extend the tax until 2030, and remove tax incentives for further investment.
The letter, issued by Offshore Energies UK, highlighted worries that reduced investment and increased uncertainty could impact jobs and communities supported by the industry.
It also suggested that revenues from oil and gas are essential for funding renewable energy projects.
Copyright © 2024 Energy Live News LtdELN
Make sure you check out the latest Net Hero Podcast episode:
