Home Money Oil and gas giants in crisis talks over Labour’s windfall tax

Oil and gas giants in crisis talks over Labour’s windfall tax

by Elijah
0 comment
Crisis talks: Industry group Offshore Energies UK said Labor leader Sir Keir Starmer's policy would be a

Oil and gas bosses will attend crisis talks this week over Labour’s plan to extend the windfall tax.

Industry group Offshore Energies UK (OEUK) said Labor leader Sir Keir Starmer’s policy would be a “hammer”.

It had previously warned it could cost 42,000 jobs and wipe £26bn off the economic value of the sector.

The organization will hold emergency summits in London and Aberdeen tomorrow and Thursday to discuss the impact of a two-year extension of the tax.

A windfall tax is a levy on the profits of North Sea oil and gas producers.

Crisis talks: Industry group Offshore Energies UK said Labor leader Sir Keir Starmer’s policy would be a ‘hammer blow’

The Government introduced an energy profits tax in May 2022, as households struggled with energy bills. But Labor plans to extend the policy until 2029 and increase taxes from 75 per cent to 78 per cent.

OEUK said the meetings, which will be attended by senior oil and gas company leaders, will allow it to gather more evidence from members to present to Starmer.

David Whitehouse, chief executive of OEUK, said: ‘We remain deeply concerned about what Labor’s proposals could do to our people.

‘If we don’t get companies to invest here, there are no jobs. It’s that easy. I have already heard from our supply chain and energy producers that these proposals would be a major blow to the energy we need today and to the local transition to cleaner energy.’

British energy companies Shell and BP and US oil and gas giants ExxonMobil and Chevron are members of the industry body.

The companies made huge profits last year, raising £78bn between them.

You may also like