Government ‘taxing oil and gas sector to death’, claims trade body

The Chancellor was told Aberdeen was ‘not going down without a fight’.

The UK Government is taxing the oil and gas industry “to death”, a trade body has said as the Chancellor refused to scrap the windfall tax.

The energy profits levy (EPL) was placed on the profits of oil and gas firms as a result of the cost-of-living crisis.

But concerns have been raised in the energy sector that it was disincentivising firms to invest and hurting jobs, with many – including the Sottish Government – pushing for it to be scrapped, or at least reformed, in Wednesday’s Budget.

Chancellor Rachel Reeves refused to change the levy, which is due for expiry by the end of the decade, despite a projected dip in revenues – falling from £2.7 billion last year to £1.1 billion in its final full year of operation.