UK Offshore Industry Group Calls for Earlier Tax Change to Boost Revenues
The UK's leading offshore industry group, Offshore Energies UK (OEUK), has urged the government to bring forward a planned tax change from 2030 to January 2027. The proposed Oil and Gas Revenue Levy is expected to generate an additional £14.9 billion in revenue for Britain over the next decade if implemented earlier, according to OEUK's annual Economic Report. Currently scheduled as a permanent successor to the Energy Profits Levy after 2030, this new tax would impose a 35% levy on revenues when oil prices exceed $90 per barrel and gas exceeds 90p per therm. The industry group argues that frequent changes in UK energy taxation since 2022 have created uncertainty, leading to reduced investment. Companies are reportedly leaving the North Sea due to regulatory instability and rising taxes under both Conservative and Labour governments. OEUK's report highlights concerns over declining investments potentially increasing Britain’s reliance on oil and gas imports. OEUK has called for Chancellor John Healey to act swiftly in implementing this tax shift, emphasizing its potential to attract private investment, support jobs nationwide, enhance energy security, and increase government revenues.
Topics: fiscal regime investment uncertainty oil and gas UK tax policy