Offshore staff
LONDON — Offshore Energies UK (OEUK) has warned of serious consequences arising from proposals by Britain’s Labour Party to extend the windfall tax on oil and gas producers.
Opinion polls continue to predict a landslide victory for Labour in the next UK General Election, set to be held later this year.
Labour plans to raise the current 75% levy to 78% through 2029. This could threaten 42,000 jobs in the UK industry and wipe £26 billion ($32.8 billion) of economic value from assets in the North Sea area, OEUK claims.
The party also plans to “end loopholes,” which could lead to the removal of critical allowances that help companies make long-term investments in UK offshore production, the association said. That could result in no new investments being made in UK oil and gas projects.
OEUK Chief Executive David Whitehouse said, “Labour either can’t do the maths or haven’t considered the alarming jobs impact that will be felt up and down the country…
“The impact of no new investment will be felt across the whole economy…It will undermine the very industry which can and must play a critical role in delivering a home-grown energy transition.
“Last week I listened carefully to the Shadow Chancellor [Rachel Reeves] promise that Labour will work in partnership with UK businesses. We’ve always said the path to net zero is through working together between government, business and people, ensuring no individual, community or sector is left behind—that’s not what we’ve had from Labour. “
Currently oil and gas supply 75% of Britain’s energy needs, OEUK claims, with many of the oil and gas producers also leading expansion of offshore wind energy, hydrogen and the development of carbon capture and storage.
Extending the levy could hit wider investment in some of these planned projects, the association added.
02.12.2024
