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OEUK repeats calls to prioritise home produced energy as draft Profits Levy Bill is published

21 June 2022

Offshore Energies UK has repeated its calls for the UK to prioritise home produced energy. It comes as the UK Government today published its draft legislation for the Energy (Oil and Gas) Profits Levy Bill. 

The government is now seeking technical feedback on the draft legislation before the Energy (Oil and Gas) Profits Levy Bill is published. 

OEUK, the leading representative body for the offshore energies sector, today said it will continue to make the case for a stable tax regime which encourages companies to invest in UK oil and gas, and avoids increasing the country’s reliance on imported energy. The consultation closes on 28 June 2022.

Offshore oil and gas operators are already expected to pay £7.8bn in production taxes alone in 2022. While the Treasury expects the levy to raise an additional £5bn, the sector has warned this could come at a cost to future offshore energy investment and ultimately the taxes and jobs associated with a strong UK sector. 

Commenting, OEUK External Relations Director Jenny Stanning said: 
“We continue our dialogue with No10, HMT and BEIS to ensure the sector is heard throughout the process of designing the legislation. We continue to call for a meeting with the Treasury to set out the positive contribution of this sector.

“Our industry is very proud to pay its taxes and support the UK government and consumers, especially in difficult times like these.  The Treasury believes our sector will contribute nearly £13bn towards the Government’s £15bn package to support consumers. The problem is that new taxes dent investor and industry confidence.  That is why the industry always considers a stable and predictable fiscal regime to be key to its investment criteria. Ensuring reliable supplies of home produced energy is essential to ensure we don’t further add to the cost of living crisis. This means supporting the production of oil and gas today while increasingly ramping up availability of cleaner energies using many of the same companies, keeping them anchored here in the UK for the long term – supporting jobs and local communities.”


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