Windfall tax on oil and gas ‘would damage industry’
A one-off ‘windfall tax’ on the UK’s offshore oil and gas operators would cause irreparable damage to the industry and leave consumers even more exposed to global shortages, a trade body has warned.
Such a tax has been proposed by some politicians as a response to surging gas prices across Europe which could add £700 to the average UK domestic annual energy bill (currently £1,250) from April.
Lib Dem leader Sir Ed Davey, who was Energy Secretary in the 2010-15 coalition with the Conservatives, said a windfall levy could fund emergency support to help more than 17 million households with heating bills.
“A Robin Hood tax on gas and oil barons would provide vital cash to support vulnerable families facing crippling energy price hikes,” he told MPs.
OGUK, which represents the UK offshore oil and gas industry, said the increases were a global problem and showed the importance of protecting the UK industry rather than penalising it.