A Fiscal Forum was co-hosted by Exchequer Secretary to the Treasury, James Murray MP, and senior industry leaders at Offshore Energies UK’s Aberdeen offices on Monday.
Key discussions centered on the potential ramifications of extending and raising the Energy Profits Levy (EPL), also known as the windfall tax, and the possible elimination of critical capital allowances for the sector.
Impact on UK’s Global Competitiveness and Energy Transition
These proposed policy changes are reportedly shaking the confidence of companies and investors in the UK’s ability to maintain its global competitiveness and successfully achieve a homegrown energy transition.
The offshore energies sector is considered a strategic national asset, supporting 200,000 jobs across the UK and contributing £20 billion annually to the Treasury, thereby underpinning national energy security.
Call for Government-Industry Partnership
David Whitehouse, CEO of Offshore Energies UK, expressed gratitude for the candid meeting with the minister, stressing the importance of upcoming discussions before the Autumn Statement.
He believes these discussions are crucial to secure investment in the sector and realize the government’s commitment to safeguarding jobs.
Concerns Voiced by Business Leaders
Whitehouse further conveyed the concerns expressed by senior business leaders regarding the impact of the proposed policy changes on businesses of all sizes and their skilled workforce across the UK.
He warned that decisions made by the government in the coming weeks could jeopardize thousands of jobs and billions of pounds in economic value.
Need for a Balanced Approach
Whitehouse highlighted the shared ambition for a clean energy future, but emphasized that this can only be achieved through partnership with the oil and gas sector and policies that support jobs, attract investment, and retain businesses within the UK.
He stressed that there’s no simple choice between oil and gas and renewables – both are necessary to ensure energy security and a successful homegrown energy transition.