Chancellor to meet North Sea oil and gas bosses in Aberdeen over windfall tax plans

Rishi Sunak is set to meet with North Sea oil and gas bosses as they push back on plans to impose a windfall tax on the sector.

The Chancellor last month announced the Government’s intention to introduce a £5bn tax on energy firms in an attempt to help ease the cost of living.

However, firms including Harbour Energy have written to Sunak in an appeal for him to urgently revise the proposals.

Norwegian state energy company Equinor is also said to have been pushed to reconsider its plans to drill near the Shetland Islands as a result of the tax.

Under the Energy Profits Levy, a 25% surcharge would be placed on the extraordinary profits the oil and gas sector is making.

A ‘super-deduction’ style relief is also included within the levy in a bid to encourage firms to invest in oil and gas extraction in the UK.

Sunak will travel to Aberdeen on Wednesday to meet with CEOs from oil and gas companies.

“Following Putin’s barbaric invasion of Ukraine we see the importance of the UK’s energy supply and security now more than ever,” Sunak said ahead of his visit.

“The North Sea will be the foundation of the UK’s energy supply in the decades to come as we transition to cleaner ways to fuel our country.

“It’s vital we encourage continued investment by the oil and gas industry in the North Sea and our new investment allowance provides huge tax reliefs for projects that cut emissions.

“I look forward to hearing about the projects Scottish industry have planned as they continue to lead the charge to Net Zero with new innovations and investment.”