Scrapping windfall tax early 'could cost UK £8.6bn by 2030'
Replacing the UK's current windfall tax on oil and gas companies could cost the country up to £8.6bn by 2030, campaigners are warning.
By Sky News
Campaigners have warned that bringing forward the replacement for the UK’s windfall tax on oil and gas companies could leave the Treasury £8.6bn worse off by 2030.
The warning centres on the current energy profits levy, which ministers have said they plan to replace with a new oil and gas revenue levy in 2030. Campaigners said the change could reduce tax receipts if it is introduced earlier than planned.
The report said research for Global Witness found the new system would raise £8.6bn less than the existing tax if oil prices stayed around $100 a barrel. It also said that if prices fell to $70 a barrel, the new levy could raise nothing, while the current tax could still generate £4.6bn over the same period.
The issue has been raised in a letter to Chancellor John Healey, signed by groups including Greenpeace UK, the End Fuel Poverty Coalition, Stamp Out Poverty and Tax Justice UK.
A government spokesperson said the sector needed long-term certainty and that plans remained to replace the energy profits levy when it ends by 2030, or earlier if the price floor is triggered.