Wednesday 21 February 2024

Energy industry launches urgent talks on Labour’s tax plan

Energy industry launches urgent talks on Labour’s tax plan

Offshore Energies UK (OEUK) has called for emergency summits this week at its offices in London and Aberdeen, in response to proposals by the Labour Party to extend the current windfall tax on UK oil and gas production.

The trade body expressed deep concerns over potential job losses and economic damage if Labour's plans come to fruition.

According to OEUK's analysis, extending the windfall tax could lead to the loss of 42,000 jobs and erase £26 billion in economic value.

Labour's proposal aims to close loopholes in the existing tax system, which has caused unease among energy companies fearing the removal of crucial allowances necessary for long term investments in domestic production.

OEUK Chief Executive David Whitehouse said: "Labour either can’t do the maths or haven’t considered the alarming jobs impact that will be felt up and down the country.

"With no new investment, 42,000 jobs will go, and we could start to see the effects as early as this year. These are not faceless numbers but decent, hardworking people working across the UK to provide the energy we will need today and in the future.

"The impact of no new investment will be felt across the whole economy - today we estimate the UK will lose £26 billion of economic value. It will undermine the very industry which can and must play a critical role in delivering a homegrown energy transition."

Written by

Sumit Bose

Trending Articles