Asked by: David Duguid (Conservative - Banff and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of windfall taxes on the level of investment in offshore energy production.
Answered by Gareth Davies - Shadow Minister (Business and Trade)
The Energy Profits Levy (EPL) was introduced on 26 May 2022 to respond to exceptionally high prices that meant oil and gas companies were benefiting from unexpectedly high profits. While the EPL is in place, companies can claim around 91p in tax relief for every £1 they invest in the UK. This relief increases to £1.09 for every £1 for money invested towards reducing greenhouse gas emissions from the production of oil and gas. At Autumn Statement 2023, the Government confirmed the technical details of the EPL’s price floor, the Energy Security Investment Mechanism (ESIM), which was introduced in June 2023 to give the sector the certainty to invest. The Government are committed to ending the EPL by March 2028 at the latest, or earlier if oil and gas prices return to historically normal levels due to the ESIM.
The Electricity Generator Levy (EGL) is a time-limited tax on the extraordinary returns of electricity generators. The levy is not payable on renewable generation produced under Contracts for Difference, which will account for most new large renewable generation coming online in future years. To further support new renewables investment, at Autumn Statement 2023 the Chancellor announced an exemption from the EGL for new generation projects.
Asked by: David Duguid (Conservative - Banff and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will bring forward further fiscal measures to help tackle recent increases in fuel costs.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
At Spring Statement 2022 in response to fuel prices reaching record levels, the government announced a temporary 12-month cut to duty on petrol and diesel of 5p per litre.
This is the largest cash-terms cut across all fuel duty rates at once, ever, and is only the second time in 20 years that main rates of petrol and diesel have been cut. This cut represents savings for households and businesses worth around £2.4 billion in 2022-23.
All taxes, including fuel duty, remain under review.
Asked by: David Duguid (Conservative - Banff and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of increasing the £150,000 threshold to the VAT Flat Rate Scheme in the context of increased costs faced by businesses during the recovery from the covid-19 pandemic.
Answered by Lucy Frazer
The VAT Flat Rate Scheme was introduced in 2002 as an administrative simplification scheme for small businesses. All taxes are kept under review, but there are no current plans to change the entry threshold for the Flat Rate Scheme.
The Government has made a comprehensive package of support available, worth billions, to a wide range of businesses that have been affected by the COVID-19 pandemic. This includes extensions to the reduced rate of VAT for tourism and hospitality, the furlough scheme, extensions to the COVID-19 loan schemes, grant support, a business rates holiday for all retail, hospitality, and leisure business properties, mortgage holidays, enhanced Time to Pay for taxes, and VAT deferrals.