Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his oral statement of 26 May 2022 on Economy Update, Official Report, column 451, if he will make an assessment of the likely impact of the energy profits levy on (a) investor confidence in the energy sector, (b) additional costs of capital for future electricity generation projects and (c) the costs faced by electricity bill payers in the next 10 years.
Answered by Lucy Frazer
As the Chancellor announced in the Economy Update 2022, the Government is introducing the Energy Profits Levy, a new 25 per cent surcharge on the extraordinary profits the oil and gas sector is making.
The new Energy Profits Levy will raise around £5 billion over the next year which will go towards supporting people with the new cost of living measures, also announced by the Chancellor.
Within the Levy, a new ‘super-deduction’ style relief is being introduced to encourage firms to invest in oil and gas extraction in the UK. The new 80 per cent Investment Allowance will mean businesses will overall get a 91 pence tax saving for every £1 they invest.
The Levy ensures the extraordinary profits that oil and gas companies have benefited from are taxed fairly, and provides a significant incentive for companies to invest. Officials and Ministers regularly engage with representatives from the sector.
Within the Economy Update, the Chancellor also set out that the Government is urgently evaluating the scale of extraordinary profits in the energy generation sector and the appropriate next steps.
As part of this process, officials are urgently engaging with industry stakeholders on this matter to gather evidence on energy generators’ level of profitability and the operation of their business models. The Government remains committed to achieving a Net Zero Economy and to fully decarbonising the power system by 2035, subject to security of supply. As we transition to net zero, we will make sure the costs of doing so are distributed fairly. The Government will take these factors into consideration when deciding on the appropriate action with regard to energy generators’ profits.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his oral statement of 26 May 2022 on Economy Update, Official Report, column 451, if he will take steps to ensure that any policy proposals take full account of investments being made by electricity generators to deliver net zero.
Answered by Lucy Frazer
As the Chancellor announced in the Economy Update 2022, the Government is introducing the Energy Profits Levy, a new 25 per cent surcharge on the extraordinary profits the oil and gas sector is making.
The new Energy Profits Levy will raise around £5 billion over the next year which will go towards supporting people with the new cost of living measures, also announced by the Chancellor.
Within the Levy, a new ‘super-deduction’ style relief is being introduced to encourage firms to invest in oil and gas extraction in the UK. The new 80 per cent Investment Allowance will mean businesses will overall get a 91 pence tax saving for every £1 they invest.
The Levy ensures the extraordinary profits that oil and gas companies have benefited from are taxed fairly, and provides a significant incentive for companies to invest. Officials and Ministers regularly engage with representatives from the sector.
Within the Economy Update, the Chancellor also set out that the Government is urgently evaluating the scale of extraordinary profits in the energy generation sector and the appropriate next steps.
As part of this process, officials are urgently engaging with industry stakeholders on this matter to gather evidence on energy generators’ level of profitability and the operation of their business models. The Government remains committed to achieving a Net Zero Economy and to fully decarbonising the power system by 2035, subject to security of supply. As we transition to net zero, we will make sure the costs of doing so are distributed fairly. The Government will take these factors into consideration when deciding on the appropriate action with regard to energy generators’ profits.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his oral statement of 26 May 2022 on Economy Update, Official Report, column 451, if he will take steps to ensure that such a policy is (a) fair and equitable given and (b) reflects the comparative complexity of the oil and gas sector.
Answered by Lucy Frazer
As the Chancellor announced in the Economy Update 2022, the Government is introducing the Energy Profits Levy, a new 25 per cent surcharge on the extraordinary profits the oil and gas sector is making.
The new Energy Profits Levy will raise around £5 billion over the next year which will go towards supporting people with the new cost of living measures, also announced by the Chancellor.
Within the Levy, a new ‘super-deduction’ style relief is being introduced to encourage firms to invest in oil and gas extraction in the UK. The new 80 per cent Investment Allowance will mean businesses will overall get a 91 pence tax saving for every £1 they invest.
The Levy ensures the extraordinary profits that oil and gas companies have benefited from are taxed fairly, and provides a significant incentive for companies to invest. Officials and Ministers regularly engage with representatives from the sector.
Within the Economy Update, the Chancellor also set out that the Government is urgently evaluating the scale of extraordinary profits in the energy generation sector and the appropriate next steps.
As part of this process, officials are urgently engaging with industry stakeholders on this matter to gather evidence on energy generators’ level of profitability and the operation of their business models. The Government remains committed to achieving a Net Zero Economy and to fully decarbonising the power system by 2035, subject to security of supply. As we transition to net zero, we will make sure the costs of doing so are distributed fairly. The Government will take these factors into consideration when deciding on the appropriate action with regard to energy generators’ profits.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his oral statement of 26 May 2022 on Economy Update, Official Report, column 451, what representations he has received from energy investors on the energy profits levy.
Answered by Lucy Frazer
As the Chancellor announced in the Economy Update 2022, the Government is introducing the Energy Profits Levy, a new 25 per cent surcharge on the extraordinary profits the oil and gas sector is making.
The new Energy Profits Levy will raise around £5 billion over the next year which will go towards supporting people with the new cost of living measures, also announced by the Chancellor.
Within the Levy, a new ‘super-deduction’ style relief is being introduced to encourage firms to invest in oil and gas extraction in the UK. The new 80 per cent Investment Allowance will mean businesses will overall get a 91 pence tax saving for every £1 they invest.
The Levy ensures the extraordinary profits that oil and gas companies have benefited from are taxed fairly, and provides a significant incentive for companies to invest. Officials and Ministers regularly engage with representatives from the sector.
Within the Economy Update, the Chancellor also set out that the Government is urgently evaluating the scale of extraordinary profits in the energy generation sector and the appropriate next steps.
As part of this process, officials are urgently engaging with industry stakeholders on this matter to gather evidence on energy generators’ level of profitability and the operation of their business models. The Government remains committed to achieving a Net Zero Economy and to fully decarbonising the power system by 2035, subject to security of supply. As we transition to net zero, we will make sure the costs of doing so are distributed fairly. The Government will take these factors into consideration when deciding on the appropriate action with regard to energy generators’ profits.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his oral statement of 26 May 2022 on Economy Update, Official Report, column 451, what method his Department is using to carry out the evaluation of the scale of extraordinary profits in certain parts of the electricity generation sector; and what estimate his Department has made of the scale of such profits.
Answered by Lucy Frazer
As the Chancellor announced in the Economy Update 2022, the Government is introducing the Energy Profits Levy, a new 25 per cent surcharge on the extraordinary profits the oil and gas sector is making.
The new Energy Profits Levy will raise around £5 billion over the next year which will go towards supporting people with the new cost of living measures, also announced by the Chancellor.
Within the Levy, a new ‘super-deduction’ style relief is being introduced to encourage firms to invest in oil and gas extraction in the UK. The new 80 per cent Investment Allowance will mean businesses will overall get a 91 pence tax saving for every £1 they invest.
The Levy ensures the extraordinary profits that oil and gas companies have benefited from are taxed fairly, and provides a significant incentive for companies to invest. Officials and Ministers regularly engage with representatives from the sector.
Within the Economy Update, the Chancellor also set out that the Government is urgently evaluating the scale of extraordinary profits in the energy generation sector and the appropriate next steps.
As part of this process, officials are urgently engaging with industry stakeholders on this matter to gather evidence on energy generators’ level of profitability and the operation of their business models. The Government remains committed to achieving a Net Zero Economy and to fully decarbonising the power system by 2035, subject to security of supply. As we transition to net zero, we will make sure the costs of doing so are distributed fairly. The Government will take these factors into consideration when deciding on the appropriate action with regard to energy generators’ profits.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of introducing a UK carbon border adjustment mechanism.
Answered by Lucy Frazer
As the UK transitions to Net Zero, the Government recognises the importance of addressing the risk of carbon leakage. The best solution would be for all countries to move together in the pricing and regulation of carbon emissions. However, international solutions will take time to develop, and so the Government is considering options for domestic action in parallel.
As I set out in a Written Ministerial Statement on 16 May 2022, later in the year the Government intends to consult on a range of carbon leakage mitigation options, including on whether measures such as product standards and a carbon border adjustment mechanism (CBAM) could be appropriate tools in the UK’s policy mix.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to amend the differences in funding under the Homes for Ukraine Scheme, for which local authorities receive £10,500 of integration funding per refugee, and the Ukraine Family Scheme, for which local authorities do not receive that funding.
Answered by Simon Clarke
This government cares deeply about helping those fleeing the conflict in Ukraine. This is why we have announced two visa schemes which both support the integration of Ukrainian refugees by providing them with full access to social services and welfare in the UK for up to three years.
The Ukraine Family Scheme is similar to existing family visa routes, and provision of public services from this route will be managed in the usual way. The UK-based family member is expected to provide support and accommodation for those coming to join them, who in turn benefit from the wider integration advantages in joining an existing family network.
Homes for Ukraine on the other hand is a unique scheme that has been set up specifically to support those escaping the conflict in Ukraine who are not able to rely on family support. The government is providing additional funding to local authorities which includes resource to enable them to carry out sponsorship-specific functions such as safeguarding checks and property checks, administering payments, as well as providing support such as English language training to help their integration into communities.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much tax has been paid by (a) oil and gas producers over the lifetime of the UK basin and (b) month in the last 12 months by oil and gas producers operating in the UK Continental Shelf.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
Government revenues received from North Sea oil and gas operators between 1968 to 1969 and 2020 to 2021 are presented in Table 2 of HM Revenue & Custom’s (HMRC) “Statistics of government revenues from UK oil and gas production” publication, available on GOV.UK.
https://www.gov.uk/government/statistics/government-revenues-from-uk-oil-and-gas-production--2
Data for 2021 to 2022 onwards can be found in the “HMRC tax receipts and National Insurance contributions for the UK” tables, also available on GOV.UK.
https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk