Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the adequacy of the Energy Profits Levy in the context of profits announced by energy companies.

The Energy Profits Levy was introduced in May 2022 to respond to very high prices that meant oil and gas companies are benefiting from exceptional profits. At Autumn Statement 2022, the government confirmed the rate of the levy would rise by a ten percentage points to 35%. This is on top of the 40% tax rate under the permanent regime, bringing the combined headline rate of tax for the sector to 75%, one of the highest amongst comparable North Sea regimes.

The Office for Budget Responsibility’s (OBR) forecast at Autumn Statement 2022 estimates revenues from EPL are expected to be £41.6 billion over the next five years. Total UK oil and gas revenues over this period are forecast to be around £80 billion.

As with all taxes, this is kept under review and any changes will be considered and announced by the Chancellor.