Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of proposed changes to the Energy Profits Levy on inward investment in the United Kingdom Continental Shelf.

At Autumn Budget 2024 the Government confirmed that from 1 November 2024, the Energy Profits Levy (EPL) rate would increase by 3 percentage points to 38%, the EPL investment allowance would be abolished and the EPL decarbonisation allowance rate would be adjusted to 66%. The duration of the levy was extended from 31 March 2029 until 31 March 2030. To support jobs in future and existing industries, including in the supply chain, the Government also decided to make no additional changes to the availability of capital allowances in the EPL. In addition, to support long-term stability and predictability in the oil and gas fiscal regime, the Government has committed to publish a consultation this year on how taxation of oil and gas profits will respond to price shocks after the EPL ends.

The Government has carefully considered the impact of the Autumn Budget changes to the EPL. Treasury publishes impacts in summary form for tax measures in tax information and impact notes (TIINs) alongside the Finance Bill. The summary of impacts from the EPL changes can be found here: https://www.gov.uk/government/publications/energy-profits-levy-reforms-2024