Question to the HM Treasury:

To ask the Chancellor of the Exchequer, What assessment she has made of the potential impact of revoking the windfall tax on oil and gas companies on the revenues of the exchequer.

In its manifesto the Government committed to make changes to the Energy Profits Levy (EPL) to raise revenue towards clean energy goals, including raising the rate of the levy from 35% to 38% and extending the duration of the levy until 31 March 2030. Following confirmation of these changes at Autumn Budget 2024, the EPL is now due to end by 31 March 2030, or earlier if oil and gas prices fall consistently below the price thresholds set by the Energy Security Investment Mechanism. The OBR’s latest forecast published at Spring Statement 2025 indicates that the levy will generate £13.5 billion in receipts between 2024-25 and 2029-30, on top of £7.4bn already raised since the levy’s introduction.

Following a period of change and uncertainty, the government is committed to providing long-term certainty to the oil and gas sector over the future fiscal regime and published a consultation on 5 March exploring the design of a new permanent mechanism for responding to price shocks once the EPL ends.

Government is committed to delivering clean power by 2030 and will work in tandem with the private sector to unlock investment and deliver new clean infrastructure. Our Contracts for Difference scheme has driven significant investment in renewable energy generation. The Clean Power 2030 Action Plan sets out proposed reforms to ensure the scheme can support the volumes of capacity needed whilst minimising costs to consumers.