Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to increase taxes on oil and gas companies to help fund investment in (a) clean energy, (b) home insulation and (c) other climate measures.

The oil and gas industry is currently subject to a headline tax rate of 78%, which includes the 38% Energy Profits Levy, following reforms announced by the government at Autumn Budget 2024.

At the Autumn Budget 2024, the Government announced it would increase the rate of the EPL by 3 percentage points, extend the period the levy applies until 31 March 2030 and abolish an investment allowance which was not available to any other sector, helping to raise funding towards our ambitious clean energy goals. These changes were implemented from 1 November 2024 . The Office for Budget Responsibility expect the oil and gas sector will raise c£16bn in tax receipts between 2025/26 and 2029/30, inclusive of around £11bn from the EPL alone.