Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the increase to the Energy Profits Levy announced in the Autumn Statement 2024 on (a) investment, (b) employment and (c) operations in the oil and gas sector.

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 government also confirmed an extension to the period the levy applies from 31 March 2029 until 31 March 2030. To support jobs in future and existing industries, including in the supply chain, the government decided to make no additional changes to the availability of capital allowances in the EPL. Following these changes the overall level of tax relief available to the oil and gas sector for capital investments is £84.25 for every £100 of investment, with additional relief available for decarbonisation expenditure.

At the time of the announcements the government carefully considered the impact of these EPL changes. The summary of impacts for these changes can be found here: https://www.gov.uk/government/publications/energy-profits-levy-reforms-2024.