Labour has today [TUESDAY] revealed that the largest energy
companies have already recorded a staggering £7 billion in
profits in 2023, equivalent to £60 million every per day.
This comes as refuses to introduce a proper
windfall tax on oil and gas giants to help British families
struggling with the cost of living.
Labour has demanded that the government use those funds to bring
in a freeze on Council Tax, with recent ONS figures confirm for
the first time that 2022 was a record year for North Sea Oil
and Gas profits.
New analysis shows that these record profits have continued into
2023, with a total of £60 million of profit being reported
in the North Sea per day.
, Labour Leader, has urged
Rishi Sunak’s government to implement an urgent freeze, with
assurance that the Labour Party would support where needed to get
the policy agreed and in place quickly.
The loopholes in Rishi Sunak’s Energy Profits Levy give generous
and untargeted handouts for companies, leaving billions on the
table when the money could be used to help working families with
the cost of living.
MP, Labour’s Shadow Energy and Net Zero
Secretary, said:
“While families face the crunch from soaring bills, these new
figures confirm yet again that the Conservatives are refusing to
do the fair and right thing and bring in a proper Windfall Tax on
Oil and Gas giants to help freeze council tax this year.
“That’s the choice Labour would make ahead of these local
elections, because we are on the side of working people.
“A vote for Labour on 4th May is a vote to Build a Better Britain
for working people.”
Ends
Notes
- The government introduced a new tax break when it introduced
the Energy Profits Levy, giving oil and gas giants billions back
in tax relief on investment many were planning anyway. Labour
called for this tax break on the Energy Profits Levy to be
scrapped, as part of its plan for a proper windfall tax.
- Labour would increase the rate of the windfall tax to match
Norway’s rate of 78%, backdate the windfall tax so that surging
profits from January 2022 are included and end the loophole that
means billions are handed back to oil and gas giants.
- Together these changes would raise £10.4bn over 2022/23 and
2023/24, using figures published by the OBR in their March 2023
Economic and Fiscal Outlook that forecast the amount of energy
profits levy receipts and north sea investment in those years.
This would be used to fund the one-year council tax freeze which
would cost around £2.7 billion. Economic and fiscal
outlook - March 2023 - Office for Budget Responsibility
(obr.uk)
Methodology
- As of 30.04.23, there have been 120 days in 2023.
- Estimates of profits uses OBR data on capital expenditure in
the North Sea, rate of tax relief, and amount paid in Energy
profits levy to estimate taxable profits and taxable profits
before allowances and reliefs. (OBR EFO March 2023:
https://obr.uk/efo/economic-and-fiscal-outlook-march-2023/)
