Readout of the Chancellor of the Exchequer Jeremy Hunt’s roundtable with the oil and gas industry
The Chancellor Jeremy Hunt heard directly from oil and gas companies in a Fiscal Forum meeting in Edinburgh this morning (9 December).
During discussions, he highlighted the importance of energy security in the aftermath of Russia’s war with Ukraine, and said that the Government continues to recognise the importance of the sector and the value of its investments.
He stressed that this was both as a key asset for supporting UK energy independence and ensuring a sustainable transition to Net Zero. He explained that is why the more investment a firm makes into the UK, the less tax they pay.
The Chancellor emphasised that the Autumn Statement was focused on securing fiscal sustainability after the two economic shocks of a global pandemic and a war in Europe. It required difficult decisions, and meant he was asking those with the broadest shoulders to contribute more.
He highlighted the sector’s contribution through the Energy Profits Levy, just over £40 billion between 2022-23 and 2027-28, which will help contribute to the funding needed to deliver the ongoing support schemes to businesses and households in light of high energy prices.
He also heard attendees’ views on the impact of the changes to the Energy Profits Levy.
The Chancellor welcomed the constructive discussions and said he looked forward to further opportunities for Treasury engagement with the sector, including through more regular Fiscal Forum meetings in future.
Further information
List of roundtable attendees: - OEUK
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North Sea Transition Authority
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BP
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Serica Energy
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Shell
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Equinor
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Total Energies
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Ithaca Energy
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TAQA
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Harbour Energy
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Brindex
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Spirit Energy
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Neptune Energy
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Repsol