Economy Update

Baroness Bennett of Manor Castle Excerpts

Thursday 26th May 2022 Lords Chamber

[Baroness Penn (Con)]

I completely understand the point the noble Lord is making and have to apologise; I tried to get an answer in anticipation to this being raised. I do not have one, but I am very happy to write. I reassure him that those on prepayment meters will get the £400 rebate delivered by a different mechanism. We are ensuring that they receive it.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I join almost the whole House in welcoming the belated arrival of the energy profits levy, albeit at an inadequate level. I note that the Statement spends almost as much time on the new investment allowance, through which, for every £1 an oil or gas company invests, it gets 90% back in tax relief. From the Treasury factsheet accompanying this, it appears that this tax offset applies only to investment in the oil and gas sector. The Statement makes no reference to renewables. I believe a report is out in the Independent now expressing astonishment that it appears that oil and gas companies, if they chose to invest in renewables, would not get the tax relief on them. Can the Minister confirm that there will be the same tax relief on renewables as the Government are offering on oil and gas?

[Baroness Penn (Con)]

My Lords, this is a levy on oil and gas producers, but the Government have also been clear that in the medium term, in terms of our energy security, new investment in those sectors will be needed. The investment relief has been designed to ensure that this is not deterred.