Finance Bill

Debate between Andrew Snowden and Adrian Ramsay

Committee of the whole House
Tuesday 10th December 2024 Commons Chamber

[Adrian Ramsay (Waveney Valley) (Green)]

I would like to echo the arguments made by the hon. Members for Earley and Woodley (Yuan Yang) and for Bath (Wera Hobhouse) . I rise to speak to whether clause 18 and schedule 3 should stand part of the Bill. I argue that both should be omitted, to remove the proposed new tax relief for carbon capture and storage installations as currently drafted. The tax regime for oil and gas is riddled with reliefs, exemptions and loopholes. The windfall tax introduced by the last Government was widely reported, but was slightly less reported was the increased tax relief that went along with it, which allowed oil and gas companies to deduct 91% of their capital investment costs from their tax bill.

We are now many years into an escalating climate crisis, and one that the oil companies have known they were causing since at least 1977. There is absolutely no excuse for public subsidies that incentivise fossil fuel companies to expand their operations. So while I welcome the increase in the rate of the energy profits levy and the reduction of the investment allowance, I want to highlight the fact that, because of other reliefs that still exist, North sea oil and gas companies will still be able to offset 84% of capital expenditure against tax in relation to their expansion of operations.

[Mr Snowden]

Does the hon. Gentleman accept that capital reliefs are about attracting investment that creates jobs and secures energy security for this country? If UK countries are to make such investments, we have to be competitive in the global market. If we do not make those investments, what does he think will happen to the industry and the 100,000 jobs that go with it?