Oil and Gas Windfall Tax Debate
Full Debate: Read Full DebateBaroness Blake of Leeds
Main Page: Baroness Blake of Leeds (Labour - Life peer)Department Debates - View all Baroness Blake of Leeds's debates with the Department for Energy Security & Net Zero
(1 year, 1 month ago)
Lords ChamberI thank my noble friend for the kind invitation to respond to that. He will understand that I cannot comment on licensing decisions.
My Lords, analysis of the Office for Budget Responsibility data in May this year showed the extent to which oil and gas firms were able to reduce their energy profits levy while still making record profits. Between this loophole, the decision against a 78% rate and the decision not to backdate to catch all the surging profits, it is estimated that over £10 billion of potential tax will be missed between 2022-23 and 2023-24. I ask the Minister: have the Government given any consideration to fixing the levy to deliver the full benefits proposed since these figures came out?
I do not know where the noble Baroness gets her figures. I responded in my previous answer to the question about investment allowances—policies that the Opposition have called for. The energy profits levy is expected to raise about £26 billion and is set at a rate of 75%, which is one of the highest in the world. I realise that the Labour Party’s policy is to tax firms into extinction, but we need to leave them with some profits. Much of the profits of oil and gas companies goes towards pension funds and other shareholders which many pensioners and others rely on for their income.