Asked by: Claire Coutinho (Conservative - East Surrey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the potential impact of changes in the cost of (a) electricity, (b) goods and (c) services arising from (i) direct and (ii) indirect support to renewable energy on VAT receipts in each year since 2002.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to tackling climate change. The Climate Change Act (2008) made the UK the first country to introduce a legally binding, long-term emissions reduction target. Since then, the UK has halved its emissions, having cut them by around 53% between 1990 and 2023.
The Government has announced a national mission to make Britain a clean energy superpower and accelerate our journey to net zero.
As the Government's official independent forecaster, it is for the OBR to consider and report on the fiscal and economic impacts of Government policy decisions made by the Government.
Asked by: Claire Coutinho (Conservative - East Surrey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of ending the investment allowance within the Energy Profits Levy on investment in the (a) economy and (b) energy transition.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In July, the Government announced its intention to remove the Energy Profits Levy’s (EPL) 29% main investment allowance. Further details of final policy and impacts will be announced at Budget.
A key outcome of the government’s clean energy mission will be greater energy security and independence. The government will achieve a phased and responsible transition by taking a proportionate approach that ensures the oil and gas sector continues to play a role whilst contributing more towards our clean energy transition.