Oil and Gas

Debate between Claire Coutinho and Richard Tice

Tuesday 24th March 2026 Commons Chamber

[Claire Coutinho (East Surrey) (Con)]

I beg to move,

That this House calls on the Government to remove the Energy Profits Levy, end the ban on new oil and gas licences and approve the Rosebank and Jackdaw fields to increase secure domestic energy supply; recognises that the North Sea provides half of the UK’s gas supply, supports 200,000 skilled jobs across the UK and generates billions of pounds in tax revenue; further recognises that three quarters of the UK’s energy needs are met by oil and gas, that the UK will continue to use oil and gas for decades, and that the North Sea is the UK’s most secure and lowest-carbon source of oil and gas; notes that without action to make the sector more investable, the UK risks importing 82% of its gas by 2035 at higher cost and with higher emissions; and further notes that independent analysis by Stifel shows that the Energy Profits Levy will cost the Treasury more than it raises and that reforming it would generate an additional £25 billion in tax revenues within 10 years.

What do RenewableUK, Scottish Renewables, Greg Jackson from Octopus, the chair of Great British Energy, the unions and the Tony Blair Institute all have in common? They all think that the Labour party has got this wrong; they all think that we should make the most of our oil and gas in the North sea. They are some of the most powerful advocates for clean energy in this country, they are the great and the good of the Labour left, and they all get that shutting down the North sea is an act of economic self-harm—an unforgivable own goal when it comes to Britain’s energy security. The question is: why does the Labour party not get that? Let us go through the arguments, one by one.

First, the Secretary of State has argued that the North sea does not help our energy security because all the oil and gas gets sold abroad. That is rubbish. We use all the gas that we drill in the North sea. It makes up about half our supply. If we do not use our own North sea gas, by 2035, we will be three times more reliant on foreign imports of liquefied natural gas. That is much dirtier foreign gas. Why would we use that when we could use our own? The argument that it does not affect our energy security is pure misinformation from the Secretary of State, and MPs in the House today would be unwise to repeat it. Even the Climate Change Committee acknowledges that we will still need oil and gas for decades to come. If we are going to need them, we should get as much as possible from Britain. That is just common sense.

Secondly, Labour says that maximising our own resources in the North sea makes us more reliant on fossil fuels. That is total rubbish. Producing our own oil and gas has no connection with our consumption of oil and gas. The biggest barrier to electrification is not our oil and gas industry; it is the Labour party, making electricity more and more expensive by piling levies and taxes on to people’s bills. Using electricity to heat our homes or drive our cars can help make us resilient during a price spike, but the problem is that our electricity is too expensive. The Secretary of State, by piling cost after cost on to people’s electricity bills, is making the problem worse.

[Richard Tice (Boston and Skegness) (Reform)]

Does the right hon. Lady agree that the simple thing to do to bring down bills is to scrap net stupid zero, so that we can scrap all the carbon taxes and all the green levies, and all our consumers and households would be better off?

[Claire Coutinho]

We do need to take some of the green taxes and levies off electricity bills. The problem is that if the Government keep making electricity more expensive, no one will want to use it. That is why our policy is the opposite of theirs. We believe that we should make electricity cheap by taking off green taxes and levies, and that has nothing to do with the North sea. Drilling in the North sea does not stop anyone buying an electric car. It does not stop us building nuclear, of which I am a strong advocate, and nor does it stop us building wind or solar for that matter. The Government say that drilling in the North sea leaves us tied to fossil fuels, but why? They need only look to Norway to see that that is not true. It makes the most of its own oil and gas resources, but lots of people drive electric vehicles there. Let us hear none of that argument today.

Thirdly, the Government say that drilling will not help reduce costs for ordinary people. That is economically illiterate rubbish. We are paying tens of billions of pounds to import oil and gas from Norway from the exact same basin we could be drilling ourselves. Destroying our oil and gas industry means some £25 billion in lost tax revenue for the public finances over the next decade. The Government say they are taxing the wealthy. Are they in the real world? They are taxing anybody with a pulse: pensioners, middle earners, small businesses, farmers, drivers—if they breathe, the Government are taxing them, and people are suffering. The Government could instead be getting that tax revenue from a thriving industry.