Budget Resolutions
Debate between Harriet Cross and Iqbal Mohamed(4 days, 5 hours ago)
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Harriet Cross (Gordon and Buchan) (Con)
One of the most incoherent, damaging and destructive decisions that the Government took last week was not to scrap the energy profits levy. The levy will destroy our oil and gas sector, as the Government have been told by so many sources, including the industry itself, the renewables industry, the unions and Offshore Energies UK. The Government know exactly the impact that keeping the EPL will have on jobs, investment, our supply chain and our transition to cleaner renewable energies.
Iqbal Mohamed
Does the hon. Lady agree that the fossil fuel companies have put all their eggs in the basket of carbon-generating fossil fuels, and have not diversified over the past 30, 40 or 50 years? They have no other sources of income. Why should we pay the price for their profligacy?
Harriet Cross
No, I do not agree, because that is factually untrue. Investment in green technologies, including carbon capture, EV charging point roll-outs, wind and solar, is being driven by our oil and gas companies. They will stop investing in green technologies and our domestic supply if we tax them into the ground, and that is exactly what the EPL is doing.
The Labour Government have kept the EPL, which means that our oil and gas companies are being taxed at 78%, which is more than is faced by any other mature basin in the world. They also removed investment allowances, ensuring that our oil and gas companies are the most uncompetitive when they are trying to invest in the North sea. As a result, the companies and the skills that we need for the transition are moving abroad. Across the UK, we are losing tens of thousands of North sea jobs. That impacts every constituency. Do not think it is just north-east Scotland that is impacted; every single hon. Member in this House has oil and gas worker constituents—energy workers—who are losing their jobs today because of the Chancellor’s choice last week to keep the EPL. That impacts everybody.