Windfall Tax: Oil, Gas and Energy Companies

Lord Bilimoria Excerpts

Tuesday 22nd February 2022 Lords Chamber

[Baroness Penn (Con)]

My noble friend is right. The North Sea transition deal is a global exemplar of how the Government can work in partnership with the offshore oil and gas industry to achieve a managed energy transition.

[Lord Bilimoria (CB)]

My Lords, like the noble Lord, Lord Naseby, and as president of the CBI, we feel that a windfall tax is not efficient, as it puts investments at risk for companies that are key to our transition to net zero. Does the Government agree? Secondly, do they agree that this is absolutely the wrong time for our tax burden to be at its highest level for 70 years? Businesses have suffered so much through the pandemic; will this not stifle what is already a fragile recovery?

[Baroness Penn (Con)]

My Lords, the Government agree that an abrupt tax change could put investment in this sector at risk. While the overall tax burden is high, we have had to take certain decisions to aid our recovery from the pandemic. We saw the Government put in place so much support during the pandemic, but we need to recover, for example by getting on top of NHS waiting lists.