Finance (No. 2) Bill

Neale Hanvey Excerpts

2nd reading
Wednesday 17th April 2024 Commons Chamber

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)]

The amendment in my name sought to address the failure of the Bill to bring in tax measures to ensure the continuation of oil and gas activity in Scotland, including at Grangemouth oil refinery. Almost 90% of levy revenue comes from Scotland, but there is precious little by way of investment in that part of the economy. A good example of that is the UK Government’s denial of £80 million to save Grangemouth, while at the same time signing a loan guarantee of £600 million for INEOS, for activity in Antwerp and Belgium. According to the response to a written question from my hon. Friend the Member for East Lothian (Kenny MacAskill), the UK Government have not even assessed the potential supply of that activity.

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Come on—ask a question.

[Neale Hanvey]

Can the Minister not see the perversity of spending Scottish revenue abroad while jobs in Scotland are wilfully put at risk by this Government?

[Nigel Huddleston]

I could not disagree more with the hon. Member’s premise. If anybody has shown support for the sector, this Government have. We have shown huge support for the sector, in an appropriate and proportionate way, while also encouraging the industry to decarbonise. As I said, we are taking fiscally responsible decisions to extend the energy profits levy for one year. We are also providing confidence and certainty to businesses in the sector by legislating for an energy profits levy price floor. That is what is in the Bill. That will effectively abolish the energy profits levy if the six-month average for both oil and gas is at or below a set threshold. Doing so was the sector’s main ask in the 2024 spring Budget, and it could help to unlock around £9 billion in uncommitted investment spend, according to Offshore Energies UK, which welcomed the decision. I am sorry that he feels unable to welcome it as well.

Those measures will ensure that investment in our economy continues to grow. I will now outline some measures in the Bill’s property package. The Bill will cut the higher rate of capital gains tax on residential property from 28% to 24%, encouraging landlords and second home owners to sell their properties, which could increase revenues because there would be more transactions.