North Sea Oil and Gas Producers: Investment Allowances

Viscount Stansgate Excerpts

Tuesday 7th June 2022 Lords Chamber

[Baroness Penn (Con)]

I do not have that number with me for my noble friend, but I might be able to write to her on it. In terms of VAT receipts, there has not been a VAT windfall this year because every extra pound spent on energy at 5% VAT is not a pound spent on other things where VAT is at 20%. So the net effect of increased energy prices in terms of the Exchequer take for VAT is actually negative.

[Viscount Stansgate (Lab)]

My Lords, the Statement says that the levy

“will be phased out when oil and gas prices return to historically more normal levels”.

Can the Minister tell the House what a “historically … normal” level is?

[Baroness Penn (Con)]

My Lords, that is something which we will judge as we get to it, but I reassure the noble Viscount that there will be a sunset clause in the legislation to ensure that that judgment cannot go on indefinitely.