Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the impact of the Investment Allowance on the investment commitments made by industry in the North Sea Transition Deal.

The North Sea Transition Deal is a transformative partnership between the UK Government and the UK’s offshore oil and gas sector. It will harness the power of the UK offshore oil and gas industry to deliver net-zero by 2050, and in the process, could unlock up to £16bn in investment, secure up to 40,000 energy jobs, reduce emissions by up to 60mn metric tons and deliver new business and trade opportunities to support our transition to a low carbon future.

The recently introduced Energy Profits Levy includes an Investment Allowance. Government has published a Tax Information and Impact Note (TIIN) on the Energy Profits Levy changes announced at the Autumn Statement. This is available here: https://www.gov.uk/government/publications/changes-to-the-energy-oil-and-gas-profits-levy/energy-oil-and-gas-profits-levy. The TIIN sets out that the levy is not expected to have a significant macroeconomic impact on the level of business investment.