Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of a windfall tax on North Sea oil and gas producers on the cost of living.

The Government recognises the challenges many are facing with pressures on household budgets. We are providing support worth over £20 billion across this financial year and next that will help families with the cost of living. This includes cutting the Universal Credit taper rate and increasing work allowances to make sure work pays, freezing alcohol and fuel duties to keep costs down, as well as the £9.1 billion package announced in February 2022 to help households with rising energy bills.

The Government places additional taxes on the extraction of oil and gas, with companies engaged in the production of oil and gas on the UK Continental Shelf subject to headline tax rates on their profits that are currently more than double those paid by other businesses. To date, the sector has paid more than £375 billion in production taxes.

All taxes are kept under review and any changes are considered and announced by the Chancellor.