Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make it her policy to (a) end funding for the Ring Fence Expenditure Supplement for oil and gas companies and (b) redirect any savings to international climate finance.

Ring Fence Expenditure Supplement (RFES) maintains the time value of oil and gas exploration, appraisal and development costs. This recognises that oil and gas projects have high costs before production begins, but no production income to set these costs against. By maintaining the time value of these costs when they are used against production income in future years, RFES supports investment in the sector by ensuring companies receive an appropriate deduction for their expenditure. The government currently has no plans to change this aspect of the tax system, but keeps all of its taxes under review as a matter of course.

This Government is engaged in international discussions regarding ways to mobilise finance at the scale needed to respond to the climate crisis. This includes mobilising funding from non-traditional donors, the private sector, philanthropies and through innovative financing.