Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an estimate of how much tax relief oil producers will receive for the development of the Rosebank oil field via the North Sea Investment Allowance; and what steps she is taking to ensure this funding scheme aligns with the Government's net-zero commitments.

The government’s fiscal approach in relation to the upstream oil and gas sector balances attracting investment with ensuring a fair return for the nation in exchange for the use of its resources. In last year’s Autumn Budget, the government increased the duration and rate of the Energy Profits Levy (EPL), a temporary additional tax on upstream oil and gas profits. The government also abolished an investment allowance in the EPL regime which was unique to oil and gas and not available to any other sector. These changes are expected to raise £2.3bn which will help support the transition to clean energy, enhance energy security and independence, and provide sustainable jobs for the future.

The regime includes several tax reliefs and allowances, including in relation to investments which reduce domestic production emissions to support the sector’s transition to net zero.

Whilst it would not be appropriate for the government to comment on the tax affairs of individual companies, estimates of tax revenues and the cost of tax reliefs are publicly available from the Office for Budget Responsibility (OBR) and the government respectively.

The OBR’s most recent forecast of tax revenues from the oil and gas sector is available at the following link: https://obr.uk/efo/economic-and-fiscal-outlook-october-2024/. Similarly, where data is available, estimates of the cost of tax reliefs applicable to the oil and gas sector are at the following link: https://www.gov.uk/government/collections/tax-relief-statistics.