Conservative ministers are expected to vote against changes to the energy profits levy (EPL) today, a tax first introduced by the Tory party, a spokesman has said.
The so-called windfall tax was brought in by the Conservative party in 2022 to curb oil and gas profits after prices spiked following Russia’s invasion of Ukraine.
A vote will take place today on the UK government’s latest proposals to increase and extend the windfall tax on oil and gas firms to March 2030.
MPs are expected to vote on resolutions from the Autumn budget today following a budget debate in the House of Commons.
They will vote on three budget resolutions concerning the windfall tax, the person familiar with the matter said.
These include a slated increase of the windfall tax from 35% to 38%, proposals for a year-long extension of the levy to March 2030, and the removal of the 29% investment allowance that provided tax relief for oil and gas exploration.
Former Chancellor Kwasi Kwarteng, one of the architects of the windfall tax, raised doubts following the Autumn Budget announcement as to whether the tax on oil and gas profits will ever end.
New Tory leader Kemi Badenoch has appointed Andrew Bowie, the MP for West Aberdeenshire and Kincardine, as shadow secretary of state for Scotland.
He is expected to keep his role as shadow minister for energy security and net zero.
“Labour are about to surrender our domestic demand to overseas interests,” Bowie, Conservative shadow energy minister for Scotland, said in a statement.
One resolution (Resolution 12) will increase the rate of windfall tax from 35% to 38%, while a second (Resolution 13) will limit investment expenditure relief to omit tax relief on oil and gas exploration.
A third resolution (Resolution 14) will extend the tax’s end date known as the ‘sunset clause’ to 31 March 2030.
Former Chancellor Jeremy Hunt had previously extended the windfall tax to 2029 as part of this year’s spring budget.
“The North Sea oil and gas sector, along with 100,000 Scottish jobs, are facing nothing short of total obliteration by this Labour government,” said Bowie. “The Conservatives will vote against these punishing measures.
“My MP colleagues have agreed with me that there is neither one good reason to extend the EPL any further, nor to tighten the noose around the industry and its employees.
“There is no such thing as a just energy transition when nothing is in place to support that workforce or the communities in which they live.”
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