Concerns Over Energy Tax Changes

That the Parliament notes with concern research from the University of Aberdeen, led by globally recognised energy economist, Professor Alex Kemp, which looks at the prospective effects of the changes to the Energy Profits Levy (EPL) that were announced in the UK Government’s budget on 30 October 2024; understands that this analysis predicts that the removal and reduction of the investment and capital allowances will have an even greater effect on prospective returns on investment than increasing the headline rate of the EPL to 78%, leading to cancelled projects and reduced investment, with the unintended consequence of accelerating decommissioning and ultimately decelerating the energy transition to net zero; further understands that the research highlights that the UK currently relies on overseas sources for over 50% of oil and gas to meet its primary energy needs, and that this figure is set to increase to 2050, according to projections from the Climate Change Committee and the North Sea Transition Authority; believes that this research emphasises the need for the UK Government to take a more pragmatic approach to the North Sea oil and gas sector, and calls on the Chancellor of the Exchequer to rethink these changes, and for the Secretary of State for Energy Security and Net Zero to start engaging with the industry properly.