The windfall tax levied on Britain’s energy sector has come under scrutiny following the news that Petrofac has filed for administration, placing thousands of jobs in the North Sea at risk.
Since 2022, the Energy Profits Levy has targeted oil and gas companies operating in the North Sea, initially adding a 25 per cent charge on top of the existing tax regime but this has jumped in stages to 38 per cent.
Energy sector representatives have warned that this means companies are paying an effective tax rate of 78 per cent, with this hiked business cost being passed onto consumers with higher bills.
Should the windfall tax on North Sea oil and gas be scrapped?
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