Scrapping North Sea windfall tax would not reduce UK energy bills, say experts
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Experts argue that eliminating the UK's windfall tax on North Sea oil and gas companies would not lower energy bills for consumers. The tax, implemented in 2022 after Russia's invasion of Ukraine caused energy prices to surge, targets producer profits, not output. While proponents claim scrapping the tax would boost North Sea investment and competitiveness, economists contend that companies already have ample profits for investment due to rising oil prices, now around $100 a barrel amid Middle East tensions. They also note that the UK's tax rate is comparable to Norway's. The windfall tax has generated £12 billion, but this is less than the £56 billion spent by the government to help consumers during the 2022-23 energy crisis.
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