Sunday, December 22, 2024

Ed Miliband’s oil tax ‘puts thousands of British jobs at risk’

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Gas output in particular could fall 80pc by 2030, leaving the UK increasingly dependent on imports.

Critics argue that such moves are premature because the UK remains highly reliant on both oil and gas for 75pc of its total energy.

About 25m homes rely on gas for heating and hot water, gas-fired power stations make up about 35pc of UK electricity and there are still around 32m petrol and diesel cars on UK roads.

David Whitehouse, chief executive of OEUK, said the UK would need oil and gas for many years to come – and UK supplies would be cheaper, more secure and have a smaller carbon footprint than imports.

He said: “There is no simple choice between oil and gas or renewables. The reality is that we will need both to support these companies, power the country and grow the economy.

“This letter shows the level of concern felt by supply chain companies about the Government’s new tax proposals.

“If oil and gas operators scale back activity as a result of the proposed windfall tax changes it will have a direct impact on our world-class supply chain.”

A Treasury spokesman said: “We are extending and increasing the Energy Profits Levy, and closing its core investment allowance, to ensure oil and gas companies contribute more towards our clean energy transition.

“We will work with the sector to ensure the transition over the next decades does not jeopardise workers, starting with Great British Energy, which is set to create thousands of jobs.”

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