Jeremy Hunt has disclosed strategies aimed at easing the Government’s windfall tax on oil and gas companies, following alerts about a potential large-scale job loss in the North Sea.
Corroborating a report from the Telegraph, the Chancellor declared this morning that there will be a reduction in the windfall tax imposed on oil and gas companies if prices stabilize for a significant duration.
This action is in response to the industry’s alerts that companies have begun reducing investment in the UK, following the introduction of the tax.
Exchequer Secretary to the Treasury, Gareth Davies, stated: “We initially intervened to help, but we cannot allow our energy resources to continually depend on volatile petrostate leaders like Putin. That’s why it’s paramount that we ensure investment in our local supply, safeguarding the tens of thousands of British jobs associated with it.
It would be exceptionally reckless to cease North Sea production abruptly. Without oil and gas from British territory, our dependence on overseas imports would increase, jeopardizing our supply security.”
