Thousands of U.K. jobs and billions in future tax revenue are at risk unless the government reforms the Energy Profits Levy (EPL), industry group Offshore Energies UK (OEUK) said ahead of the
Thousands of U.K. jobs and billions in future tax revenue are at risk unless the government reforms the Energy Profits Levy (EPL), industry group Offshore Energies UK (OEUK) said ahead of the Autumn Statement.
OEUK said statistical modelling shows that revising the 78% levy in 2026 instead of waiting for its scheduled expiry in 2030 would increase total tax receipts from £32.9 billion ($43.2 billion) to $63.9 billion (£48.6 billion) over the next decade, driven by higher employment, stronger supply-chain activity and greater investment in domestic oil and gas production.
The group, which represents more than 400 companies across oil, gas, offshore wind, carbon capture and hydrogen, said that earlier reform could unlock $65.7 billion (£50 billion) of U.K. projects, support tens of thousands of jobs and improve long-term energy security. It said the revised tax scheme would pay for itself within five years.
Industry data compiled by OEUK shows 111 projects containing 3.25 billion barrels of reserves are economically viable with the right fiscal conditions, enough for the UK to meet at least half of its oil and gas needs to 2050 from domestic supplies. The group estimates these projects could generate $98.6 billion (£75 billion) in economic value
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