Business

Oil and gas companies in the North Sea are under government pressure to reinvest profits in domestic energy to lower consumer bills | UK News

Oil and gas companies in the North Sea have come under pressure from the government to reinvest their profits into accelerating domestic energy production as millions of Britons continue to face soaring energy prices.

business secretary Kwasi Kwarteng has written a letter to companies asking them to come up with a clear plan on how to spend their profits to improve manufacturing in the UK.

He has also directed the industry to come up with proposals for clean energy investments at a meeting to be held in the coming weeks.

Despite the Cost of Living Crisis Brits continue to be hit, ministers have not received fresh funding to ease the pressure on families.

In his letter, Mr Kwarteng argued that domestic energy production was vital to the growth of the UK economy and would “reduce consumer bills significantly in the longer term”.

“In return for the UK Government’s continued support for the sector, the Prime Minister, the Chancellor and I want to see a very clear plan by the oil and gas industry to reinvest profits in the North Sea and more importantly in clean energy technologies of the future,” he wrote .

However, Labor has criticized the move, saying the letter is “not worth the paper it is written on” for the millions of people who are facing mounting costs.

Shadow climate change secretary Ed Miliband said the government was “panic” ahead of financial results due next week, which “will show oil and gas producers are seeing rising profits.”

Please use Chrome browser for a more accessible video player

PMQs: Work calls for Windfall Tax

Continue reading: Windfall taxes have been tried before – but could such a move backfire?

“After months of fighting the windfall tax tooth and nail, the government is shattered because it’s losing the argument,” he added.

A windfall tax is a mandatory financial burden imposed by a government on certain industries that have experienced above-average profits due to economic conditions.

Mr Miliband explained that the “only way to really make a difference” is for ministers to introduce a one-off windfall tax on oil and gas company profits.

“Families want action to deal with the bill crisis, not an empty, offensive piece of political twist,” he said.

Ministers have opposed the introduction of the tax, however Chancellor Rishi Sunak opened the door to move earlier this week.

Oil and gas companies in the North Sea are under government pressure to reinvest profits in domestic energy to lower consumer bills | UK News

Source link Oil and gas companies in the North Sea are under government pressure to reinvest profits in domestic energy to lower consumer bills | UK News

Back to top button