Thank you for contacting me about a ‘windfall tax’ on oil and gas companies’ profits.
Oil and gas companies already pay tax at twice the level of other UK businesses as they are subject to a higher tax regime. In my opinion there is a limit to how high any tax rate can go before it actually costs the Treasury and consumers and makes us more dependent on imports. However, I can see a short-term case for helping the most vulnerable with their energy bills.
This week the Chancellor confirmed that the Government will offer an additional £15 billion of financial support including a package which will benefit the lowest income
households most. This is in addition to the £9 billion of support announced in March. Part of the March support is £150 in cash to every home in Band A-D, which is being paid out by local councils this month.
The help for bill payers will be underpinned by a temporary energy profit levy on oil and gas firms.
I have attached a factsheet for constituents about help with the cost of living. If you or, anyone you know is struggling, its contents might be useful.
Thank you very much for raising your concerns with me.