Early removal of UK windfall tax could cost Treasury £8.6bn by 2030, say NGOs

Campaigners from Global Witness contend that ending the UK’s windfall tax on oil and gas firms ahead of schedule could reduce Treasury receipts by up to £8.6 billion by 2030, based on scenarios where oil prices stay near $100 a barrel, and could generate no revenue if prices drop to $70. They criticize energy companies for lobbying for tax breaks after profiting from recent geopolitical tensions. Offshore Energies UK argues that an earlier introduction of the oil and gas revenue levy, together with a more pragmatic licensing regime, would enable 111 additional projects on the UK Continental Shelf and draw about £50 billion of private capital.

The government maintains the new levy will give investors certainty and support jobs, while tax expert Clare Aston says the design must be revised to match current revenue levels. Voices from the End Fuel Poverty Coalition and Greenpeace UK echo the call to keep the windfall tax in place to fund climate-related spending.