Taxpayer subsidy to energy giants ‘could exceed 100p in the pound’ if Hunt increases windfall tax

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Uplift director Tessa Khan said: “When UK households are facing soaring energy bills, and many millions will be forced into fuel poverty this winter, it is unconscionable that this government is effectively handing billions in taxpayer subsidies to oil and gas companies raking in record profits. Mr Sunak’s Energy Profits Levy included an additional “capital allowance” relief of 100 per cent of the 25p levy and an “investment allowance” of 80 per cent – a total of 45p for every pound invested, bringing the overall relief to 91.25p in the pound. “We also want to see the sector reinvest its profits to support the economy, jobs, and our energy security, which is why the more investment a firm makes into the UK, the less tax they will pay.” Trade body Offshore Energies UK said oil and gas producers were already paying taxes of 40 per cent on their profits, which was increased to 65 per cent by the Energy Profits Levy and would rise to an eye-watering total of 75 per cent if the windfall tax hits 35 per cent. They warned that a “supertax” of this kind would hit investment, undermining the energy security of the UK, which still relies on gas and oil for 75 per cent of its energy.