A Labour spokesperson said Friday evening that the party’s plans would “create good jobs in all parts of the country” and that the opposition represented the “party of business and stability for their investments”
“We have been consistent that a proper windfall tax means raising the rate of the windfall tax to match the rate in Norway, abolishing the investment allowances inside the windfall tax, and that these changes account for the vast majority we would raise from a windfall tax,” the spokesperson added. “Our windfall tax will only apply while there are windfall profits being made. This is fair and proportionate.”
‘Stunned’
Other industry groups also voiced concerns. Robin Allan, chair of the Association of British Independent Exploration Companies (BRINDEX) said Labour’s plans were “an attack on the oil and gas sector and its 200,000 workers.”
A third industry figure, granted anonymity to speak frankly, said companies had been “stunned” by Labour’s plans on Thursday and felt “betrayed” after the party had made efforts to forge better relations with fossil fuel companies.
However, the investment allowance tax break has drawn criticism from others. Former Conservative Cabinet minister Alok Sharma has questioned whether it is consistent with the government’s commitments at the COP28 climate summit to phase-out subsidies for oil and gas.
OEUK and the government insist the tax relief is not a subsidy.
This story was updated with further reporting.
