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The Energy Profits Levy Bill - Clause 1
11 July 2022
Lead MP
Simon Clarke
Debate Type
Bill Debate
Tags
EconomyTaxationClimateEnergyBenefits & Welfare
Other Contributors: 14
At a Glance
Simon Clarke raised concerns about the energy profits levy bill - clause 1 in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
Moves the Energy Profits Levy, a temporary 25% surcharge on extraordinary profits from oil and gas extraction to fund cost of living support for UK families. The levy aims to tax unexpected profits fairly while incentivising investment in the North Sea's energy security and net zero transition. It includes an investment allowance that nearly doubles the tax relief available, encouraging firms to invest more. The Bill will raise approximately £5 billion over 12 months, targeting funds towards supporting vulnerable households during high inflation.
Stephen Flynn
SNP
Aberdeen South
Asked for clarity on what the Government regards as normal oil and gas prices, emphasising the need to define this threshold clearly to encourage industry investment. He questioned why such specifics were not included in the Bill text.
Alan Brown
SNP
Clydebank and Milport
Asked for additional clarity on how the Government defines normal prices, echoing concerns about investment certainty without a clear price threshold.
James Murray
Lab Co-op
Ealing North
Supports the amendment, citing soaring profits of oil producers amid a cost-of-living crisis and arguing that it is fair to levy a windfall tax. Criticises the delay in implementing such measures and highlights potential loopholes like multiple home payments for £400 support funds.
Alan Brown
SNP
Kilmarnock and Loudoun
Intervenes to question why Labour is not looking at a wider profits levy on companies like Tesco, which have also seen significant profit increases during the pandemic.
Andrew Bowie
Con
West Aberdeenshire and Kincardine
Argues against the amendment, stating that it would harm successful British industries like oil and gas. He questions Labour's commitment to those employed in these sectors.
Peter Aldous
Con
Waveney
Proposes a levy that aims to support people in the cost of living crisis but also seeks balance for long-term investment. Argues against poorly drafted levies as they could stifle growth and job creation, especially for SMEs and decarbonisation projects.
Stephen Flynn
SNP
Aberdeen South
Supports the principles of the levy but criticises the Government's lack of certainty regarding oil price thresholds for lifting the levy and the absence of incentives for renewable technologies. Also highlights the need for climate change considerations.
Nigel Evans
Party Unspecified
Constituency Unspecified
Congratulates the hon. Member for Wakefield on delivering his maiden speech.
Wera Hobhouse
Lib Dem
Bath
Supports a windfall tax on oil and gas companies but criticises the Government's delayed response. She argues for backdating the levy to last October, stating that more could have been raised if action had been taken earlier. Hobhouse also questions the exemption of companies investing in new exploration and calls for greater incentives for renewable energy investment.
Stephen Flynn
SNP
Aberdeen South
Asked about when Labour's shadow Ministers last met industry representatives in Aberdeen to discuss their views on the windfall tax bill.
Alan Brown
Unidentified Constituency and Party
Requested an intervention but did not make a statement within the provided text.
Lucy Frazer
Con
South East Cambridgeshire
The Government is introducing a temporary, targeted levy to fund cost of living support and encourage companies to invest. The levy will raise £5 billion compared to Labour's proposal of £1.2 billion. Industry representatives have welcomed the investment allowance included in the levy as it makes domestic oil and gas projects more attractive for companies extracting oil and gas in the UK.
Alan Brown
SNP
Central Ayrshire
Asked for clarity on what 'reserve' means regarding the Scottish carbon capture infrastructure cluster, questioning whether it is a tactic to keep the industry in reserve or if it implies that one of the selected projects might fail.
Stephen Flynn
SNP
Aberdeen South
Asked for confirmation on whether the levy would cease if oil prices fall to around $60 or $70 a barrel, seeking clarity on how this affects industry and investment.
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Assessment & feedback
Summary accuracy
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