The Budget contains some measures supportive of the green transition and some that are challenging for the North Sea’s oil and gas businesses. Taken overall the Budget increases the tax burden on the offshore industry but there will be some relief that this increase is not quite as much as had been feared. The proof of this is in the difference between the amount of tax to be raised in the Labour manifesto (£1.2bn average per annum) and the predicted amounts in the Red Book (about £400m average per annum). The Chancellor has stuck to her guns on increasing and extending the Energy Profits Levy but backed away from the possibility of removing relief for normal capital expenditure.
The good news is that the additional allowance for decarbonisation investment remains. Together with a measure to ease the transition of assets such as pipelines wells and rigs from hydrocarbon production...
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Home >Articles > Autumn Budget 2024: impact on the energy and resources sector
Autumn Budget 2024: impact on the energy and resources sector
The Budget contains some measures supportive of the green transition and some that are challenging for the North Sea’s oil and gas businesses. Taken overall the Budget increases the tax burden on the offshore industry but there will be some relief that this increase is not quite as much as had been feared. The proof of this is in the difference between the amount of tax to be raised in the Labour manifesto (£1.2bn average per annum) and the predicted amounts in the Red Book (about £400m average per annum). The Chancellor has stuck to her guns on increasing and extending the Energy Profits Levy but backed away from the possibility of removing relief for normal capital expenditure.
The good news is that the additional allowance for decarbonisation investment remains. Together with a measure to ease the transition of assets such as pipelines wells and rigs from hydrocarbon production...
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