OEUK Urges UK to Move Oil and Gas Revenue Levy to 2027, Citing £14.9 Billion Gain
RegulationMacroCommodity
Offshore Energies UK said a new UK fiscal regime starting in 2027 could deliver an additional £14.9 billion, or $20 billion, to Britain's revenues, and called on the government to bring forward a tax change currently planned for 2030. The industry group wants the Oil and Gas Revenue Levy, a price-triggered mechanism set to replace the Energy Profits Levy from 2030, to be introduced from January 2027. Under the proposal, the levy would impose a 35% charge on revenues when a barrel of oil is above $90 and a therm of gas is above 90p, on top of the ring-fenced corporation tax rate of 30% and the supplementary charge of 10%. OEUK said implementing the levy in 2027 rather than 2030 would deliver £2.4 billion more than the current trajectory over the next decade, with a further £12.6 billion from additional payroll taxes, totalling £14.9 billion. Chief Executive David Whitehouse said the Energy Profits Levy continues to drive away investment from the UK Continental Shelf, and that with the right Budget choices the sector can unlock billions of pounds of private investment and deliver more tax revenue for the Exchequer.
