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north sea oil and gas

MPs look at tax on North Sea oil and gas production

4 May 2011

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MPs hold a one off public hearing today with the Oil and Gas industry and Ministers from the Department of Energy and Climate Change and the Treasury this afternoon to discuss concerns about the surprise windfall tax on North Sea oil and gas producers announced in the Budget.

The 2011 Budget announced that the Supplementary Charge on UK oil and gas production would increase from 20 to 32 per cent whilst the cost of fuel duty would be decreased by 1p per litre.

Witnesses

At 3.15 pm the Energy and Climate Change Committee will hear from:

  • Oil and Gas UK
  • Oil and Gas Independents’ Association

At 4.15 pm the Committee will hear from:

  • Rt Hon Chris Huhne MP, Secretary of State, Department of Energy and Climate Change and officials
  • Justine Greening MP, Economic Secretary, HM Treasury.

Timings are approximate. 

What topics will be covered?

  • what will be the impact of the tax increase on exploration activity, production, jobs and exports in the North Sea oil and gas industry?
  • what impact will the tax increase have on investor confidence?
  • what will be the consequences of the tax increase on the price of petrol at the fuel pump?

Further information