UK Oil Lobby Warns of Investment Slump Due to Tax Increase (1)

The UK’s new tax system for North Sea oil and gas could lead to an investment slump of more than 80%, the industry lobby group warned.

Changes announced by the new government, including a higher windfall tax and removal of an investment allowance, may mean capital spending on UK projects dwindles to £2.3 billion ($3 billion) from 2025 to 2029, down from an estimated £14.1 billion under the current fiscal regime, Offshore Energies UK said Monday.

Chancellor of the Exchequer Rachel Reeves plans to raise the Energy Profits Levy by 3 percentage points in an effort to fill a £22 ...