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Withdraw mailist from shell11/1/2022 ![]() ![]() “We have a responsibility to safely and efficiently decommission legacy assets, which requires significant expenditure. “The tax payments, which were set out in our voluntary Payments to Government report, published this spring, relate to a tax relief framework that both Conservative and Labour governments have had in place to provide the oil and gas industry with long term investment clarity. “To bring down energy bills for good, we need Labour’s plan for a green energy sprint for home-grown power, and our 10 year warm homes plan to cut bills for 19 million cold, draughty homes,” he added. Miliband said the government was “asleep at the wheel” when it came to solving the energy crisis, and called for a withdrawal of tax plans which will hand “£4bn of public money” to oil and gas companies, using the money to help families instead. ![]() However, under the scheme, oil and gas companies can claim a 91p tax saving for every £1 they invest in new energy in the UK. In May, then-chancellor Rishi Sunak announced that a new windfall tax – or “energy profits levy” – would be levied on oil and gas companies’ profits. Labour said the £700m payout shows “the absurdity of the government failing to backdate their windfall tax and leaving months of windfall profits untaxed”. The analysis shows that millions of pounds in payments from the UK government have been given to oil and gas companies over the past six years. This is despite BP and Shell paying £17bn in tax in other jurisdictions like the US and Norway. Labour said oil companies in the UK have benefited from a “uniquely generous” tax system which saw Shell pay no tax on its 2021 profits thanks to tax refunds. Meanwhile, millions of people have been plunged into fuel poverty by the soaring cost of energy bills, even before a planned rise to the price cap which could see bills rise to £4,200 in January. The analysis comes as oil companies record sky-high profits due to the rising cost of energy, with the chief financial officer of BP recently commenting that the company will have “more money than they know what to do with” if prices stay high. They added that they expect the energy profits levy to raise “an extra £5 billion in its first year to help pay for our £37 billion package to help families with rising costs”. Big Issue teams up with Gordon Brown to call for emergency budget to fight October price cap riseĪ government spokesperson said that the UK’s tax regime “ensures the oil and gas industry pays billions in taxes every year which in turn go towards paying for our vital public services”.Four reasons why net zero is a solution – not a problem – for the energy crisis.‘What a load of bull’: Martin Lewis rubbishes claims government can’t act on energy bills crisis.Meanwhile, new “poorly designed tax breaks” are set to hand back “billions more” to these companies in the coming years even as millions struggle to pay energy bills, Labour said.Įd Miliband, Labour’s shadow climate change and net zero minister, said it was “obscene” that the government was planning further tax breaks for oil companies as families are facing a “cost of living emergency”. Shell and BP have received £700m in government handouts for their oil and gas production since 2016 despite raking in record profits, analysis by the Labour Party shows. ![]()
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