Oil and gas tax loophole is “immoral”, says Bath MP.

21 November 2022

The autumn statement, delivered on Thursday the 17th of November, reveals that a tax loophole for oil and gas companies is still in place.

Despite a higher headline tax rate of 35% as part of the Energy Profits Levy, Investment allowance stands at 29% for such companies. This will continue to allow oil and gas giants to offset taxes while ordinary taxpayers are footing the bill.

These measures follow recent reports that Shell has paid zero windfall tax in the UK, despite making record global profits of nearly $30bn so far this year.

Meanwhile, recently revealed census data shows that 45.9% of B&NES households are deprived in at least one dimension. This is set to be higher after the onset of the crisis, and higher still after this budget according to the recent OBR report.

The report, published ahead of the autumn statement, warned that real household disposable income per person will fall more than 7% over the next two years. This is the biggest fall on record, taking incomes down to 2013 levels.

Liberal Democrat Climate Change Spokesperson and Bath MP Wera Hobhouse has said such record profits put on stark display the need to eliminate these tax loopholes to help support families in the cost of living crisis.

Wera Hobhouse, MP for Bath, also commented:

“It is simply not right that as ordinary families choose between heating and eating, fearing that the situation will get worse come the end of April, gas and oil giants continue to be let off the hook.

“Award winning hospitality businesses in Bath are being forced to close because of energy costs while fossil fuel companies are thriving. Eye-watering gas and oil revenues must be used to contribute to helping those in need of support.

“Budget after budget has let ordinary people down. It is completely shameful that this Conservative Government is now placing the cost of their chaos onto the backs of the public.”