London Daily

Focus on the big picture.
Wednesday, Sep 03, 2025

Energy firms call for windfall tax to fall with prices

Energy firms call for windfall tax to fall with prices

Energy firms have called on ministers to reduce the windfall tax as oil and gas prices fall, ahead of a package of measures on energy security expected to be announced on Thursday.
Trade body Offshore Energies UK said that "when prices drop, it is fair that the windfall tax should fall away".

It came as the Financial Times reported that ministers are set to offer energy firms relief on windfall taxes.

The Treasury insists it keeps all taxes under review.

Last year, the government introduced a windfall tax on oil and gas firms, to help fund its scheme to lower energy bills for households and businesses.

A windfall tax is used to target firms which benefit from something they were not responsible for. Energy firm profits have soared recently, initially due to rising demand after Covid restrictions were lifted, and then because Russia's invasion of Ukraine raised energy prices.

Oil and gas prices have now come down from their highs.

David Whitehouse, chief executive of Offshore Energies UK, said the windfall tax has "damaged the confidence" of companies to invest in the long-term energy security of the UK.

"If this tax is changed, as conditions and prices have changed, that would be a positive move that would go some way to start rebuilding confidence," he said.

He added it would also spur companies to invest in the UK energy industry and in new technologies such as offshore wind, hydrogen and carbon capture, as well as in jobs.

It comes as the government is expected to set out measures to boost the UK's energy security on Thursday.

A Whitehall source confirmed the plans, which will be set out by the Energy Security Secretary Grant Shapps, will focus on bringing down wholesale electricity prices in the UK and reducing energy bills for consumers and businesses.

The Financial Times reported that ahead of this, ministers have been holding talks with energy firms about adjusting the windfall tax if oil and gas prices dropped below a certain level.

Shadow climate secretary, Ed Miliband said the report was more evidence that next week's announcements would be "Fossil Fuel Thursday".

He said it would see "giveaways to companies already making record profits, for a policy that will make no difference to energy bills or security, fleecing the public whilst trashing the climate."

The Treasury insists it does not comment on speculation.

But said the windfall tax "strikes a balance between funding cost of living support from excess profits while encouraging investment".

It added that "the more investment a firm makes into the UK, the less tax they will pay".
Newsletter

Related Articles

0:00
0:00
Close
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
Israeli Airstrike in Yemen Kills Houthi Prime Minister
Ukrainian Nationalist Politician Andriy Parubiy Assassinated in Lviv
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
×