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STATEMENT: Chancellor looking into further help for UK oil and gas industry – ODI response to 2017 budget

Written by Shelagh Whitley

The Chancellor Philip Hammond has today announced he will look into further help for the North Sea oil and gas sector, which could include further tax incentives to help keep fields operating for longer.

Shelagh Whitley, Head of the Climate and Energy Programme at the Overseas Development Institute, said: ‘The announcement that the UK will investigate options for further tax breaks comes in spite of warnings about risks of stranded assets from the governor of the Bank of England, and calls from leading investors to phase out all fossil fuel subsidies by 2020.

‘Existing subsidies for oil and gas companies have led to a net cost to the UK government, with £4.8 billion in rebates due between 2015 and 2021. Yet these tax breaks have not been able to protect jobs and undermine the UK’s commitment to phase out fossil fuel subsidies.

‘The Chancellor must acknowledge that the just transition to a low-carbon future offers a much larger economic benefit to the UK than continuing to chase damaging and expensive fossil fuel production.’

ENDS

Notes to editors

For more information or to arrange an interview with Shelagh Whitley please contact James Rush on [email protected] or +44 (0)7808 791265