Govt windfall tax relief is too little, too late
9 June 2023
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Economics
Press Release
Tax and Fiscal Policy
19 November 2024
Commenting on the government’s decision to ease windfall taxes when oil and gas prices fall below the 20-year average, Andy Mayer, Energy Analyst at the free market think tank the Institute of Economic Affairs, said:
“While any relief of windfall taxes is welcome, this effort is too little, too late. Even with these changes, the windfall tax will continue to make Britain less competitive and destroy investment.
“The Government has defined ‘windfall’ profits as anything above a 20 year average. Whatever ‘windfall’ means to most people, it is clearly not ‘a little bit more than normal’. This sets a precedent for ‘good year’ taxes across the economy, while offering no corresponding lower rates for hard times.
“The government’s assault on the North Sea last year gave the Labour opposition permission to adopt the policies of the hard left, proposing to ban all new drilling. The UK remains a very poor investment prospect until this changes.”
ENDS
Notes to Editors
CONTACT: media@iea.org.uk / 07763 365520
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The IEA is a registered educational charity and independent of all political parties.
“While any relief of windfall taxes is welcome, this effort is too little, too late. Even with these changes, the windfall tax will continue to make Britain less competitive and destroy investment.
“The Government has defined ‘windfall’ profits as anything above a 20 year average. Whatever ‘windfall’ means to most people, it is clearly not ‘a little bit more than normal’. This sets a precedent for ‘good year’ taxes across the economy, while offering no corresponding lower rates for hard times.
“The government’s assault on the North Sea last year gave the Labour opposition permission to adopt the policies of the hard left, proposing to ban all new drilling. The UK remains a very poor investment prospect until this changes.”
ENDS
Notes to Editors
CONTACT: media@iea.org.uk / 07763 365520
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The IEA is a registered educational charity and independent of all political parties.
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