“A windfall tax during an energy crisis on the companies investing in increasing the supply of British oil and gas would be lunacy.
“These British companies have already promised to invest 25 times what the tax might raise. They also already pay more than their fair share, with the 21 per cent higher company taxes in the North Sea. A windfall tax would reduce investment, making supply problems even worse.
“A windfall tax can only be justified if there’s some previous policy failure that resulted in supernormal profits. This doesn’t apply here, with oil and gas companies benefiting from global market prices caused by supply shortages. This has been made worse for consumers by UK government policy failures, including restricting domestic drilling and the failure to build gas reserves.”
Notes to editors
Contact: Emily Carver, Head of Media, 07715 942 731
IEA spokespeople are available for interview and further comment.