In an open letter more than 40 organisations said the confirmed increase to the Energy Profits Levy (EPL) to 78 per cent, the removal of the investment allowance and a reduction in capital allowances risks thousands of jobs, and the companies critical to the UK Government’s industrial strategy and progress towards its net-zero targets.

The signatories include manufacturing, engineering and technology companies with a broad footprint of offices and workshops across the whole of UK, employing tens of thousands of people whose jobs depend on oil and gas, wind, hydrogen and carbon capture projects.

The letter, issued by Offshore Energies UK (OEUK) that represents more than 400 companies, urges the Government to demonstrate its commitment to working in partnership by inviting the sector to join the Industrial Strategy Council and Supply Chain Task Force. This partnership with the sector will realise the full benefits of a homegrown energy transition, supported by jobs, skills and companies anchored in the UK. The letter also explains why the supply chain is concerned and impacted by the EPL, which is a tax paid by operators.

The letter states: “For our companies, this surprise risks operators – big and small – further scaling back or postponing their investment plans in response. The ramifications will be felt throughout the supply chain, through jobs, and the communities this industry supports, both directly and indirectly.”

Commenting, David Whitehouse, CEO, Offshore Energies UK said: “If oil and gas operators scale back activity as a result of the proposed changes to the Energy Profit Levy, it has a direct impact on our world class supply chain. The impact of the EPL changes will be felt much more widely than oil and gas operators who pay the tax directly.”

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