MP welcomes spring budget but concerns raised over Energy Profits Levy extension

Banff and Buchan MP David Duguid welcomed measures in the spring budget but is disappointed the Energy Profits Levy (EPL) is being extended.

Mr Duguid hailed decisions to cut national insurance and freeze fuel and whisky duty.

However, it was announced by Chancellor Jeremy Hunt that the windfall tax on oil and gas firms has been extended by 12 months.

The 35 per cent surcharge on profits due to high energy prices had been scheduled to end in March 2028.

Mr Duguid said: “I welcome measures in the budget including the cut to national insurance and a freeze on fuel and whisky duty but I am disappointed that the Energy Profits Levy (EPL) is being extended.

“The Conservative approach to energy policy is still far more sensible than any other party.

“Labour would raise the EPL rate and remove the investment allowances as well as ban any new exploration licences if they came into power.

“SNP’s approach is even less certain as they say one thing to energy companies one day, then something completely different to their Scottish Green coalition partners – and have never rolled back from their stated, ‘presumption against new oil and gas exploration’.

“I was against a windfall tax from the beginning but I welcomed that the EPL came with investment allowances and it helped fund support for energy bills.

“As energy prices return to normal, the EPL shouldn’t continue at the expense of our energy security and our transition to net zero, which is why I welcomed the introduction of the Energy Security Investment Mechanism (ESIM) that creates a floor price.

“I will continue to have discussions with the Chancellor and the industry on the EPL and legislating for the ESIM."

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