Kemi Badenoch, a prominent Conservative Party figure, has ignited debate by advocating for the immediate cessation of the windfall tax on oil and gas companies and promoting new North Sea drilling licenses. Speaking at the Scottish Conservative conference in Edinburgh, Badenoch argued the levy, known as the Energy Profits Levy, is detrimental to the industry and energy security.
Badenoch’s Stance on Energy Profits Levy
Kemi Badenoch asserted that the Energy Profits Levy, introduced in May 2022, should be scrapped before its scheduled 2030 expiration. She contended that the tax, initially implemented due to soaring energy prices, is no longer justified as there is "no windfall to tax." Badenoch also highlighted the importance of domestic energy security, particularly in light of global events, and criticised Labour’s stance on the tax, claiming it is "killing the oil and gas industry."
Key Takeaways
- Abolition of Windfall Tax: Badenoch called for the immediate end of the Energy Profits Levy on oil and gas companies.
- New Drilling Licenses: She advocated for the issuance of new licenses for North Sea drilling.
- Energy Security: Badenoch emphasised the critical role of domestic energy production for national security.
- Criticism of Opposition: She accused Labour of harming the oil and gas sector through their tax policies.
Industry and Political Reactions
The oil and gas sector has consistently argued that the windfall tax hinders investment. Russell Findlay, leader of the Scottish Conservatives, echoed Badenoch’s sentiments, describing a failure to continue North Sea drilling as a "complete act of national self-harm." He criticised the SNP and Labour for their perceived hostility towards new exploration.
Conversely, opposition figures have condemned Badenoch’s remarks. Simon Francis of the End Fuel Poverty Coalition labelled them "out of touch," pointing out that the energy industry still generated over £115 billion in profits in 2024, while household energy bills remain significantly high. SNP MSP Kevin Stewart criticised the Tories for economic mismanagement and rising household costs, while Scottish Labour’s Dame Jackie Baillie accused the Conservatives of prioritising oil and gas companies over working people.
