The Offshore Energies UK (OEUK) has written to the new government about their serious concerns about tax increases set out by the Treasury, which will have a major impact on investment in the oil and gas industry, risking thousands of jobs and bringing inherent threats to the supply chain.

In a speech to MPs on 29 July, the chancellor announced a clampdown on energy giants, saying that the government will remove ‘unjustifiably generous’ investment allowances from the energy profits levy by abolishing the main 29% investment allowance for qualifying expenditure incurred on or after 1 November 2024.

In the letter signed by the heads of more than 40 companies involved in the sector, the signatories urged Sarah Jones, minister of state for industry and decarbonisation, to reconsider the raft of tax measures announced by the chancellor.