Hiking energy tax will hit growth, oil industry says

Published On Sep 1, 2024, 7:30 PM

The UK's oil and gas sector warns that an increase in the windfall tax from 35% to 38% on November 1 will negatively impact economic growth. Offshore Energies UK (OEUK) estimates this could result in a £13 billion loss to the UK economy from 2025-2029 and jeopardizes 35,000 jobs due to decreased investment in the industry. The government argues the tax increase is necessary, but industry leaders believe it undermines future investment and growth ambitions.

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Stock Forecasts

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Negative

With the impending rise in windfall tax, investment in the UK oil and gas sector is likely to decline sharply, potentially leading to fewer project developments and job losses. This could negatively impact companies involved in oil and gas extraction and related services, leading to lower stock performance in the short to medium term.

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