Kwarteng and Sunak at odds over contingency tax on profit from oil and gas | Oil and gas companies

Government sources played down idea of split wardrobe over a possible contingency tax on energy companies like business secretary Kwasi Kwarteng, strongly rejected the idea a few days after it was put forward by the Chancellor.

In search of for crisis solutions over energy prices and cost of a life more broadly, Rishi Sunak said that the windfall tax advocated by Labor possible if energy companies have not properly reinvested windfall profits.

Asked if he supported the idea of ​​a chancellor, Kwarteng told Sky News: “I have never been a supporter of of contingency taxes. I was very clear on which is public, I think it discourages investment and reason why are we want have investments because they create jobs, create wealth and also gives us energy security”.

Sunak told Mumsnet on Wednesday he was also concerned what a contingency tax can put off investments in new oil and gas production, but added: “If we don’t see this type of investments forward and companies are not going to make these investments in our country and energy security, then of Of course this is what I would look at and nothing ever off Table in these things.”

asked on Sky about the views of Sunak Kwarteng said: “He is the chancellor of treasury, he responsible for tax policy. From my point of view of view want see investment in North Sea”.

When asked if he disagreed with Sunak, Kwarteng said, “My view this is something, and I have spoken about it publicly many times, the contingency tax will discourage investment, and we want see investment.

Treasury and business Department sources dismissed the idea. of split, declaring that both ministers adhere to the same view of do not look for a contingency tax, but do not manage it either out if the energy companies did not provide enough new investments.

In a letter to oil and gas companies also released in mediaQuarteng called on invest them in new domestic energy production way to help bring down accounts.

“In return for UK government continues support for sector, prime ministerchancellor and me want see very clear plan from the oil and gas industry to reinvest profits in North Sea and, more importantly, in clean energy technologies of in future,” He wrote.

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Labor Party, who argued that one-off12-month contingency fee will contribute £1.2bn to broader efforts to reduce electricity bills, dismissed the letter as ineffective.

Ed Miliband, shadow climate change secretary said: “Kwasi Kwarteng’s letter is not worth paper it’s written on for millions of families facing in cost of life crisis. Families want transaction action with bill of exchange crisis, not an empty, offensive article of political spin”.

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