The rate was announced by the chancellor as part of a list of measures to help households yield under pressure from rising energy bills. Sunak unveiled the £ 21bn package as the cost of living crisis continues to take center stage in politics.
The financial aid, including a one-off payment of £ 650 to the UK’s eight million poorest households and a £ 400 discount on rising energy bills for consumers, will be funded in part by an “extraordinary tax”. “to the big oil and gas companies. .
These companies will pay a 25% tax on profits, but will receive a 90% tax deduction for any profits invested.
However, a Shell spokesman said the measure jeopardizes the future of investment in North Sea oil and gas exploration.
Although the UK earns less from North Sea oil than in previous years, domestic oil and gas production still directly accounts for 1.2 per cent of UK gross domestic product in 2019.
A Shell spokesman said the company understands the “concern for millions of people about how high energy costs are challenging their home budgets.”
They added: “But at the same time, we need to keep investing to ensure the supply of oil and gas that the UK needs today, while allocating future spending on the low-carbon energy we want to build for the future.
“However, in its current form, the rate creates uncertainty about the investment climate for North Sea oil and gas for the coming years.
“And in the longer term, the proposed tax breaks for investment do not extend to the renewable energy system that we want to drive in the UK and in which we invest very substantially. When we make plans for the next decade and beyond , we need certainty “.
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He added: “We know that homes are being hit hard right now.
“We will offer significant support to the British people.”
This comes after UK inflation reached nine per cent earlier this month, with forecasts showing that this figure is likely to double by the end of the summer.
This was the fastest rising rate for consumers for four decades.
However, Deirdre Michie, who heads the Offshore Energy industry body, warned that the extraordinary tax is likely to “undermine investment”.
He told Sky News that the UK should “really focus on its security of energy supply and the energy transition” and provide the “investor confidence needed to continue investing in oil and gas and prop up the energy transition”. “.
But some of those who tuned in to Mr. Sunak thought the measures were not “sufficient” to help those fleeing the border with the rising cost of living.
Angie Comerford, head of Hebburn Helps Community Foodbank, told the Newcastle Chronicle: “It’s not enough. It won’t even cover what gas and electricity will be for people during the year.
“Again, it looks like the government is just making fun of the little people who are fighting. It’s just one more kick in the gut. It’s not getting better.”