Politics

Ministers pressure North Sea oil and gas firms to invest profits to help tackle cost-of-living crisis



North Sea oil and fuel corporations should ship a transparent plan to reinvest income to speed up home manufacturing, ministers have demanded as they face stress to deal with the cost-of-living disaster.

Business Secretary Kwasi Kwarteng has written to the business saying it should additionally set out plans for funding in clear power throughout a gathering within the coming weeks.

Soaring power payments is without doubt one of the main issues the Government is battling to alleviate, however ministers will not be being given recent funding to ease the ache.

Mr Kwarteng instructed the business investing in home-grown power manufacturing is crucial to develop the British financial system and “crucially bring down consumer bills in the long-term”.

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“In return for the UK Government’s ongoing support for the sector, the Prime Minister, the Chancellor and I want to see a very clear plan from the oil and gas industry to reinvest profits in the North Sea and, importantly, in the clean energy technologies of the future,” he wrote.

“At our next meeting in coming weeks, I would like you to set out how you will reinvest profits, double down on investments in the clean energy transition and importantly accelerate and maximise domestic oil and gas production.”

Labour stated the Government is “rattled” as oil and fuel producers make “soaring profits” as payments rocket.

Shadow local weather change secretary Ed Miliband stated: “Kwasi Kwarteng’s letter is not worth the paper it is written on for millions of families facing the cost of living crisis.

“Families want action to deal with the bills crisis, not a vacuous, insulting piece of political spin.

“The only way to actually make a difference is to do the right, fair and principled thing and impose a one-off windfall tax on oil and gas producers’ profits to provide real help to families now and put in place a green energy sprint in the years ahead.”

Ministers have been resisting imposing the windfall tax, however Chancellor Rishi Sunak opened the door to the transfer earlier this week.

“If we don’t see that type of investment coming forward and if the companies are not going to make those investments in our country and in our energy security, then of course that’s something I would look at,” he stated.

Additional reporting by Press Association



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