Conservative leader Kemi Badenoch has called to end the windfall tax on oil and gas, urging an immediate halt to the Energy Profits Levy. Speaking at the Scottish Conservative conference in Edinburgh, she argued the tax harms investment and energy security. The levy, introduced in 2022, currently lasts until 2030 but faces fierce opposition from industry leaders.
Badenoch insisted the policy must change, claiming oil and gas firms no longer see windfall profits. She emphasized that recent Middle East conflicts highlight the need for domestic energy independence. Additionally, she vowed to lift the ban on new North Sea drilling licenses if the Tories regain power.
The call to end the windfall tax on oil and gas has drawn sharp criticism from opposition parties and campaigners. Simon Francis of the End Fuel Poverty Coalition called her remarks “out of touch,” noting energy giants still made £115bn in profits last year. Meanwhile, households struggle with bills far higher than pre-crisis levels.
Scottish Labour’s deputy leader, Dame Jackie Baillie, accused the Tories of siding with corporations over workers. SNP MSP Kevin Stewart also slammed the proposal, blaming Conservative policies for economic turmoil. Despite backlash, Scottish Tory leader Russell Findlay backed Badenoch, warning that blocking new drilling would be “national self-harm.”
The Energy Profits Levy was designed to tax excess oil and gas profits after prices surged during the Ukraine war. However, critics argue it stifles investment in domestic energy production. Badenoch’s push to end the windfall tax on oil and gas aligns with industry demands for stability.
With Labour planning to extend the levy, the debate over North Sea drilling will likely intensify. As energy security becomes a key election issue, Badenoch’s stance could reshape Conservative energy policy. For now, the battle over taxing fossil fuel profits shows no signs of slowing.
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